The Investment Road to Freedom

March 26th, 2014 at 3:42 pm

Loyal3 – A First Step!

While I don’t recall which website I first read about Loyal3 I do recall my reaction to the concept – a commission free broker? Can’t be true! A quick Google search found a forum thread on Mr. Money Mustache and after working my way through that I thought I have to look into this.

  • Buy stock for Free
  • Sell stock for Free
  • Transfer account for Free
  • Use a credit card to purchase stocks and pay no fee. Those credit card rewards…

The above had my attention but I’m not going to write a review about Loyal3. Check out posts by Dividend Growth Investor and WriteYourOwnReality for more info.

So this week I opened a Loyal3 account and took my Wells Fargo Credit Card and made a test transaction.

  • On 3/23 I used my CC to buy $10 of Apple (AAPL). At the time AAPL was at $539.19 though I knew from reading the forums this would not be the price it went through at.
  • On 3/26 my transaction posted and I had purchased 0.0183 shares of Apple at $547.67

I checked my credit card account and I had not been charged a fee. Now 0.0183 shares of AAPL is not much but I’m happy with Loyal3 and over the coming weeks and months I’m going to slowly increase my position in Apple. I love this company. We have two iPhones and an iPad. I’m almost 37 years old and I’m pretty confident Apple will still be a huge company when I’m in my 60’s. Now thanks to Loyal3 I can own them!

  • writing2reality
    4:41 pm on March 26th, 2014 1

    Thanks for the mention! Loyal3 is definitely a great tool for those interested in slowly building positions in one of the many available equities. Best of luck as you build your Apple position!

    3:08 pm on March 28th, 2014 2

    Thanks for stopping by W2R! Loyal3 will hopefully continue to grow and give us the, investor, more choices.

  • Richie
    6:43 pm on March 26th, 2014 3

    Congratulations man. I love loyal3. Great way to DCA. There’s no fees and i get 2% cash back by making my monthly stock purchases.

    3:06 pm on March 28th, 2014 4

    Thanks Richie. One of the benefits when I first started investing that I did not expect to receive was credit card rewards! While they still offer it I will continue to make use of it. Thanks for stopping by!

  • Mr. SFZ
    2:41 pm on March 29th, 2014 5

    Congrats on getting started with Loyal3. I’ve been using it since January and love it so far. Great way to accumulate shares in quality companies at no cost. Been using it to dollar cost average into Coca-Cola, Target, and McDonalds. I think it’s great for stocks like AAPL with such high share prices. A lot easier to buy in at 10-20 bucks at a time rather than saving up over 500 to buy just one share. Thank you for adding me to your blog roll as well, I’m honored to be part of such a great list of blogs.
    Best wishes,

    3:40 pm on March 29th, 2014 6

    Hi Mr. SFZ,

    Absolutely with Apple such a high price this is a great way to slowly build a position. Keep up the great site you have – I wish I started at your age. Thanks for stopping by!

  • CI
    5:44 pm on April 1st, 2014 7

    Nice move picking Loyal3!

    I already have a few brokers and don’t want to complicate matters too much, but I have given Loyal3 some thought. I would use it as a reward for making good decisions. Instead of paying $50 for a steak dinner, why not do a romantic dinner at home (with candles and all that) and then buy $50 of KO with the savings? You could cancel cable, buy a digital antenna, and then put the savings into Unilever or better yet, TWX each month. Purchase new shoes/clothes at Ross or TJ Maxx and then turn around and grab a little NKE/VFC stock with the left over $ that would have been spent anyway.

    That’s what I would do! It would make for some pretty cool blog posts…

    6:18 pm on April 1st, 2014 8

    That’s a great idea CI! I did something similar today where I went today and yesterday without buying fast food for lunch at work and instead went home. Not only did I have a healthier lunch but I rewarded myself by buying $10 of Apple with the money I saved. Thanks for stopping by!