![]() In addition, Folio Investing has purchased supplemental customer securities insurance from Lloyds of London for $50 million but caps the benefit to any single customer at $10 million. Since the company offers banking services like checking accounts and their Cash Sweep Program, they are insured by the Federal Deposit Insurance Corporation (FDIC). The website appears to be well constructed and is fully encrypted and has instituted several extra security measures such as session time-outs and account lockouts that protect customers from hackers.įolio Investing is insured through the Securities Investor Protection Corporation (SIPC) insurance for all equity securities. Mutual fund investors are aware of that risk and generally accept it as reasonable since mutual fund trades are executed at the close of trading each day. The reverse is also true, but many investors may shy away from giving up that control with a stock portfolio. With stocks sometimes trading in very wide ranges on a given day, placing an order at the open that doesn’t get filled until 11:00 AM (ET) may generate a significant loss on that trade. Since Window Trades only occur twice per day under normal circumstances, there is definitely a safety risk for investment capital in volatile markets. That is regulated by the Securities and Exchange Commission (SEC) and is also a member of the Financial Industry Regulatory Agency (FINRA), which polices and disciplines member brokers for unethical or fraudulent behavior. Folio Investing is safe in that it is a registered broker-dealer Is Folio Investing Safe and Legitimate Company?įolio Investing is one of the new breed of online brokers that are using technology to offer different ways for individuals to invest. However, early redemption fees may be imposed by certain funds. The company only brokers no-load mutual funds, so no upfront sales charges apply. In addition, a $15 per quarter service fee is charged for customers who make 3 or fewer trades in the preceding quarter.įolio Investing also charges annual IRA custodial fees of $25 and charges additional fees for checkbooks, wire transfers, returned checks, and other usual administrative services. Market, limit, stop, and stop-limit orders are $10. The commission is $4 per Window Trade per security. Market, limit, stop, and stop-limit orders cost $3.Ī Basic Plan is available for smaller investors who plan to trade fewer than 8 securities per month, maintain smaller folios, or rebalance less often. Under this plan, investors are allowed 2,000 commission-free Window Trades per month. Window Trades are commission-free with the Folio Unlimited Plan, which costs $29 per month or $290 per year. Orders may be placed by dollar amount rather than shares with the ability to buy and sell both whole and fractional shares. The current windows each business day are 11:00 AM and 2:00 PM (ET), but fewer or additional windows may be provided at the company’s discretion. The price is not locked in so there may be a difference in gain or loss from the time an investor places a trade order until the trade executes. Window Trades are aggregate buy and sell orders that are executed at Folio Investing’s discretion at least once per day. ![]() Tax management tools include automated tax strategies and the company’s patented Tax Football, which allows individuals to tailor their investing to their tax situation.įolio Investing’s patented Window Trades give investors the ability to buy and sell an entire folio in a single transaction. Other features include the ability to trade less than full shares of any security and portfolio rebalancing on a regular basis. Another option allows customers to select from more than 160 pre-made Ready-to-Go folios. Each folio may contain up to 100 stocks, ETFs, and mutual funds. These combine the benefits of direct stock ownership with the diversification and convenience of mutual funds. The company technology allows customers to create an unlimited number of diversified investment portfolios called folios. Folio Investing offers retail clients nearly unlimited, commission-free trades at specified times of the day (Window Trades) for a flat annual fee of $290. ![]() investors, financial advisors, and financial institutions. $0 commissions + transfer fee reimbursement.į is the online retail brokerage of Foliofn, Inc., a brokerage and investment company founded in 1999 by former Securities and Exchange Commissioner Steven Wallman.
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