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How do I start trading?

How do I start trading?

Last updated on October 14, 2024

In order to begin trading, you need to first verify your account. You can complete this quick process through your logging into your dashboard and clicking “Verify my Identity”. Trading is only available in case the investment has been admitted to trading on the Marketplace.

Key information about trading on Funderbeam

Funderbeam’s Marketplace has a few key principles that are important to be aware of prior to beginning. These are:

  • Funderbeam has implemented a Pre-Funded Wallet meaning that any potential buyer will need the exact amount (or more) of available funds before they would be able to match or place an order.
  • When placing an order, you will be offered a guide as to appropriate prices per share/unit/note. This pricing corridor is set 30% above and below the Moving Volume Weighted Average Price (MVWAP) which sets a market average based on the previous 5 trades from that instrument. The MVWAP is rounded up/down to 2 places (after decimal/comma) before pricing corridor calculations are made.
  • Once an order is submitted, you as a buyer or seller are agreeing to the legally binding agreement connected should this be matched. This means that once the order is matched, it cannot be cancelled.
  • Finally, Funderbeam employs a weighted average approach to calculate the average price of security purchases. This means that when an investor makes an additional purchase of a security, the quantity of their initial buy orders is factored into the calculation of the average price. As a result, the average price may differ from the investor’s most recent transaction price.

How to Trade?

Placing an Order

  1. You can post an order by clicking the Buy/Sell button found in the top right corner of the relevant trading page.
  2. Select the amount of the investment and the value per unit/share/note
    • Please ensure that the value fits within the price corridor
    • For Buy orders – you will need to have available funds in your wallet to place orders.
    • For Sell orders – you will need to have enough available assets in your wallet
  3. Review the details including the expiry date
  4. Confirm the agreement and understanding of the terms and click submit.
    • For sell orders – you will be asked to confirm any payable fees or taxes.

This order will then become available on The Marketplace.
For Buy orders the order price is the maximum they would be willing to pay, and for Sell orders the price is the minimum price they would sell for. In some cases the trade total might change depending on the available orders.

How does it work?

The Funderbeam Marketplace works with an automatic matching and partial filling logic. This means that an order placed will be automatically checked against all available orders and if possible will be automatically matched to the best order within the price corridor.

This will occur even if the matching order does not fulfill the entire order. This enables smaller orders to be combined to complete a larger counter order placed on the Marketplace.

Example Scenario

John Buyer has placed a buy order in ACME Corp for 500 shares at the price of €1.50 per unit on the 1st of March. Jane Seller placed a sell order in ACME Corp for 200 shares at the price of €1.20 on the 3rd of March.

Result:
A. 200 shares in ACME Corp will be sold at the price of €1.5 as Jane’s order automatically matched the already existing higher offer to buy from John.

B. Should Jane’s sell order have been placed prior to John’s (ie before the 1st of March), then the 200 shares in ACME Corp would have sold at €1.20.

John’s trade, as only partially filled, will remain on the Marketplace until the expiry or the remainder is matched.

If there are any additional questions we recommend firstly contact the support team prior to using the Marketplace.

️Warning: Investing in early-stage and growth companies puts your capital at risk. Please read our Risk Disclosure Statement

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The information about the investment opportunities profiled on this website is provided for general information and marketing purposes only and should not be considered an invitation or inducement to engage in any investment activity. Complete and comprehensive information about an investment opportunity is only available only to investors who have been approved by a Funderbeam group entity.

You should ensure you carefully read the Risk Disclosure Statement before deciding to proceed with any investment or transaction, including making a purchase of securities via the Marketplace. Funderbeam has taken steps to ensure that company and securities offering information is clear, fair and not misleading in accordance with its internal verification procedures. Funderbeam does not provide investment advice or any recommendation to invest. Any investment opportunity on this website should not be considered as an offer to the public and is not directed at or offered to anyone to whom it may not be so directed or offered, or located in a jurisdiction where it is unlawful to do so.

It is important to note that funds are raised, investments are made and trade orders are placed through three investment firm service provider entities: Venturebeam Markets AS (VBAS) (authorised and regulated by the Estonian Financial Supervision Authority under permit 4.1-1/212), Venturebeam Markets Limited (VML (authorised and regulated by the UK Financial Conduct Authority under FRN 794918), and Venturebeam Markets Pte. Ltd., (VB Pte) (licensed and regulated by the Monetary Authority of Singapore under Capital Markets Services (CMS) license CMS100863). VBAS and VML are MIFID investment firms.

This page provides you with an overview of the services provided by different entities belonging to Funderbeam group. In the pages of this website, platform, and documents located on these pages (save to where referred otherwise), we generally refer to the group, which includes group of entities being direct or indirect subsidiaries of Funderbeam Ltd, including VBAS, VML, and VB Pte, as “Funderbeam”, “we”, “us” or “our”.

A Funderbeam client (whether investor or company) is a client of the service provider and under the protection of the requirements of the regulator under which that service provider operates: An EEA client’s service provider is VBAS, a UK/ non-EEA/ non-Singapore client’s service provider is VML, and a Singapore client’s service provider is VB Pte.

The applicable Funderbeam service provider has, prior to the offering of the investment offer on its Platform, verified from public registries in reasonable levels of due diligence, notwithstanding the due diligence which is also performed by the Lead Investor where applicable, which will cover at the minimum: a. that the project owner has no criminal record in respect of infringements of national rules in fields of commercial law, insolvency law, financial services law, anti-money laundering law, fraud law or professional liability obligations in all jurisdictions where practicable for such checks to be conducted; b. that the project owner is not established in a non-cooperative jurisdiction, or in a high-risk third country as set out by the Financial Action Task Force (“FATF”), and/or other government directives in jurisdictions where Venturebeam is operating.

The Marketplace is operated as an organised market by VB Pte., in Singapore as a Recognised Market Operator (RMO) under the supervision of the Monetary Authority of Singapore. VBAS and VML are Trading Members of the RMO’s Marketplace. Access to the Marketplace for EEA and non-EEA clients is only provided by and through such clients’ service provider (ie VBAS or VML). The Marketplace does not provide services directly to investors outside Singapore.

With respect to any securities or investments offered by a US domiciled Fundraising Company, by visiting this site you confirm you are not a US resident or US person (as defined in Regulation S of the U.S. Securities Act of 1933) and you understand and agree that you are not acquiring any Investments for the account or benefit of any such US resident or US person. No investment opportunity in a US domiciled Fundraising Company is directed at US persons.