Axos Bank Review 2024

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Written By
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Written By
Tobias Robinson
Tobias is a partner at DayTrading.com, director of a UK limited company and active trader. He has over 25 years of experience in the financial industry and contributed via CySec to the regulatory response to digital options and CFD trading in Europe. Toby’s expertise and dedication to financial education make him a trusted voice in the industry, including a BBC investigation into digital options.
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Fact Checked By
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William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
Updated

2.5 / 5
Axos Bank is #34 in our broker rankings.

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

$500
Own
Stocks, ETFs, Options
-
USD
Wire Transfer, Credit Card, Debit Card

Stock Trading

Invest in over 10,000 mutual funds, over the counter and exchange traded stocks, plus a wide selection of ETFs.

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. 

Top 3 Alternatives to Axos Bank

Compare Axos Bank with the top 3 similar brokers that accept traders from your location.

  1. Interactive Brokers – Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

  2. IG – Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

    Forex trading involves risk. Losses can exceed deposits.
  3. FOREX.com – Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

Axos Bank Comparison Table

Compare Axos Bank With Similar Brokers
Axos Bank Interactive Brokers IG FOREX.com
Rating 2.5 4.3 4.4 4.5
Markets Stocks, ETFs, Options Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting Forex, Stocks, Futures, Futures Options
Demo Account No Yes Yes Yes
Minimum Deposit $500 $0 $0 $100
Minimum Trade $0 $100 0.01 Lots 0.01 Lots
Regulators SEC FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA NFA, CFTC
Bonus Active Trader Program With A 15% Reduction In Costs
Education No Yes Yes Yes
Platforms Own Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
Leverage 1:50 1:30 (Retail), 1:250 (Pro) 1:50
Payment Methods 3 6 6 8
Visit Visit Visit Visit Visit
Review Interactive Brokers
Review
IG
Review
FOREX.com
Review

Compare Trading Instruments

Compare the markets and instruments offered by Axos Bank and its competitors. Please note, some markets may only be available via CFDs or other derivatives.

Compare Axos Bank Trading Instruments
Axos Bank Interactive Brokers IG FOREX.com
CFD No Yes Yes No
Forex No Yes Yes Yes
Stocks Yes Yes Yes Yes
Commodities No Yes Yes Yes
Oil No No Yes Yes
Gold No Yes Yes Yes
Copper No No Yes No
Silver No No Yes Yes
Corn No No No No
Crypto No Yes Yes No
Futures No Yes Yes Yes
Options Yes Yes Yes Yes
ETFs Yes Yes Yes No
Bonds No Yes Yes No
Warrants No Yes Yes No
Spreadbetting No No Yes No
Volatility Index No No Yes No

Axos Bank vs Other Brokers

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