Axos Invest is an online investing platform for active traders and beginners interested in Axos’ personalized managed portfolios. Axos Invest doesn’t offer ongoing human advisor access or fractional shares.
Business Insider compared Axos Invest to the best online brokerages. We found its robo-advisory services to be strong, but its self-directed trading solutions and features are limited compared to competitors.
Pros and Cons
Axos Invest Pros
- $0 minimum to open a self-directed account ($500 for managed portfolios)
- Can link Axos Bank account
- Low-cost portfolio management for managed portfolios
- Tax-loss harvesting
Axos Invest Cons
- Doesn’t offer human advisor access
- Limited educational tools and features
- Must have Axos Elite to access margin trading and lower fees
Open an Account
Axos Self-Directed Trading
Fees
Commission-free stocks and ETFs, $1 options contracts
- No minimum for DIY trading; no commissions on stocks or ETFs
- Automated portfolios included tax-loss harvesting; more than 30 asset classes
- Low advisory fee for automated investing
- Stocks, ETFs, options, and mutual funds available
- No financial advisor access
- High options contract fees
- No fractional shares
Insider’s Take
Axos Invest is best for hands-off investors and self-directed traders who want to build wealth on an easy-to-use platform. Users can benefit from portfolio rebalancing, tax loss harvesting, and real-time market data. Axos Invest suits existing Axos Bank users, thanks to its account-linking functionality and interest rewards for those with checking accounts.
Product Details
- Open an Account in Under 10 Minutes.
- Trade thousands of S&P 500, NASDAQ, NYSE, and other listed stocks
- Commission-free ($0 per trade on eligible stocks and ETFs; other fees may apply)
- Easy-to-use platform with the tools you need and the convenience of placing trades anytime, anywhere.
- Upgrade to Axos Elite and boost your account with instant access to funds, lower fees, increased buying power, and enhanced market knowledge.
- Link your Axos Bank account for fast, safe, and easy money transfers.
- Axos Elite Members get a 20% discount on Options trading
- All Consumer Invest clients receive access to Axos’ licensed Wealth Advisor Team.
Compare Axos Invest
Overview
Axos Invest, formerly Bank of Internet USA, is an online brokerage and banking platform for automated and self-directed investing. It offers affordable portfolio management and goal-based financial planning tools for beginners and passive investors.
Active investors can use Axos’ commission-free stocks, ETFs, and no-fee mutual funds. However, its active trading tools and features are underwhelming compared to sophisticated trading platforms like Interactive Brokers and TradeStation.
Axos self-directed trading doesn’t offer fractional shares, forex trading, futures, or cryptocurrencies. Only Elite users can access third-party research, analysis, and asset recommendations. Otherwise, you’re limited to Axos’ blog for educational resources.
Axos’ Managed Portfolios, which offer low-cost trades, customizable portfolios, and tax-loss harvesting, are best for beginners and passive investors. That said, customer support is limited to phone and email Monday through Friday, 8 a.m. to 4 p.m. PT.
Axos Invest suits existing Axos Bank users who want access to low-cost self-directed trading or automated investing. If you have an Axos Bank Rewards Checking account, you’ll earn a higher APY (you can earn up to 3.30% APY) for each investment account you open in addition to it.
If you seek sophisticated trading strategies, forex trading, or futures, you’re better off with a different online brokerage.
Ways to Invest
Here’s how you can invest with Axos Invest.
Axos Self-Directed Trading
Axos Self-Directed Trading is a browser-based platform with no annual fees or inactivity fees. Stocks, ETFs, and no-load mutual funds are commission-fee. Options trades are also available at $1 per contract.
You can easily integrate with Axos Bank for straightforward trading. If you have an existing Axos bank account, you can view your account balance, pay bills, and transfer funds from the Axos Bank app.
Third-party research, real-time data, lower trading fees, and margin trading are unavailable to non-Elite investors.
All investors with an Axos Invest account can access the free FundFinder+ tool. This tool provides users instant access to in-depth performance fact sheets organized by market sector, category, asset class, and providers.
Axos Elite
Axos Elite is the advanced version of Axos Self-Directed Trading. For $10 a month, you get lower trading fees, access to third-party research, and margin trading with rates as low as 10.5%.
It also offers extended trading hours (until 7 p.m. ET) and instant bank transfers.
Market research is primarily from TipRanks™, which provides stock recommendations, stock data by sector, stock scores, and portfolio trackers. Axos Elite users also get a lower options contract rate of $0.80 (compared to $1 with a regular DIY account).
