tuphat

Not necessarily, if 1099 w/ basis can be downloaded directly to tax prep software, eg TurboTax. Schedule D etc would fill itself out.

tuphat

This and similar statements seem over broad. If you were already going to buy one of the listed stocks, this seems like a great way to generate some extra spend.

GeorgeMilesArnold

They don't accept Fido Amex or JCB card

What card would be the best for this? Arrival?

bu08usc11

That's what I used.

edwin444pr

Of course, but you and I know that's not the case with most people here.

wholeinone04

I just wrote a post on Loyal3, in short: bad idea if you're trying to MS.

http://yourpfpro.com/using-credit-ca...stocks-loyal3/

There’s only one situation in which I think it might make sense for someone to invest their money using this strategy. Let’s say you normally stay away from credit cards but you see an offer like the Barclay Arrival Card that pays you 40,000 points($400) for spending $3,000 in 90 days. If you go ahead and buy $3,000 worth of shares from Loyal3, you’d get 6,000 points(for spending $3,000) plus 40,000 points for meeting the spend requirements. Once you redeem those points you’d get a 10% bonus bringing your total to 50,400 points or $504.

That means that you can withstand a $504 loss in your trading account and still come out ahead. 504/3,000 = 17%. I think it’s a very good bet that a single stock will not go down more than 17% in 1-3 days. But if you’re worried, you could diversify among 5-10 stocks and then there’s probably a 99% chance you would come out on top.

But the only caveat to this strategy is that if you have other means of spending the money that have less risk you could employ those methods and never put your $500 at risk. That’s the case for me since I spend around $1,000 a month plus I use Amazon Payments, Vanilla Reloads and Bluebird to meet spending requirements. So unfortunately this strategy won’t really work for me.

blahter

If you are a buy and hold investor and loyal3 has the stock(s) you were to buy anyway, this gives you a way to earn some miles/points/cashback you wouldn't normally be able to.

maksimfa

Its funny this appeared here a few hours after it was posted on a different MS forum. In any case, I quickly dismissed it. Over past few days I have decided that I got a way to make this work hedging out volatility and costs, likely saving the account from getting nuked, and making it sustainable. The flip side is... will require a larger bankroll to float it. Not for investment inexperienced.

In short though, as it is... will be good for those planning on investing as part of long term portfolio, STUPID idea for anyone who is in MS for the 1% - 5% we are all looking for.

Shuai Zeng

Just tested with CSP last week, it show as sales, no CA.

drdrew450

bank of america virgin atlantic card

Transaction type: Purchases
Merchant description: SECURITY BROKERS/DEALERS
Merchant information: 04159810700, CA

FredFnord

Somewhat frustrating for me: I'd like to buy and hold some of these stocks. However, loyal3 doesn't want you transferring them out to your regular brokerage. You can do so once. Then they shut you down, apparently.

I like all my investments in one easy to monitor place, but I also like no purchase fees and CC cash back. What's a fellow to do?

maksimfa

Where does it say you can only transfer out once?

Typically though, when you transfer out an account, and it is a full acat, it will close any account.

binnycode

I put almost 50k thru this method over 2 months. My account was then shutdown.

Stock Name Symbol Shares MS Generated
Amazon.com AMZN 6.3071 2500
Apple AAPL 4.5008 2500
Best Buy BBY 109.7939 2500
AMC AMC 117.814 2500
Coca-Cola KO 65.8763 2500
Google GOOG 2.1768 2500
Santander Consumer USA SC 98.4256 2500
Amazon.com AMZN 7.1093 2500
Apple AAPL 4.7445 2500
Berkshire Hathaway BRK.B 21.9877 2500
Target TGT 40.0097 2497
Disney DIS 30.7304 2499
Coca-Cola KO 65.2573 2500
Wal-Mart WMT 33.4627 2500
AMC AMC 96.8621 2500
Best Buy BBY 95.6026 2500
Unilever UL 63.468 2500
Viacom VIAB 29.252 2499
Google GOOG 2.1722 2500
Pepsi PEP 30.5678 2498
United Spend Bonus Earned 10000
Account Closed
Total MS Generated: 49993

My real spreadsheet is much more detailed but I deleted some of the other info for my safety.

I tried the chat feature to re-activate my account but the rep said they were not re-opening any "recently" closed accounts. I asked how recent was recent and he said "a few months". I said, thanks I'll check back in a few months.

waylook

What was the reason stated for the shutdown?

binnycode

Dear Binny,

"LOYAL3 focuses on providing a fee-free platform that brings brands together with people who love them.

However, as a broker-dealer, LOYAL3 is obligated to review client accounts on our platform to detect any activity or transactions that are not consistent with our products and services, or may be an indication of fraud.

Such activity may include, but is not limited to, the following:

• Large or excessive cash deposits and/or withdrawals
• Buy and sell orders submitted without regard of gain or loss
• Activity that doesn’t appear consistent with a normal investment practice
• ACH/credit card payment rejects
• Changes in ACH/credit card data
• Account owners sharing ACH/credit card accounts
• Changes in contact information, such as email and phone number


Based on our review, we have determined recent activity in your account is not consistent with appropriate use of the LOYAL3 platform

This notice is to inform you that we are closing your LOYAL3 account. Your account is now restricted to sell orders and withdrawals; no future deposits or purchases will be accepted.

Please contact us if you have any questions. We’re here to help."

1) My last withdrawal was over 7.5k but typically between 2.5k and 5k.
2) Bought and sold with some gain and some loss.
3) Pretty broad so who knows.
4) Never had a reject.
5) Changed ACH one time and CC two or three times.
6) Never shared.
7) Never changed contact info.

They sent another email:

"In the event you wish to reopen your account, please contact LOYAL3. We will be happy to answer any questions and guide you through the process. "