Magnify investments is an emerging investment platform that provides access to a wide range of investment products and services. In this article, we will conduct an in-depth Magnify investments review, analyzing its key features, pros and cons, and evaluating if it is a worthwhile platform for investors.
As a new fintech startup, Magnify aims to utilize technology to make investing more accessible and efficient. It operates a user-friendly mobile app and website, allowing retail investors to invest in stocks, ETFs, crypto, and more. But does Magnify live up to its promises? Let’s find out.
Account types and investment offerings on Magnify
Magnify investments supports individual taxable accounts, joint accounts, traditional IRAs, Roth IRAs, and custodial accounts. It offers commission-free trading of stocks and ETFs listed on major US exchanges. Its crypto offering includes Bitcoin, Ethereum, Litecoin, and other major cryptocurrencies.
While Magnify’s investment selection is quite limited compared to full-service brokers, it covers the core assets classes for building a balanced portfolio. The fractional share trading feature also allows small investors to own expensive stocks like Google and Amazon.
Fees and account minimums of Magnify
Magnify investments does not charge any commissions for stock and ETF trades. Its margin interest rates are also very competitive. The only fees to watch out for are the miscellaneous fees on wire transfers, paper statements, etc.
There is no minimum balance requirement for opening a Magnify investment account. However, you need at least $250 to start investing in fractional shares of stocks. For crypto, the minimum purchase amount is $1. Such low barriers make Magnify accessible for beginning investors.
Pros and cons of using Magnify investments
Here are some of the key advantages and disadvantages of using Magnify investments:
Pros:
– $0 commissions on stocks and ETFs make frequent trading affordable
– Supports fractional share investing with low minimums
– Offers retirement accounts like traditional and Roth IRAs
– Intuitive mobile app and website for ease of use
– FDIC insurance protection on cash balances
Cons:
– Limited investment selection compared to full-service brokers
– Lacks advanced trading tools like options and margin trading
– Minimal educational resources for new investors
– Customer service needs improvement
Overall, Magnify is a decent option for beginner investors looking for commission-free trades. But active traders may want to look at brokers that offer more trading tools, research, and account types.
In summary, Magnify investments delivers an easy-to-use platform for basic stock and crypto investing. While the investment selection is limited, the $0 commissions and fractional share trading make it feasible for small account investors. As a young startup, Magnify still needs to expand its offerings and improve customer service. But it has the potential to become a top investing app if executed properly.