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Linqto Review (2025)
Is Linqto a scam? Is Linqto a legitimate and safe stock investing firm?
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Is Linqto Safe?
If you’re considering buying securities through Linqto, read our investigation to get a clearer understanding of this unique brokerage.
Key Takeaways
• Linqto is a broker-dealer that offers private placements to accredited investors.
• Both FINRA and the SEC oversee Linqto.
• Linqto customers have access to insurance coverage.
Overview of Linqto
Linqto Capital LLC is a brokerage that allows customers to trade private placements. These
pre-IPO stocks aren’t available at typical brokerage firms. Linqto buys shares in these growing companies and resells them to its clients through its platform. Even though these assets are unique, they are still considered securities, meaning the same rules and protections apply to Linqto and its customers.
Regulation of Linqto Capital
Linqto is registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), the two main regulators of the U.S. securities market. These organizations offer a double layer of security for Linqto’s clients.
Linqto’s SEC ID is 8-70775, and its FINRA membership ID is 314557.
Linqto’s BrokerCheck profile shows no disclosures, which is impressive. However, the company has only been registered since December 2022, so it doesn’t have much history yet.
Though Linqto is registered with the SEC, it isn’t registered in all states. It is currently registered in 44 states and territories but not in these states:
- Alabama
- Florida
- Illinois
- Massachusetts
- New Jersey
- North Dakota
- Texas
- Wisconsin
Linqto acts as both an introducing broker and a clearing broker, meaning it handles client assets and issues monthly statements and trade confirmations.
Linqto Insurance on Private Placements
Private-equity shares held at Linqto are considered securities, making them eligible for protection by the Securities Investor Protection Corporation (SIPC). As an SIPC member,
Linqto provides customers with up to $500,000 in protection per account category.
This coverage protects only the number of shares, not their value. Since pre-IPO shares are volatile, price drops remain a risk.
Client Base
Since Linqto deals exclusively in start-ups, only accredited or institutional investors can use the platform.
To qualify as an accredited investor under SEC rules, a person must have a net worth of $1 million or an annual income of $200,000 ($300,000 with a spouse).
Retail investors are not allowed on the platform, protecting them from potentially poor outcomes. Linqto expects institutional and accredited investors to conduct thorough research before investing.
Level of Transparency
Linqto allows easy access to its website and app with just a name and email address. No accreditation is needed at this stage. Users can browse a list of companies with clearly displayed share prices, which include Linqto’s markup. There are no commissions or account fees.
Each company profile offers information to estimate its value. Some profiles include over a decade of history. For instance, Chime’s valuation details go back to 2012.
Linqto Better Business Bureau
We can also review Linqto’s profile with the Better Business Bureau (BBB). BBB evaluates businesses across North America, including financial firms like Linqto.
Linqto holds an A- rating from the BBB on
its BBB profile. While A+ is the highest grade, the A- reflects Linqto’s short operational history. There are currently no complaints or reviews filed with the BBB.
Is Linqto Safe Judgement
In conclusion, Linqto Capital appears to be a legitimate brokerage with no reported issues so far. However, since it focuses on private placements, all investments come with high risks. Given the unpredictability of pre-IPO stocks, investors should be cautious before making any purchases.
Updated on 1/16/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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