Discount Brokerage Loyal3 Shutting Down

Loyal3, a commission-free brokerage that initially emphasized IPO shares before transforming into a discount broker, announced Wednesday it will close its doors May 19.

Offering a portfolio of 70 stocks, the firm allowed beginner investors to purchase fractional shares and to engage in transactions as low as $10 and as high as $2,500. The strategy relied on batch trading, wherein Loyal3 grouped company trades and executed only once a day.

Unless otherwise directed, all securities will automatically transfer May 22 to FolioFirst, which likewise promises commission-free trades but will charge $5 monthly fees beginning in August. Clients also have the option to transfer shares to another brokerage or sell their positions altogether.

A number of casual T-Mobile US Inc TMUS shareholders relied on Loyal3, the company’s brokerage partner, to secure stock awarded through the Un-carrier 11 program’s Stock Up initiative. Customers retain the same choices as those of Loyal3’s independent investors.