What we want to achieve
Anyone who wants to invest their money in securities should have direct access to the best trading ideas, with fully transparent and fair offers. And everyone who has a trading idea should be able to present it in a free, uncomplicated way – and also to earn money with it.
Direct access to financial investments for everyone
In an ideal world of finance, all people can invest their money profitably and enjoy free access to successful trading ideas. They do not depend on financial advisors who often may only have their own commissions in mind, but obtain suitable tools to decide for themselves how much they want to invest in what. In a perfect setting, people can understand the performance of their investments at any time and fill gaps in knowledge quickly and effortlessly.
This is exactly the type of environment Andreas Kern wanted to create, and he founded wikifolio.com, which has developed into the leading social trading platform within two years. “My vision is the democratization of the investment market”, says Mr. Kern. Both in terms of the investor and the trader.
Our vision: The democratization of the investment market.
Trading talent prevails
wikifolio.com connects the world of securities with the principles of social networks: Each trading talent can represent and publish their trading ideas in virtual portfolios, the wikifolios, with all trades in the wikifolios getting completely documented. Whether the trader is a “Hidden Champion” or a well-known asset manager – everyone gets the chance to prevail with their performance and make their expertise available for use by others.
With honest strategies to success
Successful wikifolios can serve as the basis of an open-ended index certificate, a wikifolio certificate that is issued by Lang & Schwarz. All wikifolio certificates are traded in a transparent manner via Lang & Schwarz and the Stuttgart Stock Exchange. Every trade and every price in the wikifolio is published in real time on wikifolio.com. Obfuscation tactics are impossible.
Everyone gets the chance to form the basis for a financial product.
Equal chances for all investors
And any other “cheating patterns” of the financial industry don’t stand a chance on wikifolio.com either: By linking the wikifolios with real price data, key performance figures cannot be manipulated since they are published in real time just like the trades and prices. Unlike some business models where customers are treated unequally, all investors receive the same gross return percentage with wikifolio certificates – regardless of whether they invested 100 euros or 100,000 euros. For us at wikifolio.com, this is also part of the “democratization of the investment market”.
Five good reasons for securities
Whereas stock exchange transactions used to be something for major investors, today small investors can now benefit from the dynamics of financial markets, too. In times of low interest rates, a savings account leads to a real loss of value. To put it bluntly, one could also speak of creeping expropriation: The inflation rate is higher than the interest earnings. Whoever wants to retain their savings – or better yet increase them – must resort to other forms of investment. “We want to inspire more people to get interested in the capital market: Stocks are the best forms of investment”, says Andreas Kern, founder and CEO of wikifolio.com, and lists the five most important reasons why.
- Liquidity: Stocks can be bought and sold at virtually any time. Liquid stock exchanges ensure fair prices.
- Inflation protection: The value of a stock generally follows the same trend as inflation. When prices rise, the value of a stock usually increases as well.
- Risk minimization: One can invest in stocks in a diversified manner and thus spread the risk. As a rule of thumb, one should invest in at least 20 to 30 companies.
- Transferability: In contrast to real estate, it is usually easier to transfer stocks – both to other persons and geographically.
- Money “works”: With stocks, one does not just hoard one’s money for a later time. One gives it to companies that work with it – and let one share in their profits in return.
We aim to kindle the enthusiasm of more people for the capital market.
Entry barriers? We don’t want them!
Everyone should be able to take advantage of these five benefits, regardless of how much money they have access to. Thus one can already buy wikifolio certificates starting with about 100 euros and use the strategies of the best wikifolio traders. No complicated trading knowledge is required and one can simply order a wikifolio certificate via any bank. Whoever wants to can follow every step of the traders and simply learn along with them. “Whoever wants to enter the field of social trading with 1,000 euros starting capital and different strategies will learn more than by reading any investment book,” says Kern.
wikifolios as an investment class of its own
But not everyone has sufficient time and expertise to deal with the markets. Most financial experts also specialize in individual markets, industries or a trading system. But the following holds true for all: In order to achieve good long-term results, one must diversify – and that means not only in terms of industry or country, but in terms of asset classes in general as well as trading styles. It generally makes no sense to just statically invest the whole brokerage account in an ETP, nor does it make sense to concentrate all the assets in a day trading strategy.
The trick is to find the right mix of long-term investments and trading strategies that use short-term opportunities or limit risks. Particularly when one's own brokerage account is oriented rather long term, wikifolio certificates provide a transparent and dynamic addition.
wikifolio certificates are the ideal admixture and should not be missing from any portfolio.