Switzerland-based Investart, an online investing service with an intuitive “click-of-a-button” platform that’s intended for all users (especially to beginners), has dropped its commissions on transactions to zero.
Customers have the option to choose between creating and managing their own investments or accepting portfolio allocations recommended to them (based on their individual requirements and overall profile). These investment activities are managed by Investart. The platform offers a Robo-advisory service that’s run by Nobel-prize winning financial models – which are used to manage users’ portfolios.
Investart confirmed that it won’t charge any commissions on transactions. The company also clarified that there are no third-party fees, no VAT, or other taxes or duties for its standard digital investment services. The firm’s revenues mainly come from its Premium services which reportedly includes personal consultations, pension planning, and wealth management services.
Usually, when beginners or new investors choose individual company stocks or bonds, their risk of losing their initial investment due to wrong title selections (like “unsystematic risks”) is generally quite high. In order to lower these types of financial risks, Investart provides investment options not into individual stocks and bonds, but into different themes, industries or sectors, different countries, markets and a wide range of asset classes (implemented through exchange-traded-funds or ETFs).
Switzerland’s Investart AG is an asset management firm established in 2016 and based in Zurich. It was reportedly launched by a team of experienced professionals with PhD and MBA degrees in finance. Each founding member claims to have around 15 years of experience working in the investment management and advisory sectors.
Investart is currently a member of the Financial Services Standards Association (VQF) industry organization, which means that it’s subject to the nation’s regulatory guidelines for professional investment managers. Cash deposits made with Investart are insured up to CHF 100,000 (appr. $113,862). Customer funds are maintained in the custody of Interactive Brokers, which is one of the world’s largest brokerage firms.
Investment apps have become increasingly popular, especially during the COVID-19 pandemic because many consumers have been staying indoors and may have had more time to explore different activities like online investing.
As reported recently, Public, the provider of a commission-free social investing app, has secured $65 million through a Series C funding round.
India’s largest lender HDFC Bank has invested in Fintech firm Smallcase, which lets users invest in baskets of stocks.