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Axos vs Fidelity and Robinhood
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Axos vs Schwab and Others: Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
$0 + $0.65 per contract
|
$0
|
$0
|
|
Robinhood
|
$0
|
na
|
$0
|
$0
|
$0
|
|
M1 Finance
|
$0
|
na
|
na
|
$0
|
$0
|
|
Fidelity
|
$0
|
$49.95
|
$0 + $0.65 per contract
|
$0
|
$0
|
|
Etrade
|
$0
|
$0
|
$0 + $0.65 per contract
|
$0
|
$0
|
|
Axos Invest
|
na
|
na
|
na
|
0.24%
|
0.24%
|
Axos vs Fidelity and Others: Services
Axos Invest Overview
Today, Axos Invest, formerly known as WiseBanyan, operates under Axos Bank. It was launched with the ambition to become the world’s first free financial advisor, aiming to attract new investors and those deterred by high fees of traditional brokerages. However, the service has evolved into a somewhat complex and technically cumbersome experience.
General details
- Axos offers a robo-advisor platform with no option for human advisors.
- Opening an account with Axos requires an initial investment of $500, a significant increase from the original $1 minimum.
- The service now charges an annual advisory fee of 0.24% for account management.
- Axos provides a selection of 32 asset classes, enhancing portfolio diversification and risk management.
- Fees include $10 for closing an IRA and $30 for a returned check.
- Available IRA options include traditional, Roth, and SEP accounts.
- Axos is known for responsive customer service, typically replying quickly to emails during business hours (Monday - Friday, 8am - 4pm PST).
- All individual investment accounts come with unlimited automatic rebalancing and tax-loss harvesting.
Axos Invest Pros
Axos Invest offers several advantages. It promises diligent monitoring of users' portfolios and transparent fees. It’s a good choice for those seeking low-cost fund management, hands-off investment, and the benefits of passive investment strategies.
Users can tailor their portfolios based on personal risk tolerance, which is initially gauged through a questionnaire to create a custom "risk score." This score can be adjusted over time, allowing clients to shift from conservative to more aggressive investment strategies and vice versa.
Clients have control over their investments, with the ability to add or remove any of the 32 asset classes offered. This feature allows investors to focus on sectors they believe in or wish to support, like blockchain or AI technologies, socially responsible firms, or small-cap companies.
Axos Invest Performance
From personal experience, the returns from Axos Invest’s aggressive portfolio have been impressive, showing about 15% growth since I opened an account a few years ago.
Formulas and Milestones
Axos excels in helping customers achieve their financial goals. It offers investment automation through a feature called Formulas that applies only to taxable accounts. This tool lets users direct extra funds from linked bank accounts or a built-in wallet, which can hold funds readily available for withdrawal, providing a sense of security for emergencies.
Formulas also allow clients to match funds for dividends or buy more shares if stock prices drop.
Another tool, Milestones, helps clients plan and track progress toward their financial goals by estimating required investment amounts based on personal details like income and net worth.
Axos Invest Cons
Despite its strengths, Axos Invest has some drawbacks. The high initial minimum investment and the absence of human advisors can be limiting for some investors. Other issues include funds sitting uninvested if certain automated triggers aren't met, and the system can be forgetful in reminding users to invest these funds.
Navigating the platform can be confusing due to its complex design, and there's no option for joint or custodial accounts.
Security measures, while important, can be cumbersome, with unreliable delivery of one-time passcodes, particularly via phone.
Lastly, despite its fee structure, Axos faces stiff competition from brokers that offer commission-free investments.
Also, the website sometimes crashes or displays errors for unknown reasons, which leaves much to be desired in terms of IT support.
Promotions
Robinhood: Free stock up to $200 and 1% IRA match when you open an account.
Open Robinhood Account
Charles Schwab: Get $0 commissions + satisfaction guarantee at Charles Schwab.
Open Schwab Account
Updated on 7/24/2024.
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