Let me first tell you that I have no affiliation with Motif Investing. They are not paying me to write this post. I do not get paid if you click on any link within this post. I just genuinely think it’s one of the cooler investment-related things I’ve seen recently.
So, what is it?
Motif Investing is an online brokerage. Just like you would open a general investment or retirement account at TD Ameritrade or Scottrade, you can open a similar account at MotifInvesting.com. But, what makes it “One of the Best Investing Websites” is:
The Cost, The Concept and The Potential Commission
When you sign up for an account at a normal online brokerage firm, you pay anywhere from $5-$20 per trade. When you have an account with Motif Investing, you only pay $9.95 to buy 30 stocks. But, why 30 stocks?
This group of 30 stocks is known as a “Motif.” A motif can represent a current trend, a macroeconomic forecast, a HOT industry, or it can be 30 random stocks of your choosing. A motif is similar to an ETF, but without the management fee. A motif can represent whatever you wish. For example, what’s a HOT industry right now? 3D Printing. What’s in a macroeconomic forecast? Rising Interest Rates. What’s a current trend? Tablets are taking over. Motif Investing allows you to simply and inexpensively invest in these ideas.
Each user can search through a catalog of existing Motifs. If you do not see a Motif that catches your eye, you can create your own.
The Potential Commission
So let’s say you see a trend in the market and group together 30 various stocks to create your own motif. Your motif then goes into the catalog where other users can see it. If your motif catches the eye of other users, and they decide to invest in your motif, YOU GET PAID A ROYALTY.
Even if someone buys your motif and then rebalances (buys/sells a few holdings for $4.95), you get paid.
It’s almost like creating your own ETF, with just a few clicks of a button.
Check out Motif Investing and let me know what you think.