Vatorx2
Chocolate Investments Limited
Location: 5 Melville Crescent,, Edinburgh., United Kingdom United Kingdom
Founded in: 2007
Stage: Napkin (idea)
Number of employees: 1-5
Short URL: vator.co/Chocolate-Investments-Limited-No-Trading-Fees
Followers (2)
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Chocolate Investments Limited

No Trading Fees
Startup/business
Edinburgh., United Kingdom United Kingdom
http://www.notradingfees.com/
  • About
Company description
 

No Trading Fees or NTF allows you to bet on individual share price movements with no spread, no commissions and no brokers' fees. You simply buy the virtual share you want and dependent on the movements in the real markets, your price will either go up or down. You can trade with other users who have opposing views for real profit or loss. For more information, visit notradingfees.com and read through our FAQ's.


Team
Business model
 

Ever since the dawn of the London Stock Exchange in 1801, individuals everywhere, of every race, religion and age have wanted to trade in stocks as an alternative to unattractive interest rates from their bank. Everyone wants the highest return possible for their hard earned money and are willing to take onboard a degree of extra risk relative to their expected rate of return.

They buy their shares, pay their broker's fees, their stamp duty and any other charges incurable, and hold onto their shares until the price and the return is attractive for their expectations. However, this return must be enough to meet their expectations as well as cover the fees and charges, not to mention the broker's margin or the spread between the bid and the offer prices. But what if all these charges could be eliminated: no margin or spread, no fees and still the potential for the same percentage gain? No Trading Fees lets one do just that. It is designed to allow individuals easier access to buying and selling financial products; primarily, shares. It abolishes the need for paperwork, eliminates brokers fees and there is no margin. Individuals simply buy and sell at a mutually agreeable price.

 

NTF users deposit money into their online account, transfer it into NTF credits and purchase their virtual shares on a secondary market to trade with other users with opposing views on the stock in question creating a marketplace for traders of stock but without all the hassles of paperwork and fees.

Users select their market and their stock and with the click of a button, they can buy and sell as many or as few virtual shares as they desire.

 

The website will hold a bank of virtual shares and provide an initial public offering of these shares to its members. Users buy these shares at the mid price (fed in from the real markets). Once these shares are issued, the secondary market begins where users buy and sell between one another for profit or loss based on opposing views.

As users are effectively betting on share price movements, the company has set up as a gaming enterprise with an international offshore gaming license and servers based in Costa Rica. As the site does not allow users to buy and sell real financial products, it is not subject to stamp duties or fianncial regulation (although transaction logs will always be kept for any potential legal disputes such as users attempting to commit fraud).   

 

Because a credit system will be in place and users can trade at a fraction of the real prices where 1 real penny can buy 100 NTF credits and 1 credit represents 1 pence of a virtual stock, the market becomes accessible to a wider demographic who want to invest in shares as they can invest as little as 1 pound at a time. Essentially we have a 100:1 conversion ratio. It is easier to use and understand and is available to anyone with internet access.

 

This concept is set up in a bettingexchange format with a trading floor where all trades are carried out under a best-price execution model. It can be replicated across all market indices throughout the world over and can support a wide variety of financial products including stocks, bonds, mutual funds and commodities. And because users trade real prices based on underlying real products, they can make real profit and loss without the time-consuming and costly paperwork associated with actually trading the real financial products themselves.

 

Within 2 years, the website is expected to have over 50 000 members and an estimated gross profit of £264 240. This assumes an exponential growth rate 3 months after launch due to an aggressive marketing strategy involving viral internet marketing, search engine submission, pay-per-click affiliations, Adwords and Adsense with Google and word of mouth and press advertising. There are also aims to establish outlets in city centres allowing individuals to come in and trade in person and learn more about the concept as well as promoting the website in a more public environment. Television, poster and flyer campaigns will also be established on a regular basis.

 

The business requires funding for advertising. 

As one of the directors owns an IT firm, the same one who designed Megabus.com and has a staff of over 20 with all areas of expertise covered, development is ongoing at no additional cost although once in profit, this IT company will start invoicing for work done.

 

A full business plan can be provided on request as long as an NDA is signed beforehand.

Competitive advantage
There is no one else in the market sector. Similar companies include Gnutrade who trade commodity prices and betfair who now run tradefair. This along with other spread betting companies are the main competition although they involve a spread. NTF does not.