Openfinance Insights

How Can I Qualify to Trade on Openfinance?

Posted by Juan Hernandez on Oct 21, 2019 1:51:44 PM
Juan Hernandez
Find me on:


While investors know that diversification is key in any portfolio, investing in private and non-listed securities has historically been easier said than done. Accessing deals is often challenging, buying a stake requires significant amounts of capital, and liquidating a position is all but impossible for investors.

Now, with the rise of digital securities, true diversification is becoming a reality for both accredited and non-accredited investors around the globe. Secondary trading platforms like Openfinance are the key to forming an efficient secondary market that’s been missing in the alternative asset space. By providing 24/7 online access to investments in private equity, venture capital, real estate and more, Openfinance is opening up new opportunities for investors.

Getting up and running on the Openfinance platform is simple and secure. Here’s how to do it.

1. Create a MetaMask Account.

Setting up a MetaMask account is an important first step for investors and is required to trade on Openfinance. As a digital wallet, MetaMask gives investors a seamless way to store and access securities when trading on the platform – think of it as a digital “briefcase” you’re allowed to carry into Openfinance. While there are a number of types of digital wallets available, investors need to use MetaMask to trade on Openfinance.

In addition to any assets purchased on Openfinance, MetaMask allows investors to store other types of assets or funds, including ETH and other Ethereum based investments. Setup is a one-time process that takes only three to five minutes to complete. You can watch the registration tutorial here.

2. Set up an Investor Passport.

The Investor Passport is another one-time verification process that determines which types of digital securities an investor is eligible to access through Openfinance. The application process confirms an investor’s accreditation status and other qualifications needed to buy and sell specific securities.

The Investor Passport automatically ensures investors are qualified before every trade, eliminating the hassle of going through redundant checks with each new asset purchase. The digital process also benefits issuers by enforcing AML/KYC compliance automatically.

Here’s how the Investor Passport works:

  • Investors provide contact information, financial history, accreditation status and other details to confirm their qualifications.
  • Openfinance’s compliance team reviews submissions and grants approval to trade securities based on each investor’s qualifications.
  • The platform periodically asks for documentation to ensure investor qualifications are up to date.

Get more information on setting up an Investor Passport here.

3. Link your MetaMask account to your Investor Passport.

To start trading, investors need to link their MetaMask account to an Openfinance Investor Passport. Once an investor is on the Openfinance platform, they will be asked to confirm and connect their MetaMask account.

Linking a MetaMask account with an Investor Passport enables investors to transact on the Openfinance platform. MetaMask is a gateway that allows Investors to sell securities they currently own, buy new securities, and fund their trading wallets via ETH (the trading wallet can also be funded via fiat from a linked bank account).

4. Fund your Trading Wallet.

The final step in the onboarding process is funding your trading wallet on the Openfinance platform. Depending on which country they reside, investors can fund via ACH or wire transfer. In addition, all investors are able to fund via ETH from their MetaMask wallet.

With the digitization of private securities, these opportunities are much more accessible than ever before. Openfinance is committed to creating an ideal environment for these trades to occur quickly and securely.

Want to start trading with your own Openfinance account? Sign up for free here.


Topics: Blog Post

Subscribe to our Blog

Posts by Tag

Recent Posts