Although technology is making the process of investing more and more efficient, many of us are still paying traditional broker fees for what is now automated work. So why should we still be paying for it?
It’s a valid question, and one that’s being addressed by a whole crop of online platforms who are making it easier for you to cut costs and monitor your portfolio. These sites can help you save more and avoid fees that are taking a large bite out of your pie. Here are some examples to consider:
Motif offers unique and powerful search tools to create tailored portfolios. Investors can build their portfolio around a theme, investing style, or multi-asset model.
The site charges a low monthly subscription, and allows for easy automation of trading in an unlimited number of accounts and portfolios. Information includes relevant news, trading alerts, and performance reports.
This site, backed by more than $60 million in venture capital, offers free stock trading online. There are no subscriptions or brokerage fees. Accounts are secure and encrypted, and automation helps eliminate fees and speed up trade execution.
Betterment provides financial planning, tax-coordinated portfolio management, retirement guidance, and more. Its focus is on lower taxes, lower fees, and higher returns. No fees for trades, transactions, or rebalances. Annual management fees are as low as 0.15% (on balances $100,000 and up), with no minimum balance and no fees for trades, transactions, or rebalances. According to their website, Betterment customers can expect 4.3% higher returns than a typical DIY investor.
Wealthfront claims over $2.5 billion in client assets. The minimum to open an account is just $500, and there are no annual fees on the first $10,000. The platform manages portfolios with no commissions or maintenance fees.
With no minimum investment, this site offers wealth management for everyone. They offer services like risk management, hedging, bitcoin investing, impact investing and private equity –things that were once reserved for ultra-high net worth investors. Fees range from 0.3% to 0.75%, and support is available 24/7.
The average client on this site has around $100,000 to invest and the service uses powerful algorithms to optimize their portfolio. Its services are free, and the site provides clients with aggregated investment data.
Based in Germany, this is an investing app that lets the customer choose an amount each week to save. The company then invests that amount in a suitable ETF portfolio. It’s an easy, transparent way to put “spare change” to work.
Nutmeg offers “smart investing for everyone.” Based in the U.K., the site provides easy set-up, low fees, and expert, discretionary portfolio management, and makes it all straightforward and hassle-free. The company specializes in investments, ISAs and pensions.
This company provides free tools for gathering and analyzing data, along with a financial advisor. They’ve managed more than $800 million in client investments, and provide guidance for retirement planning, college savings and more.
What companies would you add to this list of emerging players? We’d love to hear from you!
