Axos Bank Review 2021

Flag Traders in United States welcome
Axos Bank Facts & Figures

Axos Bank offers investment opportunities in US stocks, ETFs and Mutual Funds on their proprietary trading platform.

InstrumentsStocks, Options
Demo AccountNo
Min. Deposit$500
Payment MethodsCredit Card, Debit Card, Wire Transfer
Min. Trade$0
Regulated BySEC
MetaTrader 4No
MetaTrader 5No
cTraderNo
STP AccountNo
ECN AccountNo
DMA AccountNo
Mobile AppsAxos App
Margin TradingYes
Margin Rate5.5%
Auto TradingYes
Social TradingNo
Copy TradingNo
Trade SignalsTipRanks
Islamic AccountNo
Account
Currencies
USD
Risk Warning – Your capital is at risk

Axos Bank, formerly known as Bank of Internet (BofI), is an American digital bank offering savings, loan and investment services. For traders, their Invest function is particularly interesting, providing managed portfolios to those looking for a low-fee solution. In this review, we’ll cover the assets, trading platform, and commission charged by Axos Bank, along with much more.

Axos Bank Headlines

Axos Bank was founded in 1999, around the inception of the world wide web, by Jerry Englert and Gary Lewis Evans. It was among the first digital banks globally. The firm grew from strength to strength, and in 2005, Bank of Internet USA went public on the NASDAQ exchange. In 2018, the company rebranded to become Axos, taking the ticker symbol AX. In August 2021, Axos Financial acquired etrade advisor services (EAS) from Morgan Stanley. The share price is now around $55 but moves daily.

Axos is open to US-based clients in all 50 states. Having grown exponentially since its early days, the bank now employs over 750 members of staff and is regulated by the Securities Exchange Commission (SEC).

Trading Platform

Axos Bank offers options and margin trading through their Self-Directed Trading Platform. The service is designed for those who want to operate their portfolio independently, selecting and executing their own trades. The platform is browser-based, with no downloadable desktop version available.

In comparison to the likes of MetaTrader 4, the platform is fairly basic, but this makes it perfect for beginner-intermediate investors that don’t need all the bells and whistles. The service offers detailed stock quotes and watch lists, and the screeners are a great tool for refining your asset search.

For traders that are looking for a more hands-off approach, the Managed Portfolios service is designed for you. This robo-advisor offers personalised automated investment portfolios with an industry recognised performance level. In fact, it has been named as one of the best automated services by US News and World Report 2020 and the best no-frills robo-advisor by Clark.com in 2021.

Axos Invest Products

Axos Financial offers a selection of stocks, ETFs and mutual funds:

All assets are available to trade on margin, can be shorted, and purchased at intra-day prices.

Axos Clearing, a subsidiary of Axos Financial also offers retirement plan accounts, with services such as traditional, rollover and Roth IRAs, Individual 401(k) Plans and Money Purchase Pension Plans.

Fees

Axos Bank aims to provide some of the lowest fees in the market. As an online-only broker, its cost-base is kept low, meaning they can pass on savings to their clients.

Stocks and ETFs start at $0 commission per trade, while options are offered at $1 per contract. Mutual funds start at $9.95 per trade.

For managed portfolios, there is an Annual Basic Portfolio Management Fee of 0.24%. There are no trading or rebalancing fees.

Leverage

Axos Banks offers margin trading on all their assets, however, this is only available to holders of the Axos Elite account. This enables you to leverage the assets in your account without having to sell them to fund your trades. Essentially, margin trading acts like taking out a loan, so you’ll pay what you owe back with interest. Interest is charged at 5.5% APY of the loan payment value. You can borrow up to the value of your assets, however, it’s important to remember this comes with risk. If the value of your purchased assets falls, it could result in losses.

Mobile App

Axos does offer a mobile banking app, that can be used to check your account balance, pay bills and view transaction history. You can also transfer funds between eligible accounts and deposit checks using your mobile.

For trading stocks, ETFs and mutual funds, traders can use the Invest app. This can be used to manage your portfolio, auto-deposit and research new funds. Traders looking for support can input their savings goals and receive recommendations based on their risk profile.

Axos Invest Mobile App
Axos Invest Mobile App

Payment Methods

All traditional banking payment methods are covered by Axos, including checks and bank wire transfers. A bank wire transfer fee of $30 per domestic wire and $75 for international transactions applies. Just login to your account and click Move Money to find the form required to complete your transfer.

Axos Invest also offers quick deposits. While most payment methods at other brokers take 1-3 working days to complete, quick deposit allows traders to begin investing their funds on the same day (or the next working day).

Minimum account balances do apply. You’ll need $500 for an ETF managed portfolio. This might be too high for some traders, particularly as competitors, such as Fidelity, offer no minimum deposit.

