anthony noto, twitter, sv100 2015

Summary List Placement

Fintechs are hitting public markets. And they’re also plotting ways to get their own users in on hot IPOs. 

In March, both SoFi and Robinhood announced plans to allow their customers to buy into companies’ initial public offerings, a privilege typically reserved for asset managers and the wealthiest of investors. 

Retail brokerages — like Schwab, TD Ameritrade, and E-Trade — offering their customers shares from IPOs is nothing new. But two of the largest startup brokerages are now looking to open up the IPO market to much smaller investors, while traditional brokerages typically require customers to have upward of $100,000 in assets to participate in premarket offerings.

While Charles Schwab does not detail the minimum account balance necessary to participate in IPOs, it does describe an asset threshold in its disclosures. Fidelity, meanwhile, allows only the investors in its private client group with either $100,000 or $500,000 in assets (depending on Fidelity’s underwriting partner) to buy IPO shares. At TD Ameritrade, the threshold is either a $250,000 account balance or a minimum of 30 trades over the prior three months. 

Customers of SoFi will need a minimum account balance of only $3,000 (and to be a …read more

Source:: Businessinsider – Finance


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