We’ve all heard it a hundred times from family, friends, and strangers alike: “Invest. Invest. Invest.” But for many, the notion of investing your money and diversifying your portfolio seems out of reach and something that only a professional with twenty-plus years on wall street should be able to do. Trying to understand world markets and investing is daunting, epically for newcomers. Luckily, there are companies like Motif Investing to help guide you along the way.
Today there are so many online resources and tools to help simplify the process so more and more people can take their finances and investments into their own hands. Motif Investing is just one of the excellent tools out there today for first-time investors. To better help you decide on what investment tool is right for you, we’re comparing four of the top investment tools to see how they match up.
About Motif Investing
Motif Investing, created by CEO Hardeep Walia, has revolutionize the way users invest. Motif Investing is an extremely cost-effective option for those looking to diversify their portfolio in a controlled and unique way. Motif Investing is epically great for new investors, IRA investors, theme investors, as well as those looking to invest with relatively low minimums.Motif Investing is essentially an online brokerage firm that allows individuals the chance to invest at their own price and work by helping customers invest based on themes, making it very similar to building your very own mini exchange-traded fund (ETF).
Motif Investing gives users control of exactly how much they want to invest which gives individuals a lot of freedom when it comes to managing their own investments. The online brokerage firm lets users invest in groups that all share similar characteristics.Each motif that is available through Motif Investing contains anywhere from twenty to thirty stocks or exchange-traded funds (ETFs) that all hold similar themes. For example, one can choose motifs such as those involving health, biotech, water, and so on which are selectively chosen to created the strongest, most diversified portfolio. Motif Investing also provides other features such as the “Lots of Likes” motif which specifically focuses on companies who have the highest number of likes on Facebook. Since users can choose from a variety of different “asset classes,” it is incredibly easy to create customizable portfolios that are truly one-of-a-kind.The company also allows users to search for certain motifs based on different criteria. For example, users can explore specific industries or even themes based on current events and markets.
Other useful tools available on Motif Investing is the screening option. Users can “screen” certain motifs to see their potential, the screening option allows potential investors to look at important financial markers such as one year return, popularity, and daily change.One of the unique aspects of Motif Investing is that it operates both as a broker and as an idea generator through the various tools it provides users. Apart from investing in exchange-traded funds (ETFs), users can also invest in trade stocks as well.
One of the biggest benefits to Motif Investing is how cost-effective the tool is. There is no minimum for a trading account and users only need a balance of $300 (required) in order to invest in a motif.Users can also get access to each of the stocks available in any motif for a flat fee of under ten dollars per transaction, no matter how many times one customizes it. Unlike other programs, with Motif Investing there are also no activity requirements, nor are there any management fees. Motif Investing also allows options for individuals to buy more of a particular stock or exchange-traded funds (ETFs) in a motif without requiring you to purchase a whole theme for a small fee of under five dollars. If users decided to sell shares of individual stocks or ETFs within a motif, they also do it at the cost of under five dollars.
How It Compares
We picked a few similar products available on the market to see how they compare.
Where To Invest
Fees & Commissions
The simplistic and easy-to-use tools designed by Motif Investing makes it an ideal option for first-time investors since it takes much of the difficult guesswork out of investing.
Motif Investing doesn’t charge management fees and with the option to access multiple stocks within a motif for just a onetime flat fee per transaction makes it well priced.
With multiple themes available and diverse motifs to customize, Motif Investing is an excellent trading platform.
Motif Investing offers email and text support; however, phone support is only available Monday through Friday from 9 a.m. to 6 p.m.
Wealthfront focuses on long-term investment strategies for users with their globally diversified portfolios. They also allow people to build portfolios at a low-cost investment otherwise known as “passive investing.”The company allows users to personalize portfolios which can be tailored based on one’s age, risk comfort zone, and finances. They also offer additional tools such as calculating potential home budget and analyzing financial habits and factors like inflation, investment returns, and social security to determine one’s projected retirement.
The advisory fee for Wealthfront is high depending on your balance, making it one of the pricier investing options. However, you do receive a lot of additional tools and support which some may say makes the price well worth it.
Fees & Commissions
They offer individual and joint non-retirement accounts as well as traditional accounts, SEP, rollover IRAs, and Trusts. In addition, the company also offered over 500 college saving plans.
Wealthfront has no account fees for annual, transfer, or closing; however, they do charge a 0.25% management fee, but they will manage the first $5,000 invested for free if you sign up through NerdWallet.
