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We are so excited to introduce you to Stockpile! This article is our in-depth Stockpile review. We have always been very passionate about investing and Stockpile is making investing accessible to EVERYONE. You can now give a gift of stock ownership through stock gift cards. How freaking awesome is that?
In October 2015, Stockpile started offering physical gift cards in stores and for purchase online. You can now give one of the coolest presents around. These are perfect for graduation gifts, birthdays, Christmas and more. Gift cards can be purchased in denominations as low as $1 and even up to $1,000. Sign up today and get a free $5 credit towards your purchase. Imagine the reaction you will get giving someone a gift card they can use to purchase ownership in one of their favorite companies such as Apple, Facebook, Amazon, GE, and more.
The premise behind the stock gift cards is to allow anybody to give, receive, or purchase their own stock of their favorite companies.
Stockpile has nearly a thousand stocks, exchange traded funds (ETFs), and American depositary receipts (ADRs) to choose from. When you buy a gift card for yourself or redeem one someone gave you, you’ll have stock in a real brokerage account.
In our Stockpile review, we go over how to use Stockpile, prices, fees, and the pros and cons of using this type of investment platform.
How Stockpile actually works
With Stockpile you are investing dollar amounts (not share amounts). Simple as it gets, that’s it! You can buy $50 of Amazon or $10 of Facebook.
What’s beautiful about buying in dollar amounts is you don’t need to worry about the price of the share. This enables you to invest without having to have a bunch of capital. Like we said before this is the perfect gift for a college student! Imagine if you bought a gift card stock of Facebook 5 years ago, that money would have tripled by the time that student graduated college.
Children and teens can own their own stock as long as an adult is on the account with them. They will be the beneficiaries until they turn 18. Minors can set up their own login on Stockpile separate from the adult on their account and place trades with the adult’s consent.
There are no expiration dates on the gift cards and the value of the card will not change until a stock is purchased. The value of the stock will then fluctuate based on the market.
When signing up Stockpile will have a short form that is needed to be completed before opening an account. This form will take around 3 minutes of your time.
Don’t wait to get started. Pick a great company that’s growing and you believe will continue its success. Stockpile makes it easy to get started in investing and minimizes most of the complexity and fear of it.
Cost and fee’s associated with Stockpile
Stockpile makes sure all of their fees are as low as possible and easy to understand. This prevents customers from feeling like they are trading stocks on Wall Street.
Customers can purchase e-gift stocks (online gift cards) that range from $1 to $1,000, plus fees. There are a few fees to consider, depending on how much stock you buy. There will be a $2.99 fee charged for your first e-gift card and $0.99 for each additional card purchased. Along with those flat fee’s, you will be charged a 3% credit/debit card fee. For the owner of the stock anytime they want to trade (buy or sell) your stock there is a flat fee of $0.99. This fee is much more affordable than most brokers charging anywhere from ($3-$9.99 per trade).
All of these fees should be considered before making your purchase. Although there might seem to be a bunch of fee’s they are relatively low when it comes to buying, selling, trading stocks.
Pro’s and Con’s of using Stockpile
Pro: The simplest form of stock trading. Stockpile’s process is very simple compared to other online brokers. It allows customers to send the gift of stock or to invest in large, well-known companies. Using another broker this might not be possible due to the high fees and complexity.
Pro: It’s easy to convert to a regular gift card. If gift-givers purchase a card for someone who doesn’t want to get into the stock market or won’t find it useful, the recipient can always opt out of using it for stock and use it as a regular prepaid gift card at the retailer or company. This is a great feature but most likely won’t be used. Seriously who does not want to start investing with a gift card?
Pro: It’s the perfect gift. With anything involved with investing it should always be looked at as a long-term investment. Buying a stock gift card is perfect for your young children, high school student, college student, college graduate, birthdays, Christmas present, wedding, etc. The options are endless.
Con: Limited purchase amount. Some customers may view the limited purchase maximum as a disadvantage. While the limit is put in place to avoid situations like money laundering and other types of fraud, it’s not designed for someone wanting to purchase a lot of stock.
Con: Fees. While we didn’t find any hidden fees, there are quite a few fees to understand before getting started.
Who Stockpile Is Best For
Stockpile is perfect to give a loved one a gift of stock, which they can watch grow and learn about investing along the way. One of the best ways to educate children about money is teaching them early. Understanding how money works is so important and often overlooked until it’s too late. The low upfront fees make buying stock gift cards simple and affordable.
Investing early is extremely important in building wealth. Minors who receive stock gift cards for their favorite companies, such as Disney, Apple, or Microsoft can log in to their account whenever they want and learn more about trading and check the value of their stock.
However, if you are looking to encourage long-term investing, Stockpile is an expensive tool to use. If the gift card recipient wants to transfer their stock to a low-cost brokerage firm, where they could diversify their holdings and build a long-term investing strategy, Stockpile will charge them a large $75 fee to do so.
For that reason, Stockpile should best be considered an additional way to invest in stocks alongside a more traditional investment portfolio through a brokerage firm, IRA, Roth IRA, or 401(k).
If you are interested in purchasing a stock gift card today use our exclusive link to get a free $5 credit towards your purchase. Give the best gift around, a stock gift card!
What are your thoughts on buying stock gift cards?
Do you think your loved ones would appreciate a gift like this?
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