Kapitall is basically a brokerage with a user interface like a video game. Their motto is “Drag, Drop, Trade. It’s that simple.” I don’t think the idea of equating stock trading with a game is a good lesson for long-term investors, so I’m not a big fan. In general, the more a person trades, the lower their returns.
However, Kapitall is offering a up to $200 bonus promotion that is worth mentioning. New customers who open and fund an account by March 31, 2014 can earn the following:
- Deposit $50-$999, get $50.
- Deposit $1,000-$9,999, get $100 and 1,000 Kapitall Koins.
- Deposit $10,000+, get $200 and 2,000 Kapitall Koins.
The $100 for $1,000 deposit is essentially a 10% bonus and I don’t see any minimum holding period or trade requirement. On a separate page. they do appear to add a 180-day minimum holding period for the initial deposit and one minimum trade. But if you want to withdraw your money, you’ll have to make a minimum of two trades (buy and sell).
$200 for $10,000 is only a 2% bonus but that’s still not a terrible risk-free return over 180 days when compared with current bank rates of 1% interest over a full year.
(Kapitall Koins are their form of reward points. As a reference, 2,000 Koins = 1 free trade worth $7.95.)
Fees and Commissions
Their commissions are $7.95 with no account maintenance fees and no inactivity fees. Paper statements and trade confirmations are $5 each so you should be sure to accept paperless statements. Here is the full fee schedule.
Offer fine print:
The cash credit offer is valid for new customers who open and are approved for a Kapitall Generation brokerage account and fund the account with the required amount as stated below by March 31, 2014. Cash credit offer is based on the following deposits into an approved brokerage account. Subsequent deposits into the same brokerage account do not qualify for additional cash credits. Fund $50-$999: Receive $50 cash credit into brokerage account and 500 Kapitall Koins. Fund $1000-$9,999: Receive $100 cash credit into brokerage account and 1000 Kapitall Koins. Fund $10K+: Receive $200 cash credit into brokerage account and 2000 Kapitall Koins.
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There IS a trade requirement, among other limitations:
**The cash credit will be credited to the brokerage account within 2 business days of account funding and cannot be withdrawn from the brokerage account until a trade has been placed and 180 calendar days have lapsed. If the initial deposit is withdrawn from the account within 180 days and/or a trade is not placed within 180 days of the initial deposit, then we reserve the right to remove the cash credit from the account. This offer is limited to one brokerage account per registered member. Subsequent deposits into the same brokerage account do not qualify for additional cash credits. The cash credit is non-transferable. This offer is applicable only to trades of exchange-listed equity securities and ETFs. Kapitall Generation LLC is not responsible for the tax consequences of this cash credit. You should consult with your own tax advisor about the appropriate tax treatment for this offer and any tax implications associated with receipt of the offer. Any taxes related events as a result of the offer are your responsibility. We reserve the right to terminate this offer at any time.
https://kapitall.custhelp.com/app/answers/detail/a_id/217/~/tiered-cash-offer
Actually there is a (well hidden) 180-day period in which you must place a trade and keep your money with Kapitall: https://kapitall.custhelp.com/app/answers/detail/a_id/217/
Great find! Thanks. Account closure fee is not listed, but I guess with a $0 account maintenance fee that’s a wash.
Additional T&C:
“The cash credit will be credited to the brokerage account within 2 business days of account funding and cannot be withdrawn from the brokerage account until a trade has been placed and 180 calendar days have lapsed. If the initial deposit is withdrawn from the account within 180 days and/or a trade is not placed within 180 days of the initial deposit, then we reserve the right to remove the cash credit from the account. This offer is limited to one brokerage account per registered member. Subsequent deposits into the same brokerage account do not qualify for additional cash credits. The cash credit is non-transferable. This offer is applicable only to trades of exchange-listed equity securities and ETFs. Kapitall Generation LLC is not responsible for the tax consequences of this cash credit. You should consult with your own tax advisor about the appropriate tax treatment for this offer and any tax implications associated with receipt of the offer. Any taxes related events as a result of the offer are your responsibility. We reserve the right to terminate this offer at any time.”
Good find on the the minimum one (1) trade and 180 day no-withdrawal period. I can’t believe those terms aren’t listed on the same page as the offer, and not even on the page when you click on “full Terms & Conditions”.
I know it’s a good percentage return even after paying for a trade, but it’s not worth the hassle given the terms and conditions. Lot easier to signup for a credit card that pays $500+
Mostly I just don’t like that the terms and conditions aren’t clear on their page. This makes me less confident that I will get the bonus without additional hassles.
I agree, Jonathan. If one simply put in for an ACH withdrawal of all money in the account as soon as the bonus was deposited, would Kapitall really have a way of taking its bonus back (or preventing the bonus from transferring in the first place)? I am dubious, and the terms say that Kapitall reserves the right to remove the cash credit, not that it *will* do so.
Thanks for the post and the update. I signed up on Thursday, deposit hit on Friday, bonus credited on Saturday. All in all, I’m pretty happy. Will be making my first trade on Monday (index fund) and then letting it sit for 180 days…pretty easy $100. Great customer service as well (both chat and email) after I asked when my bonus would be credited.
So if you deposit $10,000 or $10,001 (if you read $10K+ requirement) you will earn 2,000 Kapitall Koins, which means that your trade will be free, instead of $7.95, right?
It is a HARD credit pull = Experian .. per chat with CSR there… a hard credit pull for $100 is no deal my friend.
and $10,000 locked up for $200 6 months is an arguable no deal either – unless you were going to use that $10,000 for trading anyway that is.
No go because of the hard pull. YMMV