Trade.com reviews on IPOs investment opportunities

[Deliniel]

Trade.com has got my e-mail address and in one of the recent newsletters they informed that the brokerage has widened up it's services a lot. It used to be a CFD brokerage, now they have some new features available. Particularly I got interested in IPOs.
I only have forex and CFDs trading experience so far. So I wonder if it will be difficult to start investing in IPOs with Trade.com. Has anyone tried it so far?

[Arcanebringer]

I'm not really competent in IPOs, but jeez, what a nice name for a brokerage, huh?! I can't stop thinking now how much this domain name costs

[Gholbizel]

Ahaha, yep. My best guess would be around 100K, but you never know for sure.
As for IPOs I don't think they can substitute day trading or conservative investment strategies i.e in blues chips. These investments are probably somewhere in between these two options regarding the time consumption and potential profitability.

[Deliniel]

Time consumption? Why would that take any time at all? As far as I understand the broker chooses several companies and places the offer. We only have to decide whether we want to invest or not.

[Gholbizel]

Exactly! How you gonna decide? By the way the name of the company sounds? Put several cards with YES, NO, Maybe on the floor and wait till your cat lays on one of those?
You'll need to perform your own analysis at least a little bit. It's not like with blue chips when you know for sure company is reliable, has been performing well for many years and this means it will probably keep doing a good job next several years. New companies are different. They are more difficult to predict. It's probably the lightest form of venture investments, where the chances to blow up with profits is higher, but still there are some risks that exceed normal.
In any case the idea is really appealing. Not so many brokerages offer this type of service. Large, really large initial capital is required to start running these allocations.

[Deliniel]

Haha, the cat idea doesn’t sound that insane at all However, I think the thorough analysis is not necessary in some cases. I mean sure enough there will be some companies offered that won’t be that popular among common people like me. May be some tech companies, or pharmaceuticals. But there are many companies that we know of for sure that we have chance to invest in. 5 years ago we all knew of Uber and Alibaba but they were not traded publicly back then. Right now there is very similar situation with Airbnb.

[Arcanebringer]

Airbnb? Really? I was absolutely sure they went public long time ago! I wanna invest! I can’t imagine planning a holiday without their service. My family and friends start using it more and more often. But I don’t think we don’t need to analyse first. What are the estimates of return? How did they get these estimates if there are any?

[Gholbizel]

Come on, don’t you think its a bit too late to go for Airbnb? Stocks go up and up recently. There must be some retracement coming in. Not the best time to start investing, I think. Depends on particular situation with the company though.

[Deliniel]

SnP has been moving up and up for last 10 years. I know it's not a perpetuum mobile, but don’t you think that people who were waiting for a significant retracement on this market have been left empty-handed? On the other hand I can agree about the situation overall. Some retracement wouldn’t hurt. But we are not talking of traditional stock market here. IPO is actually good cause we have a chance to grab some stocks prior to public offering. I think that AIrbnb has got enough potential ahead to grow. I know lots of my friends are using the service as well, but older generation is still a big piece of a pie that has not been swallowed by Airbnb yet. In addition to older generation there are yet many countries in the world where service can grow MUCH bigger. Trade.com says pre-IPO min investment is $500000. Too much for private investors. Ordinary people like us can only hope to get some shares using intermediaries. This is actually why I’ve started this topic. I realize I’ll have to pay for intermediary services and would love to hear from some experienced micro-pre-IPO investors about the possible pitfalls if there are any.

[Gholbizel]

I think that the brokerage is fine, but the variety of companies for IPOs is not that good. If you like the broker too - I mean, if you really trust CySEC regulation and the company’s reputation - it would be a better idea to do a min deposit first and start trading some CFDs with this broker. Later, when you find out more about the broker and see how well they do the withdrawals - you can start thinking of larger investment opportunities.

[Nuathris]

Hey guys! Did any of you try trading CFDs with Trade.com? I’d appreciate some reviews here as it looks like the company is more or less trustworthy, and I’m kinda getting desperate to find a broker for daytrading that wouldn’t put me at heart attack risk every day.

[Deliniel]

This is what we are trying to do here - find some reviews on Trade.com. Failing to do so we are doing own research on the company. Feel free to join! What do you mean by heart attack risk? I mean what do you think a good brokerage should mean?

[Nuathris]

Well, first of all it must be a regulated with A+ regulator. At this point I think Trade.com totally matched my expectations as they do business through CySEC, which is a guarantee that my funds are safe there and are kept at segregated account. Secondly I want to know the support is good, that they are polite and resolve issues in a timely manner. Thirdly I want them to make me rich. Lol, kidding on third one, but still… I simply want them to be an honest brokerage with no market data manipulations and these kinds of issues.

[Gholbizel]

Well, they’ve got a decent rating at FPA. The only thing, you must find out first whether they have got any limitations on the way you trade, so that you don’t have your account blocked for violation of the rules. As they are a regulated brokerage, they will definitely send you your money back, but still this can be an unpleasant experience.

[Nuathris]

I see. Thanks for explaining. What are the normal restrictions that brokers have? I know many of them don’t like scalpers and EA trading. What’s the situation with Trade.com regarding this matter? Maybe I should simply contact support. Trading conditions and reviews on tradecom are nice, so fingers crossed this is finally MY broker.