For those intrigued by the world of trading, you might already be familiar with the impressive managed portfolios that Axos offers through their robo-advisory service.
Moreover, Axos introduces a remarkable self-directed trading feature on its platform.
This review aims to thoroughly explore the nuances of Axos’s Self-Directed Trading platform, helping you evaluate if it aligns with your investment ambitions.
Understanding Axos Fundamentals
Established in 2000, the Axos brokerage offers the advantage of controlling affordable portfolios through its Self-Directed investing. It specifically addresses certain challenges presented by the company’s Managed Portfolio, making it ideal for budding traders seeking a brokerage to enhance their trading aptitude.
The platform for Self-Directed Investment doesn’t necessitate any minimum investment. You can initiate retirement, individual, or joint accounts. Alongside, you can effortlessly manage checking and savings accounts without incurring any fees, all within a single app.
Moreover, a new customer bonus awaits: Deposit over $2,000 within two months and execute two trades, and a $250 bonus will be credited to your account.
Unraveling How Axos Self-Directed Trading Operates
Once onboard, you’ll be presented with the Axos trading interface, enabling you to dive into stocks, ETFs, and mutual funds. Upon receiving an approved status, margin and options trading will be at your fingertips.
No minimum investment is required for this platform. However, for an IRA, a minimum of $50 is necessary. You have the liberty to initiate individual, joint, Traditional IRA, or Roth IRA accounts. Each of these accounts grants commission-free stock and ETF trades.
You can also opt for the Axos Elite membership at $10/month. The benefits of this membership will be elaborated shortly.
Beyond trading, Axos’s diverse financial services spectrum encompasses checking, savings, personal loans, and mortgage management.
Understanding the Fee Dynamics
Though Axos’s platform boasts commission-free stock and ETF trades, other associated costs are worth noting. Thankfully, their fee system is transparent and direct.
One notable fee is the $1 per options contract for a basic Axos Self-Directed Trading account. While this might be slightly higher than some rivals, their $9.95 mutual fund trade fee is competitively lower.
Other typical fees include a $75 account transfer charge, a $40 annual IRA custodial fee, and margin trading starting at 5.5%.
Highlighted Features on the Axos Platform
Axos’s comprehensive financial suite naturally integrates everything under one umbrella. While its primary investment interface is user-friendly, it is laden with features catering to all investor levels.
The platform boasts a vast selection of over 17,000 stocks, including IPOs and penny stocks. Every stock provides comprehensive insights, ranging from company profiles to sector views. Around 2,700 ETFs are accessible, complete with detailed metrics.
Casual options traders will appreciate the Option Radar section, and multiple order types are also at one’s disposal.
Exploring Research Amenities
Axos’s research utilities cater to novices and intermediates, offering screeners and extensive market news aggregated from various sources. Unique tools like the heat map display market sector dynamics in an innovative fashion.
Elite members can leverage the Elite TipRanks, blending ranked investment insights with expert opinions.
Surprisingly, for a budget-friendly platform, Axos provides a detailed stock screener with over 10 customizable parameters, aiding in pinpointing potential trades.
Educational Offerings
This is a segment where Axos could enhance. While it has a blog with valuable articles, the lack of video tutorials or detailed resources is evident. Novice traders might need to juggle multiple resources to grasp basic investment knowledge before leveraging this platform.
The Axos Mobile Application
One of Axos’s unique propositions is the integration of its platform within the Axos Bank app, available for both Android and iOS. From managing all your financial products to tracking market trends as an Elite member, everything is a tap away.
Deep Dive into Axos Elite
While basic membership offers a slew of features, the Axos Elite, at $10/month, offers more. From margin trading access to real-time data and reduced fees on various activities, the membership seems lucrative for active traders. Casual investors might not find the perks justifying the fee.
User Experience Insights
Axos’s platform is simplistic, ensuring ease of use. While it might not be as flashy as competitors, its intuitive nature allows instant account creation and trading initiation.
However, the research tools for basic members are somewhat limited, and educational content is sparse. Hence, prior knowledge of trading fundamentals is beneficial.
Customer Assistance
Axos has consistently maintained a stellar reputation in customer service. Though the Axos Invest segment isn’t BBB accredited, the bank is. Support can be accessed via various channels, and the response time is commendably quick.
Benefits and Limitations
Every platform has its strengths and areas for improvement. With Axos’s Self-Directed Trading, several pros and cons are evident, crucial for making an informed choice.
Ideal Candidates for Axos Self-Directed Trading
While the Axos Invest robo-ad
visory service is ideal for those who prefer hands-off investing, the Self-Directed Trading platform is suitable for those keen on exploring the trading realm.
Given the plethora of features, it’s perfect for novice to intermediate investors. Moreover, those seeking an all-in-one financial platform will appreciate Axos.
However, expert traders seeking advanced tools might look elsewhere.
Final Thoughts
Axos’s Self-Directed Trading platform, while not perfect, offers a holistic approach to trading. With competitive fees, a comprehensive feature list, and the convenience of integrating all financial products, it is an enticing option for many. However, novice traders should be aware of the educational content gap and be prepared to supplement their learning elsewhere.
