Many digital investment management platforms launch daily, but before you toss your money at the new thing on the internet, read our Axos Invest review instead.
The surge of new investing platforms has steadily increased over the years. As more younger people look to invest, they are interested in straightforward options that allow them to manage their money the way they choose. Of course, affordability is another factor in the rise of online investing.
Robo-advisors are much more affordable than paying high fees to a live broker or finance guru. If you are new to investing or want to simplify your investing process, heading online is a great way to go about it.
Not only are Robo-advisors easy to work with, but they also offer a hassle-free way to diversify or build an ESG-friendly portfolio. Our Axos Invest review will cover the sophisticated yet oddly traditional way online investing through the platform can help you grow your investments.
With this goal-based approach, you can manage your money more effectively and get valuable advice to help you reach financial independence.
Table of Contents
What is Axos Invest?
Axos Invest is an automated investment platform that previously went by the name Wisebanyan. Our Axos Invest review will explain the platform and how it can help grow your portfolio. This investment platform helps users tailor their portfolios to reach their long-term and short-term goals.
Axos Invest pulls from more than 1,400 EFTs listed as affordable for all tiers. This platform simplifies investing via the managed portfolio and online option.
Instead of paying high fees and actively participating in trading, you can invest in ESG ETFs that match your values with minimal fees.
While most robo-advisors offer the same basic range of services, our Axos Invest review will show you what sets them apart. For one, if you want to diversify in a streamlined manner, Axos is worth a look. The platform is set up for those who are not used to investing.
The easy-to-understand interface, clear directions, and detailed EFT information make it easy to choose companies to add to your portfolio that match your values and those that will help you reach your investment goals.
It is also great for those who prefer the hands-off method of building their portfolio, with lower fees than average. With a minimum of only $500 to start an account, Axos Invest is set to become one of the most popular robo-advisors on the internet.
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Comparing Axos Invest vs. Other Robo-Advisors
| Feature | Axos Invest | Wealthfront | Betterment |
|---|---|---|---|
| Minimum Investment | $500 | $500 | $0 |
| Management Fees | 0.24% (basic account) | 0.25% | 0.25% (digital plan) |
| Account Types Offered | Individual, Joint, Traditional IRA, Roth IRA, SEP IRA | Individual, Joint, Traditional IRA, Roth IRA, SEP IRA, 529 College Savings | Individual, Joint, Traditional IRA, Roth IRA, SEP IRA, Trust |
| ESG Investing Options | Yes | Yes | Yes |
| Unique Features | $60/year for full feature set | Digital financial planning tools, Cash account with 0.50% bonus | Goal-based investing, Tax-loss harvesting |
All About How Axos Invest Works
Axon Invest operates using a simple risk analysis and personality profile method. The system uses AI to gather information about your investment goals, risk thresholds, and sustainability targets.
Axos Invest has three distinct main product offerings:
- Self-Directed Accounts
- Automated
- Retirement Accounts
It creates a profile that is then used to build a custom portfolio on your behalf. There are no minimum balances, so this investment brokerage and advisor will work within your investing budget to create wealth that will allow you to secure your future.
Your investment dollars will be used on ETFs, and then your dividends will be managed and rebalanced automatically. All of the complicated parts of investing without the hassle of actually having to do it all on your own.
It also helps you protect your returns from taxation with the tax protection option, and there is an option for fully automated services so you can passively watch your investments grow.
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How to Sign up For Axos Invest
Our Axos Invest review would not be complete without letting you know how to sign up to start building your portfolio.
Getting started on the platform is pretty simple. Navigate to the home page and click the sign-up button. You will be asked several questions about your investing habits and goals.
These questions will help you establish your long—and short-term financial goals and determine your risk tolerance level. Your answers are confidential, so answer them honestly so your profile better reflects your needs.
Also, your risk score will vary between one and 10, with 10 being the highest risk tolerance. Your answers directly affect what score you are assigned and, as a result, which investments will be made on your behalf. Of course, you can manually adjust your risk score and any other financial-related settings after your account has been set up.
You will also be asked some identification questions, and you will need to provide basic information such as your social security number, address, and work details.
Many corporate bonds in the investment selection are riskier than other types due to the risk of inflation and Fed rate hikes.
Keep this in mind when checking out your risk score. The higher your score, the more these particular bonds will likely be added to your portfolio.
Once your score is finalized, you will be asked which account you want to open. Then, you must supply your banking information and make your first deposit.
You will also be prompted to set up automatic deposits to keep your investment account funded and growing even while you are not online.
Unlike other platforms, it takes about two weeks for your account to be verified and funded. However, during the wait, you must work hard to create a profile matching your assigned preferences.
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Is Axos Invest Legit?
Axos Invest is a legitimate investment tool. The company is licensed and registered to conduct local and international financial transactions.
The business is regulated by the SEC, among other agencies. Axos Invest, like most robo-advisors, has joined FINRA (Financial Industry Regulatory Authority).
Though this is a self-regulatory organization, it allows investors to check the legitimacy and performance records so that a human advisor can be cross-referenced.
