Dennis Hammer is a writer and finance nerd with six years of investing experience. He writes about personal finance for Wealthsimple. Dennis also manages his own investment portfolio and has funded several businesses in the past. Dennis holds a Bachelor's degree from the University of Connecticut.
If you’re looking to invest in newly public companies, you might come across TradeUP, a mobile investing platform for new investors. In this article, we’ll explain what TradeUP is, why investors like it, and how to buy shares.Get started with Wealthsimple Trade. Sign up today and start building your portfolio.
What is TradeUP?
TradeUP Global Corp is a mobile trading application that enables you to manage your stocks and ETFs. It offers numerous features, including:
Integrated charts to analyze the market with real time information
Advanced quotes so you’re always trading with current prices
An overhead view of your entire portfolio, including custom watchlists
Custom alerts, screeners, economic calendars, and streaming news
Paper trading (virtual cash) to help you learn how to trade and refine your strategy using real market data
TradeUP’s fees are minimal or $0 in most cases. When you download the mobile app, open an account, and deposit some funds, TradeUP will give you free stock. If your initial deposit is $3,000 or more, you’ll receive a $50 bonus. Have an investment account with another broker? TradeUP will reimburse some transfer fees if you move it over to TradeUP from another broker.
Additionally, TradeUP offers a web platform with a variety of tools and resources to trade, watch the market, place orders, and keep tabs on your portfolio.
Brokerage services in TradeUP are offered by Marsco Investment Corporation, a broker-dealer registered with the SEC and member of FINRA and SIPC.
What is TradeUp’s current market cap?
As of May, 2021, TradeUP’s market cap is $52.15 million. We use market cap to gauge the value of a company’s stock. This metric refers to the total dollar value of a company’s outstanding shares, including all shares owned by company officials, private investors, and stockholders.
When is the TradeUp IPO Taking Place?
Featured Snippet: What is an IPO? An IPO—or initial public offering—is when a privately owned company lists its shares on a stock exchange, making them available for purchase to the general public. It’s often referred to as “going public.”
TradeUP’s IPO took place on April 29, 2021, under the ticker symbol TUGCU. This is when it became open for trading on the Nasdaq to the general public. It’s offering price was $10 per share.
Why are people interested in buying TradeUp shares?
TradeUP is an exciting new player in the retail investment space. Their rates are competitive and they’re user acquisition program is generous (bonuses and reimbursed transfer fees).
Investors like that TradeUP’s platform is simple and easy to use. This is critical for new traders who have avoided other platforms that they find intimidating. In this sense, TradeUP is helping expand the pool of potential traders.
Investors also like that the company is led by Jianwei Li, the founder and Managing Partner of Zhencheng Capital, and Lei Huang, who currently serves as the CEO of US Tiger Securities. Both have plenty of experience running and growing financial companies. Jianwei Li successfully took another company, TradeUP Acquisition (UPTDU), through an IPO recently.
How can I buy shares of TradeUp?
Since TradeUp has already completed its IPO, shares are available to purchase. In order to trade its stock, you should follow these four steps:
Step 1: Open a brokerage account
Buying and selling stocks requires a trading account with a brokerage that accepts retail investors. If you already have a trading account that allows you to buy individual stocks, you are all set to buy shares of TradeUP.
If you are looking for a brokerage, we recommend choosing one that meets the following conditions:
Easy to understand fee structure (if there are any costs)
A simple trading platform that you understand
Access to a wide range of securities in case you want to expand your portfolio
Once your account is open, you’ll need to deposit some money. You’ll use this fund to purchase stocks and other securities.
Step 2: Choose the number of shares to buy
Before you execute a trade, you’ll need to decide how many shares of TradeUP you’d like to buy. You can determine this number by starting with the amount you want to invest.
Divide the total investment amount by the current TradeUP share price. For example, if the price is $10 a share and you want to invest $1,200, you can purchase 120 shares ($1,2500 / $10 = 120).
A word of warning. Trading stocks always come with risks. While we hope that the value of your shares increase, there’s always the chance they will fall. It’s important to diversify your portfolio with different kinds of securities and never invest more than you can afford to lose.
Step 3: Choose your order type
When you try to make a trade on your brokerage, you’ll be forced to choose an order type. There are two options here:
A market order is an order to trade the stock at the current price when the order reaches the exchange. Once you submit the order, you’ll pay the price at the moment of execution, which can vary slightly than what you expect. Popular stocks tend to execute close to the order price. (We can’t guarantee that, however.)
For example, let’s say TradeUP costs $15 a share. After placing a market order, you’ll pay something close to $15 with a possible slight variation. The benefit here is that you get your shares right away.
The other type of trade is a limit order. This is an order to buy or sell a stock at a specific price. The transaction only executes when it meets your criteria. This gives you control over how much you spend, but you may have to wait to receive your shares (especially if your trade price is significantly different from the current price).
For example, let’s say TradeUP costs $15 a share. A limit order to buy at $10 will only execute when the price falls to $10 or lower. A limit order to sell at $20 will only execute when the price rises to $20 or higher.
Step 4: Execute the trade
The final step is to submit your order through your brokerage. The broker will deduct the funds from your account and purchase the shares for you. If the broker can’t fulfill the order that day, it may leave the order open indefinitely or cancel the order when the markets close at the end of day. Check your brokerage settings to learn how it handles unfulfilled orders.
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