Answers to frequently asked questions about Passfolio
Making sure you get your questions answered is something we spend a lot of time on here at Passfolio. After all, investing in the US is something new to many of our clients.
We’ve prepared many informative materials to make investing abroad a smooth and comfortable process. Here are some:
- A dedicated page about how Passfolio works
- A page about Passfolio’s story and mission
- How to transfer your securities to Passfolio
Still, we believe a blog post with answers to your most frequent questions might make sense. If you’ve got something you want to know about Passfolio, chances are you’ll find the answers you’re looking for right here.
What is Passfolio? Are you a registered US broker-dealer?
Passfolio is a San Francisco fintech company that provides fast, easy, and secure access to the US stock market, via its fully-owned subsidiary Passfolio Securities. Passfolio’s mobile app lets people in over 170 countries invest in United States dollars, stocks, ETFs, REITs and ADRs using their local currency and transfer methods. We even accept cryptocurrency deposits.
Passfolio is the brand name of Panchain, Inc. Passfolio Securities LLC, Passfolio Financial LLC and Passfolio Advisers LLC are fully-owned subsidiaries of Panchain, Inc.*
*Passfolio Financial is a United States Money Services Business registered with FinCEN. Passfolio Securities is a United States SEC registered broker dealer, and member of FINRA and SIPC which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at http://www.sipc.org.
What do I need to create a Passfolio account?
To start investing in the US market, download Passfolio on the App Store or on Google Play. To create a Passfolio account, you just need to be at least 18 years old and submit some basic information.
After submitting your information through the app, your application will typically be reviewed and you will receive a response within one business day. If any additional information is required pending, we’ll get in touch by email.
What are the fees and charges?
Passfolio charges no account maintenance or commission fees (except for securities less than $5, which cost $0.02/share). We make money from other sources such as interest on your uninvested cash and payment for order flow.
To trade cryptocurrencies through Passfolio Financial, our US Money Services Business, our crypto partner Gemini charges 0.35% on each crypto trade, but we do not charge any fees on top of that. Opening, maintaining, and closing your crypto account with Passfolio Financial are all free.
For TED deposits and withdrawals we charge a 1.2% currency conversion fee + 0.38% IOF. An additional R$2.00 is charged for TED withdrawals.
*Please click here to get a clear view of any applicable fees or charges related to third party applications.
How do I start investing in US stocks after I create my account?
After creating your Passfolio account, investing in US stocks involves 3 easy steps:
As a global app, Passfolio supports the following transfer methods: USD paper checks, Wire Transfers, TransferWise, ACH, TEDs, SWIFT, SafetyPay, and SEPA. However, the transfer methods available to you will vary according to your location.
To purchase securities, just access the search tab in the app and search for a company you want to invest in. Then, once you’ve found it, all you have to do is decide how much stock you want to buy. Passfolio lets you choose to either input how many shares you want to purchase or type in how much you want to invest in USD.
When you decide to withdraw funds, all you have to do is access the transfer tab and select “withdraw”. Then, select to either withdraw from your stock account or crypto account and specify the amount you’d like to transfer to your bank. Once a withdrawal order is placed, funds should be made available in your bank account in 1 to 2 business days.
If you have any issues or questions regarding your transfer, contact our support team at passfolio.com/contact
Who owns the stock when I purchase shares on Passfolio?
You have all ownership rights and are registered as the beneficial owner of any stock you buy through Passfolio Securities. That means every dividend and all income that comes from the stock is yours.
The stock is held by us as is standard practice in the US. When you buy or sell securities with a US broker such as Passfolio Securities your name is rarely actually on the stock certificate. Instead, it is held in “street name”, which means the broker holds the stock on behalf of the customer*.
*Passfolio Securities is what you call an Introducing Broker – we do not hold any of our users’ assets. Instead, assets purchased via the app are all held by our clearing broker partner DriveWealth. Our users are still the actual owners and beneficiaries of the stock they purchase and have all the rights associated with the assets.
Invest in US stock with Passfolio
With Passfolio Securities, you can start investing in US stock with as little as $1 – all with no commission fees¹². We make investing in US assets accessible and even accept local deposit methods such as TEDs.