Bits of Stock Training Guide
Bits of Stock is a micro investing product that integrates seamlessly with your core. With it, account holders can build up a portfolio through everyday transactions using Stock Rewards and Round-ups, as well as giving them the benefit of a fully operational brokerage account, allowing them to invest in 1000s of stocks and ETFs on the market.
Plans
Bits of Stock is available in one of two plans, free, which provides as an introductory account to get started with investing, and a premium, which adds additional investing tools like Rewards.
Enrollment
Bits of Stock is available in one of two plans, free, which provides as an introductory account to get started with investing, and a premium, which adds additional investing tools like Rewards.
Round-ups
Round-ups takes spare change from every transaction up to the nearest dollar and invests it in stock or ETF of the account holders choice.
Stock Rewards
Stock rewards invest a percentage of each transaction in a stock or ETF of the account holders choice.
Stock Selection
Account holders can choose between any one of 10 options to receive Stock Rewards or Round-ups in.
Brokerage
The brokerage account is the place where account holders can manage their holdings, including their Stock rewards and Round-ups. From here account holders can buy, sell and transfer to and from your account.
Plans
Free and paid options available.
Bits of stock offers a free and premium plan. The benefits of each are clearly displayed on the plan selection page. These plans might differ slightly from financial institution to financial institution.
Generally on the free tier account holders will have access to Round-ups, and a limited brokerage account which allows them to place up to 5 buy orders per month. There are not limitations on being able to cash out the account or sell any assets they own in their accounts.
On the Premium tier account holders can expect access to the Stock rewards feature in addition to stock rewards, and an upgraded brokerage account which allows unlimited commission free trading.
Questions about Plans?
When is the account billed?
Billing occurs on the first of the month, using the primary account associated with account holders Bits of Stock account.
What happens to their assets when account holders upgrade or downgrade?
They stay part of their portfolio to continue to manage wether they are on the free or premium plans.
Do Round-ups or rewards count towards the 5 buy order limit in the free plan?
No. No orders or transactions related to the Stock Rewards or Round-ups programs count towards the accounts order limits.
Enrollment
Getting started with as little as one click
All online and mobile banking account holders will see the Bits of Stock menu item within their online/mobile banking platform. While the menu is visible to all users, only eligible account holders—those who have a qualifying checking account and meet the required criteria—will be able to fully access and use the platform.
To begin using the platform, eligible account holders must complete the enrollment process. This means, account holders must have a functional checking account (from their financial institution) and a brokerage account created on the Bits of Stock platform.
If an account holder does not have an eligible checking account, access to the Bits of Stock program features will be restricted. Instead of the full platform, they will see promotional messages (modals) explaining how to get started. Once an eligible account is opened and enrollment is completed, the account holder will gain full access to all features of the Bits of Stock platform.
How account holders can enroll
Account holders have multiple locations through which they can complete their enrollment, the easiest is through the dashboard widget.
Interact with the dashboard widget
Account holders can enter the enrollment process through their dashboard if it is turned on for all account holders by default.
Complete their account
Account holders will just need to review and finalizing their brokerage account details and submitting it.
Start investing
After submitting their information account holders will be able to immediately make use of the investment programs in their selected plan.
Round-ups
The self funded method to easily build a portfolio with small investments.
Step 1
Swipe
Every card purchase is rounded up to the nearest dollar.
Step 2
Auto-invest
The spare change is automatically invested in a stock of the account holders choosing.
Step 3
Grow
All invested stocks are added to the account holders portfolio for their management.
Customizations
Round-ups can be customized to better match it's need.
Round-up from multiple accounts
Account holders can toggle on and off any and all accounts linked to their Bits of Stock account. Any transaction from a linked account will feed into their round-ups increasing how quickly their portfolio grows. By default all accounts linked to Bits of Stock are turned on.
Multiply your investment
The multiplier controls how much investment is driven by each transaction. At 1x a $10.52 transaction invests $0.48, at 2x that doubles to $0.96. This can be changed at any time and will go into effect for the next transfer from the account holders linked accounts. By default, this is set to 1x.
Transfer Daily or Weekly
Transfer frequency determines how frequently we take all of the account holders accumulated round-ups and send them to their portfolio, investing them in their chosen stock. Daily transfers are sent at the start of the day every business day, weekly transfers are sent every Monday or the following business day. By default this is set to daily.
Questions about Round-ups?
How are the round-ups funded?
Each account that is linked to the program funds it. So when we see a transaction on a linked checking account, the spare change is transferred from that account.
Can account holders change which stock they get round-ups with?
Yes, you can change the stock at any time. Once you switch over any new round-ups will be put into that selected stock.
Is it possible for round-ups to overdraft an account?
No, before a transfer is initiated we ensure there are enough funds in the account to cover the transfer in full. When this happens we will automatically skip any new round-ups until funds in the account can support the program again.
