Otis Wealth review
Invest in fractional shares of cultural assets like art, comics, sneakers and NFTs.
finder.com’s rating: 4.1 / 5.0
Otis is a platform that allows you to buy and sell fractional shares of culturally significant collectibles, sports memorabilia and art. It’s available to both beginner and experienced investors, but investments can be illiquid at times and the company is still young.
- Consider Otis Wealth if you want to invest in culturally significant items and can tolerate above-average risk.
- Look elsewhere if you’re risk-averse or need a high degree of liquidity in your investments.
|Fees are comparable to the few competitors out there.|
|Unlike most brokers, you can invest in collectibles and memorabilia, but the options here are robust.|
|You can reach Otis’s customer service in two ways and receive a response within 24 hours.|
|Users report that the mobile app is intuitive and easy to use.|
|Research and tools|
|Otis’s research tools are limited to its weekly newsletter and some brief insights into the assets.|
|No reported outages in the past five years.|
To learn how our star ratings are calculated, read the methodology at the bottom of the page.
What I think about Otis Wealth
If you want to add alternative investments like collectibles or sports memorabilia to your portfolio at a fraction of the cost of buying them outright, Otis provides this opportunity without a huge upfront investment. Assets on Otis can be traded like stocks without trading fees. The company even holds pop-up events where you can go see the items you’ve invested in.
But just because you can trade in real time doesn’t mean there will always be someone to buy and sell shares. Liquidity is determined by investor demand, and many of these items may not have the same demand as more traditional securities. So you could get stuck holding onto an asset for longer than anticipated.
If you can tolerate risk and want to add culturally significant alternative investments to your portfolio, Otis could be a good place to do it since there aren’t many platforms like it.
What investments does Otis Wealth offer?
Investors can purchase shares of a range of items, including:
- Sports memorabilia
- Non-fungible tokens (NFTs)
How does Otis work?
Otis purchases assets from private collectors, galleries and prominent brokers and securitizes them to create shares that are available for purchase by investors. All of the assets are owned by Otis Gallery LLC or Otis Collection LLC. When you purchase shares in an asset offered by Otis, you invest in one of these LLCs that owns that specific asset, making you a shareholder of the sub-company and not of the underlying asset.
As an Otis investor, you have access to both drops and trading. Drops are the initial public offerings (IPOs) of Otis’s assets, and they’re the first offering of shares in the asset before it goes to the secondary market for trading. Once a drop sells out, it takes about three months for Otis to open the asset for trading. So if you purchase shares in a drop, your shares will be illiquid for three months.
Otis is available to both accredited and nonaccredited investors, and its market is open weekdays from 10:30 a.m. to 5:00 p.m EST. There’s no minimum deposit required to open an account, and the minimum investment amount varies depending on the asset. For example, a share of a first-generation iPod goes for $1.40 as of November 2021, whereas a share of the Daredevil #1 comic goes for $20.
Otis can receive buyout offers on its assets and shareholders have voting rights on the offer. If the offer is accepted, Otis takes a cut and every shareholder gets paid out accordingly.
Otis Wealth is best for speculative investors
Otis is a startup and its assets are generally illiquid and highly speculative. While it’s open to both accredited and nonaccredited investors, as with any investment, you should only invest in Otis with money you can afford to lose.
For advanced investors, Otis offers VIP membership to members who invest a minimum of $10,000 on the platform or in 10 or more assets. VIP members get access to exclusive perks, such as higher instant deposit limits, concierge support and invitations to exclusive events.
With that in mind, Otis is likely best suited for these types of investors:
- Investors looking for alternative assets. Invest in fractional interests of collectibles, art, sports memorabilia and NFTs.
- Speculative investors. Investors can benefit from both asset appreciation and a buyout if the asset is purchased outright.
Otis Wealth fees are in line with the competition
Otis charges a 0%-10% sourcing fee depending on the asset. Its broker-dealer, Dalmore Group, LLC, charges a 1% fee on invested capital. Otis does not charge trading fees or any ongoing fees.
There aren’t many platforms out there like Otis, but a few similar platforms can give us an idea of where Otis stands regarding its costs and fees.
For example, Masterworks, a platform for investing in art, charges a 1.5% annual management fee and takes 20% of future profits if and when a painting is sold.
