Frequently Asked Questions (FAQ)
These are some of the FAQ that the ShareFinder team receives. If you don't find your answer here please contact us.
How much capital is required to trade with your products?
The answer to this question partially depends on you and the results you expect to achieve. For example, SPA3 users may look at the performance of the SPA3 Public Portfolio and expect an annual compound return of 10 - 15 compounded percentage points per annum over 5 years greater than the ALL-ORDS while Intelledgence users may expect 5 - 9 compounded percentage points per annum greater than the ALL-ORDS. What we suggest you do is think of yourself as a business and what your short, medium and long-term investing objectives are.
For example, our monthly maintenance service fee costs $814 per annum. So if you traded with a $15000 minimum capital size and achieved a return of 20% you would receive revenue of $3000. Subtracting costs of $814 brings your total profit to $2186 (excluding tax and the upfront package price).
Intelledgence offers an excellent entry solution for investors with very small and very large capital bases looking to enter the market actively for the first time. Intelledgence has long hold periods and large average profit per trade statistics.
Another important consideration is brokerage. The smaller your starting capital the larger the brokerage cost will be as a percentage of each trade. As brokers offer different brokerage rates, you must determine your initial capital relative to your costs per trade. This is regardless of using our products or not.
Whether trading with SPA3 or not, $15,000 of capital would result in a maximum of 5 open trades which means that brokerage at $29 is 1% of the position. Another 1% to exit the trade equals 2% entry and exit fees. Considering that SPA3 averages around 4.5% profit per trade, 2% of the average profit would be consumed by brokerage, ie. 40% of the profit. We recommend that position sizes and hence capital should be increased to achieve an average brokerage of <0.35% per transaction, or 0.7% per trade.
This means that SPA3 should be traded with a minimum capital of $50,000, but comes into its own at portfolio values > $100,000.
Intelledgence is very different. The average profit per trade is 39% which means that capital bases as little as $10,000 can be used to trade with Intelledgence.
