OnMarket is typically paid a percentage fee (stamping or broker fee) by the issuer for successful allocations collected via OnMarket. This fee is generally the same as the fee paid to any other broker involved in an Offer. Companies may also pay a marketing/facilitation fee for the use of the OnMarket platform and may pay fees based on the number of applications received.
For Equity Crowdfunding offers, OnMarket charges a 7.5% fee on funds raised via the OnMarket platform. OnMarket will also charge companies a $10,000 assessment/establishment fee.
Unlike your traditional stockbroker, we do not earn any brokerage or annual fees on your portfolio. We allow investors that share the offer via LinkedIn or facebook to apply for free. We do this to promote awareness of the IPO or equity crowdfunding. The more people that apply via OnMarket, the more deals that we will be able to offer to you. But, we understand that some people are private souls or may not have facebook or LinkedIn accounts. If you can’t or don’t want to share, then we allow you to use our OnMarket service for a 1.75% fee.
You will be given the opportunity to choose to have the fee waived, or pay it, during your bidding process. If decide not to share, and later change your mind, you can still share it from your bid history panel.
If you share – thanks for helping us to build OnMarket by spreading the word. If you choose to pay the fee – thanks for helping us to pay our salaries.