Motif Investing Review: Does This Really Earn You Money?
Motif Investing is a trading platform that allows users to create customized portfolios based on a specific industry, hobby, or concept. The investment vendor also offers pre-made portfolios. Furthermore, the company carefully curated all these services. These portfolios, called “motifs,” can contain up to 30 different companies, and can be purchased for $9.95 each. They are vaguely reminiscent of exchange traded funds (ETFs) offered by other companies. The company prides itself on being accessible to a wide range of investors, including beginners and experienced types. This article will discuss Motif Investing and establish the pros and cons of the services they provide.
Motif Investing- Details and Overview
Motif Investing was founded in June of 2010. The company employs about 100 people. Moreover, it operates entirely out of Rancho Cordova, California, with no offshoot branches at this time. The current total worth of the company is approximately $126.5 million. So far, they created more than 180,000 motifs, and clients were able to customize these products to match their needs and preferences. Awards include a “Best of Show” at Finovate in both Fall 2013 and Spring 2014. Motif is currently hiring new employees at their California location for those interested in working with motifs and customizable ETF options.
Just like other robo-advisors, such as Betterment and Wealthfront, Motif Investing has revolutionized the way people perceive the investment process in the digital era. What differentiates Motif Investing from its competitors is their unique product, which is represented by “motifs.” Below, there are more useful details about this platform’s investing procedure.
The Motif Investing Process Explained
Investors interested in working with Motif Investing should visit their website and click on “Sign Up.” The website prompts users to either log in with Facebook, which auto-fills most of the data needed or to enter an e-mail and password. Motif will then send an e-mail that users must open and click a link in to verify their e-mail. The next step is to select the type of account (individual or joint) and decide if the account will be a margin account or a joint account.
The platform requires users to insert their basic information including name, address, and phone number. Moreover, individuals must prove that they are US citizens and are 18 years or older. Those who subscribe have to fund their account from an existing bank account and are granted access to their dashboard. Once an account is funded, all trades are made in real time and can be completed quickly and easily. Each trade costs $9.95, and Motif Investing boasts some of the lowest fees in the ETF industry.
Users must choose to create their own motif or choose from pre-existing motifs on the website. This robo-advisor provides several sign-up bonuses from time to time, so it may be worth doing a quick internet search. In addition, if you create a motif and another investor purchases it as well, you earn $1 for each purchase. This can be a nice incentive for investors on the fence about whether to choose a pre-existing motif or create a customized one based on a particular industry, hobby, trading style, or other factors. Motif offers an array of helpful tools including investment alerts, an investing blog, and watchlists for you to add motifs you want to invest into. These tools all help investors make wise decisions and maximize their potential returns with Motif.
PROs and CONs of Motif Investing
- Motif boasts some of the lowest fees in the ETF industry. They charge no hidden or extra fees and disclose all fees upfront, so you know exactly what you’ll be paying.
- Customizable motifs may help some investors become involved and interested in the process of investing.
- Motif is a social-based platform, which means users can connect with other investors to trade tips, create motifs, and invest wisely
- Much like the traditional stock market, investors still need to track trends. Furthermore, they need to make predictions about stock market reactions to make money.
- All positive returns are subject to US capital gains taxes
- Users receive their dividends in the form of cash flow. You cannot reinvest them automatically. This makes all earnings subject to capital gains taxes.
- Users have reported issues with Motif’s customer service structure
- Users also complain that the company does not disclose some information on their website, such as a $95 minimum account balance. This can lead to unexpected fees if users do not really know all the aspects of how the platform and its products work.
Motif Investing Customer Service Review
Motif Investing has some complaints logged with the BBB, mostly revolving around information that is not disclosed up front or is not easily found on their website. The website offers a phone number to call or text, which is an option not many financial companies offer. You can also contact them via e-mail, or write to them at their offices in California. The customer support department effectively handles all complaints. If there is a delay in the company’s solution offering, it happens because of the small size of the company in general and the department in particular. Overall, customers declare themselves dissatisfied by the customer service experience of Motif Investing.
Overall, Motif offers a unique, customizable approach to investing that most other companies cannot compete with. This company allows you to create your own portfolio based on your interests and needs. This is a good tool to get children and younger investors interested in the process. If you have small children who want to learn about the stock market, what better way than to help them pick a portfolio of stocks they’re interested in? You can visit Motif Investing’s website to begin your personalized investment journey today.
Have you used Motif Investing? What were your impressions?