A roboadvisor (roboadviser) is an online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners. This reduces costs and emotional errors whilst trading investment and retirement accounts on auto-pilot.
Why spend all your spare time trading stocks? Hours of trading may be unsuitable and you may have to stay up long hours trading to achieve the desired result. Our computer algorithms never sleep and trade on your behalf without the interference of human emotion. This helps eliminate human trading errors and emotional trading mistakes and allows you to concentrate on your business or leisure time.
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index.
Choosing where to invest your money is a difficult decision and will depend on many factors, including your overall investment objectives, risk profile and the amount of time you have to invest. It's therefore best to seek the advice of a qualified financial adviser who can help define your personal situation and identify the appropriate asset allocation. But, if you do not have an adviser, our automated system will select the strategy for you based on your risk profile. Returns will be based on your risk profile. You can find out your risk tolerance and get a free "risk score" here.
Our investment strategies are selected after a rigorous testing process. We start by looking at the macro outlook for the year ahead and then select the appropriate ETFs. We always have a "hedge" in place via US treasuries or government bonds. Usually, when "risk on" assets such as equity ETFs or stock market instruments start to fall, investors seek safety in "risk off" assets such as bonds or treasuries. We then use momentum strategies to optimised the return to risk for any portfolio and carry out Monte Carlo simulations. Trades are automated, but the overall strategy is always overlooked by human asset managers for an extra layer of security & protection. As time goes on, we can adjust the strategy if we feel a new ETF or overlooked ETF will provide better returns to risk. This will be occasional though.
Any national who is 18 years of age or over may open a Money Pouch account, except US residents. We only accept Americans who are permanently resident outside the USA. We do not accept green card holders or anyone resident in the USA. We do not accept anyone resident in the UK or Hong Kong or India. We do except British, American, Indian and HK expats who are resident outside of these countries.
Anyone else worldwide can open up an account as long as you are not a resident in a black listed country such as North Korea or Nigeria. You can see a list of the available countries here.
Our account minimum is $10,000 which entitles you to invest in a diversified portfolio of low cost index funds (ETF's) which are rebalanced monthly automatically on your behalf by our trading algorithms.
Your assets are held in a brokerage account that The Money Pouch creates for you with Interactive Brokers. Interactive Brokers is a global brokerage firm based in the USA with equity capital in excess of $4.8bn. Interactive Brokers has the necessary technology expertise and security systems to support our investment approach. Your investments are held in a custody account opened in your name and secured with two-factor authentication. As both knowledge of your username/password and physical possession of a security device are required to login to your account, participation in the Secure Login System virtually eliminates the possibility of anyone other than you accessing your account.
Yes, we encourage transfers from other brokerage accounts free of charge. We are able to transfer an outside brokerage account in its entirety and then it will be reinvested into your designated risk orientated portfolio. For retirement accounts which are transferable, we are then able to sell your transferred assets and invest you in the appropriate investment portfolio based on your risk preference.
Please contact us to get the process started.
We highly recommend that you sell the following types of investments before you transfer your account to The Money Pouch because we are not able to transfer them:
We make use of both leveraged ETFs (max 3x) and Interactive Brokers' Reg T Portfolio Margin Account for the best investment returns to risk depending on risk profile.
Our conservative account is not leveraged. If you want to invest just the money you send in, please choose the conservative account. This strategy is the least exposed to volatile swings up and down. This is best suited for older clients or cautious investors
Our balanced and adventurous accounts employ “soft leverage”. Each account is leveraged at up to 130%, dependent on market situation. So, for example, if you invest $100,000, we trade with $130,000 or 1.3 x your initial capital. This ensures higher profits at still tolerable risk. That's why we call it "soft leverage". Please note that your capital is at risk. Please click the following links to read more about margin accounts and leverage.
Whilst we do not accept U.S. residents, we strive to comply with U.S. SEC regulations for all of our clients. This includes important disclosures to clients about our fees, business model, anti-money laundering, anti-terrorist financing and cybersecurity, which we take very seriously. On this site, under "Investment Strategies," you can find:
Any financial advice is given by our partner firms and we don't take this task lightly. Partners are informed to obey SEC's requests below.
An investment adviser’s fiduciary duty includes an obligation to act in the best interests of its clients and to provide only suitable investment advice. Consistent with these obligations, an investment adviser must make a reasonable determination that the investment advice provided is suitable for the client based on the client’s financial situation and investment objectives.
You can read more about the SEC's guidance for roboadvisors here. You can also read the SEC's investor bulletin for roboadvisors. Which is a useful guide if you are not familiar with roboadvisors and their function.
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