Wealthfront is ideal for hands-off investors looking for auto-piolet investing. They offer exchange-traded funds (ETFs) from 11 asset classes, with portfolios normally comprising six to eight. They also allow users to hold individual stocks on larger accounts.
Phone support is only available Monday through Friday from 11 a.m. to 8 p.m. Eastern time. However, they do also offer email support.
Wealthsimple is an automated investment management space that offers American investors a range of socially responsible investments. In addition, they also provide tax-loss harvesting, so it is ideal for investors who own large taxable portfolios and accounts.The company offers a free portfolio review which assesses debt, savings, and investment by looking at one’s current diversification as well as exposure to taxes and fees. Wealthsimple also requires no account minimum, making it an ideal options for those just starting their hand at investing.
There is no maintenance or transfers fee, plus advisory fee is 0% for the first year on balances from $0 to $5,000. However, the advisory fee increases for higher balances.
Fees & Commissions
Wealthsimple provides a variety of account types including taxable personal and joint accounts, traditional IRAs, SEP IRA, and trusts.
While Wealthsimple does not have any maintenance or transfer fees it does, however, have high management fees ranging from 0.4% to 0.5% which are some of the highest in the market today.
Wealthsimple offers exchange-traded funds (ETFs) from 16 asset classes, along with individual stock for halal portfolios. All hala investing products comply with Islamic law, so it is ideal for those investors who are more socially conscious.
Wealthsimple offers live phone support Monday through Friday from 8 a.m. to 8 p.m. Eastern time. They also offer 24/7 email support. Customer support calls can also be scheduled with a financial planner upon request.
Betterment has over $11 billion in assets under its management today and more than 300,000 clients, leading the market online-advisors. They offer a more personal and human experiences compared to other companies and provide two service options: Betterment Digital and Betterment Premium.Betterment Digital requires no account minimum and only charges 0.25% annually for managing assets; plus, users also have the option of speaking with a financial advisor through the in-app messaging system. Betterment Premium provides unlimited phone access to financial consultants; however the managing fee is 0.40% and requires and a minimum account of $100,000.
Betterment is ideal for those looking for hands-off investing, users with low balances, or anyone seeking an automatic re-balancing systems and goal based tools. The company uses exchange-traded funds (ETFs) and bases its investment philosophy on highlighting the benefits of diversification and low risk. They also provide users with information that shows company business practices and how they align with particular social causes such as environmental issues.
There is no minimum required, making it ideal for low-cost investments or beginners; however, the account management fee is 0.25% which could end up being costly depending on one’s account size and for those selecting the Betterment Premium the management fee is even higher. Additional support, plus automatic re-balancing on all accounts make Betterment a good deal for the cost.
Fees & Commissions
Betterment offers many accounts for different investment options such as individual and joint accounts, nonretirement accounts, traditional, SEP and rollover IRAs, and trusts.
ETF expense ration average is approximately 0.13% while the annual managing fee ranges from 0.25% to 0.40%
They offer a standard portfolio that includes ETFs from up to 12 asset classes. In addition, socially responsible investing, target income and smart beta portfolios are available.
Offers phone support Monday through Friday from 9 a.m. to 6 p.m. Eastern time and Sunday through Saturday from 11 a.m. to 6 p.m. In addition, they also offer email support and live chat. Plus, all customers can consult a financial advisor on the company’s in-app messaging system.
Whether you are an expert investor or just starting to build a financial portfolio for the first time, finding the right investment tools and company to help manage your accounts is no simple task. It is always important to keep your financial goals at the forefront of your decision making and compare all potential options before making such a large commitment.
One of the biggest things to keep in mind is how much you plan to invest initially because depending on that amount, some firms may offer better deals than others. The second most important thing to consider when looking at investment companies is if there is an annual account management fee, along with any other additional fees such as transactional fees or closing fees. Compared to all the companies we analyzed, Motif Investing offers the best service at a competitive price point.
Motif Investing allows investors to not only trade stocks and exchange-traded funds (ETFs), but it also allows users to invest in fractional shares at a very low cost, making investing very flexible and customizable. Unlike other firms we compared, Motif Investing allows investors to build their own funds out of up to 30 stocks or ETFs and access catalogs of hundreds of pre-built motif options which is much higher than anyone else.Additional tools such as the theme-based guidance that Motif Investing provides helps users choose investments that align with values and specific industries, giving users the optimal level of control and insight when it comes to managing their portfolio. For more insight on smart investing, stocks, and financial guidance visit retireby37.com today!