Otis Review – Is This the Stock Market for Culture?
- What is Otis?
- How Does Otis Work?
- How Much Does Otis Cost?
- Otis features
- Who is Otis best for?
- Who shouldn’t use Otis?
- Pros & Cons
- Otis vs. Competitors
- The bottom line
What is Otis?
How Does Otis Work?
- Be a U.S. citizen or resident
- Be 18+
- Have a bank account
- Have a mobile phone (you’ll need to download their app start purchasing shares)
How Much Does Otis Cost?
Unique artwork selection
Highlights and risk reports
24/7 trading platform
Who is Otis best for?
- Investors interested in diversifying their portfolios. Otis offers a great way to diversify your portfolio so that your wealth can be spread across a greater selection of investments. I wouldn’t recommend Otis as your only or primary means for growing wealth, but it makes a great addition to a 401k, IRA, stock portfolio, IPO, or real estate fund.
- Contemporary art and sports lovers. If I’m being honest, Otis makes buying and trading fun for many people who might otherwise be uninterested in investing. Their current asset list is bound to be nostalgic for many sports, gaming, and contemporary art enthusiasts, and owning shares of these pieces can be fulfilling in a way that owning a part of a company just isn’t.
- Individuals without a large amount to invest. One thing I love about Otis is that you don’t need to be an accredited investor or have a large sum of money to begin investing. Fractional shares of assets start at just $10 per share and the platform's fees are relatively low.
Who shouldn’t use Otis?
- Anyone looking to make money quickly. While the assets on Otis are typically safe from the fluctuations of the stock market, Otis isn’t the right marketplace for you if you’re hoping to reign in a large profit quickly. You certainly can make money on Otis, but with share limitations and limited asset selections, you’re not going to bring in a large profit quickly.
- Those uninterested in sports, games, comic books, or contemporary art. Half the fun of Otis is being able to invest in memorabilia and collectibles you loved as a kid or still treasure. If you’re not interested in these assets, you can still invest, but you likely won’t get as much joy out of the process. It can also be harder to know what’s a better investment without having any background knowledge of the item you’re purchasing.
Pros & Cons
- Low costs of shares. You can start buying partial shares of Otis assets for as little as $10. This allows anyone with some extra money to spend to own shares of contemporary collectibles that would otherwise be out of reach.
- Potential for distributions and profits. There’s also the possibility of earning distributions and profits on the Otis platform. If an asset earns any income while it’s on loan, you may end up receiving distributions for that asset. In addition, if an asset is sold for a profit, you’ll be able to receive your share of that profit (minus Otis’s 10% fee).
- Pop-up gallery to view assets. While it’s true that you’ll never fully own or be able to display the items you invest in, Otis does have a pop-up gallery location you can visit to view your assets. This allows you to see your assets in person in New York.
- No control over sales. Otis can sell any of the assets you own a partial share in at any time. While this would often earn you a profit, you don’t have any control over when or if Otis sells an asset, making you a passive participant in this investing platform.
- Assets have share limits. Although it’s easy to begin buying shares of an asset, your ownership percentage is capped at 19.99%. This means it’s not possible for one investor on Otis to fully own a piece of contemporary artwork, and as a result, you’ll never be able to physically own or display the asset you’ve invested in.
Otis vs. Competitors
|Platform||Accredited Investors Only||Signup requirement||SEC-registered||Fees|
|Otis||No||App download||Yes||1% fee on invested capital; 5% sourcing fee; 10% commission fee on profits|
|Masterworks||No||$1,000 investment||Yes||1.5% annually; 20% commission on profits|
|Arthena||Yes||$200,000 annual salary or over $1 million in net worth||Yes||Not disclosed (varies by piece)|
Accredited investor requirements
Requirements for account signup
Use Masterworks To Invest In Exclusive Blue-Chip Art
- Invest In The Most Popular Blue-Chip Art
- Art Investing Has Beaten The S&P 500 Since 2000
- Buy Fractional Shares Of Art (Don't Need Millions)
- Choose From Artists Like Andy Warhol, Banksy And Basquiat
- Buy And Sell Shares On Their Secondary Market
The bottom line
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