Investors with an Axos Managed Portfolios account can also sign up for Elite to access margin trading.
Axos Managed Portfolios
Axos Managed Portfolios is the platform’s robo-advisor, which builds a personalized ETF portfolio (with access to over 30 asset classes) based on your personal goals, time horizon, and risk tolerance. Investors may also select individual asset classes to put in their portfolios.
Portfolios are automatically rebalanced to keep you on track toward goals like retirement, building an emergency fund, building wealth, or buying a home.
Axos Managed Portfolios employs a buy-and-hold investment strategy for long-term gain and short-term tax advantages. While the $500 minimum requirement is a bit hefty compared to platforms like SoFi®, Axos Invest makes up for it with its competitive 0.24% annual fee.
Managed Portfolios also offer tax-loss harvesting, which reduces your tax burden by replacing ETFs with negative growth with similar funds.
Additionally, you can automate traditional and Roth IRAs. You can use the IRAutomation feature to unlock the benefit of either tax savings for the current tax year or long-term tax savings when you withdraw later in retirement.
Axos Invest Retirement Accounts
Axos Invest and Axos Invest Managed Portfolios both offer retirement savings accounts for individuals. You can open a traditional, Roth, or rollover IRA with Axos. Axos Invest does not provide 401(k) plans, SEP IRAs, or SIMPLE IRAs.
Self-directed IRA accounts require a $50 minimum to open. Managed Portfolios still require a $500 minimum.
With an automated IRA, you can create a diversified investment portfolio of equity ETFs and fixed-income ETFs based on your risk tolerance and time horizon.
You can use Axos Invest’s 401(k) calculator to keep your retirement savings on track. Users can also use the traditional 401(k) and Roth 401(k) simulator and the interactive retirement calculator.
Axos Advisor Services
Axos Advisor Services is a client-centered registered investment advisor (RIA) service for businesses to get individualized advice and guidance. It uses intuitive technology and consulting support from advisors to focus on growing business prospects and accessing intuitive tools.
Axos’ technology is integrated with API, rebalancing features, trading capabilities, and practice management features. You can choose a bundled solution with Liberty, an open architecture structure for an open-access concept with third-party relationships, or an API Only strategy,
Growth Solutions at Axos Advisor Services include:
- Money Manager X-Change: Provides clients with access to portfolio management to enhance their businesses by delegating funds, creating multiple-model investment portfolios in the same account, various account manager options, the ability to add third-party money managers, and more.
- Retirement Solutions: Businesses can create retirement plans, including a 401(k), profit sharing, ERISA 403(b), Non-ERISA 403(b), 457(b), 457(f), and much more. Axos retirement solutions include fiduciary support services and educational and enrollment support.
- Advisor Partner Program: Axos’ Advisor Partner Program provides businesses with personalized consumer banking, lending, and mortgage services through holistic financial support. Advisors help businesses increase asset liquidity by gaining transparency, providing additional deposit and lending products, accessing competitive rates, and increasing client viewability.
- Fully Paid Securities Lending: This Axos Advisor service allows businesses to earn extra income from their investment portfolios by loaning securities to financial institutions. However, only fully paid securities or securities without margin debt are eligible for this service, and securities are not protected by the SIPC.
For pricing and more information on Axos Advisor Services, call Axos at 866-776-0218 or complete a request form online.
Fees
There’s no minimum requirement to open an Axos Invest Self-Directed Trading account. Axos Invest fees and pricing are generally low. However, Axos Managed Portfolios requires a $500 minimum to start investing. It also charges a 0.24% annual advisory fee. Axos Elite, the advanced DIY account option, charges a $10 monthly fee. IRAs require a $50 account minimum.
ETFs and stocks are commission-free. Options charge $1 per contract. If you’re an Axos Elite user, options contracts are only $0.80 per contract.
Trustworthiness
The Better Business Bureau gives Axos Invest a D- rating to reflect its opinion of how well the company interacts with its customers. The BBB attributes its rating to complaints filed against the business, including unresolved complaints.
While the bureau’s ratings don’t guarantee whether a company will be reliable or perform well, it also considers several other factors. These include type of business and time in business, licensing and government actions, advertising issues, and customer complaint history.
Multiple law offices, including Levi and Korsinksky and Gibbs Law Group, are investigating Axos for possible violations of federal securities laws after a report released by Hindenburg Research on June 4, 2024 raised concerns about Axos’ credit metrics, specifically its loan-to-value ratios in commercial real estate, which were notably lower than those of peers. A former Axos credit review officer also accused Axos of misrepresenting LTV loans.
