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Folio Investing

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LAST UPDATED: November 13th, 2021

Folio Investing helps its investors create diversified portfolios to help minimize the risks associated with investing. These folios are customizable and can manage costs and tax losses.

Investors can create folios of mutual funds, ETFs, and stocks. The company also provides Ready-to-Go-Folios, which are pre-built with a particular investment strategy in mind. These folios are designed to encourage investors to familiarize themselves and become comfortable with the folio method. Once comfortable, investors can begin building their own folios or customizing Ready-to-Go-Folios based on their own investment strategies and preferences.

Keep reading for pros and cons, and verified Folio Investing reviews.


Top Ranked Companies


The Good

  • Investment and trading services
  • Diverse portfolios
  • Customized Investments
  • Costs

Investment and Trading Services

Folio Investing helps investors determine what kind of investor they are through a series of questions. The answers provided help the platform determine what asset allocations are right for the investors.

Another great perk that the company offers is email alerts to investors whenever Folio Investing revises or rebalances portfolios. This allows investors to closely monitor their investment performances.

Folio Investing also has great tools to facilitate the investing process. The company provides market research that's equipped with charts, company information, historical quotes, and the financials of the different companies to invest in. The firm's performance reporting tool enables investors to view the performance of their investments over time or against other securities and funds.

Another great tool is Folio Investing's virtual stock trading account. This account looks exactly like a funded account-but isn't-where investors can test strategies and use folios. Once comfortable, they can then convert the account into a funded one. This adds yet another edge to the company's competitive arsenal.

Diverse Portfolios

Folios can include up to 100 or as little as 1 stock, ETF, or mutual fund.

Folio Investing is unique in that it allows its investors to include fractional shares in their folios. This service is not included with every investment platform.

This means that traders can own less than a share of a stock with the brokerage firm, which garners them access to securities that they might not have otherwise experienced.

Customized Investments

Not all investors are the same. With Folio Investing, an investor can tailor and customize their investing folio to their specific needs.

Even if you are using a ready-to-go folio, the investor can tailor their investments, use filters to exclude specific sectors and securities - the investor is in control.


Folio Investing's pricing structure offers a flat-fee pricing option of $29 a month. For investors who have a portfolio that's large, who enjoy continuously tinkering with their folios, and who place many trades at a time, this fee can save them a lot of money compared to what they would be paying at other brokerage firms.

Casual traders need not worry since Folio Investing offers a flat-fee of $5.95 per transaction, another competitively priced deal.


The Bad

  • Mobile App
  • Returns
  • Day trades
  • High Prices for Infrequent Traders
  • Designed for Experienced Investors

Mobile App

One major downside to Folio Investing is it doesn't offer users a mobile app as an alternative to its site. For the 21st century investor who trades on the go, this can be a significant drawback to this brokerage firm's services.


Another major complaint investors have with Folio Investing is the over-stated returns that are shared in the folios. Users say their returns are usually not as strong as the suggestions made in the folios' performance levels.

This can be a major problem for investors who've been won over by the folio method, only to learn their return on investment isn't as high as initially promised.

Day Trades

Folio Investing doesn't cater to day traders.

While its unlimited plan could be lucrative for active, day traders, Folio Investing's patented window trades confine day trading to two times a day.

Thus, day traders looking for a cheap alternative to placing as many trades as possible should look into other online brokerage firm options.

High Prices for Infrequent Traders

While Folio Investing used to dominate the industry with its exclusive services, today, the competition in its sector is fierce. Motif and Betterment, for example, are two companies that offer portfolio rebalancing and fractional investing. They also offer their investors a variety of securities and funds to choose from. Their pricing structures are pretty competitive too. Motif charges $9.95 per portfolio with no additional fees, while Betterment charges quarterly fees of 0.15% and 0.35%, depending on an investor's balance.

These two competitors might be better alternatives for small investors since Folio Investing fees can be pricey for infrequent traders.

Designed for Experienced Investors

Investors on Folio Investing can buy, sell, or rebalance their folios all at once, or trade stocks in the folio individually.

While this is appealing for investors who yearn for more control over their investments, investors who need more direction and assistance should probably look elsewhere to make investments.

Folio Investing's folios are too advanced in nature. While the firm provides several opportunities for investors to learn the folio method, the process can still be confusing, especially for novice investors looking for a way to dip their feet into the industry.


The Bottom Line

Folio Investing can be ideal for investors who want more control over their investments and the ability to create and customize their own portfolios.

Ready-to-Go-Folios present an alternative for traders who still crave control but also want access to broker prepared packages. Thus, generally self-directed investors will find this brokerage firm's plan quite appealing.

Additionally, investors who trade frequently (at least three times a month) and who are looking to create portfolios larger than $25,000 will find Folio Investing's unlimited plan ideal one.

Folio Investing's online brokerage services have also been around longer than its major competitors, which means it also has the advantage of many years of experience.

However, without a mobile app, your investments can be difficult to access on-the-go. This can be challenging for all investors, but Folio Investing also has some stipulations for other potential investors. Infrequent traders with a small mutual fund (under $10,000) may find Folio Investing's unlimited plan too costly for the firm's services.

Additionally, traders and investors who are just starting out in the industry could have a difficult time navigating and using Folio Investing's services. Folio Investing gives the investor a lot of control, which may not be ideal for those who may need to be more thoroughly guided through the online investing and folio process. Therefore, other mutual fund services like Betterment or Motif could be more appropriate and less costly alternatives.

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