Company Overview

Who is Stock Circles Inc.?

Company: Stock Circles is a Delaware C-Corporation, SEC registered Wealth Management Firm, headquartered in Los Angeles. Stock Circles is licensed to operate in the United States. It has for mission to help Investors reach their financial goals using technology.

Product & Services: Stock Circles offers private wealth management services via an automated portfolio management platform called Smart Auto-Trading. Smart Auto-Trading simplifies portfolio management down to a few easy steps and offers access to elite Large Cap US stocks such as the S&P500®, Nasdaq 100 and Dow 30.

Investment Services

What is Smart Auto-Trading?

Technology: Smart Auto-Trading, an automated portfolio management platform that uses Artificial Intelligence to screen, monitor and auto-trade most positive Large Cap, US securities.

Philosophy: Smart Auto-Trading’s advice is based on our unique Investment Philosophy. We believe that, in this day and age, to achieve superior results, technology holds the potential to augment investors returns.

Suitability: This service is designed for sophisticated Investors and Portfolio Managers who want to benefit from investing using our innovative automated portfolio management platform. Clients with qualifying accounts may also benefit from a designated Investment Advisor and significant savings relating to economy of scale. Please inquire within to get more details.

How is Smart Auto-Trading different from other investment solutions?

Innovation: Smart Auto-Trading leverages Street Sentiment™, an active investment method designed to auto-trade prominent stock stories. Select strategies routinely outperformed index funds such as SPDR S&P 500® ETF Trust (SPY), in a variety of markets, in the past 3 years. It is a great substitute to passive ETF investment products designed to produce returns similar to the index they follow. Smart Auto-Trading requires a higher risk tolerance than ETFs hence its availability to sophisticated Investors.

Investment Style: Our actively managed strategies invest in the most positive components of the S&P 500®, Nasdaq 100 and Dow 30 exclusively. Investors benefit from a state of the art systematic investment system. They own the securities bought on their behalf which means that they have complete control over them. Because of this added freedom, investors are given complete decision making authority to pause, quarantine or manually sell their holdings based on market conditions or other factors.

Terms of Service: From a contract perspective, investors are not locked into long-term contracts. They can modify, stop, pause and resume their strategies at any time and their monthly contracts will adjust accordingly.

Investment Philosophy

What is your Investment Philosophy?

Area of Expertise: At Stock Circles, we are leaders in Behavioral Finance Analytics and Artificial Intelligence. Our discipline looks at how emotional factors can shape market direction – and therefore how it affects your investments.

Research: Our automated portfolio management platform features innovations such as Artificial Intelligence screening based on Street Sentiment™. The technology allows us to identify trading opportunities, monitor thousands of securities, and execute trades for your personalized strategy.

Application: We have developed a unique systematic investment system – Smart Auto-Trading – that enables the classification of securities in real-time for the purpose of auto-trading and managing individual accounts like yours. Our proprietary technology feeds quality intelligence to your strategy so it can make investment decisions on your behalf.

History: In the past 3 years, Smart Auto-Trading's experienced a variety of markets, including serious corrections and volatility. During this period, select strategies routinely outperformed S&P 500 SPDR ETF Fund Trust (SPY).

Characteristics: Consistency was observed as being one of the most important characteristic of our investment system. This characteristic became an undeniable asset in volatile markets. Smart Auto-Trading monitors and processes large amounts of data in real-time. It is emotionless, it does not harbor any bias and it does not favor specific Companies.

Investment Speed: Smart Auto-Trading promotes most talked about stock stories to its trading engine. Each strategy produces a variety of trading frequencies from low to medium. It is much faster than its human counterparts at detecting opportunities and at executing trades. It executes your personalized strategy on the dot, tirelessly working for you while you're relaxing, at the gym or just busy working.

Investment Strategies

Who is Smart Auto-Trading suitable for?

Sophisticated Investors: Smart Auto-Trading is designed for sophisticated investors interested in putting a portion of their holdings on autopilot.

Portfolio Managers: Our systematic investment system helps Portfolio Managers grow their business by taking advantage of the latest advances in technology.

Partner Firms: We aim to provide best of breed, thoroughly tested strategies and systems designed to suit specific requirements, risk tolerances and needs.

What kind of investment strategies do you provide?

Strategies: We provide a variety investment strategies, each tailored to fit specific investor tolerances and needs.

Securities Universes: Smart Auto-Trading provides systematic investing strategies and actively trades the most positive components of the S&P 500®, Nasdaq 100 and Dow 30 exclusively. From a financial product categorization perspective, we offer access to Large Cap US Stocks.

Customization: Each strategy is customizable to fit your specific needs or interest. We can customize the list of securities you want to auto-trade via our 'Favorites' list feature.