On March 7, 2024, Wild Popper LLC filed a class action complaint against Axos Bank and UFB, the San Diego-based online division of Axos Bank. The complaint also alleges that UFB failed to disclose the existence of the legacy accounts and their lower rates. This case is pending.
In 2015, former internal auditor Matt Erhart was let go from Axos after raising concerns about Axos Bank’s current practices. Erhart believed he was wrongfully terminated after he spoke out against some of the bank’s business practices. In 2022, Erhart was awarded $1 million in damages for emotional distress, as well as $500,000 for defamatory statements. Axos denied the allegations.
Alternatives
Let’s see how Axos Invest compares to similar platforms.
Betterment
Betterment Investing
Account Minimum
$0 to open, $10 to start investing ($100,000 for premium plan)
Fees
$4 per month (or 0.25%/year) for digital plan; 0.40%/ year for premium plan; 1%/year for crypto portfolios and 0.15% per crypto trade
- No minimum for standard investing account
- Goal-based planning, tax-loss harvesting, charitable giving, and socially responsible investing available
- Access to certified financial planners
- Mobile app with external account syncing options
- You’ll have to pay to consult a human advisor, unless you have the premium plan
- $4 monthly fee (or 0.25% annual fee)
Product Details
- Promotion: None at this time.
- App store rating: 4.8 iOS/4.7 Android
- Consider it if: You want access to robo-advice with multiple service levels.
Since Betterment Investing doesn’t offer DIY trading, it’s best to compare the automated features of the two platforms. Annual fees for the platforms are extremely close, and both Axos Invest and Betterment offer features like automatic portfolio rebalancing and tax-loss harvesting.
You’ll get access to a wider range of account types at Betterment. For instance, Betterment offers all of Axos Invest’s accounts in addition to SEP IRAs, inherited IRAs, and trusts. You’ll also be able to use one-on-one financial planner guidance and cryptocurrency investing with Betterment. Axos Invest doesn’t offer human advisor access or crypto investing.
If you’re looking to start investing without any minimum requirements, Betterment is a better move. But if you’re looking for active trading strategies, options trading, or already have an Axos Bank account, Axos Invest is better.
SoFi Invest
SoFi Active Invest®
Account Minimum
$0 ($1 to start investing); $5 fractional shares; $2,000 for margin trading
Fees
0% for active trading and automated investing
Get up to $1,000 in stock when you fund a new account.
- No account minimum
- No account or trading fees, and low fees to own funds
- Access to Certified Financial Planners
- IPOs available
- SoFi 1% IRA match
- No tax-loss harvesting, an advanced investing technique where you sell a stock or mutual fund at a loss for a tax benefit
- No option for stop-loss orders when actively investing. SoFi’s active investing account only uses market orders
- Currently only available to US residents
Product Details
- Promotion: Get up to $1,000 in stock when you fund a new account.
- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.
Like Axos, SoFi® offers both active and passive trading solutions, including retirement savings accounts and margin trading. But SoFi, as our top pick for the best investment app for beginners, provides a greater selection of investment options, trading tools, market research, and financial planning resources.
SoFi offers fractional shares, complimentary access to CFPs, no-fee options contracts, and IRA match on retirement contributions. SoFi is the stronger choice for active and passive investors for these reasons.
However, SoFi doesn’t offer tax-loss harvesting, so Axos is the only option for tax-optimized strategies. Axos’ robo-advisor management fees are slightly cheaper at 0.24% compared to SoFi’s 0.25% for automated trading.
Why You Should Trust Us
We examined Axos Invest using Business Insider’s rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer service. Platforms are given a rating between 1 to 5.
Investment platforms usually offer multiple assets, trading tools, fees, and other resources. Axos Invest was evaluated based on its performance in each category.
Business Insider’s Overall Axos Invest Rating
FAQs
The types of accounts you can open with Axos Invest are self-directed brokerage accounts, automated brokerage accounts, joint accounts, and IRAs (traditional, Roth, and SEP). You can use a robo-advisor and a self-directed account option.
Axos Invest constructs investment portfolios differently depending on the kind of account you open, financial goals, risk tolerance, and time horizon. Axos uses an algorithm for automated management to assess your risk tolerance and goals through a questionnaire.
The fees associated with using Axos Invest are 0.24% management fee for managed portfolios and $1 per contract for options trading. Otherwise, Axos Invest has no advisory fees and commission-free trades on stocks, ETFs, and no-load mutual funds.
Yes. Axos Invest is suitable for beginner investors interested in building a diversified portfolio of low-cost ETFs. However, its educational resources are limited compared to competitors.
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