381–390 of 434 posts
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Under 2, why would you end up worse off? I'm decidedly unsophisticated in this domain.
Because liquidating / selling your shares is a taxable event. If you purchased a simple ETF to begin with, your tax burden would have been lower.
You're coming into a market where most providers make much more money, and you're undercutting and selling for $1/month. $1/month is below even most cheap B2C services, and many customers are likely to want a product like this to manage a large number of assets. With what other product, service, arbitrage, float, or other mechanism do you intend to make more substantial amounts of money? Knowing what this is would he…
- Payment for order flow
- Interest on sweep accounts
- Upsell to more profitable products (first party ads)
- Payment for order flow, but structure your orders so the spread is really attractive to market makers (unfortunately you might be doing this unintentionally)
- Third party ads
- Sell your customers' data
There's also the possibility of not doing any of these, losing money in the name of customer acquisition, then selling to someone who will monetize it better.
I find it a bit rude to ask a company their exact business plan, even on Launch HN, but maybe I could ask - are there any of these monetization strategies you disdain and would specifically rule out? And if you do have one or more of these in mind, is the $1 really important, or is that a marketing trick where people wouldn't trust you if it was free?
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I get like 4% at my bank. Sounds like you need a new bank! I'd suggest starting with Nerdwallet. [1] [1] https://www.nerdwallet.com/h/category/banking
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…
i’ve only ever hit debit card limits when trying to buy like a car. if you’re hitting cc limits, i dunno, maybe you have more liquid cash where smaller interest rate increases are worth the squeeze.
edit: ok i totally forgot i moved the bulk of my ally savings into an ally invest account holding a vanguard money market fund bc the rate was higher. this is a little less work than opening an account with another bank at least. the rate was 5.4 and is now 4.5. ally savings account is at 3.8. cds, ibonds, money market funds, these are all vehicles i never used prior to covid but have since. chasing it all around is annoying, but i only take stock maybe every 6 months. there’s diminishing returns here since everything past the efund gets invested in an index fund anyway.
FZROX gives me 0% fees, can be bought in my retirement accounts, and is attached to a company with something like $1 trillion AUM. The latter gives me faith that it will still be around next year. I appreciate that the 0% fee options are limited, but personally I’d rather deal with 0.03% fees than entrust my money to a small shop. Especially when the reason to do so is not some trading edge, but saving a small amount…
How does FZROX make money? Loss leader for Fidelity? Improved economies of scale?
Edit:
Also, they can sell their order flow to a market maker (HFT?), as it is non-toxic retail flow. That is basically how Robin Hood keeps fees so low.
I do think this is a great model for someone who wants to hold the S&P 500 (which many people do). However, educated index investors typically hold a total market index fund. Double’s US small cap offering is severely under diversified and there is no international offering. 10 bps is absolutely worth it to get broader diversification and international exposure.
> However, educated index investors typically hold a total market index fund.
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Yotta does not hold any funds themselves. You connect your bank and ach/wire money into an Evolve bank account. The problem is that unbeknownst to users, Evolve had no record of what belonged to which user—it all came via Synapse on behalf of Yotta. And when Synapse went bankrupt, everyone pointed fingers about where the money is and who it belongs to.
https://help.double.finance/en/articles/10262406-how-can-i-v... makes a big difference, since it sounds like Apex does have their own ledger of accounts, independent of Double. Evolve not having their own ledge was exactly the problem.
> My own personal experience with Apex - I transferred measly GME positions out of Stash app (Apex) to Fidelity in June. My Apex/Stash account is still locked from this transfer. My CS requests have been escalated to the broker (Apex) repeatedly. Finally today, Apex confirmed they will unlock my account in 4 business days. That’s 34-36 calendar days after share transfer. All this DD is much smarter than me, but even in little ways these big explanations offer a simple reason for these shenanigans. I have NEVER had my account locked for share transfer past the confirmed transfer date for any other position. They had the gall to tell me today that they needed to speak with Fidelity directly to confirm receipt and Fidelity “received” my shares 3 weeks ago, which was 3 weeks after I initiated it. Why all the runaround?
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I get like 4% at my bank. Sounds like you need a new bank! I'd suggest starting with Nerdwallet. [1] [1] https://www.nerdwallet.com/h/category/banking
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…
One does need to look around, whether for national or local, and for instance not all local credit unions which can get close to the rate you would pay on a mortgage advertise on the web.
Ummm, have y'all thought about spread costs? If you look at the spread of any of these ETF's mentioned (spread = ask px - bid px), you will notice that the spread is much smaller than if you were to sum up the spreads of each component stock. That's possible because of a mature ecosystem of ETF market makers and arbitrageurs (like Jane Street). If you buy all of the stocks individually, as it sounds like y'all's solu…
Wouldn't fees generally be more significant if holding over a significant time period? Like VOO's 17 bps would mean ~2% over 30 years. Not sure what the weighted average spread of broad index funds looks like, but I would have thought it's far lower. I guess rebalancing also creates an ongoing spread-based cost, but it seems like that should be far more minor, at least for broad index funds with low-single-digit turn…