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Client Relationship Summary

Bumped Inc, Bumped Financial LLC, and Bumped Invest LLC

June 30, 2020

Introduction

This Client Relationship Summary (“Form CRS”) provides important information about: Bumped Financial LLC (“Bumped Financial”), a broker-dealer registered with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority, Inc. (FINRA) and the Securities Investor Protection Corporation (SIPC), and Bumped Invest LLC (“Bumped Invest”), an investment adviser registered with the SEC.

Both Bumped Financial and Bumped Invest are wholly owned subsidiaries of Bumped, Inc. (“Bumped”). Securities accounts for Bumped Financial and Bumped Invest are held at the clearing firm, Apex Clearing Corporation (“Apex”), a third-party broker-dealer and custodian.

Choosing any financial advisor or financial relationship is an important decision and this Form CRS covers the relationship between Bumped, Bumped Financial, and Bumped Invest, and can help you decide if this is right for you.

Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.

Relationships and Services:

What investment services and advice can you provide me?

We offer to retail investors brokerage services and investment advisory services. Our principal service is the facilitation of the Bumped Reward Program.

All investment activities, and investment rewards are provided by Bumped Invest and Clients elect to receive investment rewards at their own will. Investment rewards available to Clients are determined by Bumped Financial and Bumped Invest. Clients will receive investment rewards through participation in the Bumped Reward Program. The securities rewards in Bumped Invest Client Accounts is based on Client’s spending habits and retail purchases made at retailers, merchants, and/or brands (each a "sponsor", and collectively "sponsors") that sponsor the Bumped Reward Program.

Bumped Financial offers brokerage services through self-directed brokerage accounts to retail investors. These services include rewarding, holding, and selling securities, including the facilitation of trading in fractional shares of stocks and exchange-traded funds (“ETFs”). We do not make securities recommendations and we do not make markets in securities. Our trading activities are on an agency basis, and are to facilitate the rewards and sales of securities. Additional information can be located in our disclosures in the customer agreement (located at: https://bumped.com/legal/customer-agreement/).

Bumped Financial offers only one account type, a standard brokerage account. Rewards are offered in exchange-traded funds and individual stock positions. Accounts are only for purposes of holding stock rewards issued pursuant to corresponding purchases, and are not eligible for additional deposit of outside funds. Stock selection for rewards may be limited to certain offerings. No recommendations are offered to retail investors, and securities are purchased pursuant to reward issuance. Selling of securities is offered and facilitated when requested by the account holder.

Bumped Invest does not offer wrap fee, financial planning or other advisory services. Bumped Financial does not provide recommendations to purchase or sell securities in the accounts.

  • Monitoring: Monitoring is not offered as part of our standard service.
  • Investment Authority: Client makes the ultimate decision regarding whether to participate in the Reward program, thereby making the ultimate decision to own fractional shares that are purchased as a reward pursuant to separate consumer purchases. Clients hold the right to liquidate and place sell orders at their sole discretion.
  • Limited Investment Offerings: We do not offer investment advice. The menu of products and the type of investments available as rewards are a limited number of stocks and exchange-traded funds, which are subject to change and ongoing review.
  • Account Minimums and Other Requirements: There is no required minimum to open or maintain an account.

For additional information, please see the customer agreement (located at: https://bumped.com/legal/customer-agreement/) and the Form ADV, Part 2A brochure (located at https://assets.bumped.com/disclosures/form_adv_part_2a.pdf).


Conversation Starters

  • Given my financial situation, should I choose an investment advisory service? Should I choose a brokerage service? Should I choose both types of services? Why or why not?
  • How will you choose investments to recommend to me?
  • What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?

Fees, Costs, Conflicts, and Standard of Conduct:

What fees will I pay?

Neither Bumped Financial nor Bumped Invest charges commissions or advisory fees. Clients do not pay brokerage execution fees in connection with their relationship to Bumped Invest and receive all services from these affiliated Bumped companies on a shared Platform. Sponsors fund the Bumped Reward Program, which results in clients paying no fees. Brokerage and execution fees are negotiated and paid by Bumped Financial.

Although you pay no fees with your Bumped account, an investment account typically has fees. You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.

For additional information, please see the Bumped Financial Fee Schedule (located at https://bumped.com/legal/fee-schedule/) and the Bumped Invest Form ADV, Part 2A brochure (located at https://assets.bumped.com/disclosures/form_adv_part_2a.pdf).


