Axos Bank Review 2022
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).
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:
- Stocks – Both listed and over the counter stocks
- Mutual Funds – Over 10,000 mutual funds are available
- Exchange-Traded Funds (ETFs) – Dividend reinvestment available on qualifying securities. Income funds are also available, allowing you to take home earnings on a regular basis.
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.
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.
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.
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.
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.
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,
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 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.
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.
- Auto Deposit Scheduler – Schedule payments into your Invest account. This can be used to match your payday cycle, lucky day of the month, or whenever else you choose.
- Tax-loss Harvesting – Analyses your losses throughout the year to ensure your investments are tax-efficient.
- ATM Locator – The online ATM locator allows you to find ATM locations near you by typing in your city or postcode.
- High Yield Savings Account – Axos Bank is known for its competitive interest rates on its online savings account, offering up to 0.61% APY. This is competitive vs the likes of Ally, Marcus, Novo, Chime and Varo, which all offer similar rates of return.
- Mortgage (home loan) – Like any other major bank, Axos provides a mortgage service with competitive interest rates.
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.
Axos Invest comes with a number of benefits:
- Reliable service
- Margin trading available
- An intuitive platform that is suitable for beginners
- An extensive list of stocks, ETFs, and mutual funds
Whilst Axos provides a solid service, there are some drawbacks when compared to other online brokers:
- No demo account
- Limited trading platform functionality
- Limited educational resources, particularly for Standard account holders
- Limited assets, primarily stock exchange based, no access to forex, commodity or crypto trading
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.
Axos Invest offers a number of customer service support options:
- Website FAQs – An online FAQs section allows clients to self-serve answers to some of the most commonly asked questions, including how to make a deposit, how to withdraw funds, and more.
- Evo Virtual Assistant – Evo is the equivalent of a live chat function. It provides answers to questions that are unique to your account, including your account balance and recent transactions – it can even help you move money. To access the service, you’ll need to log in to your account first.
- Email – If you’re not yet a customer, use the firstname.lastname@example.org address. If you already have an account, you can sign in and send a message via the contact us page.
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.
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.
Axos Bank only accepts traders from United States.
Compare Axos Bank
Compare Axos Bank with similar brokers that accept traders from your location. Among available brokers these are the most similar to Axos Bank:
- ZacksTrade – ZacksTrade: Built for the active trader. Stock & ETF trades from $3, 75¢ options contracts and 3.56% margin rate (lower on occasion)
- M1 Finance – M1 Finance offers customizable and automated trading services for US investors.
- 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.
- Webull – Webull offers a popular online stock trading app with low fees and generous bonuses.
Axos Bank Comparison Table
|Axos Bank||ZacksTrade||M1 Finance||Interactive Brokers||Webull|
|Markets||Stocks||Stocks||Stocks, Crypto||Forex, Stocks, Commodities, Crypto||Forex, Stocks, Crypto|
|Minimum Deposit||$500||$2500||$100 ($500 for IRA)||$10000||$0|
|Minimum Trade||$0||From $3||$1||$100||$5|
|Regulators||SEC||SEC||FINRA, SEC||SEC, FCA, IIROC, SFC||SEC, FINRA|
|Bonus||–||–||M1 Finance Plus free for 3 months on new accounts||–||Six free stocks|
|Detailed Comparison||–||Axos Bank vs ZacksTrade||Axos Bank vs M1 Finance||Axos Bank vs Interactive Brokers||Axos Bank vs Webull|
Compare Trading Instruments
|Axos Bank||ZacksTrade||M1 Finance||Interactive Brokers||Webull|
Axos Bank vs Other Brokers
Compare Axos Bank with any other broker by selecting the other broker below.
|Axos Bank offers investment opportunities in US stocks, ETFs and Mutual Funds on their proprietary trading platform.|