Covestor offers to share stock portfolios. It allows individual investors to compare and compete with others on the site. Covestor makes it easy to build up a portfolio and track your performance. This also makes it very easy to compare with other investors. Covestor has the aim of making fund management much easier and taking it out of the hands of large organizations and putting it back in the hands of small investors. The members of the site are ranked according to 150 different criteria; this makes it possible for various other users to find portfolios that match their own opinions and criteria. If you choose to track a particular member then you will be able to invest an imaginary sum of money to see how well it performs. You can then decide whether or not you really want to follow this investors investment decisions with your real money. This service is very good because it links in with their actual investment accounts, this means that you can not only see what the investors are telling you, but you can also see proof of how well their investments are actually paying off. The service is very popular and the site has claimed that well over $100 million in securities is invested using the site. There are members in over 40 countries all around the world, and they hold over 4000 different stocks. It’s also possible to remain anonymous on the site if you want.
Covestor, which has offices in the UK and the US, launched as a public service on 18th June 2008, before that the service was restricted to private beta. In the winter of 2008 new features were launched that made it possible to automate the process without needing to copy the trades manually. Among the investors in Covestor are Union Square Ventures, Spark Capital and Amadeus Capital Partners.
There are quite a few other sites that are very similar to Covestor. Some competitors include Cake Financial and Motley Fool CAPS. You can find out more about an investor by reading their profile to find out whether or not you want to trust and follow their decisions. When you’re happy then you can leave your money alone in an account to do the hard work while you concentrate on more important things.
Covestor is designed to be fairly simple to use, you can search for a number of different investors and then find out which ones are performing the best. Reading profiles will give you an understanding of everything involved. You can then decide whether or not you want to follow the decisions made by that investor. When you log in you are presented with a very clean looking dashboard which contains all of the information you need access to. You can also enter a fantasy amount of money to track a person’s portfolio to find out how well you would perform if you actually did invest any money.
Registering is very easy, you just need to enter a username, password and your email address. You must tick the box to show that you accept the terms and conditions. Once you have completed the initial registration you will be taken through three more steps to gather more information, this includes your name, country, and biography. You can also skip setup for the time being if you want. You will also be asked to fill in your portfolio; you can do this automatically or manually. Alternatively if you don’t have a portfolio then you can just click the bottom button.
Using Covestor is completely free, you just pay the regular commissions when you buy and sell stocks.
Covestor is the perfect tool for anyone who has a lot of experience that they want to share with other people, or people that simply don’t have enough time to effectively manage their portfolio.