There are two primary reasons Axos Invest can operate as the first free financial advisor.
First, we've significantly reduced the time and costs traditionally associated with financial management through the use of automation. By reducing our day-to-day costs we can pass these savings onto our clients.
Second, instead of charging an asset-based management fee (i.e. making money based on how much money our clients invest), we only charge for optional products and services. This allows clients to pay for what they need, rather than paying a "one-size-fits-all" fee for services they currently can't or don't want to use.
By offering a suite of services designed to provide specific value to each client at various points in their financial journey, we can be both a profitable, long-term financial firm while fulfilling our immediate mission of empowering everyone to reach their financial goals.
We believe this is the direction our industry should be moving toward in order to fully benefit and align itself with the interests of its clients.