Discussion
Well I did a search expecting this to have been chewed over already, but seemingly not.
www.zeux.com 5% interest, FCA authorised (not regulated I notice), seemingly no upper investment limit.
The FAQs make interesting reading https://www.zeux.com/frequently-asked-questions/
'5% interest Easy Access Money Pot: What about protection? Your funds are secured at all times by asset-backed portfolios of overcollateralized loans. In addition, this fund is guaranteed by both Wecash and Zeux Ltd.'
Phew.
'How does Zeux provide this high interest rate product?: Zeux use stablecoins as an intermediary to reduce transaction and clearing costs and to help UK customers to get access to global products that they previously had no access to. More importantly, this is a promotional offer for us to acquire early customers. We pay it from our customer acquisition budget. It is only available for a limited number of early users.'
Ah, stablecoins. Thank heavens for that! For a minute I thought it was an unsustainable high risk Ponzi scheme.
'Is my money safe in my Zeux account?: Client fiat (fiat? - Ed) funds are stored in a segregated account held with our FCA authorised and regulated Electronic Money Institution partner, Cornercard. You can find our FCA registration details here. As an FCA authorised firm, Zeux safeguards your funds as per FCA requirements, the Electronic Money Regulations 2011, and the Payment Services Regulations 2017. In the unlikely event that our partner EMI were to become insolvent, you will be able to claim your funds from this segregated account and your claim will be paid above all other creditors.'
It still smells like camembert...
So how safe exactly is one's money with this pop-up pretend bank? Actually I may have answered my own question, but it would be interesting to see a professional dissection of it, and why I shouldn't swap my 1.5% with Marcus for 5% at Zeux-to-go...
www.zeux.com 5% interest, FCA authorised (not regulated I notice), seemingly no upper investment limit.
The FAQs make interesting reading https://www.zeux.com/frequently-asked-questions/
'5% interest Easy Access Money Pot: What about protection? Your funds are secured at all times by asset-backed portfolios of overcollateralized loans. In addition, this fund is guaranteed by both Wecash and Zeux Ltd.'
Phew.
'How does Zeux provide this high interest rate product?: Zeux use stablecoins as an intermediary to reduce transaction and clearing costs and to help UK customers to get access to global products that they previously had no access to. More importantly, this is a promotional offer for us to acquire early customers. We pay it from our customer acquisition budget. It is only available for a limited number of early users.'
Ah, stablecoins. Thank heavens for that! For a minute I thought it was an unsustainable high risk Ponzi scheme.
'Is my money safe in my Zeux account?: Client fiat (fiat? - Ed) funds are stored in a segregated account held with our FCA authorised and regulated Electronic Money Institution partner, Cornercard. You can find our FCA registration details here. As an FCA authorised firm, Zeux safeguards your funds as per FCA requirements, the Electronic Money Regulations 2011, and the Payment Services Regulations 2017. In the unlikely event that our partner EMI were to become insolvent, you will be able to claim your funds from this segregated account and your claim will be paid above all other creditors.'
It still smells like camembert...
So how safe exactly is one's money with this pop-up pretend bank? Actually I may have answered my own question, but it would be interesting to see a professional dissection of it, and why I shouldn't swap my 1.5% with Marcus for 5% at Zeux-to-go...
Presumably they get away with it because it's legal and some people will be swayed by the 5% rate just like people were convinced by many previous schemes that looked a little too good to be be true?
Whilst I'd never use them I can't see the attraction as if you have a small amount to lose 5% is not much to gain and if you have a large enough amount where 5% is a decent amount to gain, your 100% capital is a lot to lose.
Whilst I'd never use them I can't see the attraction as if you have a small amount to lose 5% is not much to gain and if you have a large enough amount where 5% is a decent amount to gain, your 100% capital is a lot to lose.
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hstewie said:
hstewie said: Presumably they get away with it because it's legal and some people will be swayed by the 5% rate just like people were convinced by many previous schemes that looked a little too good to be be true?
Whilst I'd never use them I can't see the attraction as if you have a small amount to lose 5% is not much to gain and if you have a large enough amount where 5% is a decent amount to gain, your 100% capital is a lot to lose.
Ah but that is logic. How many people have a cash ISA because it's 'tax free' even though the annual interest allowance is £1,000 and they may pay no income tax anyway...Whilst I'd never use them I can't see the attraction as if you have a small amount to lose 5% is not much to gain and if you have a large enough amount where 5% is a decent amount to gain, your 100% capital is a lot to lose.
The nub of the Zeux thing for me is that it makes it look as if your money is safe, when it isn't. It also seems aimed at youngsters who need a smartphone to tell them that 7 is more than 6. Is this kind of thing the next bubble to burst? https://medium.com/zeux
Logic doesn't always work.
I'm always kicking myself for holding investments outside of a wrapper because of things like CGT even though it's still doing far better than cash in the bank and isn't locked away like it would be in certain wrappers.
Are they even a bank?
I'd consider myself reasonably savvy and I can't actually work out from their website what they let me do
I'm always kicking myself for holding investments outside of a wrapper because of things like CGT even though it's still doing far better than cash in the bank and isn't locked away like it would be in certain wrappers.
Are they even a bank?
I'd consider myself reasonably savvy and I can't actually work out from their website what they let me do
bhstewie said:
hstewie said: Are they even a bank?
I'd consider myself reasonably savvy and I can't actually work out from their website what they let me do
I sense they get their money from P2P lending, so it's a shaky thing built on a shaky thing. And when I see headlines like 'Zeux’s Custodial Crypto Assets Now Insured for Up To $100,000,000'... well, suddenly Guatemalan Bean Futures look like a decent bet...I'd consider myself reasonably savvy and I can't actually work out from their website what they let me do
JulianPH said:
"Your money is not protected by the Financial Services Compensation Scheme (FSCS)"
This, amongst others here.
I think where I struggle is, even if it was protected, what is Zeux actually doing with my money or letting me do if I'm using their platform if I trust them with my money? This, amongst others here.
Heck, I may as well set one up too. We'll call it SImpobank. It pays 10% interest, probably. How do we get the money to pay this interest? From idiots. You can Invest with confidence because your money is kept segregated in the bottom drawer of MyWritingDesk, and I get to keep everything. Invest now!
I think that covers everything...
I think that covers everything...
Right. Let's get this sorted.
It is really that simple. Don't go near these things.
- All of us form a company (cost c. £150)
- We then list a corporate bond (a loan) on the cheapest recolonised stock exchange available (Cyprus or Ireland)
- We then wrap this bond up as an investment (very easy)
- We then create a slick, glossy website offering this as an ISA (with some small tame ISA Manager)
- Then we sit in a beach bar counting the money that comes in
- When we have spent all of it we wind the company up and walk away
It is really that simple. Don't go near these things.
JulianPH said:
Right. Let's get this sorted.
Good post.- All of us form a company (cost c. £150)
- We then list a corporate bond (a loan) on the cheapest recolonised stock exchange available (Cyprus or Ireland)
- We then wrap this bond up as an investment (very easy)
- We then create a slick, glossy website offering this as an ISA (with some small tame ISA Manager)
- Then we sit in a beach bar counting the money that comes in
- When we have spent all of it we wind the company up and walk away
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