Here are some questions that we get asked a lot, and answers to those questions.
No. There are no minimum balances we require in your Pasiv investing account. You can start with as little as $5. Keep in mind you may have to pay fees to transfer funds to your investing account.
You first need to open an account with us, which gives you a US Dollar wallet account. This requires submission of KYC documents. Once the account is opened (within 48 hours from submission, assuming all documents are present), you will then have to send funds directly from your bank account to the fund custodian based in the USA. You can do this using your online banking / internet banking provided by your bank account. Once these funds arrive in the USA, we will alert you in the app and send you an email notification that you have a cash balance in your wallet available. You can then use the Pasiv app to purchase stocks and funds using the wallet balance.
We’ve affiliated with ChoiceTrade to refer your account – brokers in the US who have been in business for 20+ years. When you open a Pasiv account, we’re giving you a US based investing account with ChoiceTrade – US securities & produts by ChoiceTrade. The orders you place in the Pasiv app, are placed in this ChoiceTrade account.
Pasiv is based in the DIFC and has received approval by the regulatory authority the DFSA (Dubai Financial Services Authority) to launch this service for retail investors. We can onboard you as a client from anywhere in the world except the USA, Canada and countries that are sanctioned by the US treasury department or by the UN or the UAE.
You’ll need to keep three (3) documents handy; (1) a passport copy, (2) the first page of your bank statement and (3) an address proof such as a utility bill or tenancy contract.
To close your account at Pasiv simply navigate to the settings section of your account profile page. You will see the option 'Cancel Subscription' if you have a real investment account or 'Delete My Account' if you're using the demo. Please sell all your stock holdings and wait 2 days for the cash to settle in your account before cancelling your subscription. Our team will then close your account and wire you back any funds you have in your account.
Your cash resides with our regulated partner – ChoiceTrade’s custodian clearing firm, Velox. When you purchase a stock, the clearing firm which is also a US regulated entity, automatically goes through a “settlement & clearing” process where the person who sold you the shares receives the relevant cash amount, and you receive electronic shares registered & held in your name. The clearing firm automatically manages this process in the background.
Historically the S&P500 index has returned 8% per annum. But this assumes you will invest all your funds in an ETF that tracks the S&P500. In any given year a particular stock can do better or worse than the overall index. It entirely depends on the stocks and funds that you decide to purchase. Stock investing involves risk and companies you invest in can have their shares increase in value or decrease in value. You may lose money by investing in companies that are not performing well, and even in cases where companies perform well their shares may fall in value. It’s important to research companies you invest in before you buy their shares.
*Not investment advice or recommendation to buy or sell S&P500.
You can earn passive income by asking your virtual assistant about passive income. Your virtual assistant will help you sort through the universe of stocks funds that pay dividends so you can find the exposure you are looking for.
At Pasiv we execute your order by default using a market order. That means we send an order to the affiliate broker to buy the stock you want to purchase at the 'Ask' price. In the US, most stocks have almost a $0.01 spread between the 'Bid' and the 'Ask'. So the price you get is usually in the middle between the two. There is no spread that Pasiv charges, or earns. We simply route your order to the best available price in the market at the time you place the order.
To deposit funds in your account you will need to make a wire transfer from your bank’s online banking facility. We’ll provide you the beneficiary details in the app.
To make a deposit in your account we will instruct you to send your funds to ChoiceTrade’s regulated custodian – Velox Clearing. The bank receiving your funds is BMO Harris (Bank of Montreal) – one of America’s oldest and most reputed banks.
No. Cash that you send in AED or your origin currency will be converted by your bank at your bank’s exchange rate before being sent to the US. Your bank may also charge you a fee for the transfer.
Simply navigate to the account screen in the app, click withdraw. Enter the amount you wish to withdraw, enter your bank details and upload a statement so we know it’s indeed your account. It takes at most 2-3 working days for the withdrawal to appear in your local bank account.
Pasiv does not deduct, and cannot deduct any money from your bank account. We are not licensed to control any of your bank accounts. You will need to initiate a wire transfer on your own and solely you retain control of your bank account at all time.
It is recommended to pay all the charges from your account, so that the US broker will credit your account with the full amount of your wire transfer upon receipt. If you decide to share the charges, the receiving bank in the USA can decide to charge you a higher amount than your bank locally would have charged.
There is no fee to deposit funds in your account. There is a $60 wire fee to send you your money bank via bank transfer when you withdraw any funds.