Money managers work for banks, brokers, or mutual fund companies. This puts a distance between the investor and the person managing the investments, but it doesn’t have to be like this anymore.
For your money to be managed by a pro you need to go to one of these institutions and use one of their services, you don’t have any access to the managers. This means there are people who manage money and people whose money is managed, but they are separated by many degrees and layers because to be able to meat they all need to go through the financial industry.
Imagine the cost saving and how easy it would be to understand each manager if you could meet directly with no intermediaries.
This is what Covestor.com does.
Covestor.com is a marketplace where people who manage money and people who want their money to be managed meet. There are no industries or middlemen, you just see how managers do and select the most appropriate one for you account.
For now Covestor charges somewhat reduced fees compared to the traditional money management industry: normal fees are between 0.70% to 3.00% annually and Covestor charges from 0.50% to 2.00%. This is low, but as more managers join and assets under management in the system grow their fees will decrease even further. It would not be surprising if they stabilize around 0.25% and 0.70%.
To see how Covestor.com work and meet with your future money manager visit them below: