Opencash - Making Long-Term Investing Fun
In the midst of the COVID pandemic, Andre Norman came across a Reuters article1 that said the average holding period for U.S. shares was 5-1/2 months in June, versus 8-1/2 months at the end of 2019. Compare that to the 1950s, during which the average holding period was 8 years.2
"I was shocked at this realization," said Norman. "I already knew, based on historical data, that holding a broad-based portfolio of stocks over an extended period significantly reduces your chances of losing your principal," he said.
But, the problem is too many investors find long-term investing boring, he said. That same Reuters article said, "Warren Buffett's favorite holding period -- forever -- has few fans these days." It was then that Norman came to realization that long-term investing needed to be more fun and exciting for the new generation of investors. And, with that, the idea for Opencash was established.
Opencash developed a Scratch-Off Incentive Program to meet its mission of making long-term investing fun and exciting. The program gives customers the opportunity to win portions of a $10 million prize pool each year.
For everyone $100 worth of stocks or ETFs in a customer's account, that customer will earn 1 scratch-off ticket each week. Once the scratch-off tickets are released weekly, customers can scratch their tickets to reveal the hidden prizes.
Making it Happen
Opencash is a FINRA- and SEC-registered broker-dealer that allows customers to invest in stocks, ETFs, and options.
Opencash uses Cboe's real-time equities and options data to deliver real-time market data in its mobile app. "This is the utmost requirement because it allows our customers to get accurate and timely information about the market before making an investment decision," said Norman.
Broadening the Offering
Coming soon, Opencash plans to offer managed portfolios and a high-yield savings product as well as more ways for customers to earn tickets and win prizes. One project Opencash is currently working on is called "Investment Club," where customers will be able to pool their tickets together to improve their odds of winning a prize. Prize winnings will be split amongst members of the club.
Opencash is also planning to make a web-trading platform available to customers.