nextgen-investments is an emerging investment company that has been gaining traction in recent years. With innovative products and services targeted at millennial investors, they have developed a strong following among young professionals looking to get started in the world of investing. However, as a relatively new player in the investing space, there remain some open questions around their long-term viability and trustworthiness. In this article, we will take an in-depth, objective look at nextgen-investments, analyzing their background, offerings, fees, and customer reviews to determine if they are a wise choice for your hard-earned investment dollars.
nextgen-investments Leverages Technology to Streamline Investing for Millennials
One of the key differentiated value propositions of nextgen-investments is their seamless, mobile-first experience designed specifically for tech-savvy millennials. Their easy-to-use app and website make investing simple and accessible for young professionals on the go. Features like low minimum investments, fractional share trading, and customized portfolios cater directly to the needs of young investors who want greater flexibility and ease of use. This focus on technology and the mobile experience has been crucial in allowing nextgen to rapidly acquire customers in their target demographic.
They Offer Complete Autopilot Investing or Self-Directed Trading
nextgen-investments stands apart by giving users the option of completely passive, autopilot investing or more active self-directed trading. For hands-off investors, their robo-advisor service will automatically invest your money across stocks and bonds and rebalance the holdings as needed. The algorithms aim to maximize returns based on your risk tolerance. For those who want more control, you can opt to use their platform to trade stocks and ETFs yourself using an intuitive app. Either way, the goal is to make investing as simple and accessible as possible.
Fees and Account Minimums Are Extremely Competitive
nextgen-investments aims to remove traditional barriers to investing by offering no minimum balance requirements and very competitive management fees. Their robo-advisor service charges just 0.25% annually with no minimum, compared to the industry average of 0.50%. There are zero commissions or fees for stock and ETF trades. While fees are not everything, this level of affordability allows those new to investing to keep more of their capital working for them as they build their knowledge and portfolio.
Strong Customer Satisfaction Scores But Mixed Reviews On Trust
Surveys done by nextgen show very high satisfaction scores among their predominantly millennial customer base. Over 85% reported being ‘highly satisfied’ with their investment experience. However, across third-party review sites like TrustPilot, they earn more mixed scores for trust and transparency. While their technology offering is rated very highly, some express concerns over hidden fees, promotional gimmicks, and question marks over the long-term viability of such a new company. But many rave over the ease of use.
Ongoing Concerns Over Lack of Physical Branches and Human Support
Given their app and digital focus, nextgen does not have physical branches or offices for in-person support. For digital natives, this may not be an issue, but for some older investors, the lack of human advisors and face-to-face interaction could be a limitation. Their robo-advisor algorithms also cannot provide sophisticated tax planning or estate management advice. However, nextgen does offer unlimited access to advisors by phone, email or chat, which helps bridge the human gap.
In summary, nextgen-investments offers an intriguing value proposition for millennials ready to begin their investing journey. Their technology, flexibility and low fees make investing simple and affordable. However, concerns exist around their long-term trustworthiness and lack of human advisors. Overall, nextgen merits consideration for newer investors, but more established investors may prefer a company with a longer track record and human touch.