The Finovate Debuts series introduces new Finovate alums. Today’s feature is Loyal3, which demonstrated its mobile IPO investment platform at FinovateFall 2014.
Loyal3’s stock marketplace makes it easy to invest in stocks and IPOs. The simple user interface and lack of fees appeal to novice investors. It can also serve as a great tool for those looking to invest in IPOs at the same time and price as institutional investors.
Stats:
- Founded October 2008
- 130 employees
- $75+ million in funding
Stock investing
Users start by browsing the 64 company stocks available on the platform.
Stocks can be purchased in $10 increments. This fractional ownership allows for more diversification at a lower buy-in. If investors are feeling bullish, they have the option to purchase as much as $2,500 of a single stock.
The portfolio below shows a total of $188 divided among eight different stocks, including Apple and Amazon, which have notoriously high share prices.
Aside from the fractional share feature, Loyal3 also has:
- Zero fees to buy and sell stock
- No minimum account balances
- Easy-to-open brokerage account
- Automatic monthly investments that prompt recurring stock purchases
One of the ways Loyal3 is able to provide fee-free stock trades is by submitting orders in a batch at the end of the day. Because of the delay, the price quoted at the time the order is placed is not always the final purchase price.
IPO investing
Loyal3 offers access to IPOs at the same price and time as large investors and institutions.
Here’s how it works:
1) Reserve an IPO stock
Users choose the amount of stock they would like to purchase. However, since shares are limited, investors may not receive the full amount.
2) Confirm order
After the price of the IPO is determined, Loyal3 sends SMS and email notifications to investors and gives them two hours to confirm or cancel their order. They can invest as little as $10 and as much as $10,000 per IPO.
Mobile
Loyal3 launched its mobile interface at FinovateFall 2014. It provides on-the-go access to stock trading and instant IPO notifications.
