01-25-2015, 06:08 AM
I'm still skeptical. They say it's about the low costs but seriously now: they are basically targeting young and not-so-wealthy investors, they themselves say that the $500 minimum is too much. So how many people, with a couple hundred dollars to invest, will pay for their premium services? None. How many of those same people will use their 5% leverage? What will they use as collateral to the leverage? Their portfolio right? So if that is worth $500 and they give 50% leverage on that then it's $250 borrowed... at 5% that will bring their profit to $12.5 per year. So after tax that will be less than a dollar / month earned from a small investor leveraging their portfolio with their ridiculously expensive 5% rate.
I still don't see how they are planning on creating a sustainable, profitable company. The leverage idea is of course good and will bring in SOME profit but not nearly enough to have a meaningful effect. Then it's all up to the premium membership...
AHH and of course I should have checked their fees first. Hmm lets see... $35 for trades to Europe and Canada, $15 to modify/cancel a trade outside of the US market, if you are not using ACH then fund transfers will be $25 for USA and $50 for foreign customers. And a few other things. So yeah, for anyone outside of the USA or looking to invest to markets outside of the USA this is quickly looking to become the most expensive broker around.
I still don't see how they are planning on creating a sustainable, profitable company. The leverage idea is of course good and will bring in SOME profit but not nearly enough to have a meaningful effect. Then it's all up to the premium membership...
AHH and of course I should have checked their fees first. Hmm lets see... $35 for trades to Europe and Canada, $15 to modify/cancel a trade outside of the US market, if you are not using ACH then fund transfers will be $25 for USA and $50 for foreign customers. And a few other things. So yeah, for anyone outside of the USA or looking to invest to markets outside of the USA this is quickly looking to become the most expensive broker around.