Loyal3: An Easy and Inexpensive Way to Start Investing
With the uncertain condition of our economy, many people now are thinking about different strategies to save funds and secure their future. And one of the options that is growing in popularity now is by investing. But here’s the thing: So many people out there want to invest, but they cannot start because they think they don’t have enough funds to start it and have no any idea how.
Well, it’s true that the world of investing is intimidating. If you’re a beginner, you’ll easily get overwhelmed with the thousands of stocks and mutual funds to choose from. You’ll also get easily confused with the so many terms that are used. There are terms like asset allocation, expense ratio, indexed fund, and midcap that are really confusing but important for all investors to understand. And this is not to mention the large amount of money you need to deposit before you can even start. Yes, there are a lot of barriers. But investing is still a must if you want to grow your money. If you’re worrying about the price tag, though, there’s one solution that we recommend, and that’s Loyal3.
What is Loyal3?
Loyal3 is a San Francisco-based online stock broker that helps beginners and average investors get started investing without spending a bunch of money on enrollment, transactions, or commissions. In fact, you can start purchasing and selling stocks in the brands you love without any fees. That means that if you purchase $100 worth of stocks, 100 percent of it will go toward your buying stock. This is unlike when you hire other brokerage firm, as most brokers charge $5-$10 commissions or more for each trade. And the best thing about Loyal3 is you can invest in a stock for as little as $10.
How does it work?
You may be wondering how this company works given that they offer free investing service.
Well in Loyal3, your trade is combined with many other trades. Say for instance, you want to buy $50 in Mc Donald’s; you login into your Loyal3 account, select the stock you want to purchase, and enter the amount you want to invest. That $50 of yours will be combined with other trades to obtain full stocks. This is called batching. The disadvantage is that it could take a day or more for your transaction to go through since the transaction is not on a per share cost basis. In Loyal3, you buy fractional shares; that’s why you can invest for as low as $10. When there are already enough orders to purchase a group of shares in the stock exchanges, your transaction will then go through.
Loyal3 doesn’t charge fees because it doesn’t complete your transaction immediately, unlike when you hire a brokerage firm. They only trade everyone’s shares once or twice a day, so they are able to reduce their operating expenses. In addition, Loyal3 partners with other companies who want you to hold equity in their business. These companies pay Loyal3 for the service they provide.
If you’re looking for a great way to start investing and become exposed in the world of finance, then Loyal3 is an ideal choice. But of course in the long run, this company shouldn’t be the only place you put your hard-earned cash. As you become more educated and smarter in trading, you should seek for more challenging options and more profitable opportunities.
For more information about Loyal3 and other investing opportunities, visit rethinkretired.com.