As we work with Shareholder #168 on making improvements to the KmikeyM.com exchange we have an opportunity to reduce the friction of adding funds to your account. Currently we utilize PayPal and must manually transfer each deposit into a shareholder’s account. This process takes time and costs the shareholder $0.30 + 2.9% of the amount deposited.
We propose that all deposit fees be absorbed by KmikeyM and are made up for with a $0.05 trading fee.
This means that when a shareholder deposits $40.00 into their account they receive the full amount. When a share is traded the buyer and seller both pay a $0.05 trading fee.
Under the current system a user depositing $40.00 would pay $1.46 in deposit fees. Under the new system it would take 30 trades to exceed that amount. If you look at the leader board you can see the shareholders who have made the most trades. Take the top shareholder gshepherd as an example. He has 440 shares which have been acquired with 80 trades. Under the new proposed method that would have cost him only $4.00, which is much less than he has paid in PayPal fees up to this point.
The money for the trades is deposited in the KmikeyM account, which adds to the overall value of KmikeyM. Additionally we are researching alternatives to PayPal which would further reduce our costs and more importantly allow for the immediate transfer of funds into a shareholder account.