shouldiuse.io

VERDICT

Should I use StartEngine?

Not disclosed - startengine.com

Depends. Fine for risk-tolerant investors making small, disposable-cash bets on startups they believe in. Wrong for anyone needing liquidity, income, or reliable returns — 77 exits from 6,375 funded companies tells the story.

Confidence

Medium. Based on ~40 public sources: Reddit, Trustpilot, BBB, ComplaintsBoard, FINRA coverage, and StartEngine case studies.

Ratings

  • Value for money
  • Ease of use
  • Feature depth
  • Support quality
  • Security posture

Pricing

3.5% per investment

Investor fees

ModelNot disclosed
Monthly fees3.5%
HardwareNot disclosed

Best for

  • Risk-tolerant retail investors
  • Small startup bets with disposable cash
  • Founders raising Regulation CF capital

Not for

  • Anyone needing liquidity or income
  • Retirement or emergency savings
  • Investors expecting reliable returns
  • People who won't eat 3.5% fees on losers

Gotchas - check before you buy

high

3.5% fee on every purchase; withdrawal fees can also apply.

high

Extreme illiquidity: 77 exits from 6,375 fundings — assume you can never sell.

medium

2022 FINRA enforcement settlement for compliance failures.

medium

Some longtime investors quit, citing the platform not defending their interests.

Pros and cons

Pros

  • Everyday investors can buy startup equity without accredited status
  • Large track record: 6,375 companies funded
  • Secondary trading available through its ATS
  • $760M+ raised through the platform
  • Security program penetration-tested via Cobalt

Cons

  • Only 77 exits from 6,375 fundings — most bets never pay off
  • 3.5% fee added to every investment
  • Fined by FINRA in 2022 for regulatory violations
  • Investments are speculative and illiquid by the platform's own disclaimer

Sources & method

Analyzed 9/21/2026 - 10 sources - No known vulnerabilities found in the sources reviewed.

official x2review x5security x1news x2

Key stats

  • Value for money: 2/5

    Rating

  • 3.5% per investment

    Starting price

  • 10

    Sources

  • Analyzed

  • Value for money: 2/5. 3.5% fees on mostly illiquid, loss-prone bets
  • Ease of use: 3/5. Trustpilot 4/5, but complaints logged
  • Feature depth: 4/5. Reg CF raises, ATS trading, transfer agent services
  • Support quality: 2/5. 38 complaints on ComplaintsBoard
  • Security posture: 3/5. Pen-tested via Cobalt; 2022 FINRA action
  • 4/5 Trustpilot rating Trustpilot customer reviews
  • 6,375 Companies funded Only 77 exits
  • 3.5% Investor fee Added on top of every investment
  • 2014 Founded $760M+ raised via platform

Pricing

Investor fees

3.5% per investment

  • Charged on top of share price
  • Withdrawal fees may apply
  • Minimum investment varies by company

Security

No known vulnerabilities found in the sources reviewed.

What users say

Opinion is sharply split: Trustpilot shows 4/5, but many Reddit investors call the returns dismal and one post bluntly labels the platform a scam.

“StartEngine is a SCAM and NO ONE should use them”
Reddit, r/investing
“So is StartEngine just flushing money down the toilet?”
Reddit, r/investing
“StartEngine Trading very Low, Great value imo.”
Reddit, r/StartEngine

Companies that use it

  • Kara Water
  • Holidaily Brewing
  • Island Brands
  • Legion M
  • MyRadar
Full analysis

Based on ~40 public sources: Reddit, Trustpilot, BBB, ComplaintsBoard, FINRA coverage, and StartEngine case studies.

Legit regulated platform, but startup bets here are illiquid lottery tickets with 3.5% fees. Risk money only.

Methodology

Based on ~40 public sources: Reddit, Trustpilot, BBB, ComplaintsBoard, FINRA coverage, and StartEngine case studies.

Sources

  1. review
  2. review
  3. review
  4. review
  5. review
  6. news
  7. StartEngine fees overviewthecrowdspace.com
    news
  8. security
  9. official
  10. official

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