Nanalyze

Trade “Some” Stocks for Free With Loyal3

In the past, we’ve talked about various platforms that help make investing more accessible to retail investors. Interactive Brokers lets you easily trade stocks on foreign exchanges. Platforms like Sharepost, Onepost, and Kickstarter will allow you to invest in disruptive technology startups at the ground level. One other brokerage platform that we have been using for about a year now is Loyal3 which truly lets you invest in stocks for free but of course just “some” stocks. While it doesn’t necessarily allow you to invest in disruptive technology, it’s well worth taking a closer look at so you can offset those more speculative investments with some solid brands.

Founded in 2008, Loyal3 has taken in $50 million so far to develop their platform which is currently only available to U.S. investors. Opening an account is pain free and the platform is very intuitive and usable. There are 66 stocks available to trade on the platform and you can actually participate in IPOs before they begin trading. Unlike most brokers, LOYAL3 offers the ability to trade fractional shares online. Invest as little as $10 in your favorite brands. There is also no account minimum except for IPO participation which is a $350 minimum. Loyal3 hopes that you invest in stocks to hold for the long term and that you inherit some brand loyalty as a result. If you’re a DGI investor, there’s definitely some champions you’ll want to be holding on the platform like McDonald’s, Coca-Cola, Walmart, VFC Corp, Pepsi, Target, and Walmart. For tech investors, you’ve got big names like Apple, Google, Microsoft, Amazon, and Intel.

So why are trades free? There has to be a catch right? Well, actually there is no catch. Trades on Loyal3 are free because the company has established relationships with the companies whose stocks are available on the platform and they hope that through equity ownership, investors will be more likely to purchase brands that they own. The platform is as much about brand building as it is about investing in stocks.

For disruptive technology investors however, there aren’t many good candidates on the platform to invest in. In a past article, we highlighted a handful of large cap “nanotech” companies that could be well positioned to benefit from the advances of nanotechnology, but we’re a long way from seeing any real impact to the bottom line. The only one of these that trades on Loyal3 currently is Intel (INTC).

However, one other appealing offer the Loyal3 platform does provide disruptive technology investors is the ability to invest in IPOs at the same time and price as Wall Street, fee-free on LOYAL3. As an example, we were recently able to participate in the GoPro IPO and profited well as a result. We’re hoping to see some disruptive technology IPOs soon on the Loyal3 platform, for example, some of the exciting healthcare unicorns like  Proteus23andMe, Nanthealth, or Theranos.

Robo advisors like Betterment provide a low-risk way to invest that we recommend for beginner and advanced investors alike. You can open an account with no minimums and contribute as often and as much as you'd like. Don't have cash on hand to invest? You can roll over your 401(k) or IRA in just 60 seconds. Click here to get started.

  • Carl Mahoney

    How do I get Loyal3

    • Nanalyze

      Funny thing Carl but just this last week they announced they are closing shop! That’s unfortunate because we loved their platform.

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