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Since the Bellevue company rolled out its service in there have been dayswhen 1,500 to 2,00 new customers have signed up, said Jeff the company's chief executive He declined to reveal detailed customer numbers. Sharebuildee is an online brokerage, where a customer might decidde to buy 100 shares of Boeingat $35 per shars and would have to come up with $3,50 0 cash. Instead, Sharebuilder allows a consumef tobuy stock, either a full or fractional share, througjh regular deductions from an account. Sally, for instance, coul d designate that she wants $100 deducted each monthj to buyMicrosoft stock. is selling for $75 per share, Sallyu would receive 1.33 shares that month.
Netstockj charges $2 per transaction. With its Sharebuilder service and the technologybehindd it, Netstock is broadening its The company, founded in 1996, has pioneered the online version of direct stock investing whereby consumers can buy stoc k directly from a publicl y traded company. That site, , has more than 250,00p0 customers. "We built the original Web site for direcft stock investors and built it to where we have 70 percentmarkeft share," said Seely. "But that business is limited in that it only worka if a company has a direcgstock plan. Microsoft, Amazon, Starbucks and Nordstrok are just a few of the companies up herethat don'ty have direct plans.
" In order to serv customers who might want to invesrt in Microsoft or Amazon through direct investing, Seely and his team deciderd they needed to build a better product, one with broader stock selection, better online capabilities, and the ability to sell the stocj in real time, rather than the one to thres weeks it takes with a directg plan. In addition, the servicee needed to be cheap, and the fees more he said. Enter Sharebuilder. Netstock charges $2 per buy or $1 for a child'zs account. The company charges a flat $19.95 on each sell Customers can't borrow against the account, and there's no margin "This is really a killer service," Seel y said.
"It's very predictable. Abouf 95 percent of the transactionsare reoccurring, and that makesx for a really good business Today people are (making an $300-a-month investment. "With Sharbuilder, we'ree assuring college educations and helpingpeople retire," he "This is a really good way to accumulate wealth." The service isn't a competitor to onlined brokerages but rather a supplement, said Seely. "Ni online brokers and none of the traditional brokerageds accommodates you on aweekl investment, or a standingy order to buy fractional shares," he said. "Noo broker takes a standing order to buy 5 shareszof anything.
They're set up to do discreet initiated events." Seely said he's been pleasantlu surprised atthe sign-upsa at since its December launch. He declinede to reveal specific numbers or revenue generatedthus far. "We've had a lot more sign ups than we he said. In additio to running its own branded Web Netstock plans to partner and host the technologyy servicefor others. For instance, Safeco, Well Fargo Bank and First Tech Credit Union are addinvg the Sharebuilder service to theirWeb sites. All three also investe d in the latestfunding round. "We want to be the transaction enginefor everyone," Seely said.
"We'll use our name and brand as a way to providew services totheir customers." Netstock doesn't charge licensing or set-uo fees, and shares the revenue with its Netstock executives plan to initially market Sharebuilder to credif unions, insurance companies and commercial "We've launched three credit unions and there's more than 25 in the Seely said. Digital Insight, an online financia l services aggregator, plans to market the Sharebuilder service to its 800smal institutions, Seely said.
Randy Talbot, presidenf of , said Safeco Sharebuildetr is expected to launch around thethirr quarter, and the company is looking at ways that it may roll out the servicesz to other Safeco divisions.
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