Mmm, Cake… Cake Financial that is

Cake Financial has launched their public "alpha" today at TechCrunch40.  Bringing a new spin to social networks, Cake enables investors to track their performance next to their peers, their friends, and other investors.  By automatically plugging in to most of the major brokerages, Cake can automatically retrieve your holdings for up to ten years and track your performance compared to the rest of Cake and the market.

From their blog:

Specifically designed with the 40 million Gen X and Gen Y consumers in mind, Cake is a new kind of financial service. Members can open an account with Cake in minutes because there is no transfer of money or change in existing brokerage relationships to get started. Instead, members can link their Cake account to an unlimited number of existing portfolios from leading online brokerage firms. This allows Cake community members to see up to 10 years of historical activity as well as current portfolio holdings, trading activity and performance data of fellow members. All safely, securely and anonymously.

A recent study from the Harvard Business School reveals that many ordinary investors consistently beat the market. Cake is designed to allow members to capture and share the behavior and habits of these high performers with each other. 
Social networks are slowly beginning to infiltrate investing.  Motley Fool picked up on it with CAPS last year and Cake has this latest offering.  CAPS does a great job gauging the whole market, but Cake brings more intimate, person-to-person conversations to the table.  Can’t wait to see how Cake matures.  Go check it out.

Zecco?

Well ShareBuilder and SogoInvest need to move over; here comes Zecco.

Backed by one of the early backers of Skype, Zecco is bringing $0 commission trading to the stock market. Not only are the trades free (up to a limit of course), but they also have a “community” of investors that haves blogs, forums, etc. They’re trying to bring the social web to trading.

I’ve been participating in CAPS, a stock market game put on by The Motley Fool (see previous post here), and I love the interaction and participation that is being generated by the participants.

If Zecco can efficiently combine the community feeling of CAPS and the easy of trading that ShareBuilder brings, it’ll be worth a try.