Axos Invest review
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Axos is a low-cost passive investment manager geared towards beginners and experienced investors alike offering retirement as well as personal accounts and 32 different asset classes across various categories. Find out everything you need to know about Axos Invest in this detailed, in-depth review.
Pros & Cons
What can I do with Axos Invest?
Founded as WiseBanyan in 2014 and acquired by Axos Financial in 2019, Axos Invest branded itself as the World’s First Free Financial Advisor providing automated goal-based investing and financial planning via its proprietary algorithms.
It offers passive investment management and believes in a buy and hold strategy, buying ETFs across various asset classes like cash, equities, debt, real estate and commodities. It also offers niche specialisations amongst these asset classes. It is regulated by the US Securities and Exchange Commission (SEC).
You might want to use Axos Invest if:
- Beginner looking to invest with no knowledge of investing
- Seasoned investor looking to diversify into passive investing
- Someone looking for a low-cost passive advisor and a safe platform to invest their funds
Axos Invest portfolio and account options
How does Axos Invest work?
Axos Invest offers a passive goal based investing strategy. The asset mix is decided by their proprietary algorithm using milestone details like time horizon and financial target as well as the risk profile of the investor and then optimized using Modern Portfolio Theory. All investments are made in ETFs across various asset classes. The asset classes it invests in are as follows:
- Real Estate
How does Axos Invest invest my money?
Using Modern Portfolio Theory and details about your stated goals, Axos Invest will decide a mix of asset classes and ETFs to invest in. There is no active trading in ETFs and a buy and hold strategy is implemented.
Axos Invest will also monitor your portfolio and automatically diversify and rebalance as is needed using smart and tax efficient rebalancing i.e. using dividends and deposits to adjust portfolio weights instead of simple selling, thus saving on capital gains taxation. They also monitor and undertake tax loss harvesting which enables the client to save on taxes.
Their Portfolio Plus feature allows an investor to exclude certain asset classes if they already have exposure to it in their portfolio outside of Axos Invest, thus reducing concentration risk.
Axos invests in over 1,400 ETFs across more than 30 asset class categories, some are as follows:
- US Markets
- Emerging Markets
- Corporate and US Treasuries including TIPS
- Real Estate Investment Trusts
- Precious Metals
- Thematic ETFs like Healthcare, Blockchain, and Clean Energy
Axos Invest account types
Axos Invest offers four account types, one of which is a personally directed account and three which are IRA’s. Services offered are the same across all accounts, with the only exception being the different taxable natures of each account.
Personal Account, Individual
Just as the name sounds, this is an individual account owned by a single person, that is taxable and undertakes tax loss harvesting and tax efficient rebalancing.
Given Axos long-term, buy-and-hold investment strategy, this means you minimize capital gains in order to maximize your gains, including automatic reinvestment of any dividends, so that your cash is always working on your behalf.
Traditional IRA, Roth IRA and SEP IRA
Offered through Axos’ tax protection package, traditional, Roth, and SEP IRA accounts are non-taxable in nature. Axos also allows for migration of IRA accounts from other brokers or institutions as well.
IRA’s can also act as trust and custodial accounts that are personal savings plans with tax advantages for setting money aside. The only downside being early-withdrawal penalties if you need to take your money out before a certain age.
Axos Invest investment options
Axos Invest offers a single complete investment package differing only by execution based on IRA and personal account types. It will provide an efficient portfolio with automatic rebalancing and using the portfolio plus feature, one can choose to remove any specific asset class that you do not want exposure to.
Fees, limits, and payment options on Axos Invest
What are the deposit and withdrawal methods available with Axos Invest?
All deposits are made via bank account debit or wire transfer only. Axos Bank which is an affiliate of Axos Invest offers savings accounts that can link directly to the investment account. Other bank accounts are linkable as well and there are no charges for deposits via electronic fund transfers and no charge on withdrawals via the same.
All withdrawals made via wire transfer to the linked bank account incur a withdrawal charge of $25 to domestic bank and $50 to a foreign bank. A withdrawal request takes 5-7 day to process
- Electronic Transfers
- Wire Transfers
Are there limits or fees on Axos Invest withdrawals and deposits?
The minimum deposit for any type of Axos Invest account is $500 and there are no restrictions on maximum investment amounts. Deposits are free via wire transfer as well as electronic transfer.
Withdrawals via electronic transfer are free whereas via wire transfer they are chargeable. There are no restrictions on withdrawals from a personal account, however IRA accounts have regulatory restrictions which carry financial penalties for early withdrawal.
|Account type||Deposit limits/fees||Withdrawal limits/fees|
|Personal Account, Individual||Limit: None|
|Traditional IRA||Limit: None|
|Roth IRA||Limit: None|
|SEP IRA||Limit: None|
How much are Axos Invest’s fees and commissions?
Axos Invest charges a flat annual management fee of 0.24% which is amongst the lowest in the industry. It does not charge any trading or rebalancing fees.
Similarly, there is no distinction in fees charged across account types nor is it dependent on the amount under management. However, a minimum balance of $500 must be maintained within the account or else it will incur a $1 monthly fee. The ETFs have their own individual expense ratios and no fees are charged for those.
|Fee type||Account type||Amount|
|Account management fee||All accounts||0.24%|
|Minimum Balance fee||All accounts||$1 per month|
Axos Invest investment limits
Axos Invest requires a minimum account balance of $500 to be maintained at all times across all account types, which is a higher threshold compared to single-digit balance advisors out there. There is no maximum limit on investments.
|Investment type||Minimum limit||Maximum limit|
Axos Invest investment platform
What devices can I use Axos Invest on?