Collectable is a similar platform to Otis and allows investors to own fractional shares of sports memorabilia. Collectable charges a 1% fee on every buy and sell order.
|Type of fee||Amount|
|Management fee||1% on invested capital|
How do I sign up?
To start investing with Otis:
- Download the Otis app and select Sign Up.
- Enter your name, email address and a password, then select Create Account. Otis will send you a verification code to verify your email.
- Choose the categories you’d like to invest in and whether you’re an accredited investor.
- Verify your account once it’s created by selecting Verify Now in the app.
- Enter your legal name, phone number, date of birth, permanent address and Social Security number.
- Agree to the terms and conditions and answer some qualifying questions.
Once your account is set up and verified, link your bank account to fund your new account and purchase shares.
You’ll need to meet the these criteria to be eligible for an Otis account:
- US resident or citizen
- At least 18 years old
- Established bank account
- Smartphone to download the Otis app
Provide the following personal and financial information:
- Legal name
- Address, phone number and email
- Social Security number
- Bank account information
Otis Wealth’s research tools are limited
Otis doesn’t offer much when it comes to research tools beyond its weekly newsletter, Otis Magazine, which provides insights into investing in the different assets available through its platform.
Additionally, Otis provides a few highlights of each asset, including recent comparable sales, scarcity and risks. This may not be enough information with which to base your investment, so you may need to perform additional in-depth research elsewhere.
Here’s how Otis Wealth stands out among investment platforms:
- Simple, intuitive app. The Otis app has a clean design and is easy to navigate.
- Access to alternative investments. Otis opens the door for nonaccredited investors to invest in a variety of alternative assets.
- Fractional investing. Share price varies by asset, but shares seem to range from a couple dollars to around $20 per share based on the assets available as of November 2021.
- VIP membership. Members who invest at least $10,000 or in 10 or more assets gain VIP status and enjoy exclusive perks such as higher instant deposit limits, concierge support and invites to exclusive events.
- Instant trading. Trades execute in real time and don’t require two business days to settle like in the stock market.
- See the assets in person. Otis hosts pop-ups and events at its dedicated gallery space in New York where you can go view the assets you invest in.
Consider the following drawbacks before you invest:
- Asset risks and startup risks. In addition to the risks associated with each individual asset, Otis is a startup with little track record. The company points out in its offering circulars that Otis “was recently formed, has not generated any revenues and has no operating history” upon which to evaluate its performance. In other words, as a startup, there’s no guarantee the company will make it, which adds another layer of risk to your investment.
- Limited investment options. As of November 2021, there’s one drop that’s open for investing and only a handful of items available to trade.
Is Otis Wealth legit?
Otis Wealth is a New York-based startup company founded in 2018 by Michael Karnjanaprakorn, co-founder of the online learning community, Skillshare. Though it’s not a registered broker-dealer, Otis partners with Dalmore Group, LLC. Dalmore Group, LLC, is a registered broker-dealer and member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
Additionally, all the assets are stored in secure facilities and are insured by Aspen American Insurance Co.
Otis Wealth’s reviews are limited but positive
As of November 2021, Otis is neither rated nor accredited by the Better Business Bureau (BBB) and has no reviews or complaints. Additionally, the company doesn’t have a profile on Trustpilot. But this isn’t out of the ordinary considering the company is only a couple of years old.
Since the platform is app-based, it has gathered some reviews on both of the major app stores. On the Google Play store, customers have rated Otis 4.1 out of 5 stars based on a total of 218 reviews. On the Apple App Store, customers rate Otis 4.5 out 5 stars based on a total of 549 reviews.
A majority of the reviews across both app stores are positive, with satisfied customers highlighting the platform’s unique investment options and ease of use. Dissatisfied customers complain of a faulty app and limited information about the investments.
|Better Business Bureau||Rating: NR|
|Better Business Bureau||Accredited? N|
|BBB customer rating||N/A|
|Google Play app reviews||4.1/5 stars based on 218 customer reviews|
|Apple App Store app reviews||4.5/5 stars based on 549 customer reviews|
Contact Otis Wealth support by email and in-app messaging
Connect with Otis in two ways:
- Email. email@example.com
- In-app messaging. Send Otis a message through the app and get a response in one business day.
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