Passfolio is an international Stock and Crypto broker company that was established in 2018 and based in San Francisco, USA. Passfolio gives room for no conflict of interest and it guarantees optimum transparency because it operates using the STP execution model. It is safe to trade with Passfolio because they are registered under the SEC as a broker-dealer.
Although they are based in the US, they allow people from more than 170 countries to invest and trade in countless financial instruments through different asset classes.
While using the base crypto coin, the asset classes and instruments their clients can invest in include REITs, ETFs, crypto and stocks. For easier trading of their clients, they provide a wide range of educational materials and an exclusive trading platform which is offered as a mobile app. In case of any problem, their qualified customer support team is always available to guide traders in every step. This makes it easier for beginner traders to use.
Passfolio Broker Introduction
This is a complex Passfolio broker review that will discuss important factors that traders should consider before they can choose a forex broker for investment and trading. Some of these key factors include trading tools they offer, their trading platforms, customer support, account funding and withdrawal options, availability of research and education materials and broker regulation.
Pros of Using Passfolio Broker
1. Availability of educational resources
2. Fast account creation
3. Trading using their web-based platform
4. Presence of multiple financial instruments
5. Intuitive mobile trading interface
Cons of Using Passfolio Broker
1. No CFDs
2. Restricted leverage
3. No separate trading tools
4. Restricted product portfolio
5. Cannot be used on MetaTrader trading platforms
Platforms and Tools on Passfolio
Passfolio provides a trading platform which is designed for their clients to trade and they have no separate trading tool on their website presently. They designed this trading platform as a mobile application and made it available on both iOS and Android devices.
While iOS devices users can download the Passfolio app from AppleStore, Android devices users can download the app from PlayStore. The app is very convenient because traders can place trades and keep track of the trading positions anytime and anywhere. This makes it suitable for all levels of traders including beginner traders.
Some of the features of their mobile app include the opening of an account, funding of accounts using different funding means and start trading after depositing a minimum of $100 with no charges.
Passfolio Enabled Countries
According to Passfolio broker, they are available in every country and location where trading is legal. This means that using the broker in locations where it is illegal to trade is at trader’s risk.
However, there is no authority for the use of Passfolio security services in Brazil. Some of their clients in other countries may also found it difficult to use all the features of the platform due to legal restrictions in their countries.
Regulation of Passfolio
Passfolio is the trademark of Panchain, Incorporated. However, Panchain, Inc. has two subsidiaries. One of which is the Passfolio Securities while the other one is the Passfolio Financial LLC.
This broker is regulated by SIPC and the FINRA because they are registered under them. They are also registered under the SEC as a legal broker. This means that Passfolio is working under legal regulation.
Passfolio Research and Education
Passfolio traders have access to a wide range of educational materials that will help them boost their trading knowledge. Also, these materials will help traders stay updated about the factors that affect the trading market. Passfolio offers different research and education materials and videos which include trading guidelines, trading blogs, articles and many other related materials.
Fees on Passfolio
Passfolio offers attractive fees because it is free to trade all assets but not crypto. This is only true of trades above $5. However, if you are trading below $5, they will charge you 0.02 dollar per share. Passfolio collects no account running fee but they do charge a small amount for their withdrawal.
Although this is uncommon in the broker world, this fee pattern of Passfolio makes it appropriate for beginner traders. Passfolio also charges no fee on ETF, stocks, ADRs and REITs.
For their crypto, Passfolio charges no fees on opening, running and closing of accounts. In contrast, ACH withdrawal attracts 0.25 dollar. Wire transfer within the US costs $25 and $35 for global transfers. For the Brazilian TED transfers, the total charge is calculated as RBL 2.00 + 0.38% IOF + 1.2% conversion fee. The general withdrawal fee is manageable.
Account Creation on Passfolio
Account creation is superfast and easy when using a mobile device. Since everything is digital, verification time is just 15 minutes when done on a smartphone! However, you may experience some problems if you are doing the verification on a desktop computer.
