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A comment on Staygg - new app lets you invest small amounts of money for free. Parent comment

Re:Staygg - new app lets you invest small amounts of money f... by mmastrac on Monday February 23, 2015 @11:43PM (#9098735)
My guess: they are eating the management fees on an indexed fund that they are just managing themselves. With enough volume they can offer other fee-ful funds like the other guys and cover the costs. It's just a loss leader.

I'm assuming it's not a Ponzi scheme, but obviously could be wrong.

If everything is up-and-up this is actually kind of cool. I've been disappointed at the lack of decent investment options for low-income savers.

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Re:Staygg - new app lets you invest small amounts of money f... by saryant on Tuesday February 24, 2015 @02:22AM (#9099242)
Some Vanguard index funds have a $1000 minimum and you don't have to risk your money with a (frankly) sketchy investment like this.
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Re:Staygg - new app lets you invest small amounts of money f... by meric on Tuesday February 24, 2015 @05:33AM (#9099757)
You can also buy them on the stock exchange for less than $10 in transaction fee, and I think the minimum there is a lot less than $1000.
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Re:Staygg - new app lets you invest small amounts of money f... by saryant on Tuesday February 24, 2015 @08:10PM (#9104730)
Good point. IIRC, if you buy the ETFs directly from Vanguard, there is no transaction fee, making it even less expensive.
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Re:Staygg - new app lets you invest small amounts of money f... by Ronsenshi on Tuesday February 24, 2015 @12:10AM (#9098845)
If it's not too private, what would be an ideal amount (min-max) for you to invest as a low-income saver?

Furthermore, maybe it would be better to handle immediate expenses instead of trying to save every penny which wouldn't have any tangible returns anyway?

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Re:Staygg - new app lets you invest small amounts of money f... by mmastrac on Tuesday February 24, 2015 @02:15PM (#9102809)
I'm not a low-income saver myself, but I see lots of low-income savers that just can't hit the minimums. I really would love to see a fee-free option for them that they can drop $5 into here and there and have it add up.
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