Covestor is a free site to allow self-directed investors to benefit from each others investment decisions, similar to other user generated investment sites. What distinguishes this site, though, is that Covestor will develop track records for those that would like to be tracked.

The member can then turn this track record into a business, becoming an investment advisor who earns fees and income. The member would then also pay Covestor a fee and his stock recommendations would become closed to those that join his group. Some have raised legal concerns about this activity, as it is thought one needs to be certified in order to give investment advice, but nothing on the site has changed thus far.

In their own words:
“A real-trade sharing service for proven self-investors. To share your real investment decisions, gain recognition and earn fees by helping others. All the data is private, normalized and anonymous, and membership is free.

With Covestor, you can:
Build a track record. Professional grade tools measure and display your normalized results. These validate your performance and build you a track record comparable to professional hedge funds. Our secure broker link makes it effortless to upload and update your holdings.

Choose how widely to share your activity. You choose whether to share your track record publicly or just with other Covestor members. Covestor ‘widgets’ also let you export your verified performance and rankings to your personal blog. Members get free access to all Covestor profiles, transactions, and commentary.”

Vote for Covestor at KillerStartups.

This entry was posted on Thursday, June 7th, 2007 at 1:32 pm and is filed under Web, Web 2.0, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.