Motif Investing IRA Review
Motif Investing Roth IRA, Traditional IRA, Rollover, SEP, Simple IRA (individual retirement accounts) review, promotion offer, rating, fees and commissions. Is Motif Investing IRA good and safe way to invest?
Motif Investing IRA Commissions
|Stocks and ETFs|| $4.95|
|Creating or rebalancing motif|| $9.95 total commission for up to 30 stocks or ETFs you choose|
Motif Investing IRA Fees
- IRA setup fee: $0
- Annual IRA fee: $0
- IRA termination fee: $95
Motif Investing IRA Accounts Offered
- Traditional IRA
- ROTH IRA
- Rollover IRA
What is a Motif?
When it comes to investing, new ideas have the ability to be taken by investors as revolutionary concepts, or simply passing fads. Motif Investing is
one of those new concepts which is taking hold and has a potential of a long-term viability.
In 2010 former Microsoft Executive Hardeep Walia had the vision of opening up investing to people in a way that would allow them to invest based on
themes and diversify their portfolios to the highest degree, but at a low-cost commission. The result of these ideas manifested itself in to baskets
of up to 30 stocks which can be customized and traded all at once.
A Motif is a basket of stocks or ETFs that are based on broad economic trends and everyday ideas. A Motif can include up to 30 stocks and revolve around anything from home improvement to cancer research to deflation. Investors can control the weight of stocks within each Motif until they have fully customized their portfolio to their liking. Motif allows for fractional shares to be purchased in any portfolio, making customization that much easier and more accessible to those with little capital. By combining direct stock ownership with customization, and doing so for very low fees, Motif believes their new concept will revolutionize the industry.
Due to the nature and definition of a Motif, the platform is quite limited in its available investment options. At this time only stocks and ETFs listed on US exchanges can be traded on Motif. Additionally, Motif is yet to offer a Dividend Reinvestment Program (DRIP) on the platform, a huge negative for any investor looking to grow their portfolio in the long-term by re-investing dividends.
Trading options, bonds, mutual funds, and essentially all other types of equities are not available. There are ways to work around these limitations (i.e. those interested in putting money in bonds investing in various bond ETFs), but there is certainly a limitation for IRA investors on this platform.
Motif Investing IRA Fees and Account Minimums
When Motif was first introduced it was the fee structure that got investors most excited. To invest in a Motif with up to 30 stocks investors only pay a one-time $9.95 commission charge. Purchasing 30 individual stocks would cost at least $150 in commission fees on even the lowest cost online brokerage. Not only that, buying or selling individual stocks or ETFs in an already purchased Motif will only cost investors $4.95.
There is no additional management or hidden fees associated with the service, making it very straightforward. There is no minimum to open an account,
and just $300 minimum to invest in particular motif, which should not be a barrier for most IRA investors.
When it comes to research and platform features, Motif is pretty much basic. There is no real individual stock quote research to speak of, aside from basic charting and technical analysis. In fact, when looking at an individual stock quote, Motif provides links to Yahoo and Google finance for investors to do their own research outside of the platform.
There is also a social element to investing on Motif. Each Motif is ranked so that users can see how their unique Motifs compare via the “Motif Index” to the rest of the Motifs created on the platform. Additionally, users can vote and discuss their sentiments about any Motif and read both bullish and bearish outlooks.
Mobile trading via Motif is very well designed. The platform can be accessed via iPhone and Android apps. The company beefed up their mobile platform
functionality and now offers most of the features available through a regular website. The apps are rated very highly by their users.
Motif customer service is available from 9:00 AM to 6:00 PM Eastern time, Monday through Friday. The company’s customer service team is based in the US and claims to have significant experience in the financial services industry which is important for a platform that is providing a brand new financial service.
$9.95 to buy a basket of up to 30 stocks is a price that cannot be beat. The ability to do so by purchasing fractional shares is a newer concept that will make most investors very happy. The social element provides unique features to keep investors discussing trends and investment strategies amongst each other and adds to the platforms overall appeal.
No mutual funds, bonds, or even equities listed on foreign exchanges can be traded via Motif. Even with the ability to purchase up to 30 stocks at
once, this severely limits the investment diversification that can be done within the IRA account. Additionally, there are no real research tools
to speak of that benefit the investor.
Looking at Motif through the right lens makes the platform a great investment tool. Investors trying to diversify their stock and ETF holdings will absolutely love Motif as an IRA option. The ability to diversify up to 30 stocks at one time for a low fee makes sense on many levels. For these reasons, Motif Investing is a great secondary IRA option as long as the individual investor fully understands its limitations.
Buy up to 30 stocks for $9.95.
Article was updated on 1/30/2017.