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Topics: Direct Index Account
Direct Index Account
A Trading Account allows you to choose from our catalog of professional and community-built motif portfolios, build your own custom 30-stock portfolios, trade individual stocks, and participate in IPOs or Market-Linked CDs.
A Direct Index account allows you to invest in a single portfolio that tracks a broad market index. A direct index portfolio may have more than 500 stocks (e.g. Motif 500) that you can customize and automate.
With an Impact Account, you get a fully-automated portfolio that aligns to your financial goals with your values. The Impact Portfolio has stocks and ETFs in seven asset classes providing exposure to US and international equity and bond markets.
Buying the Motif 500 portfolio without customization has no commissions or licensing fees. If you customize the Motif 500 portfolio, there is no commission, but a 0.15% licensing fee will apply.
The Motif 500 index is designed to measure the market performance of U.S. stocks trading on U.S. exchanges. The index captures the performance of the top 500 largest market cap companies and is weighted by a float-adjusted market cap. The number of stocks can vary based on the share classes available of the underlying companies at any given time
Direct Index accounts currently have a minimum initial investment of $10,000 so that you can buy enough shares of stocks in your direct index portfolio. This minimum balance must be maintained over the lifetime of the account.
At this time, you can only customize your Direct Index portfolio before you fund your account. To do so, simply click the “Customize” button after submitting your account application. Customizing allows you to add, remove, or change the weighting of any stock or sector in the index.
We’ll soon be adding the ability to customize your portfolio after your account is established and funds are available for investing. If you have any questions concerning customization of a Direct Index portfolio, please contact Customer Service at firstname.lastname@example.org, or 1-855-586-6843 call 9am-6pm ET, Monday through Friday.
Please note that customizing your direct index portfolio carries a licensing fee of 0.15%, expressed as an annual fee rate. This fee is based on the amount of invested assets and will be deducted from your account balance on a monthly basis. For further information, please see the Fees and Commissions page.
Auto-Invest Cash controls whether your cash balance is automatically invested into your direct index portfolio. With it enabled, your cash will be automatically invested at the next market open when its balance exceeds $250.
If the dividend is in cash, the money will be credited toward your cash balance. Your cash balance will be automatically reinvested into your Direct Index portfolio when it exceeds $250 and Auto-Invest Cash is enabled.
You cannot place trades from your direct index account at this time. We hope to make this feature available soon. In the meantime, simply deposit or withdraw funds to initiate an automated trade to buy or sell shares from your Direct Index account. If you wish to trade securities such as individual motifs, single stocks or ETFs, IPOs, or MLCDs, you can do so by opening a traditional trading account. If you have questions, please contact Customer Service at email@example.com, or 1-855-586-6843 call 9am-6pm ET, Monday through Friday.
All trades in a direct index account are executed as market orders when the market opens on the next trading day (9:30am ET).
To enter a buy order for shares of a Direct Index portfolio, click on “Transfer” in the Account menu and deposit funds into your Direct Index account. When your Auto-Invest Cash setting is enabled and your cash balance exceeds $250, your funds will be automatically invested to purchase additional shares into your Direct Index Portfolio at the next market open.
To sell some or all of the shares in your Direct Index portfolio, click on “Transfer” in the Account menu and enter your request to withdraw funds from your Direct Index account. Submitting a withdrawal request will initiate a sell order of the withdrawal amount. It may take 7 to 10 business days for the money to settle into your account.
We’ll soon be adding the ability for you to initiate Buy or Sell orders when the Auto-Invest Cash setting is disabled. If you have questions, please contact Customer Service at firstname.lastname@example.org, or 1-855-586-6843 call 9am-6pm ET, Monday through Friday.
We will be releasing new features soon! We’re working hard to add more trading flexibility, easier customization, packaged portfolio tilts, and tax-loss harvesting.