Help and FAQs

Why WhiskyInvestDirect? FAQs

What is WhiskyInvestDirect all about?

WhiskyInvestDirect gives private investors access to the market for wholesale maturing whisky – a physical asset held in bond with a growing global demand, limited supply, and a solid history of long-term appreciation.

Before WhiskyInvestDirect, only distillers and other industry participants could trade maturing whisky and benefit from the returns it typically offers.

Now, private investors can buy and sell maturing whisky on the same platform as professional participants such as distillers, blenders and bottlers.

The maturation phase of whisky production

On average, Scotch takes 10 years to mature. The distiller’s goal is to develop the market and brand for their product while the whisky is maturing. The difficulty for the distiller is in knowing 10+ years in advance how much stock they need to produce to support their brand.

If they under-produce they cap the upside of their future brand potential. But if they over-produce they may find themselves over-borrowed and potentially risk the long term future of the distillery.

Unfortunately no-one can make a reliable sales forecast ten years into a brand's future. So because most independent single malt distillers consider the risk of over-production outweighs the marginal extra profit, the industry tends to under-produce.

WhiskyInvestDirect solves this problem for distillers in a way no-one has done before, by offering them a new inventory solution. While the whisky is maturing it will be bought and owned by private crowd-funders who can benefit from its appreciating value. And when it is mature, or sooner, it can be sold via our on-line market place to the highest bidder amongst:

  • other investors using the exchange;
  • the original single malt distiller, now wanting more mature product to sell;
  • one of the major blenders, needing mature spirit;

Direct access to the very best prices

  • WhiskyInvestDirect users deal directly with each other, willing seller to willing buyer, by using our order board.
  • All WhiskyInvestDirect whisky is segregated and stored in the distiller’s bonded warehouse. So when you come to sell, your buyer is able to trust the integrity of your whisky, which is guaranteed by WhiskyInvestDirect itself because we know that you never had the chance to corrupt it.
  • You can trade on-line in increments as small as 1 Litre of Pure Alcohol (LPA) at a time.
  • When buying or selling whisky on our order board you pay a flat commission of 1.75%.
  • Storage charges are down to wholesale rates of £0.208 per Litre of Pure Alcohol per year or equivalent (£3 per month minimum) with insurance included.

Your safety & security assured

  • For as long as you own it your whisky remains your outright property, stored in the same bonded facilities used by the industry.
  • You are truly isolated from the systemic risks in the financial system. You have taken legal delivery of your whisky and you own it directly in physical form. Unlike the huge majority of investment products no company's financial failure can deprive you of this whisky. WhiskyInvestDirect, WhiskyInvestDirect's bankers and WhiskyInvestDirect's bonded warehouses could all fail - and your whisky is still safely yours.
  • Once a month WhiskyInvestDirect publishes on the internet the complete register of all its whisky owners - with each owner listed under a public nickname known only to themselves.
  • This register reconciles exactly to the official cask list published with it. The cask list is produced by each professional warehouse, independently of WhiskyInvestDirect.
  • WhiskyInvestDirect is also the only whisky market in the world which stays open 24 hours a day, 7 days* a week.
  • You even have the right to withdraw whisky from the warehouse, although the huge majority of WhiskyInvestDirect users leave their whisky right where it is. (There are additional fees, duty and taxes for whisky withdrawal.)
  • Any purchase you make through our order board is settled instantaneously - we checked the seller had sufficient whisky produced in the year and by the distiller chosen by you before it was sold to you. Any sale you make is settled instantaneously too - again we checked the buyer had deposited sufficient money before your whisky was bought from you. WhiskyInvestDirect offers nobody credit, so nobody can let you down after you deal.
  • You can withdraw your money immediately after you sell. Your money will leave your WhiskyInvestDirect client account by the end of the next business day (London time). There is no minimum period for investing.
  • For your safety - and to obey international anti-money laundering laws - your money is sent straight back to your original funding bank account. Money transmissions to your original funding bank account are fast, safe and low-cost.**
  • And we make sure you can't make an expensive mistake either. You won't be able to buy more whisky than you can pay for, or deal at a silly price. Firstly that's because the system eliminates all of these obvious user errors, but it's also because we invite you to phone us, and we'll talk you through your first deal one button at a time. We check that everything is exactly as you want it while you're still on the phone. You'll be amazed how simple it is.

*We sometimes close the order board for a few hours at weekends, for maintenance.

**Where commercial or political concerns dictate it, your money may be returned to another bank account, but only at your instruction and only subject to extensive identity and security procedures.

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How much will my whisky cost?

When you buy through WhiskyInvestDirect's order board you will pay very close to the wholesale value of the whisky.

The process of entering an order on WhiskyInvestDirect requires you to specify your price limit. You will never deal on terms worse than the limit you choose. You will frequently deal on better terms - i.e. lower prices when you buy, and higher prices when you sell.

You can continually check the prices yourself on the order board.

You pay a commission to WhiskyInvestDirect - as explained in the next section.

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How much will I pay in WhiskyInvestDirect charges?

You will pay a trading commission and a custody charge.

  • There is a flat commission rate to buy and sell of 1.75%
  • There is a custody charge (including insurance) of £0.208 per Litre of Pure Alcohol per annum or equivalent. The custody charge is subject to a £3 per month minimum.

WhiskyInvestDirect's bank deducts the cost of wiring your money back to you from the sum sent when you withdraw your money. You can trade as many times as you want within WhiskyInvestDirect without incurring this charge, but when you decide to send money back to your bank account you will then pay it once. Most UK payments are free. Some UK payments, and typical payments to international banks, are £20.

Review the complete tariff.

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