Once your Motif accounts are transferred over, you can reconstruct your portfolio view using Folio Investing tools. Advance your career and take your firm's production to the next level with FREE practice-management tips. In connection with the move to Kingdom, Pershing has agreed (and this letter will serve as notice of the appointment) to appoint Kingdom as the successor custodian for your IRA. Motif Investing Announces Plans To Shut Down In May April 23, 2020 • Christopher Robbins Motif Investing, an online broker pioneering a digital social and thematic investing service, has … But the online broker likely won’t be the only fintech firm to fail as the economy weakens and the markets bounce around, technology consultants say. If you wish to liquidate and close your account instead of transferring it, you may incur a taxable event when selling your securities holdings.Q: Where do I get my tax forms?A: Pershing will issue you by mail a copy of your tax forms for activity in your Motif account to your address of record. Follow Pietros Maneos and get email alerts, Folio Investing | Discounted Brokerage Fees & Commission-Free Window Trading, A broad offering including just about every U.S. exchange traded security and ETF, plus over 1,100 no-load mutual funds, along with over 100 pre-made portfolios (Folio calls them Ready-to-Go Folios, we called them Motifs), Fractional share investing, enabling you to own as much or as little of any supported stock or ETF you want, regardless of price, Socially responsible investing filters, sector and security exclusions available across all accounts and folios, so you only own what you want, Advanced tax management tools, including a highly advanced and patented Tax Football allowing for pin-point tax results, Once you opt-in, a cash sweep program paying interest and providing extended FDIC insurance coverage up to $4.5 million per customer, Easy-to-use performance reporting allowing you to chart performance of your account or folios against various indices, against an individual security, or a mutual fund, Rebalancing tools to help keep your long-term investing plan on-track. Motif Investing is closing down, but not before selling its RIA and retail accounts to Folio Institutional, according to a letter delivered on Friday (Apr. As for the future of Motif’s founder, “Hardeep [Walia]’s such a smart, creative thinker. A bummer for them, their clients and the fintech community in general. If do not take such action before May 12, 2020, your account will be transferred to Folio. Last month, Motif, an innovative brokerage platform focused on thematic investing, told its clients it was closing up shop. At Folio, cash balances are held in Folio’s Insured Bank Deposit and Free Credit Sweep Program which pays interest as described in the Folio Customer Agreement and the Folio Investing site. Motif Investing allows investors to select a particular motif, or theme-based portfolio, which typically includes about 20 to 30 stocks or ETFs, for a fee of $9.95 per trade. By Dave Nadig on April 20, 2020 If you missed it in the mix of all the other news, Motif Investing announced this weekend that it was closing its doors. Say It Ain't So! Plus, there are no exit or merger opportunities, since “the assets in these digital investment platforms are really just the technology and the end-client accounts. The need for healthy revenues and capital reserves to weather a storm like today’s, according to Fritz. “I’d bet it will be significant. Most users might … They said Motif’s closure definitely or likely signaled further closures of investment management platforms, versus 38% who saw further shutdowns as “not necessarily” likely. Motif Investing is closing its trading platform and exiting its ETF indexing deal with Goldman Sachs in May. After ten years in the investment space, online brokerage platform Motif will be shutting down operations on May 20. “During periods like this, anything we can bring to a client that covers more than just performance data (aka ‘bad news’) helps clients understand where they are, what’s important and how the market news really impacts them,” he said. It demonstrated what’s possible in terms of online investing, but ultimately “run out of runway as other more established providers co-opt similar capabilities.”. Motif is voluntarily ceasing its online brokerage operations, and thus all accounts must be transferred to Folio or another broker-dealer.Q: What do I need to do if I want my account transferred to Folio Investing?A: Nothing. Clients can access their Motif accounts through May 20; the accounts will move to Folio Investing the next day. Folio’s robust offering includes: And perhaps best of all, we have negotiated a discounted fee for Folio Investing’s Unlimited pricing plan. This allowed me to create something of a compounding machine whereas I think that Folio Investing has the more standard 'dividend reinvestment program.' In order to facilitate the transfer of clearing services from Pershing to Kingdom, notice is hereby given that as of the close of business on May 22, 2020, Pershing will resign as your IRA custodian for your Traditional, Roth IRA, or IRA Rollover. See Folio’s margin risk disclosure document for more information. And as the industry is shifting towards providing more planning services to clients, don’t get left behind! Welcome to Folio Investing! As you look for new ways to boost your bottom line, re-centering your business on planning can make a big difference. For two decades, they have revolutionized the way people invest online.As a result, many of the solutions you are familiar with at Motif will now be available to you as a Folio customer, in addition to many other innovations and features designed to enhance your investing experience. Unless you decide otherwise, a new IRA will be established for you at Folio with Kingdom as the custodian.Please be aware that your current beneficiary information will NOT transfer from your Motif account to Folio. On Friday evening, fintech firm Motif Investing said that