Many investors know that there is money to be made in the stock market, but don’t think they can afford to get started, are scared of fees, or think the stock market is just too complicated. One great company has emerged that completely changes that, and I gave it a try today. For brand new investors and seasoned investors alike, I am excited to introduce you to Loyal3.
In my post about how the stock market works, I shared an example of how to make a stock trade. In that example I shared an example of buying $200 of a new stock while paying a $8.95 trade fee. To make the math easy, buying and selling a stock costs you about $20. If you only buy $200 of a stock, your investment has to rise by 10% just to cover the fees.
Loyal3 has no fees. Let me say that again in case you missed it. You can invest with Loyal3 without paying a cent in fees. With Loyal3, 100% of your investment goes to the stock. There are no fees to buy or sell.
WOW! I was totally blown away by this, so I did some digging to find out how they do it. Loyal3 works with a handful of consumer focused companies, plus a few that they picked, who treat their relationship with investors at Loyal3 as an advertising expense.
To get their brand in front of you and on your mind, they are willing to pay for the fees. Loyal3 passes that saving on to all of us retail investors. I won’t complain!
Invest in Companies You Understand
Warren Buffet always says he only invests in companies he understands. I think that is an admirable trait. Loyal3 focuses on companies that you interact with every day. Loyal3 doesn’t offer every company listed on the stock market, but you probably recognize most of the list.
Companies like Buffet’s Berkshire Hatahway are on the list, as are companies like Microsoft, Coca Cola, Apple, Starbucks, and other consumer focus companies.
How it Works
The system is very simple and easy to use. You don’t have to worry about limits, stops, and other complex order terminology. You just click on the stock you want, pick an amount, and confirm. Loyal3 takes care of the rest.
The company executes batch trades a few times a day, and you get the stock, whether it is a full or partial share, at the market price during the next batch.
When I bought my first stock on Loyal3, it took less than five minutes.
My First Investment with Loyal3
Obviously I had to try it out. A fee free investment is not something a guy like me would pass up. To give it a try, I decided to buy $10 worth of Starbucks shares.
First, you choose the company you want to buy from the list of Loyal3 investment options.
Next, you review the current company share price and pick your investment amount.
After filling out the very simple form, you confirm the trade.
For your first trade, you have to fill out a customer profile including social security number for tax reporting. That is standard at any brokerage company.
Remember, this is a real stock investment. Your investment is not guaranteed to increase in value and the value will fluctuate daily. Only invest in stocks if you have your debt and retirement savings in order first.