Axos Invest can be accessed both online and via its mobile app. The app can be downloaded from the App Store for iOS users (iPhones, iPads), and Google Play for all Android users (smartphones and tablets).
- Web browser
- iOS Mobile App
- Android Mobile App
The app offers complete functionality and is easy to setup and use
Can I use Axos Invest in my country?
Axos Invest is only available in the USA currently and only to those with a US permanent address and a social security number can open an account.
Is Axos Invest available in my language?
Axos Invest is currently available only in English.
How easy is it to use Axos Invest?
Axos Invest is easy to use for beginners and setting up is quick and easy. While a KYC is adhered to, it is quick to comply with that. One only needs to answer a few questions to establish a risk profile and setup milestones and Axos Invest will take care of the rest. The mobile app is intuitive and offers the same functionality as the website.
Axos Invest offers a straightforward, clutter free passive investment service that not only takes care of investing in low cost passive funds, but also automatically rebalances the portfolio tax efficiently. Here are a few of its top features:
Simple, one touch end to end portfolio management
A true robo advisor with minimal human involvement, Axos Invest undertakes the whole process of collecting money, designing a portfolio based on risk profile and milestone, monitors it, takes action to build and diversify it, rebalances it based on set time and weight rules and does it in a tax efficient manner.
Axos also undertakes tax harvesting allowing for the investor to claim tax deductions. Everything is done automatically and the only thing a user has to do is deposit the money and input the risk profile and goals (milestones).
Costs involved in investments are often underestimated, but have been proven to make a significant difference in investment results especially when compounded over decades. At 0.24%, Axos Invest has one of the lowest fees across the advisory industry. It has no other hidden charges and since it only offers low cost ETFs, this makes it a good value proposition for investment.
Portfolio Plus Feature
The portfolio plus features is built for investors seeking more control over their investments. Investors having external portfolios can choose to exclude certain asset classes which they already have exposure to and Axos Invest will redesign the portfolio to accommodate that.
Security and regulation
Is Axos Invest safe?
Axos Invest is a fully regulated entity in the US and operates like a traditional broker, insofar as its operating subsidiaries are members of the Financial Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
All client funds are held in segregated accounts, which are also fully insured.
Am I and my funds protected?
Yes, Axos accounts are covered by the SIPC, so in the event that Axos Invest becomes insolvent it provides coverage extending up to $500,000, with a limit of $250,000 for cash.
Is Axos Invest regulated?
Yes, Axos Invest is a regulated investment advisor with the US Securities and Exchange Commission (SEC). Additionally, its brokerage services subsidiary is also a member of the Financial Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
Do I have to verify my account with Axos Invest?
Yes, account verification is required for Axos Invest for KYC purposes since it is a SEC regulated entity. It requires proof of residence in America as well as a social security number in order to open an account.
Axos Invest has a FAQ section that covers the functionality of its website and app. Other than that there is no educational material available on the site at present time.
Support is a bit sparse and provided primarily via email. Issues can be raised on their support website and response will be had via email. Those seeking a human touch to their advisory will be disappointed.
Axos Invest is a simple, clutter free, passive investment robo advisor providing end to end portfolio management services. It offers IRA and non IRA account types and takes care of your entire portfolio management including tax efficient rebalancing as well as tax harvesting. It has one of the lowest annual management fees across the industry and no hidden charges.
The number of asset types offered numbers over 1,400 ETFs across more than 30 categories and it allows more experienced investors a chance to customize their asset allocation and accommodates that into an efficient portfolio. Some drawbacks include a $500 minimum account maintenance requirement, which is steep when compared to competitors.
Overall, Axos Invest is a worthwhile platform. Especially for retirement accounts over personal trading accounts. Axos is also regulated and insured under Securities Investor Protection Corp. (SIPC) ensuring client accounts are protected up to $500,000.
How to open an account with Axos Invest
- Click on Get Started in the header bar
- Input your email address and wait for a confirmation email to complete the signup procedure
- Complete entering your proof of US residency and social security number
Axos Invest is owned by Axos Financials who acquired it in 2019. It was previously known as WiseBanyan.
Axos Invest charges a flat annual management fee on the money that it manages. Much like if you were to go to a professional investment manager or fund and ask them to manage your money, they would charge you an annual management fee for this privilege. This typically ranges between 1-2% of the assets they manage. Robo advisors such as Axos do the exact same thing, except they usually charge a much lower annual management fee of between 0.10-0.50%, as they do not actively manage portfolios.
Axos Invest tries to minimise tax impact while rebalancing and selling off assets within your portfolio. One may have to check with local US tax laws and regulations to determine tax liability on profits made.
All buying and selling is taken care of by Axos Invest. One can withdraw money by clicking on Funding, choosing transfer funds and clicking on withdraw.
One can drop an email to [email protected] or after logging in to your account, select the option Leave Axos Invest.
One cannot short on Axos Invest.
One can click on login, forgot password, provide the registered email address and reset the password from there.
No, only bank account transfers are allowed at this time.
Your active investments are not at risk even if Axos Invest closes down due to platform malfunctions.
Should Axos Invest cease operations permanently, client accounts are insured by the SIPC for up to $500,000
No. Axos Invest currently accepts payment via electronic transfer or wire transfer from bank accounts only.
At the moment, Axos Invest does not offer any bonuses to its clients.
Yes. Axos Invest offers personalised financial planning services as well. Once you create an account, you can also create unlimited financial goals (milestones) that you would like to achieve. Once you do so, Axos is able to automate your milestones by suggesting deposit plans, rebalancing your investments, and tracking your progress along the way.
Yes, your entire financial portfolio is available for viewing on Axos Invest. However, only the portfolio created on Axos Invest will be visible. External portfolios will not be available.
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