Frequently Asked Questions – General Information

What Fees Are Associated?

Motley Fool Wealth Management charges an industry-standard, assets under management (AUM) fee, that is taken directly out of the account we manage for you on a monthly basis.

Our AUM fee follows a tiered structure based on the amount you have invested with us.

Fees for stock-based portfolios:

Asset Level Annual Fee
First $1,000,000 0.95% of aggregate assets
Amounts over $1,000,000 0.75% of aggregate assets

Fees for index-based portfolios:

Asset Level Annual Fee
First $1,000,000 0.40% of aggregate assets*
Amounts over $1,000,000 0.30% of aggregate assets*

* Clients can combine their accounts and accounts having the same address (usually in a family member’s name) for breakpoint purposes (referred to above as “aggregate assets”). Clients are responsible for notifying Fool Wealth of their eligibility for breakpoints by emailing or contacting a representative.

In addition to the management fee, certain MFWM strategies may utilize exchange traded funds (ETF) that are subject to fees and expenses that are passed along to clients. Depending on the strategy, these underlying fund fees and expenses may be significant. Index-based strategies that exclusively utilize ETFs will have higher fund-related fees and expenses.

You will also be responsible for the trading and account level fees that are charged by Interactive Brokers (IB). These fees include:

  • For U.S. stock trades, commissions of generally $0.0035 per share. As an example, 100 shares of stock would trade for less than 40 cents. Different commission rates apply for non-U.S. stocks and options, and there are also fees associated with short-selling. 
  • For clients following our Hedged Equity strategy, you can get more information about the fees associated with options and short-selling by contacting a member of our financial planning team at 571-639-3981.

For more information about current IB's commissions, please see their website.  As you will see from IB’s Commissions page, their commissions operate on a tiered schedule. The monthly volume tiers will be measured by the collective volume of all the Personal Portfolio accounts combined. This is one of the ways you can benefit from the scale of our Personal Portfolio program.

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