Thrifty, spartan, and prudent – these are the suggested synonyms for ‘frugal’. While this word normally describes positively simplistic life habits, it also has a direct correlation to wealth-building. If you look after the pennies, the pounds will look after themselves according to the old saying. In more modern terms, frugality is what the analysts call ‘effective private wealth management’.
New habits – new opportunities
You wouldn’t expect the virus to push you towards better investment, would you? Yet, that’s the case for many people. As Covid-19 started spreading in the UK, people changed their money-management habits. They started minimising unnecessary spending, maximising the overall efficiency of their funds, and building the best possible projections of how much they’ll have in the future. In other words, saving today to enjoy tomorrow. The Orca investment app has numerous features that can help you define frugality and establish a frugal lifestyle. Here are some of them.
One of the best frugality tips is an ISA (individual savings account). The UK legislation allows you to pay as little as nothing on your capital gains and profits –as long as you deposit less than 20,000 pounds every year in your ISA. Normally, you’d pay 3 pounds to open one, but with Orca it’s free. Signing a first-time ISA declaration and prolongation can be done right inside the app. Potentially, with the ISA, you could save up to 1000 pounds on a portfolio with an average annual return of 8% so it’s a highly effective tool in keeping with the frugal approach.*
Your social circles can potentially turn into another gain-generating asset. Orca has a very convenient referral programme that can make that work for you. Invest in three assets with Orca and share your refcode with your friends. As soon as they do the same in the app, you’ll get a free share worth up to 200 pounds. That’ll happen every time a person starts investing with Orca as your referral!
To make good investment decisions, you need to have all the essential information about each asset you’re considering. Before, it would have taken a lot of time and effort to research a stock, see its financial characteristics, read the forecasts, etc. Time-consuming and tiring. Meanwhile, with Orca, you have market information right in the app – from financial analytics to best and worst performers of the week. Saving money is directly linked to saving time: Orca lets you do both, with information on each investment asset presented in a clear, easy to read format and immediately available in the app.
Exchange-Traded Funds are asset portfolios assembled by market professionals so that you can invest in an entire market sector or a specifically selected asset collection by buying a share in it as if it were another public company. That’s why ETFs are normally considered very healthy investment options as stabilising elements in larger portfolios in addition to individual assets.
Smart Trailing Stop
It’s a bit of a tautology because Orca’s Trailing Stop is smart by definition: on each asset, you put a percentage of a maximum acceptable value loss below which you wouldn’t want to keep that asset. Above all, it saves your emotional resources: you no longer need to keep checking the charts and worry that your asset price may suddenly drop hard and nullify your gains. Instead, you set a Trailing Stop the moment you buy an asset and rest assured your risk is limited and gains are locked.
Another feature that saves you time and energy: you don’t need to follow the schedule of the London Stock Exchange. Live your life and place investment orders when it’s convenient for you. If your order is placed when the market is closed, Orca will execute your order the moment it opens for operation.
The London Stock Exchange is a market – a place where thousands of people make asset prices move every split second. Frequently, it happens that while you’re placing an order, an asset price changes, and eventually, your order gets executed at a different price than the one you saw a second ago. That may be quite an unpleasant experience especially with intensely traded assets of high volatility. Also, it makes it hard to precisely plan your expenses – how do you know if the price moves every moment you move your eyes away? Well, you know now: 0.3% is the maximum price deviation set by Orca. Compulsory for order execution and guaranteed for you.
If you want to stay updated 24/7, you simply set a price alert on an asset you need. Orca will notify you when the price reaches the level you set to trigger the alert.
Investors’ Choice and Under-one-pound
There are four dynamic lists that help you screen the LSE in real-time and facilitate your investment search. Investors’ Choice shows you the most popular stocks traded on Orca over the past week, and Under-one-pound gives you penny stocks.
Orca provides you with fresh data directly from the London Stock Exchange that gets updated every 15 seconds (that’s why the time of placing an order is limited). With this feature, you can rest assured that you have no risk of unforeseen expenses on your order executions.
Orca wants you to know what you pay and what you gain – all the time. That’s why you see everywhere in the app what an asset’s value is, what the trade value is for your transactions and everything else down to a dime of your funds. One pound is the fee for placing an order below 1000 pounds of value. Before executing it, the Orca app shows you the final amount you have to pay to carry out your order: the amount already includes that one pound. After that, you’ll be able to verify that it is the precise amount by checking your transaction history. All records match, all numbers are known, all pounds are counted, gained, and saved.
Stay Frugal with Orca
All the above is how Orca understands living well with less. In investment, frugal equals smart – which equals good. Do you agree? Let’s get frugal with our investments! Share your thoughts on social networks and Reddit – we want to hear what you think!
As with all investing, you may get back less than you put in. Your capital is at risk. Be sure to conduct research on stocks that you want to invest in. If you are unsure whether you want to make a particular transaction you should seek advice from a professional advisor. Orca does not provide investment advice.
*Please note that past performance is not a guide to future returns. Your capital is at risk.
Orca App Ltd does not provide tax advice. The tax treatment of your investment will depend on your individual circumstances and may change in the future. You should seek specific tax advice from an authorised advisor if you are unsure about your eligibility for an ISA. Orca is an appointed representative of RiskSave Technologies Ltd, which is authorised and regulated by the Financial Conduct Authority (FRN 775330).