Motif Investing Now Offers Single Stock Trading!
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If you’ve been a reader of Frugal Rules for long you know I’m a big fan of Motif Investing. Not only am I competing (well not really competing if you look at my current results) in the Grow Your Dough challenge, with a group of other personal finance bloggers. I also believe Motif is one of the best ways to invest in the stock market with little money, as they allow you to start with a minimum account balance of as little as $250.
What makes Motif Investing unique is they allow you to set up your own index fund – allowing you to hold up to 30 stocks/ETFs in a motif. If there is a particular sector you want to invest in, or are simply looking to start investing, Motif offers a great option for both ends of the spectrum. While somewhat unique to the online brokerage space, this was somewhat limiting to those who simply wanted to invest in individual securities. Motif Investing recently removed that limitation!
Enter Single Stock Trading
As mentioned above, Motif Investing is great for those who have a specific focus or just want to start investing. However, not everyone wants to create their own fund. We all have different needs and for some they want the ability to trade individual stocks. After listening to significant feedback, Motif has now opened up the ability to trade single stocks.
Truth be told, you could always trade individual stocks with Motif Investing but many did not know it. You would simply create a motif with one stock and you’d be good to go – albeit at the same price of $9.95 per Motif. Historically, that is a good commission but not as much today with the growth in the online brokerage space.
You can now purchase single stocks through Motif Investing for a very competitive $4.95 per trade. That puts Motif at the same level as OptionsHouse and TradeKing, which are the lowest priced brokers in the industry.
How to Trade Single Stocks Through Motif Investing
Having used the Motif platform for some time now, it’s relatively simple. The same holds true for the new single stock trading feature. Once you login to your account you will see a toolbar like I’ve put below:
You simply click on the “Trade Stocks” button in the middle, which will take you to the following screen:
Within this screen, you just input the symbol and the number of shares you want to buy. You then click the “Preview Order” screen and, assuming everything looks ok, you go ahead and submit the order. Of course, I wouldn’t be able to put through the above trade as you can see I don’t have the available funds – but it is simply a visual example of what you can expect. 🙂
Some Things to Look Out for
Not everything is perfect, especially when you roll out something new. That is also the case with this new feature from Motif Investing. That being said, there are also some cool features they’ve added with the new single stock trading features. Some of those things to keep in mind are as follows:
- Motif is currently only offering Market orders for single stock trading. It wouldn’t surprise me one bit to see Limit order capability in the near future. ***7/01/15 Update – Motif has now added the ability to do sell Stop Limit orders to the single stock trading feature!
- You’re only able to purchase whole shares through this new feature. This is perfectly normal, but not what you’d normally find with Motif. This is a good thing to have though and not a drawback by any means.
- Motif has added a new “Trading Alerts” feature. This is relatively common at other brokers. Motif Investing now allows you to set a specific alert for entire motifs as well as individual holdings to help you monitor events.
- Motif has also added the ability to invest in IPOs, for as little as $250. As long as the IPO is run through J.P. Morgan, you have access to IPOs through Motif. Investing in IPOs is relatively risky, but is a great feature to see.
- You can still sell out of specific holdings within a motif for the same $4.95 fee. Personally speaking, if there were multiple holdings you wanted to add or take out of a motif, it’d be cheaper to just create your own motif.
As I’ve mentioned many times, investing needs to be personalized to your situation. This also necessitates having as many options as possible so as to personalize it. The new features added by Motif Investing, are a satisfying option for those who want access to individual stocks.
Do you invest in or trade individual stocks? How much are you paying for your investing?