Motif Investing Review
Would we recommend Motif Investing for Investing & Trading?
What is Motif Investing?
Motif investing is a site that allows any investor with just a few hundred dollars up to millions of dollars to log in and invest in companies in terms of a theme. Hence the name Motif Investing. Let's say you want to invest in a cyber security company but you don't know what the best cyber security company is. You've heard about all the cyber attacks and you know about the growth pattern of the cyber security industry, but you just don't know about one in particular. You go to Motif Investing, sign up, and then you can sort through different Motifs or themes of stocks in the cybersecurity industry. You might then find companies such as Checkpoint, FireEye, CyberArk, a bunch of companies that are in the cybersecurity space all bundled into one theme. The nice thing is, instead of having you invest in just one company and hoping that that company is the best, they put them all into one theme.
What are the positives about Motif Investing?
Number one, it's a brilliant idea to bring and it's a bit unique. There are ETFs that you can combine similarly, but I think Motif Investing does it a little bit better than just buying a typical ETF. It's super easy to sign up. In fact, it's as easy as it gets and I have nice two factor authentication level of security. A shout out to single line investors who've invested in some of the companies that they're using to secure their site.
Then, it also provides an ability for you to earn money through your idea. If you are actually an intermediate or advanced investor who has great ideas and wants to put together your own assortment of companies into one theme, one motif, you can do that. Then, every time somebody actually invests in your motif you earn some money. That's kinda cool too. You can monetize your intelligent investing brilliance.
With Motif Investing, you can monetize your intelligent investing brilliance.
At Angel Kings, we never recommend anything unless we use it. Also, we come at things with a critical eye, especially with new concepts like this that are changing the way to form investing to think of ways that the site can be improved. A couple things that Motif Investing needs to improve before it becomes a full-fledged household name is that it needs to allow for a tourney of options - more specifically, mutual funds and even ETFs that are out there potentially.
Motif Investing means you invest in the long term. An investor typically is somebody who holds on to their investments for more than a year. A trader is somebody who might be back and forth trading. Now, that's not what Motif Investing is necessarily for, but I do think that if you were to open Motif Investing to a wider audience, then options are important. Options are a way to hedge some of your risk and some of your short term and long term risk on potentially long term positions so they can be valuable.
I'd say Motif Investing needs to open options up to their own platform before it's more widely adopted. Another thing, they don't offer is, as of right now, a dividend reinvestment. Dividend reinvestment, also known as a drip, is a way in which investors can forego paying tax up front on earnings. So when investors get a dividend that is issued, they get a dividend on the number of shares they have.
Motif Investing needs to figure out dividend reinvestment because I know investors who analyze markets and understand markets, like myself, think that's important. When you've got to pay your tax you need to know how that taxation might impact you as an investor. Overall, I rated Motif Investing at 4.5 out of 5. It's not quantified yet because they have some things to improve like the options or the investment, but there's two other things they need to improve.
I mentioned options but Motif Investing needs reduce their training and bundle fee. Now, it might not seem like a lot, it's around $9, $10 give or take, to bundle those but I think over time that can add up. Then, if you re-balance your motifs on their site you are charged an individualized fee so maybe reduce one of them to some extent.
Another possible way that Motif Investing can improve is by giving investors with good credit margins. That's where a investing platforms like e-Trade or Ameritrade or Charles Schwab make real money. It is on transactional fees that has a long term effect, and so it might be better for Motif Investing to reduce their training bundle fee because that's not where they're going to make money.
Bottom line, I do recommend Motif Investing. I think it's a great site but they've got to improve some things before I would use it more frequently. If you want to learn more about investing and also want to make a lot of money investing make sure to reach out to us here at Angel Kings. Do your own due diligence, learn everything you can. There are risks obviously with investing but we try to eliminate as many of those risks as possible.