After creating the account, no amount is too small to start trading. This also means that you are not paying for account creation. Follow this step to open an account –
Visit your respective device store to download Passfolio mobile app. Launch the app, click on Get Started and choose your preferred language. Fill in your details and answer the questions provided – on your income level, investment goals and employment status. Scan and upload your ID and send a selfie of your face with your phone camera. Visit your email, verify and your account is ready.
Login and Security on Passfolio
The login feature is secure and people can customize their login from their settings menu. There is an obligatory biometric verification for every account upon each login. Additional verification is the second-factor authentication that is compulsory for every user during registration and is through SMS. This is only possible through the phone number and it can’t be deactivated. With this, the app offers a very strong level of security to its clients.
Account Types on Passfolio
Since everything on Passfolio is simple, Passfolio offers only one size that fits all accounts. Although they offer only one account type, they separate their crypto accounts from their stock accounts. As a general trader, funding is done separately because there is no corporate account on Passfolio.
Cryptocurrency Trading on Passfolio
To trade crypto on passfolio, go to the search page, assets or watchlist and choose crypto. Tap trade and choose either buy or sell. Depending on your choice, choose between Limit Order and Market Order and the amount you want to trade (in USD or number of crypto). Review the information again and slide the bottom bar to finish your order. For crypto traders, there is a charge of 0.5% price spread on the order amount – 0.99 dollars for orders below 10 dollars; 1.49 dollars for 25 dollars below; 1.99 dollars for 50 dollars below, 2.99 dollars for 200 dollars below and 1.5 dollars for above 200 dollars.
Stocks Trading on Passfolio
There are no charges on stock trading of above 5 dollars on passfolio. However, there is a charge of 0.02 dollars on trading below 5 dollars per trade. Stock opening, closing and maintenance are all free on passfolio too. You can invest in Apple stocks, Facebook stocks, Tesla stocks, XP Inc. stocks, Natura stocks, Stone stocks and Playboy’s IPS on passfolio with no commission fees. All you have to do is to create an account, download the app, fund your account and start investing in your preferred stock.
Segregation Between Crypto and Stocks Trading on Passfolio
What makes passfolio broker unique is that it is possible to trade and fund your account with crypto through Passfolio Financial. With their Passfolio Financial, users of passfolio can deposit crypto coins into their accounts and convert them into dollars. They can then use the dollar to buy stocks at their brokerage accounts at Passfolio Securities. This way, investors and traders can deposit BTC, ETH, BCH, LTC and other coins accepted by passfolio broker to access the US market.
It is also possible to transfer funds from one account to another such as from your crypto account to your stock account and vice-versa. From your account, go to transfer and select “Transfer Stock to Crypto” or “Transfer Crypto to Stock.” Choose the amount, press continue, review your transfer information and slide the bar below to submit. Your transfer will be completed within 3 business days.
Safety on Passfolio
Clients using Passfolio enjoy an advanced security level because Passfolio is controlled by FINRA and SEC (highest broker authorities). However, since Passfolio is still young in the brokerage industry, it has no finance certificate yet and it is not guided by strict regulations. Its investor protection level is high but it is yet to be recorded on the stock exchange. Another con is that they do not display their financial information openly.
Customer Service on Passfolio
There are three channels Passfolio clients can communicate with them – live chat, email messaging and phone service. While they reply faster through email (respond within 20 mins.), their online is rather slow and their phone service is nearly not in existence. They do not offer an all-day support and they provide relevant responses to questions.
Conclusion on Passfolio
Passfolio is a start-up brokerage company with an attractive fee structure. You will be paying no fee for trading above 5 dollars and also for depositing and preserving your account. The usage of this mobile application is easy to use and it provides a faster verification process.
Conversely, Passfolio delivers a limited number of products. All their traders will trade on US markets only. Depositing into accounts is difficult and withdrawal comes with price tags. All their clients have access to educational resources and explainer videos. Passfolio is the right platform for non-US traders who need a great platform to trade in US markets.
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