We’ve come back in to 2020 fully charged with lots of new thinking about how we will build Pynk over the next 10 years - and how we will make Pynk the world’s most inclusive investment platform.
One of the big ideas we have been thinking about is ‘Fee Free’ Investing. RobinHood (US and soon to be UK) and FreeTrade (Europe) are offering this already, but they are essentially exchanges only - some traders and investors on these platforms could lose money. As you know Pynk will be a managed investment account; whereby our Crowd Wisdom System (Crowd data+AI+expert analysis) determines the portfolio allocation across Stocks, Bonds, Commodities, Precious Metals, FX and Crypto.
We are considering a minimum requirement from Pynksters of 2 price predictions per week in order to qualify for fee free investing. This helps the Pynk collective since we need consistency of data. On an individual level; fee free investing will equate to significant increased returns over time thanks to compounding effect, and making consistent predictions helps users learn more about investing i.e. it’s a learning through doing experience and will become super-predictors. Our data is already showing significant improvement in the Crowd’s ability to predict, with an increased rate of Super-predictors in the Crowd.
To be clear, we may have to pass on some costs. For example if the portfolio allocation decides on ETFs there is usually a small charge of c. 0.15% that we need pass on. FreeTrade and the like also do this. Despite this the total cost would be significantly less than the current average of c.1% for retail investors.
So how would Pynk the company make money? We would charge High Net Worth and Institutional investors a fee for Assets Under Management. In this way we are redistributing value from the wealthy to everyday investors (in return for their contribution to the Crowd Wisdom system).
Would be great to get your initial thoughts on likes / dislikes with this model? And any suggestions?