Risk Management: Each strategy is outfitted with systematic profit taking and downside protection.

Taxes: Stock Circles does not advise on taxes. Smart Auto-Trading produces short-term investments. Depending on your strategy, it can produce several trades per day. Short-term investments may be taxed at a higher rate than long-term investments. We encourage you to consult your Financial Advisor or CPA to understand the benefits and tax liabilities associated with the production of short-term investments before you start your strategy.

How often can I change my strategy?

Customization: You can elect to modify your strategy at any time. However, Smart Auto-Trading is designed to support long-term investment goals. It is not designed to function as a trading tool. We do not recommend that you change your strategy unless your situation warrants material changes. Changing a strategy can be challenging given that your capital is invested according to a predetermined budget and other parameters. We do not recommend to change your strategy to try and time the market or take advantage of short-term moves. Your account is fully managed by Smart Auto-Trading and these types of interventions may prove counter productive to your long-term goals.

Manual Rebalancing: Your strategy is 100% on auto-pilot. If we detect that your account requires manual rebalancing, we will reach out to explain the reasons why we think it would be optimal and get your permissions to make changes.

Account Requirements

What types of accounts can Smart Auto-Trading manage?

Disclaimer: There are many different types of accounts compatible with Smart Auto-Trading. We do not make recommendations on account types. Please talk to your legal advisor to understand which account is appropriate for your situation. Below is a list of the most popular options:

Individual: An account owned by one person. Any income earned (including dividends), is subject to income taxes to be paid that year. The taxes can be offset with any losses realized in the same year.

Joint With Rights of Survivorship: A surviving member will inherit the total value of the other member's share of account assets upon the death of that other member. All members of the account are afforded the power to conduct investment transactions within the account as well.

Traditional IRA: Allows individuals to save for retirement that gives you tax advantages. You can contribute if you have taxable compensation but not after you are age 70½ or older. Pretax income, subject to specific annual limits, can be directed towards investments that can grow tax-deferred (no capital gains or dividend income taxes). Contributions to the Traditional IRA may be tax-deductible depending on the taxpayer's income, tax-filing status and other factors. Withdrawals in retirement are subject to ordinary income tax rates.

Roth IRA: Allows individuals to save for retirement that gives you tax advantages. You can contribute at any age if you have taxable compensation and your modified adjusted gross income is below certain amounts. Income, subject to specific annual limits, can be directed towards investments that can grow tax-deferred (no capital gains or dividend income taxes). Contributions to the Roth IRA are not tax-deductible. You can withdraw your contributions at any time with no penalties and withdrawals are tax-free.

Rollover IRA: Allows individuals to transfer assets from their former employer’s retirement plan, such as a 401(k), 403(b), 457, or Thrift Plan when they change jobs or retire without having to pay any taxes or penalties. You can either transfer an existing Rollover IRA to Stock Circles (i.e. an IRA that has already been rolled over from an employer sponsored account), or rollover an employer sponsored account to a new Rollover IRA account opened with Stock Circles.

What are your minimum requirements?

Cash Requirements: You will need a minimum of $25,000 in a supported broker/dealer account, have your margin enabled and be a resident of the United States to use Smart-Auto-Trading. Stocks investing involves substantial risk of loss and is not suitable for every Investor. Invest only with risk capital; that is, invest with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.

Country of Residence: A US person is an individual who is a US citizen or US resident alien, a partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, an estate (other than a foreign estate), or a domestic trust.

International Citizens: International citizens with a U.S. based LLC or Family Office can use Smart Auto-Trading.

Fees & Billing

Do you offer a free demo of Smart Auto-Trading?

Free Simulation Mode: You can test your investment strategy in simulation mode, risk free and free of charge for as long as you want.

Recommendation: In fact, we recommend testing your strategy for 30 days before you start trading using real capital.

Appropriate Strategies: We can help you decide which strategy is the most appropriate for your specific situation. Contact us for more information.

What are the fees charged by Stock Circles?

Fees & Schedule: Our total percentage of Trading Capital is quoted on an ANNUAL basis, and you will be billed 1/12th of the annual fee each month. For example, if you are in the 1.34% yearly pricing level, fees of 0.12% will be taken out of your account once a month. Pro-rated monthly fees will be taken out of your account automatically, on approximately the same day you started investing every month.

Changes in Trading Capital: Amounts owned to Stock Circles will adjust automatically if you modify your Trading Capital managed bby Smart Auto-Trading.

Renewal: Your account will renew automatically until you stop your strategy or cancel.

Cancellation: You can cancel a any time by stopping your strategy from within the web app.

What other expenses should I expect?

