The growing world of robo advisors has led to invention of another investing platform called Motif. But in this vast pool of robo advisors one should be unique to sell their products. Motifinvesting comes with this promise of uniqueness. This platform is dominating the investment uniqueness by allowing you to create your own little investment funds. With Motif users invest in groups of investments that share similar features. Each motif features between 20 to 30 stocks or Exchange Traded Funds that can be said to follow particular themes. Some of the examples of some commonly used themes are “Healthy and Tasty”, “Recession Resistant”, “Utility Bills” and “Biotech Breakthroughs.”

What is Motif?

Motif is an emerging robo advisor firm which has developed a unique financial products called “motifs” that are similar to the low-cost exchange-traded funds offered by many other robo advisors too. Exchange Traded Funds (ETFs) are securities that track commodity, basket of assets, index and trade it like a stock. Slightly resembling existing ETFs, motif offer wide-range of investment that guarantee you with the lowest possible risk.

You can look for motifs available using different criteria and parameters such as exploring by industry or looking for themes based on current events. It’s also possible to screen motifs by looking at daily change, its one year return, and popularity. The screener on the home page itself allows you the chance to find just what all you’re looking for in an investment.

The biggest advantage of motif is its cost efficiency. All the stocks in the motifs can be accessed at a flat fee of just $9.95 per transaction. Also customization of motif is also absolutely free of cost. No matter how much you customize a Motif. Also Motif guarantees you zero management fees and no activity requirements at all. However, the fact that you can get 30 stocks or Exchange Traded Funds at once, for less than $10, is a great deal to grasp. So every time whenever you deal with motif all you need to pay is the flat transaction fees of motif that is $9.95 per transaction.

How to Sign Up with Motif?

As already mentioned earlier Motif lets its investor to create or buy motifs featuring up to 30 stocks or Exchange Traded Funds following a specific type of theme. To open an account with Motif you need to give consideration to some necessary points which are as follows:

  • First of all investors just need to sign up themselves online by just filling in the necessary details.
  • For every investor a minimum deposit of $250 is required as to make trades and $2000 to trade on margin.
  • The fee charged by the company is a flat commission of $9.95 per every motif purchase.
  • Investors may add stocks or Exchange Traded Funds to their already purchased motif for $4.95.

Motif has introduced its horizon models recently. According to this model the motifs replicate an online retirement funds that are quite similar to those offered by Betterment FutureAdvisor and Wealthfront and the best thing about it is that it is totally commission free. However unlike other such companies, rather than using robo-allocation, Motif tries to choose an allocation of assets that are totally tailored according to investor’s time horizon and its risk tolerance.

Motif Major Features

Some of the amazing features offered by Motif are as follows

  • Accounts Availability – Motif offers Traditional Individual Retirement Accounts, Roth individual retirement accounts, Rollover individual retirement accounts, Trusts, Individual, and Joint.
  • Flat Rate Pricing – With 30 stocks the motif cost is $0.33 per stock traded. Pay $9.95 per trade regardless of how many stocks or ETFs are in the motif.
  • Single Stock Trading – Single stock commissions are $4.95 per trade.
  • Many Pre-built Motifs – There are over 9,000 motifs by the company and community. If you like one you see, you can customize the motif to your liking.
  • Create Your Own Motif – Add up to 30 stocks and/or ETFs to create your own custom theme.
  • Horizon Motifs – Similar to a target-date fund these motifs allow you to create a stock/bond ratio per your time horizon.
  • Trading Alerts – Get notified of price changes in the motifs you own.
  • Mobile App – Android, iPhone, iPad, and Apple Watch support is also provided by motif.
  • Scheduled Transfers (New) – Set up recurring transfers: Bi-Weekly, Monthly, Bi-Monthly, and Quarterly, Semi-Annually, and Annually.
  • IPO Stocks – Gain access to J.P. Morgan IPO stocks after registering with Motif.

Motif Pricing

The most attractive part of whole of the motif program is its pricing. It enables you to buy 30 stocks with just $10 within your pocket which really is a whole new thing in world of robo advisors. The Standard rate charged by almost all other brokerage firms is mostly more that $6 per every individual trade you do. So buying 30 individual stocks or ETFs would cost surely around $200 at many other brokerage firms.
Here are the costs associated with trading motifs:

  • Horizon motifs are totally free to trade with.
  • For trading an individual stock or ETFs all you need to pays is $4.95.
  • Cost of buying or selling your own custom motif comes to around $9.95 per trade.
  • Minimum amount of investment required per motif is around $300 (bundle of up to 30 stocks).
  • For trading in an existing motif cost is $4.95 OR pay $9.95 to swap out as many as you want.
  • Motif does not charge any type of maintenance fees.
  • Another great feature comes with motif is the zero inactivity fee.

Motif Pros

  • Easiest of the ways to diversify your holdings: It offers your great service to diversify your inventory into different sectors and investing small amounts in different types of stocks.
  • Low Cost Trades : Trades are offered at a very low rates of just $9.95
  • Create your motifs: You can use the pre made motifs or create your own motifs and get paid for every motif whenever a person uses it publicly.
  • Cheap single stock trades: Buying and selling a single stock is offered in here at one of the lowest rates.

Motif Cons:

  • Does not reinvest your dividend.
  • Lacks many social features.
  • Complex orders are not available on it.