May 31, 2022

Why Structure: Free trades


3 min read

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Most people don’t have a ton of savings or extra capital to invest, thus excluding them from a lot of investment opportunities that charge fixed fees or have other cost-related barriers.

Even the most common investment advice like: Investing is an important part of financial security; or A diversified portfolio is the best means to long-term returns; or Holding blue-chip stocks should be the bulk of every portfolio, are out of reach to most investors. While the cost of trading is one of the most significant barriers, minimum trade value and the cost of many assets are also deterrents. Structure works to address all three problems and, in so doing, frees almost everyone to begin trading.

Currently, Coinbase’s minimum transaction fee is 99 cents. For small investors, fixed fees like this destroy any real chance to earn returns. For instance, if you have $10 to invest but the transaction fee is $1, then you would spend $1 to buy and $1 to sell — losing 20% of your initial capital just to transaction fees. In essence, it is nearly impossible to trade successfully with fixed fees if you do not have significant starting capital.

Exacerbating this problem is that many platforms have minimum trades. Binance’s minimum trade is $10 while Coinbase’s is $2. So while fixed fees make earning returns nearly impossible, minimum trades of $10 precludes small traders from pursuing any kind of diversified investment strategy.

Further, many assets are priced well beyond the reach of small investors. Tesla shares are trading for $985, Apple $165 and Google $2,500. These and many other assets have traditionally had a minimum trade equal to one share — eliminating the opportunity of regular investors to realize returns from some of the ‘blue-chip’ assets that are often recommended as offering a chance for strong returns.

Structure addresses all three of these problems. Structure has no fixed fees for transactions. Because there are no minimum thresholds for transactions, you keep more of your returns. You can also pursue an active trading strategy if you wish because you pay no price for making your trades beyond the bid-offer spread. Structure also has a low minimum trade. We are currently working to implement the trading of a single Shiba Inu, or less. Shiba Inu is valued at .000023 cents — a small trade indeed. Structure also offers fractional assets. Fractionalizing assets breaks expensive assets like Bitcoin or Google into small pieces. This means you can buy $1 worth of Google rather than a share at $2,500, or 50 cents worth of Bitcoin rather than one coin at $40,000.

All three of these barriers need to be addressed simultaneously to truly allow small investors to be full market participants. With Structure, everyone is free to pursue whatever strategy they deem best. Like wealthy investors, they can pursue a diversified portfolio of high profile companies, actively trade across a range of assets, or focus on one or two assets they believe in.

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