Brokerage Expenses: As the custodian of your account, our Broker/Dealer partners may charge extra for their services. They offer trade execution services, data access, proxy voting, dividends accounting, trade execution, confirmation emails and produce your tax documents. These services are charged separately by the Broker/Dealer directly in your account. Exchange fees may also apply.

Regulations & Compliance

Who is your regulatory body?

Stock Circles Inc.: Stock Circles is a Registered Investment Advisor (RIA) with the SEC. Stock Circles' IARD number (used to find us in the SEC database) is #289275. Please find our latest filing here.

SEC: The Security Exchange Commission (SEC) is the independent watchdog that regulates financial services in the United States. This web site is designed to meet SEC’s requirements for information disclosure. It contains information to help you decide if the services Stock Circles offer are right for you.

Is Stock Circles affiliated with any large corporations?

Affiliations: No. We are completely independent and non-partisan. We are not affiliated with any banks, brokerages, or research companies. We do not push any products and aim to provide transparent, systematic investment services to our partners and investors.

Is Stock Circles the custodian of your account?

RIA vs. Broker/Dealer: No. Stock Circles is not a Broker/Dealer or a custodian. We do not physically take any client assets, nor do we execute buy/sell orders in the open market. Stock Circles is a Registered Investment Advisor (RIA) with the SEC.

Discretionary Powers: We are registered to oversee and manage investment accounts and place discretionary trade orders on behalf of clients. Any account opened with us is held at an SIPC and FDIC insured Broker/Dealer and trusted custodian bank, where the account is held in your name.

Broker/Dealer Definition: The Broker/Dealer is responsible for executing any trades in the open market, based on Smart Auto-Trading's instructions. If you would like further clarification on the difference between a Registered Investment Advisor, Broker/Dealer, and custodian please let us know.

If something was to happen to Stock Circles, what happens to my account(s)?

Account: Nothing. For enhanced security to our customers, Stock Circles does not operate as a Broker/Dealer or custodian. We use a trusted third-party to perform these services. Your account at the custodian remains open no matter what happens to Stock Circles, and you will have the opportunity to move it elsewhere at your discretion.

What kind of reporting does Stock Circles provide?

Reporting: While our custodian does provide its own reporting and services Smart Auto-Trading provides Time Weighted Returns and other relevant metrics and reports. Tax related documents, proxy voting, dividends and transactional documents are provided by the Broker/Dealer who is the custodian of the account. Stock Circles related reports are available 24/7 via our web application.

Do you require discretionary authority over my account?

Discretionary Powers: Yes, Stock Circles requires discretionary trading authority so that Smart Auto-Trading can auto-trade on your behalf. Our compliance team will provide you with a contract stating the following:

  • - We exercise discretionary trading authority over your account.

  • - We do not accept unsolicited orders.

  • - We do not discuss specific transactions with you prior to execution.

  • - We do not allow unmanaged assets to be held in your managed accounts.

Technology

Do you have any white papers detailing your technology?

White Papers: Yes, you may inquire to receive a white paper by contacting us at info@stockcircles.com.

What are your technical requirements?

Web browsers: We have optimized the platform for all modern web browsers, including Internet Explorer 10. You will need to have JavaScript enabled on your browser to properly access the platform. JavaScript is enabled as a default on every major browser.

Mobile Access: Our mobile experience is an extension of our desktop experience. We built our mobile experience for clients to stay up to date on the status of their account(s), with limited functionality based on screen real-estate.

Some of the features of Stock Circles aren't working. What am I doing wrong?

Here are a few reasons why you may be having these problems:

JavaScript: Do you have JavaScript enabled on your browser? Our platform uses a lot of JavaScript, and most pages will not work properly without it.

Legacy Browsers: Are you using an old version of Internet Explorer? Coming from the financial community, we understand that many financial services companies will use older versions of Internet Explorer for security reasons. Many times, even on newer browsers, companies will disable certain features and settings. Our platform is optimized for Internet Explorer 10+, all versions of Firefox, Safari, and Chrome. The platform may not function properly on IE 6, 7, 8, or 9.

Partnerships

Can our Private Wealth Management Firm partner with you?

Partnerships: Yes! We are open to discuss your specific integration needs and are very much interested in exploring partnerships.

Offering: Stock Circles offers a state of the art automated portfolio management platform designed to help busy Portfolio Managers and Partners offer their clients outstanding systematic investment strategies. Contact us for more information.

How does Stock Circles work with international partners?

International: We work with international partners in the following ways:

- White label and IP licensing on a non-exclusive or exclusive basis.

- White label IP reselling agreement.

Partners Profile: Partners may include foreign banks, financial institutions, investment firms, consulting firms, and technology companies. Contact us for more information.