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How Passfolio Financial uses cryptocurrencies and local partnerships to democratize US investments

If you live in an emerging country, investing in US stocks can be an interesting way to reduce your exposure to local markets and hedge your portfolio against economic downturns in your country (consider the economic crisis in Venezuela or Argentina, for example). In addition to diversifying your portfolio, investing in the US allows you to potentially earn money in a typically strong currency: the US dollar. 

With Passfolio Securities, people in over 170 countries can invest in US stocks from the palm of their hands and without having to open a US bank account. In this post, we’ll go over details about how Passfolio Financial manages to reach a  client-base all over the world by supporting cryptocurrencies and partnering up with local payment providers. 

Local Payment Providers 

Passfolio Securities clients in Latin America, for example, can deposit funds into their brokerage accounts via local transfer methods like TEDs. This is possible due to partnerships with payment providers like FacilitaPay. Soon, similar functionalities will be available in more countries around the world. 

For TED deposits and withdrawals we charge a 1.2% currency conversion fee + 0.38% IOF.  An additional R$2.00 is charged for TED withdrawals.

It’s also worth mentioning that Passfolio supports fractional shares¹ and charges no commission fees² for stocks, except for securities less than $5, which cost $0.02 per share. See our fees here

Cryptocurrency Support 

Passfolio clients can also deposit and trade cryptocurrencies like Bitcoin and Ethereum through Passfolio Financial*. In fact, you can trade the following 9 cryptos on Passfolio at the moment: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Zcash, Orchid Token (OXT), Basic Attention Token (BAT), Chainlink (LINK), and the Dai Stablecoin (DAI).

Passfolio Financial’s cryptocurrency support enhances its global reach because cryptos are truly borderless assets. For those who don’t know, cryptos can be transacted electronically and are generally not issued by any central authority, which is why they can be used anywhere in the world.

To purchase securities using cryptocurrencies, you must first convert them into U.S. Dollars using Passfolio Financial LLC. You must then move the U.S. Dollar proceeds to your brokerage account at Passfolio Securities LLC where you can use it to buy securities.

Currency and cryptocurrency exchange services provided by Passfolio Financial LLC (“Passfolio Crypto”), a US Money Services Business registered with FinCEN. Passfolio Financial LLC is not a broker-dealer. Cryptocurrencies are not protected by FDIC or the SIPC.

Industry-Standard Technology

Passfolio Financial connects investors to Gemini, a widely used global exchange (over 2.5 million BTC were traded on the platform in the past two years). By doing so, we bring you better liquidity and reduced fees for your trades. 

Gemini is a licensed New York trust company that undergoes regular bank exams and is subject to the cyber security regulations promulgated by the New York Department of Financial Services. Below are some of the platform's specs designed to improve security:


  • 2FA (Two-Factor Authentication) 
  • Offline ‘Cold’ Storage
  • Hot Wallet hosted on Amazon Web Services (AWS)
  • Digital Asset Insurance
  • Address Whitelisting

For more information on Gemini's first-in-class security measures, visit https://gemini.com/security

 

How to Get Started

To create a Passfolio account, you just need to be at least 18 years old and submit some basic information (get started here). After submitting your information, your application will typically be reviewed and approved within one business day. If any additional information is required, we’ll get in touch by email.

In order to deposit crypto into your Passfolio Financial* account, you’ll have to withdraw funds from an external crypto wallet. All you have to do is copy and paste your Passfolio crypto wallet address into the external wallet and specify the amount of cryptocurrency you’d like to transfer. 

To find your crypto wallet address on Passfolio Financial, just access the transfer tab then select “Deposit” and “Deposit Crypto”. After you’ve done this, you’ll be given the option to select what cryptocurrency you’d like to receive (e.g. Bitcoin). It’s that easy! 

 

Cryptocurrency Trading Fees

For crypto market orders, Passfolio Financial charges a price spread of 0.85% plus a fee based on the order amount: 

  • $0.99 for orders less than $10; 
  • $1.49 for orders less than $25; 
  • $1.99 for orders less than $50; 
  • $2.99 for orders less than $200; 
  • And 1.5% for orders above $200. 

For crypto limit orders, we charge a fee of 0.35% per order. Opening, maintaining, and closing your crypto account are all free. Please see our fees here.

Got questions? We’re here to help

If you need any help or have any questions about Passfolio, we highly recommend you check out our Beginners Guide - there you’ll find just about everything you need to know to get started as a US investor. Also check the cryptocurrency section of our Help Center and feel free to reach out to our responsive support team at support@passfolio.us 

 

¹ Please see our fractional shares disclosure.

² Securities less than $5 cost $0.02/share. Please see our disclosures on other charges.

Please read important legal disclosures that apply to your relationship with Passfolio.


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Passfolio is a San Francisco fintech company democratizing investment opportunities by creating a unified, global, and borderless investment market starting with the United States Stock Market.

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Passfolio is your US stock broker available in over 170 countries.

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