In general, I think the fixed fee (vs. % of AUM) is a more "fair" way of charging customers, given the investment manager's costs don't really scale linearly with the amount under management.
Thanks, Jason. We've certainly seen some of the bigger players (incl Schwab) move that way for smaller accounts. That said, plus is an optional w/ M1 and provides additional benefits (additional trading windows, lower margin rate, higher interest on DDA), but you can still get the core features of the investing product for free.
What's the asterisk on the $0 M1 Finance charge
RB: there is a "M1 Plus" service, with additional features, for a fixed $125/year charge. See here: https://www.m1finance.com/how-it-works/invest/
In general, I think the fixed fee (vs. % of AUM) is a more "fair" way of charging customers, given the investment manager's costs don't really scale linearly with the amount under management.
Thanks, Jason. We've certainly seen some of the bigger players (incl Schwab) move that way for smaller accounts. That said, plus is an optional w/ M1 and provides additional benefits (additional trading windows, lower margin rate, higher interest on DDA), but you can still get the core features of the investing product for free.