I recently just discovered yet another new financial platform that caught my attention. Perhaps I am spreading myself to thin and over diversifying myself but I am a firm believer in taking advantage of the sources I have access to. I get really bothered when I feel like I am possibly missing out on a situation to make a few cents or save a few cents. In this instance I am saving between $6.99-$9.99 in commission fees through a platform called Loyal3. Loyal3 has apparently been around for at least two solid years since 2013 but this is the first I am finding out about them. As usual like most of the major players in today’s world they are based out of San Francisco. Which is what surprised me because I live in San Francisco and have never heard anything about these guys.
Loyal3 developed a platform free of commission fees for people new to investing, in what is known as batch investing. You don’t sign up with Loyal3 to do margin trading because it simply won’t work. I see Loyal3 as a solid platform for people interested in being able to buy into some of their favorite blue chip companies. I recently just deposited $20 into the App to see what would happen and decided I wanted to buy $10 in Apple and $10 in Disney, two Blue Chips. But I now own .0787 shares in Apple and .0925 shares in Disney. You are able to buy fractional shares in the companies and orders process as soon as a lump sum of money is placed for an order with other peoples funds. Again these are companies I wouldn’t even sell if I was rich I would hold onto these guys for at least 20-30 years. I see Loyal3 as something young and old investors could buy into. They seem to put a lot of stress on IPOs but until I get to experience an IPO with these guys I have no comment. I pay close attention to companies going public so if they are as good as they say they are I should be a happy investor. My journey in LOYAL3 has just begun though and I will continue to track my progress and thoughts on the platform in my blog.
A more recent company to launch a similar platform but still different platform to LOYAL3 is Robinhood. Robinhood is another commission free platform designed for younger millennials and new investors trying to get into the market. I signed up for Robinhood on the pre sign up list a long time ago and was granted access upon its official release awhile ago. I linked my bank account to the app quickly and transfered a $1 into the platform just to see what would happen and to have my account verified and linked. I have not actually used Robinhood yet but know I will in the future so I keep the app readily available for me to use. The problem I have with Robinhood is the user interface could be a bit cleaner and when comparing it LOYAL3 I think it fails in the aspect that Blue Chip stocks are still unattainable for younger millennials who don’t have more than $2500-$5000 to even look at if they are lucky. I would be curious to see where most of the users on Robinhoods platform live because I am assuming most of them live in the major tech cities like San Francisco, Seattle, Los Angeles, and New York. While many of Loyal3’s users can be found in many suburbs and smaller cities. But Robinhood excels where Loyal3 fails in the fact that you have access to any single stock on the market. So buying smaller companies floating between $2-$50 is something millennials can happily buy into free of commissions.
Both companies are helping disrupt the way we invest and on a side note I thought it was funny finding out that Charles Schwabs min. investment for the new Intelligent Portfolios was $5000.