Demo Account

Axos Bank does not provide a demo account, meaning you’ll need to trade with real funds from your first investment. Whilst this would be a disappointing downfall with most brokers, the self-directed trading platform is fairly intuitive, even for beginners. Plus, the support service provides step-by-step guides to placing a trade, viewing your portfolio, and activating margin trading,

Promotions

Axos provides a referral programme whereby invited friends can earn $20, and you’ll also receive $20 yourself. Invitees must open an essential checking account and meet the additional requirements (e.g never opened an Axos account previously). Just login to your account to find your unique referral code, and send it to as many friends as you like.

Axos Referral Programme
Axos Referral Programme

Axos Bank Regulation

Axos Invest is regulated by the Securities and Exchange Commission (SEC). This is the regulatory authority for all market-based trading in the US. Its aim is to protect investors, keep markets efficient and enable capital formation. It affords investors a certain level of trust that Axos Bank is compliant with governmental rules that aim to keep traders safe.

Additional Features

Axos offers many of the services you’d expect of a traditional bank alongside its brokerage service. This includes small business banking, overdrafts, checking accounts and more. We’ve listed our top additional features below.

Account Types

Axos offers two account types under their Invest branch: the Standard and Elite account. The standard account is free to open and options trading starts at $1.00 per contract. However, there is no margin trading available and hours are restricted to the NYSE market schedule.

The Elite account costs $10 per month but provides access to margin trading, available with a 5.5% APY interest fee. Options trading starts at $0.80 per contract. You’ll also have access to TipRanks research reports and extended trading hours.

On top of this, clients have the choice to open an individual, joint or IRA account.

Benefits

Axos Invest comes with a number of benefits:

Drawbacks

Whilst Axos provides a solid service, there are some drawbacks when compared to other online brokers:

Trading Hours

For Standard account holders, trading is available within the NYSE market hours, from 9:30 am – 4:00 pm EST. Elite account holders have access to extended trading hours, from 4pm to 8pm Monday – Friday.

Customer Support

Axos Invest offers a number of customer service support options:

Security

Axos employs state-of-the-art security measures to protect your funds. This includes technological detection of cybercrime and SSL encryption on your browser. Firewalls block unwanted access and there is an automatic log out after a period of time to prevent unintentional users on your account. Plus, the bank uses one-time payment codes to verify transactions (2FA). This code is not to be shared with anyone but the bank itself.

Axos Bank Verdict

Axos Invest provides traders with access to stocks, ETFs and mutual funds. Its solid trading platform allows for margin trading without the complexity that many online brokers suffer from. In this way, it is great for beginners and those looking to blend a long-term savings plan with short-term stock trading. Plus, its low-cost, simple fee structure means your profits stay yours.

FAQs

Is Axos Invest A Robo-Advisor?

Yes, Axos Bank offers a robo-advisor service known as Managed Portfolio. The functionality allows you to enter your investment goals and it will recommend a path to achieve them. It takes into account your risk profile, whether you’re planning for retirement or will need the cash in the near future, and many other important factors that will help to build a portfolio that is right for you.

Does Axos Bank Provide A Demo Account?

No, there is no demo account on the Axos Bank trading platform. However, there are step-by-step guides available on the website to help you get to grips with the functionality before investing. 

What Assets Does Axos Bank Provide?

Axos Bank focuses purely on assets that are traded on the NYSE. This includes stocks, ETFs and mutual funds. The list of funds available is extensive, with over 10,000 products available, making it easy to create a diverse portfolio that is right for you. 

Is Axos Bank Safe?

Yes, Axos Bank is regulated by the Securities and Exchange Commission (SEC) and is therefore subject to the rules and limits that the authority prescribes. This means that traders can be reassured the bank will aim to protect traders from undue harm.

Does Axos Bank Charge A Management Fee?

Yes, Axos charges an Annual Basic Portfolio Management Fee of 0.24%. This is fairly competitive in the industry, however, traders should complete a full and independent review of all the costs before investing. 

Accepted Countries

Axos Bank only accepts traders from United States.

Alternatives to Axos Bank

If you are looking for alternatives to Axos Bank we have compiled a list of the top 5 brokers that are similar to Axos Bank below. This list of brokers like Axos Bank is in order of similarity and only includes companies that accept traders from your location.

  1. eToro – eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
  2. M1 Finance – M1 Finance offers customizable and automated trading services for US investors.
  3. Interactive Brokers – IB Boast a huge market share of global trading. With a minimum deposit of $10,000 however, they remain an option for larger traders only.
  4. Exinity – Exinity provides flexible low-cost trading in FX, commodities, indices and equities alongside unique education and support provided by teams located across the world. Now operating in the Middle East, through regulation from the Financial Services Regulatory Authority in Abu Dhabi and the Financial Services Commission of Mauritius, Exinity provides a range of services to traders and investors looking for new opportunities in the financial markets.
  5. Rockfort Markets – Rockfort Markets is a New Zealand broker with a competitive range of assets, trading platforms and market conditions.
Axos Bank offers investment opportunities in US stocks, ETFs and Mutual Funds on their proprietary trading platform.

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