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Former Yankees slugger Alex Rodriguez, Barstool Sports founder Dave Portnoy and e-commerce tycoon Mark Lore are pouring cash into Tornado, an online brokerage that operates a social network for traders.
The investors — led by VCP, A-Rod and Lore’s venture capital firm — are sinking a total of $10 million into Tornado, which was first founded in 2015 and is rebranding from its previous name “NVSTR.”
Unlike other rivals such as Robinhood and TDAmeritrade, New York-based Tornado charges users to open accounts. The service costs $4.99 per month and includes 25 commission-free trades.
What sets Tornado apart from free brokerages, the company says, is access to a social network of other traders who share stock tips and trends. Users also receive curated market commentary, as well as analytical tools that are “typically only available to professional Wall Street investors,” according to the company.
Tornado says this model encourages more responsible and sustainable investing.
“Financial wellness has never been a more important mission,” said co-founder Patrick Aber in a statement shared with The Post.
Tornado’s conscientious image seems at odds with Portnoy’s his past stock trading activities.
During the pandemic, the Barstool founder livestreamed day-trading sessions, declaring that “stocks only go up” and randomly buying shares based on letter tiles he pulled out of a Scrabble bag.
Portnoy helped inspire a movement of young, risky traders who used retail trading apps like Robinhood to send stocks like Gamestop and AMC flying and crashing for seemingly no reason — making some traders filthy rich while leaving others penniless.
Nonetheless, Portnoy gave Tornado a full-throated endorsement.
“There’s been a lot of chaos in the stock market,” he said in a release. “It’s hard to know who has your back. The platform Bernard and Patrick are building at Tornado aims to give everyone the power to become a better investor — doesn’t matter where you start from.”
Tornado is the second investment by A-Rod and Lore’s VCP fund. The first was NOW//with, an e-commerce startup that allows users to buy goods endorsed by social media influencers.
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