it was shutting its doors. If you have a margin account at Motif, it will be opened as a margin account at Folio as long as you meet certain requirements (e.g., it is not an IRA account). Others will close.”, Some 62% of those taking ThinkAdvisor’s recent Twitter poll agreed. All shares (including fractional shares) and cash remaining in accounts eligible for transfer as of the close of business on May 20, 2020 will be transferred to Folio Investing. Investors can also customize their motif … If you would like to access historical documents generated while your Motif account as open, please download them from the Motif site by the end of day, May 20, 2020, when the site will no longer be available.Q: Will my dividends be reinvested?A: As part of this conversion, Folio will setup all accounts for dividend reinvestment. If you do not wish to maintain a margin account at Folio you can convert it to a cash account once your account has been opened at Folio.Your initial login signifies your acceptance of Folio’s policies, including your consent to the use of their cash sweep program (your cash balance will be swept into Folio’s cash sweep program at that time) and margin borrowing (if available for your account).IRA NOTICE: If you have an Individual Retirement Account (IRA) through Motif’s clearing firm, Pershing LLC, the IRA Custodian for your new Folio IRA account will be The Kingdom Trust Company (“Kingdom”). We’ve selected Folio to give you access to leading investment tools in a similar experience to what you’ve enjoyed at Motif.Your account transfer will start after market close on Wednesday, May 20, 2020, and your new Folio Investing account will be ready for you to use on Thursday, May 21, 2020. “In many cases, these businesses were ‘built to sell’ or had models that were designed to aggregate eyeballs and attention, which would be used for future monetization. Exclusive discounts on ALM and ThinkAdvisor events. Depending on the services you were using at Motif and the services you use at Folio Investing, your fees at Folio Investing may be higher or lower than you have been paying at Motif.Q: Do I have to move my account to Folio Investing?A: No, you are free to liquidate your account or move your account to another broker-dealer of your choosing. (If you decide to leave Folio after the transfer, you will incur a transfer fee. Motif Investing is Closing. Since 2012, we’ve worked to give everyday investors access to cutting edge investment products. At the time of conversion, Kingdom will then amend your account with the applicable IRA Custodial Agreement, which is appended to the Folio Customer Agreement. Janet Levaux, MA/MBA, is Editor in Chief of ThinkAdvisor & Investment Advisor. “What we’re seeing is firms that have multiple revenue levers to pull (e.g., asset management, securities lending, cash, etc.) Plus, there’s “a growing number of robust B2B [digital] solutions,” which more advisors are using … to free themselves up to focus on advice and planning rather than investment management and trading,” Spitzner said. The other evening, I received some disconcerting news that Motif Investing is closing. In other words, he explained, advisors can rely more on technology, so more of their time can be spent on coaching client behavior and delivering “hyperpersonalized advice,” he added. MOTIF Investing, one of the earliest innovators in the digital investing space in the US, is shutting down. That idea was to give individual … Folio Investing Account Closing Fee Folio Investing does not charge account termination fees on brokerage accounts unless you are using account transfer (see below). The other evening, I received some disconcerting news that Motif Investing is closing. If you would like to access historical tax records, please download them from the Motif site by the end of day, May 20, 2020, when the site will no longer be available. Motif “was really a micro-player in the custodian world and relied on Folio anyway, so no real disruption there,” he explained, referring to the movement of accounts after it closes. Motif Investing, a digital brokerage that provided thematic investing and automated advice, has closed its doors for good. Learn more about this and other subscription offers to choose by visiting Folio Investing | Discounted Brokerage Fees & Commission-Free Window Trading. If this is the case, I would have to recreate them within Folio Investing as 'Folios,' and then sell the individual holdings and use the cash to purchase the newly created Folio. Upon the transfer of your account, Folio will continue to hold your transferred cash as a free credit balance until you login at Folio, thus activating your account.Your account at Motif may be a cash account, which requires you to have the full purchase price of a security in that account when you seek to purchase it, or it may be a margin account, which allows you to borrow money to purchase securities.As we have disclosed to you in the past, buying on margin entails certain risks, including that securities in your account may be sold without prior notice to you to satisfy the amounts you owe Motif. Apparently, the communication hasn’t been that great, as some advisors found out … He was ahead of the curve with Motif, and I’d expect him to be so again.”. (Eighty individuals took the survey.). )PRIVACY NOTICE: Your privacy and the confidentiality of your information are important and protected by law. For people interested in an easy-to-use alternative, we recommend considering M1 … If, for any reason, your account is not transferred to Folio, Folio will not retain your bank account information other than as required by applicable law, regulation or Folio data retention policies. You can also learn more at www.folioinvesting.com.CASH SWEEP and MARGIN NOTICE: At Motif Investing, your cash is held as a free credit balance that pays no interest. Your article was successfully shared with the contacts you provided. Building a viable business that lasts is not easy. 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