Author Topic: Folio Investing Brokerage  (Read 3887 times)

JohnGalt

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Folio Investing Brokerage
« on: September 27, 2012, 01:59:57 PM »
Has anyone ever used this brokerage?
https://www.folioinvesting.com/whatfolios/index.jsp

Their stand-apart feature allows you to create your own portfolio (up to 100 individual stocks and etfs) and have it automatically invest you in those % allocations. 
They offer $4 trades (in a window, not limit - it's $10 for limit orders) or $290/yr unlimited (again, window only - but the same fee will cover multiple accounts if you have IRA/rothIRA/taxable all with them). 

I've been looking for a way to easily create my own dividend focused etf with 50-100 stocks in it and am thinking this may be the way to go.  It wouldn't be cost effective until you hit a decent amount of assets but for $100,000 invested a $290/year fee = .29% which is about what Vanguard averages I think (though obviously if you're investing in etfs within your folio account you'd still be incurring the etf's fees).  For anything more than that, the fee keeps getting smaller as a percentage and this would let me have full control over what stocks are included.



ivyhedge

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Re: Folio Investing Brokerage
« Reply #1 on: October 03, 2012, 12:37:13 PM »
Has anyone ever used this brokerage?
https://www.folioinvesting.com/whatfolios/index.jsp

Their stand-apart feature allows you to create your own portfolio (up to 100 individual stocks and etfs) and have it automatically invest you in those % allocations. 
They offer $4 trades (in a window, not limit - it's $10 for limit orders) or $290/yr unlimited (again, window only - but the same fee will cover multiple accounts if you have IRA/rothIRA/taxable all with them). 

I've been looking for a way to easily create my own dividend focused etf with 50-100 stocks in it and am thinking this may be the way to go.  It wouldn't be cost effective until you hit a decent amount of assets but for $100,000 invested a $290/year fee = .29% which is about what Vanguard averages I think (though obviously if you're investing in etfs within your folio account you'd still be incurring the etf's fees).  For anything more than that, the fee keeps getting smaller as a percentage and this would let me have full control over what stocks are included.

Hello!

I've used Foliofn for some time and am pleased. In that account, I generally make between 100-250 purchases per month and thus use the single fee option.

The firm offers great flexibility in going beyond the offerings of "family-restaurant" brokerages (Schwab, TD, BAC), and the single fee is quite reasonable (keep in mind that parent <--> subordinate accounts are under one fee: ex - taxable+roth). You'll have access to institutional shares that other firms only include in their top tier paid accounts.

Of note: most pink sheet offerings, private offerings, most debt, and hybrid debt offers are not supported.

I would advise you to be truthful with yourself, however. If it looks like "fun", and you've little additional experience with macro, fundamental, or technical analysis - and are perturbed by the fees - you should look elsewhere.

I'd be happy to discuss the details with you offline - alternative assets construction and implementation is one of my specialties.

comparini3000

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Re: Folio Investing Brokerage
« Reply #2 on: October 17, 2012, 12:01:24 PM »
I've used Folio for about two years now and have a generally positive view

Pros: 1) Great for an envelope style budget with a brokerage twist. For example, I don't spend $15 on clothes each month, but once every three months I might spend $45. Also, I prepay my insurance to avoid the "transaction fees" every month, so while I'm saving for the upcoming payment I put it in it's own special Folio. If you're going to do this though, stick to a stock/ETF with VERY low volatility. For the time being, I like GLJ. It pays a decent dividend but doesn't move a too much. 2) Great for building custom ETFs like you want to do. 3) (more of a personal pro) They don't show your gain/loss on each folio right when you log in. You have to specifically look for it. This is good for me because it helps me to stop trying to time the market and just focus on throwing money in there.

Cons: 1) really slow withdrawal process. 2) navigation not really intuitive 3) investment offerings aren't great. ivyhedge touched on this a little. i don't really view this as a true con though because i'm not trying to time the market or pick individual winners or execute any complicated strategies

militaryincome

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Re: Folio Investing Brokerage
« Reply #3 on: October 18, 2012, 09:46:07 PM »
I've been using them since I started investing in 2009.  I haven't had problems, but then again I'm just using their cheap plan. I beleive it would work for what your intentions are.

If you or anyone do decide to do it, they're offering the first year for $199 for mint.com customers.
https://www.folioinvesting.com/mint-lowmaintenance/