Companies in this sector:
- Marketocracy: see MOFQX (note poor performance duing credit crisis of 08)
- Covestor: http://www.covestor.com/
- UpDown.com: Harvard student startup...you invest with fake money, network socially, using collaboratino, and collective wisdom to "beat the market". Funded by Switzerland investor for $750,000, with total investment of $1.2 million. Read review here: UpDown investment community pays members to trade
- SocialPicks: $500.000 from Bay Partners...works like a fantasy sports team betting site, with fake money - ranking best "investors" SocialPicks, a stock market community site, raises round
- Cake Financial - similar to SocialPicks coverage Nicer website design!
- Wikinvest - pooling of investing information (no fantasy betting here) coverage
- Zecco
- StockPickr
Criticism of model:
http://www.buyupside.com/articles_other/marketocracymasters100.htm
"The fundamental problem with buying and selling stocks with funny money is the same problem you have playing poker or any game of chance with matchsticks as your reward. Players or investors tend to take large risks because there is no real penalty or pain for losing. Managers of virtual portfolios often buy very risky stocks at any price hoping to hit the jackpot. Sometimes they will bet correctly and win a small paper fortune thus boosting their returns. These are the people who Marketocracy calls the best investors. Their success has little, if anything, to do with prudent investing skills but more with getting lucky when they bet the farm. Remember that MOFQX is based on the picks of these lucky gamblers who generate artificially high returns because they are never confronted with any real risk."
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