Buy Stock with no Fees, Loyal3 Review

The other day I was reading about different ways to maximize your credit card rewards. I don’t remember the site, but there were some pretty creative ways to build your points. One of the ways was to purchase stocks with your credit card. Normally this isn’t possible so I decided to look into the idea a little more and ended up on a site called It was actually a pretty cool idea and it turns out you can really purchase stock with your credit card, albeit only $50 at a time.


I was more interested in the idea of how you could buy stocks with no fees and how the company worked though. They don’t charge any fees to buy or sell stock and you don’t have to buy whole shares, you could just buy a dollar amount, starting as low as $10 and then it goes up from there. buy stock with no feesThey focus on a lot of well known retail brands like Nike, Target and Best Buy. They’ve even created a list of the 50 most liked stocks on Facebook and included them in the list of stocks you can purchase.


I was intrigued so I spent a few minutes chatting with a rep of Loyal3 to ask a bunch more questions on how it worked. Here’s a copy of the chat.

Kyndal C: Hello. Thank you for contacting LOYAL3. How can I help you today?

Me: I just watched the intro video. What is the process to set up an account?

Kyndal C: You can go to the homepage and click on the “browse stocks” tab. Choose a stock that you would like to invest in and then the website will prompt you for your personal and payment information.

Me: OK Thanks. The video showed that there were no fees to buy and sell the stocks. How can Loyal3 do this and stay in business? Am I paying a premium for the stocks?

Kyndal C: LOYAL3 receives fees from companies that have a Social Stock Plan on our platform and will be compensated in its role in IPOs. For other stocks on our platform, LOYAL3 does not receive fees. & no, you do not pay a premium for the stocks.

Me: That’s cool. What is the minimum to get started at Loyal3?

Kyndal C: Minimum investment is $10 and the maximum per stock, per month is $2500 Me: How many stocks are there to choose from? I looked at a few of them and they are mostly brands I know and like.

Kyndal C: We currently have 50+, I believe 55 to be exact

Me: I noticed you have Google on the list, which is pretty expensive. Do you have to buy whole shares? For Google that could be a lot of money.

Kyndal C: No. We operate in dollar amounts, so you can choose to invest as little as $10 in one company and own a fractional portion of a share.

Me: Wow, that sounds almost like a mutual fund. Is there a specific amount of time you have to hold the stock?

Kyndal C: No. There are no restrictions for how often you can buy and/or sell.

Me: When I sell a stock are the funds left in an account at Loyal3 or are they transferred back to my personal account?

Kyndal C: When you create an account, you are also given a LOYAL3 cash account. You can use those funds to invest in other stocks or you can transfer your funds into a checking account.

Me: Cool. What are the different ways to fund an account?

Kyndal C: You can use a checking account, credit or debit card, or deposit funds into your LOYAL3 account and make stock purchases from there.

Me: Can I open an account for a minor, like my son who is interested in investing?

Kyndal C: At this time, we do not offer this service on our platform, but it is something we are looking into adding as we continue to grow and expand as a company.

Me: Thanks. Is there anything else I should know before I get started with something like this?

Kyndal C: It seems like you have done a good amount of research, which is always good before starting something new. We operate on a batch trading system and only make trades 3 times a day (2 purchases, 1 sell) and we must receive funds in the system before we can execute trades, meaning it will take 2-3 business days for your purchases to execute on the open market.

Me: Thanks. That’s good to know. So when I deposit funds it will take a few days to get there before I can purchase some stock?

Kyndal C: To deposit funds into your LOYAL3 cash account will take 3-4 business days, but in order to open an account, you’d need to make a purchase first. So essentially, you would need to choose a stock to invest in, link a checking account with LOYAL3, and then once your account is created you can deposit funds into your LOYAL3 cash account.

Me: One last question, if I bought some stock with a credit card, would it be considered a cash advance or a purchase?

Kyndal C: It is considered a purchase, but you cannot use the credit card to deposit funds into your LOYAL3 cash account, and there are limits on the credit cards; they can only be used for the preset amounts of $10, $25, and $50

Me: I just thought of one more question. Could I set up recurring purchases of stock, like dollar cost averaging?

Kyndal C: The only recurring thing we currently offer is the ability to automatically have your account charged for a stock monthly. It’s an automatic purchase plan. But we do not have dollar cost averaging

Me: That would work for me.

Me: Thanks for all your help Kyndal. I think you’ve answered all of my questions.

Kyndal C: You’re welcome, Adam. If there is nothing else I can do for you, have a great rest of your day!

I had a couple of other questions that I thought of later, like do they send a 1099 like a regular broker and could I transfer the stock to another broker later on. I got back on a chat and found out that yes, they do send a 1099 and you can transfer to another broker if you want. I was told though that other brokers only accept whole shares to any partial shares would have to be sold and then the cash could transfer. After going through all of this I though why not give it a try so I used my credit card to buy stock with no fees.  My first purchase was only for $50 of Kellog’s stock. My idea was to hopefully buy one that is not so volatile so I could complete the process of buying and selling and cashing out without much risk. The stock is valued at about $68 a share so I don’t even own a whole share. We’ll see how it goes.

Here’s a quick video that gives an overview of how to buy stock with no fees.

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