Is this open for investors outside the USA? LLC?
Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
321–330 of 434 posts
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#322Earlier quoted context omitted.
This is always the answer that gets posted. AIUI, though, the decent-interest-rate accounts are only available from online-only banks, and as recently as last year, I was required to visit a branch (…3, as it was…) in order to conduct some transactions, largely due to credit cards having a daily limit. (I also sort of loathe the idea of needing to continually update a bunch of ACH information every year while I chase…
Fidelity can get you a better rate with their treasury money market, which works for Bill pay / etc. They have branches in most major US cities I think.
https://www.fidelity.com/spend-save/fidelity-cash-management...
(Note that SPAXX was up to about 5% 7-day yield within the last few months, IIRC, but currently 4.25%.)
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#323Earlier quoted context omitted.
the T+1 timer can be easily reset every day, until the market price reverts back to the Citadel's modeled price at which it is profitable/least losses for them to send order to lit market
What are the mechanics of that? Let's say I buy a share of F on Monday, my brokerage routes it to Citadel, because PFOF. On Tuesday, I expect to get a share of F delivered at close of business, because T + 1. If Citadel doesn't deliver on Tuesday, what happens? Are you suggesting they would continue to not deliver the share I purchased for several days, by saying oh yeah, we'll get toast0 his shares tomorrow? That wo…
you will receive share in your name in a database, but physically it will be stored "in the street name" in the depositary house, of which there is only one.
plus even if there is only a single share authorized for stock exchange, there will be more than one in the float, due to synthetic shares: created when shares are borrowed and then reshorted, created to support derivative market (selling calls and buying puts). ALso borrow/rehypothecation mechanics is recursive, since shares are fungible, I can recursively re-borrow and re-short the same share, creating synthetic shares out of thin air, supported by nothing other than some bytes in the database somewhere, and not physical shares
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#324Earlier quoted context omitted.
Fidelity can get you a better rate with their treasury money market, which works for Bill pay / etc. They have branches in most major US cities I think.
seconding. Recently transitioned to fidelity's cash management account and have done a cash advance on the debit card at a local, non-affiliated bank with 0 fees involved. Checks the boxes for me, personally.
You don't even need to use the official CMA, just a regular old brokerage account ticks basically all the boxes (debit card, checks, bill pay, etc)
But yea there's a CMA too
ostensibly the CMA offers better atm reimbursement, but then the brokerage debit card also does, so that's weird.
The major difference:
sweep in CMA is FDIC, the brokerage is SIPC (but held in treasuries). The underlying thing (US government ) is the same, but FDIC has way better turnaround. But because it's FDIC on the underlying bank (Fidelity has no banking charter), it's not clear to me how much benefit that even is.
FDIC turnaround is faster, but only for failure of the underlying bank, not fidelity. If fidelity fails, you'll still have some SIPC latency to resolve things, instead of single-business-day FDIC awesomeness.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#325Earlier quoted context omitted.
Sorry if this sounds uninformed, but what is the alternative? Even the bank and pensions gamble with your money, its how they move. I wish it wasn't the case either
You can DRS ( https://www.dtcc.com/asset-services/securities-processing/di... ) your shares so that no one can lend them out from you. Some brokers have a setting (opt in or opt out) that disallows lending your shares (or that compensate you if they do).
This is the way.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#326What revenue streams, if any, are you considering in addition to the $1/month fee?
(If there are no other revenue streams, what scale do you need to attain to cover operational and regulatory costs?)
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#327[dead]
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#328Earlier quoted context omitted.
Citadel gross trading profit totalled $28bn last year, https://www.hedgeweek.com/citadel-makes-record-16bn-profit/#... . 60B is a balance at a specific date 12/31/2022, they trim the balance by the EOY and harvest losses. the average balance is much bigger and fluctuates heavily given market demand. UPD: I stand corrected, the market making arm only made meager $5,000,000,000 for the 6 months, so more like 10,000,000…
"Citadel Securities is a separate entity from the hedge fund Citadel LLC" https://en.wikipedia.org/wiki/Citadel_Securities The market maker boogeyman is Citadel Securities, not Citadel LLC.
Assuming that they have a proper firewall between the two and there are no conflicts of interest..
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#329Earlier quoted context omitted.
What are the mechanics of that? Let's say I buy a share of F on Monday, my brokerage routes it to Citadel, because PFOF. On Tuesday, I expect to get a share of F delivered at close of business, because T + 1. If Citadel doesn't deliver on Tuesday, what happens? Are you suggesting they would continue to not deliver the share I purchased for several days, by saying oh yeah, we'll get toast0 his shares tomorrow? That wo…
you will receive share in your name in a database, but physically it will be stored "in the street name" in the depositary house, of which there is only one. plus even if there is only a single share authorized for stock exchange, there will be more than one in the float, due to synthetic shares : created when shares are borrowed and then reshorted, created to support derivative market (selling calls and buying puts)…
The prime broker has a lot of money and will cover their customer blowing up in a net short position. They manage that with margin agreements. That isn't nothing.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#330Hi, and congrats on the launch! I'm curious about how this service compares to, say, the offerings of zero expense mutual funds from Fidelity of Schwab? I guess there's a lot more variety since I don't think those brokers have 50+ indexes. Have you found or might expect to find liquidity issues or spread costs with fractional shares? I imagine that if you have an account with, say, $3000 that is trying to implement S…
> If you could convince me that I could implement, say, S&P 500 and be cheaper, more tax effective than holding those ETFs, that would be something interesting!
The lowest-cost S&P 500 index fund currently has an expense ratio of 0.015%. Assuming similar performance (minimal tracking error) Double's fee of $12 per year would cost less for any portfolio over $80,000.