Conversation Starter:

  • Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?

What are your legal obligations to me when providing recommendations as my broker-dealer or when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?

When we provide you with a recommendation as your broker-dealer or act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means:

  • Bumped, the parent of Bumped Financial and Bumped Invest, enters into agreements with reward sponsors to support the Reward Program. The percentage of the reward a customer receives is determined by Bumped and is subject to change based on agreements between the parent and sponsors. This may influence the amount of the awards clients receive.
  • Revenue Sharing: Bumped covers the expenses of Bumped Financial and Bumped Invest in order to facilitate the Reward Program. Further Apex may share discounts or revenue with Bumped Financial for order flow.
  • Principal Trading: As part of its fractional share trading, Bumped Invest may participate in principal trading of fractional shares to facilitate customer fractional sale orders. As such, Bumped Financial may profit or lose money on agency trades incidental to this order flow facilitation.
  • Third Party Fees include ETF expenses: Accounts which hold ETFs as reward securities may incur expenses related to owning the specific ETF. Information on the expense ratios for these investments may be viewed in the prospectus for the particular ETF, provided to the customer. Bumped does not receive any compensation related to ETF expense ratios.

Conversation Starter:

  • How might your conflicts of interest affect me, and how will you address them?

For additional information, please see the customer agreement (located at: https://bumped.com/legal/customer-agreement/) and the Form ADV, Part 2A brochure (located at https://assets.bumped.com/disclosures/form_adv_part_2a.pdf).

How do your financial professionals make money?

Financial professionals are paid an annual salary, in addition to bonuses. Financial professionals are not compensated based upon factors such as the amount of client assets they service; time and complexity required to meet a client’s needs; the product sold (i.e., differential compensation); product sales commissions; or revenue the Firm earns from financial professional’s advisory services.

Disciplinary History: Do you or your financial professionals have legal or disciplinary history?

Neither Bumped Financial nor Bumped Invest have any disciplinary history. The registered representatives and investment advisors of each firm do not have a disciplinary record either. Visit investor.gov/CRS or brokercheck.finra.org for a free and simple search tool to research you and your financial professionals.


Conversation Starter:

  • As a financial professional, do you have any disciplinary history? For what type of conduct?

Additional Information For additional information about our services or a copy of this disclosure, please visit our website at www.bumped.com, email [email protected], or call (503) 765-7005.


Conversation Starters:

  • Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer?
  • Who can I talk to if I have concerns about how this person is treating me?

Download the Client Relationship Summary as a PDF

View all legal disclosures

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© 2020 Bumped Inc. All rights reserved. Use the following links to access Bumped Financial LLC's Privacy Policy, Terms of Use, Customer Agreement, and other Legal Disclosures.

The Bumped app and website are operated by Bumped, Inc. Brokerage services are provided by Bumped Financial LLC, member FINRA ↗/SIPC ↗. More about Bumped Financial LLC on FINRA’s FINRA BrokerCheck website ↗

Investing in securities involves risk, including possible loss of principal: Not FDIC Insured • No Bank Guarantee • May Lose Value. Past performance is not a guarantee of future results. Nothing on this site should be construed as an offer to purchase or sell securities.

Any market, economic and / or performance data shown is for hypothetical and illustrative purposes only. Data does not represent actual results.  Participation is only for investors who understand and agree to the risks inherent in their Bumped Accounts. Only qualifying purchases made according to the terms and conditions are eligible for stock rewards. Bumped does not charge brokerage fees. Bumped reserves the right to restrict or revoke any and all offers at any time.

Investors receive shares of ETFs as rewards. Investors should consider their investment objectives, risks, carefully before investing. This and other information are found in the fund prospectus. Please read the prospectus carefully before you choose to invest.

Rewards are accrued for investment after qualifying purchases, but may be reversed if the qualifying transaction is later reversed. Bumped does not assume the risk of market movements for returned items or disqualified transactions. 

Bumped Inc., its subsidiaries, agents, and employees expressly disclaim any responsibility for and do not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the completeness, suitability, or quality thereof.

A few notes on fractional shares: they’re typically not transferable between brokerage firms. If you want to transfer your Bumped account, you may have to sell your fractional shares first. Fractional shares can’t be put into certificate form or physically mailed, nor do they have voting rights.