Folio Investing acquired more than 200,000 brokerage accounts from Loyal3, a San Francisco-based online broker-dealer.
In April, Loyal3 sent an email to account holders that the platform was closing down in May.
And, on May 22, Folio converted the Loyal3 accounts to FolioFirst, a new website just for Loyal3 customers.
“Our platform offers Loyal3 customers the opportunity to diversify their investment portfolio in a consistent and thoughtful manner, by using fractional shares and at an exceptionally low cost,” Steve Wallman, CEO of FOLIOfn, said in an email to ThinkAdvisor. “These are many of the reasons why this acquisition made sense for Folio and Loyal3. We are pleased that our innovative brokerage technology will be able to help so many former Loyal3 customers become better investors.”
On FolioFirst, former Loyal3 customers will now have access to many features common to the Folio Investing retail platform.
Investors can choose from more than 200 stocks – almost three times as many as Loyal3 – and three exchange-traded funds.
Dollar-based and fractional share trading will still be available for Loyal3 customers so that investors can buy partial shares of securities and own what they want, regardless of the share price.
However, initial public offerings are no longer available through FolioFirst as they were in Loyal3.