Stock Rewards
A percentage back in a stock of your choice
Step 1
Swipe
Every card purchase is rewarded with a percentage in a stock of the account holders choosing.
Step 2
Redeem
Rewards are added up for the selected stock and are redeemable once they hit a threshold (usually $5).
Step 3
Grow
All redeemed Stock Rewards are added to the account holders portfolio for their management.
How thresholds and redemptions work
Rewards are bucketed into a threshold for a specific stock, once a threshold is met, that stock can be redeemed, adding it to the portfolio. Lets take a look at an example below where an account holder is earning 2% in Stock Rewards and have a threshold of $5.00.
Thresholds for a selected stock start at $0
Once a stock is selected account holders will start earning rewards for all purchases with a linked card. In the example above AAPL is selected, but no rewards have been earned yet.
Start earning rewards
As rewards are earned account holders will see the threshold value start to increase. In the example above $1.27 in rewards for AAPL have been earned.
Reach a threshold and redeem
Once the value of rewards is equal or above the threshold value, they can be redeemed. A redemption can be made by taping the big "Redeem my Rewards" button. Rewards will continually be earned and added to the value account holders see here so they don't miss out on anything.
Questions about Stock Rewards?
What happens if the stock is switched before reaching a redemption?
Any rewards built up in that stock will remain. To redeem them account holders will have to re-select the stock and reach the redemption value.
How long does it take for redeemed stocks to be accessible in the portfolio?
They should land in the portfolio within minutes of redeeming them if the markets are currently open. If the markets are closed they should appear within minute of the markets opening on the next business day.
Can Stock Rewards be sold?
Yes, after redemption account holders can, hold, buy more, or sell their stock, even if they were once a reward. Just note that there is a settle period after the stocks land in the portfolio (2 business days) before which they will be visible but not available to sell.
Stock Selection
The selected stock determines what Round-ups and Stock Rewards fund.
Default Stock
When starting with either Stock Rewards or Round-up the S&P 500 Index ETF (SPY) will be chosen by default
10 Stocks to choose from
Along with SPY account holders will have the choice of 9 additional stocks, which can be selected as the recipient for both Stock Rewards and Round-ups.
Switching Stocks
At any time account holders can select a different stock to use for our investing programs. Any Stock Rewards or Round-ups in the previously selected stock will be maintained.
Questions about Stock Selection?
How often can account holders switch their stock?
There is no limit to how many times account holders can switch their stock.
If the stock is switched in the middle of the day how will that effect Stock Rewards or Round-ups?
Any transactions we process after the switch will be use the new selected stock for Stock Rewards and Round-ups.
Will account holders lose Stock Rewards or Round-ups that they had with their previously selected stock when switching?
No, all Stock Rewards and Round-ups that they had with the previously selected stock will still be there.
Brokerage
The home of the portfolio, where account holders can buy and sell assets.
Creating an account
To make use of Stock Rewards or Round-ups account holders will need to have a brokerage account. Creating one is as simple as submitting a simple form and is included in all plans of Bits of Stock. Account holders will need to provide the follow information and agree to our standard set of terms:
Personal details
Name, contact, and tax information. This includes social security number. All standard for opening a brokerage account in the US.
Affiliations
Questions generally not applicable to most investors pertaining to if they are executives of publicly traded companies or politically exposed
Agreements
Bits of Stocks privacy, terms of use, and advisory agreements.
How to transfer funds
In order to purchase stocks in the portfolio account holders will need to either sell stocks that they hold from Stock Rewards or Round-ups or transfer funds into it from a linked account. They can also transfer any extra funds they have in their portfolio to an account of their choosing.
Open the transfer modal
Within the portfolio there is a transfer card visible beneath the chart. To get started they just need to click the button.
Select accounts
Account holders can dictate to and from which account they want to move money. If transfers come from Bits of Stock it is a withdrawal, if it is to Bits of Stock, it is a deposit.
Initiate the transfer
All transfers are done through ACH, once sumbited account holders will get a confirmation message that a transfer has started, and an estimate for when it completes.
Questions about Brokerage?
Do I need an brokerage account to use Stock Rewards and Round-ups?
Yes, in order to redeem Stock Rewards or to create Round-ups you will need to have a brokerage account.
How long does it take for my account to open?
Usually it will take 2 business days for the account to fully open.
Is there a way to track transfers?
Every transfer that is created can be seen and followed through the account history at teh bottom of the portfolio. Transfers there will be displayed with a status to let account holders know when they have been completed.
Which stocks can I trade?
There are 1000s of stocks and ETFs available that you can buy on both the free and premium plans.
Where can I find my tax information?
You will be able to find all the info you need for filing taxes in the documents section of the Bits of Stock environment.
How do I get support for my brokerage account?
If you are having any trouble with your brokerage account you can contact us to get help using the user icon in the top right of the Bits of Stock environment.
