Question: Why was a fee charged? What’s the value in paying this fee?
Answer: We understand that paying a subscription fee for a trading app might be new for some users, especially when compared to other "free" trading apps. However, it's important to note that these other apps often come with hidden fees, like FX conversion fees, that can add up significantly over time.
Here’s How MogoTrade Stands Out:
- Transparent Pricing: With MogoTrade, you pay a straightforward subscription fee. We charge a $20 monthly fee ($7 for existing users). There are no hidden fees like commissions or FX fees. Like all investment brokers MogoTrade charges a “spread” on FX transactions however unlike other firms we don’t charge a fee on that spread. This transparency can help you better manage your investments and predict your costs.
- Cost Savings: If you were to trade $20,000 worth of US stocks on another app with a typical 1.5% FX fee, you could end up paying over $400 CAD in fees annually. In contrast, with MogoTrade’s $7/month fee for existing users, you would only pay $84 per year for the same level of service, with no additional trading or FX costs.
- Long-term Investment Focus: Our goal is to enhance your overall investment performance. For example, a modest 1% annual improvement in returns could potentially add up to hundreds of thousands, or even millions over a long-term investment horizon of 40 to 50 years. The consistency and compounding effect, similar to Warren Buffett's long-term strategy, can significantly impact your wealth over time.
- AI-Powered Insights: We have recently introduced AI capabilities within the Mogo app. This advanced technology provides investors with a significant advantage by enabling thorough and thoughtful research and analysis, which is crucial for successful long-term value investing.
- Free Moka Account: As a paying Mogo member, you also have access to Moka, a separate app for managed investing, at no additional cost. Grounded in decades of data, behavioral science, and the wisdom of legendary investors like Warren Buffett, Moka manages your investments and guides you towards financial greatness.
By choosing Mogo, you are selecting a model designed to optimize your investment growth while maintaining cost-efficiency.
The MogoTrade app is owned by Mogo Finance Technology Inc., a wholly owned subsidiary of Mogo Inc. Your investment account is opened with MogoTrade Inc., an order execution only broker registered with CIRO.
Customer accounts at MogoTrade Inc. are protected by the Canadian Investor Protection Fund (CIPF). Learn more here: https://www.cipf.ca
© 2024 Mogo Inc. All rights reserved. MogoTrade, Mogo and the Mogo designs are trademarks of Mogo Finance Technology Inc. and used here under license.