With Gatsby, you can trade options on companies and ETFs. Gatsby also integrates social trading, letting you seek out trading ideas from other traders through the Gatsby mobile app.Gatsby Rewards are coming in Spring 2020. Gatsby customers will be able to earn reward points with each trade and then redeem their rewards for retail store gift cards. You can get on the waiting list at trygatsby.com.
Gatsby restricts options trading to Level 2 investment types. In other words, you can only buying long puts and call. That means you won’t be able to do more advanced options trading like multi-leg debit and credit spreads. The upside to this restriction is that its usually easy for most investors to get approved for Level 2 options trading. The Level 2 options approval application will include questions related to: These are common questions across all brokerages for Level 2 options approval.
Gatsby defaults to market orders. But, for options trading, you’ll most likely want to stick with limit orders. Spreads (the difference between the bid and ask prices) can be large on options. Going in at the market price can mean getting in a terrible price. When you set a limit (order), you’re restricting the price you’ll get, which usually means you’ll get a better price than a market order or the order won’t fill at all.Gatsby market orders also use 1.1x buying power. This is to cover slippage in price. There is a limit on the maximum number of contracts per trade. For buy orders, it is 349. For sell orders, it is 1,500. $500,000 is the maximum dollar amount per order.
Gatsby’s support is strictly through email — [email protected] There’s no mailing address, phone number, or chat. So if fast customer service or multiple contact options is important to you, you might want to try a different options trading platform.
Gatsby is available on both the iOS and Android devices. The iOS app has a 4.2/5 rating from 50 people and the Android app has a 4.4/5 rating out of 92 votes.
You can download the Gatsby app at trygatsby.com to open an account. Gatsby says that it only takes a few minutes to get your account up and running. And you can open an account with as little as $10.
Investments are not FDIC insured. However, SIPC insurance coverage is offered through Gatsby’s brokerage provider, ViewTrade Securities, Inc. SIPC is to investments what the FDIC is to deposit accounts. SIPC doesn’t cover your investment losses due to regular trading. However, it protects your investments in the event the brokerage firm fails. SIPC investments are protected up to $500,000, which includes a $250,000 limit for cash.