As far as the SEC is concerned, robo-advisors retain the same legal status and responsibilities as traditional human investment advisors.
To provide services to the public, they must be legally registered and in good standing with the SEC. They are also subject to the same rules, regulations, and securities laws as traditional investment brokers.
Consumers can search for Axos Invest on BrokerCheck for more detailed information about their services and status with the SEC.
It is important to note that any assets held or managed by Axos Invest on your behalf are not FDIC-insured since they are investment funds and not traditional deposits.
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Axos Invest Pros
When you invest, your goal is generally to create wealth. Axos Invest helps you reach this goal by offering low-cost management fees via its robo-advisor.
Their fees are a low 0.24 %, much lower than live portfolio management costs. You can also customize your portfolio during or after the initial account setup.
While creating an account, the Axos Invest robo-advisor will ask a few questions that help create a risk score and determine the type of investments you will likely prefer. All suggestions will be exchange-traded funds, and you can change your risk preferences at any time.
Like most robo-advisors, the expense ratios average 0.12% and feature U.S. government and corporate bonds, local and global emerging market equities, short-term high-yield bonds, real estate investment trusts, and Treasury Inflation-Protected Securities.
A no-cost Plus feature allows you to remove or add over 30 sector-separated types of investments.
This is a great option for investors looking to make socially minded investments and those who prefer to park their money in specific industries.
The automated investment feature is a great way for clients to grow their balance without actively searching out good opportunities.
Setting goals and having the account work for you are among the best features on the platform. It is also worth mentioning that Axos also offers tax-loss harvesting for all their account tiers.
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Axos Invest Cons
Axos has grown a lot in the years since its launch. It has gained some positive upgrades, but it also has some important downsides.
In the past, investors only needed to deposit a minimum of $1 to create an account. This made it accessible for all levels of investors regardless of their financial ability.
The minimum has now been raised to $500, which is still not as high as others in the same field but still prices out a large segment of investors. Considering that many platforms have no minimums, the higher requirements seem like a step back from how they used to operate.
Some technical glitches hit the platform, causing miscommunication between platform accounts and financial institutions. Axos claimed to refund the fees incurred and fix the problem, but such a big mishap is concerning.
Another issue we noted is that only two account types are available: traditional or individual tax accounts. So, if you have a spouse or partner you typically invest with, you won’t be able to create a joint taxable account. Other platforms allow you to do so, but not Axos Invest.
Also, you cannot create trust accounts or even accounts for minors.
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Axos Invest Fees
Axos Invest has a $500 minimum investment and charges an account management fee of 0.24% annually, regardless of account level.
On par, the investment expense ratio is an average of 0.12%. There is a $75 fee for transferring money out of an account, a $10 closing fee for IRAs, and a $30 fee for returned checks. There is also a $25 fee if you need an outgoing wire sent to your or any other account.
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Axos Invest Performance Ratings
Axos Invest is noteworthy for a few reasons, some of which you already noticed in our Axos Invest review above. The high customization level sets this platform apart from other robo-advisors.
With 32 different investment types that you can remove or add to your portfolio, this is one of the best platforms around for creating unique investment portfolios that actually match your values.
Another thing the platform has going for is the low account management fees, which are much lower than other companies in the same space.
- Ease-of-Use – 5
- Features – 4
- Customer Service – 3
- Value for Money – 3
This is certainly the platform for those looking for low-cost, highly customizable portfolios and goals-based tools. The low minimums are a draw but keep in mind that there are limited account types.
If you are a new investment, Axos Invest is worth your time.
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Axos Invest Referral
ESG investing is all about making smart choices and choosing stocks of companies that also make smart choices. Robo-advisors are a great way to get started in ESG investments without paying high fees for a live advisor. That said, if you are looking for guidance based on your personal ESG targets, Axos Invest is a great option.
This low-cost service allows you to easily choose your own ESG investments. If you prefer, you can also allow the service to make the choices on your behalf.
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Kyle Kroeger, esteemed Purdue University alum and accomplished finance professional, brings a decade of invaluable experience from diverse finance roles in both small and large firms. An astute investor himself, Kyle adeptly navigates the spheres of corporate and client-side finance, always guiding with a principal investor’s sharp acumen.
Hailing from a lineage of industrious Midwestern entrepreneurs and creatives, his business instincts are deeply ingrained. This background fuels his entrepreneurial spirit and underpins his commitment to responsible investment. As the Founder and Owner of The Impact Investor, Kyle fervently advocates for increased awareness of ethically invested funds, empowering individuals to make judicious investment decisions.
Striving to marry financial prudence with positive societal impact, Kyle imparts practical strategies for saving and investing, underlined by a robust ethos of conscientious capitalism. His ambition transcends personal gain, aiming instead to spark transformative global change through the power of responsible investment.
When not immersed in finance, he’s continually captivated by the cultural richness of new cities, relishing the opportunity to learn from diverse societies. This passion for travel is eloquently documented on his site, ViaTravelers.com, where you can delve into his unique experiences via his author profile. Read more about Kyle’s portfolio of projects.