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Ratings methodology for direct indexing platforms

We rate direct indexing platforms on nine key categories, including costs and minimums, indexing options and cash accounts.

Finder’s investment experts assess direct indexing platforms across nine key categories to help you objectively evaluate a platform’s suitability for your unique needs.

The nine categories we measure are:

  • Management costs and account minimums
  • Indexing options
  • Indexing dashboard
  • Features and amenities
  • Customer support
  • Account fees
  • Account types and signup process
  • Mobile app ratings and security
  • Cash account

Data collection

We collect data manually through online research and from providers directly. Our investment experts perform hands-on testing for many brokers and advisors we review.

Category weightings

We weigh each metric based on factors we believe are most important to investors. Brokers earn a score in each category and an overall score based on the weightings detailed on this page.

Scoring and rating

Financial advisors are evaluated on the nine key categories outlined on this page. These categories are broken down into 41 core elements and 88 weighted criteria.

Some core elements are features that Finder’s experts consider perks to the main features. Providers that offer any of these perks are rewarded with additional points. However, providers that don’t offer any of these perks are not penalized.

These features include prominent dashboard views of fees paid and portfolio performance compared to a given benchmark and the availability of financial advisory services, free financial planning tools and joint, custodial, trust and business accounts.

We rate financial advisors using a system of one to five stars, incremented in tenths of a star, with five stars being the best possible score.

★★★★★ 5/5 — Excellent

★★★★★ 4/5 — Good

★★★★★ 3/5 — Average

★★★★★ 2/5 — Subpar

★★★★★ 1/5 — Poor

Management costs and account minimums

This category evaluates the yearly management costs and required minimum investments.

Management costs

If a platform charges an annual advisory fee of less than 0.20%, it earns the highest rating. If it charges an annual advisory fee of more than 0.41%, it earns the lowest score.

★★★★★ 5/5 — An advisory fee of between 0.01%–0.20%

★★★★★ 4/5 — An advisory fee of between 0.21%–0.40%

★★★★★ 3/5 — An advisory fee of 0.41% or more

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Account minimums

Providers that require a minimum investment of $10,000 or less earn the highest score, while providers that require a minimum investment of more than $20,000 earn the lowest score.

★★★★★ 5/5 — $10,000 or less

★★★★★ 4/5 — $10,000–$20,000

★★★★★ 3/5 — $20,000+

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Indexing options

This category examines the breadth of the platform’s direct indexing strategies and level of customization.

Number of index-based strategies

If a provider offers four or more index-based strategies, it earns the highest score. If a provider offers a single indexing strategy, it earns the lowest score.

★★★★★ 5/5 — Offers 4+ strategies

★★★★★ 4/5 — Offers 3 strategies

★★★★★ 3/5 — Offers 2 strategies

★★★★★ 2/5 — Offers only 1 strategy

★★★★★ 1/5 — N/A

Large US company strategy

Providers that offer at least one index strategy that provides access to large-capitalization US company stocks earn the highest score. Providers that don’t offer access to a large-cap strategy earn the lowest score.

★★★★★ 5/5 — N/A

★★★★★ 4/5 — N/A

★★★★★ 3/5 — Yes

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Approximate number of large US company positions in the strategy

If the large-cap strategy has 500 or more positions, it earns the highest score. If it has less than 250, it earns the lowest score.

★★★★★ 5/5 — 500+

★★★★★ 4/5 — 250–499

★★★★★ 3/5 — 1–249

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Strategy with US mid-cap exposure

Providers that offer a strategy with exposure to US mid-cap companies earn the highest score. Providers that don’t offer exposure to US mid-cap companies earn the lowest score.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Strategy with US small-cap exposure

Providers that offer a strategy with exposure to US small-cap companies earn the highest score. Providers that don’t offer exposure to US small-cap companies earn the lowest score.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Strategy with exposure to US ESG-focused companies

Providers that offer a strategy with exposure to US ESG-focused companies earn the highest score. Providers that don’t offer exposure to US ESP-focused companies earn the lowest score.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Strategy with international company stock exposure

Providers that offer a strategy with international company stock exposure earn the highest score. Providers that don’t offer international company stock exposure earn the lowest score.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Ability to exclude individual stocks

Providers that let investors exclude individual stocks earn the highest score, while providers that don’t earn the lowest score.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Number of stocks you can exclude

Providers that let investors exclude 10 or more stocks earn the highest score. Providers that let investors exclude less than five stocks earn the lowest score.

★★★★★ 5/5 — 10+ stocks

★★★★★ 4/5 — 5–9 stocks

★★★★★ 3/5 — 1–4 stocks

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Ability to exclude individual sectors or industries

Providers that let investors exclude individual sectors or industries earn the highest score, while providers that don’t earn the lowest score.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Number of sectors or industries you can exclude

Providers that let investors exclude three or more sectors earn the highest score. Providers that let investors exclude only one sector earn the lowest score.

★★★★★ 5/5 — 3+ sectors

★★★★★ 4/5 — 2 sectors

★★★★★ 3/5 — 1 sector

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Indexing dashboard

This category evaluates the platform’s dashboard and the information and data that’s prominently displayed.

Account value and portfolio performance

Providers that show investors’ account valuer and portfolio performance on the main dashboard earn the highest score, while those that don’t earn the lowest score.

★★★★★ 5/5 — N/A

★★★★★ 4/5 — N/A

★★★★★ 3/5 — Yes

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Tax losses harvested

If investors can quickly view their tax losses harvested, the platform earns the highest score. Platforms that don’t prominently display this information earn the lowest score.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Short- and long-term capital gains and losses

If investors can quickly view their short- and long-term capital gains and losses, the platform earns the highest score. Platforms that don’t prominently display this information earn the lowest score.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Fees paid

If investors can quickly view their fees paid, the platform earns the highest score. Platforms that don’t offer this information aren’t penalized.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Hypothetical after-tax portfolio performance compared to benchmark

If investors can quickly view the hypothetical after-tax portfolio performance compared to the benchmark, the platform earns the highest score. Platforms that don’t offer this information aren’t penalized.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Estimated federal tax impact

If investors can quickly view their estimated federal tax impact, the platform earns the highest score. Platforms that don’t offer this information aren’t penalized.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Account personalization and modification abilities

Providers that let investors modify their holdings online earn the highest score. Providers that don’t let investors modify their holdings earn the lowest score.

★★★★★ 5/5 — Investors can modify holding restrictions online via their dashboard

★★★★★ 4/5 — Investors must call to change their holding restrictions

★★★★★ 3/5 — Investors can’t modify their holdings

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Features and amenities

This category evaluates the availability of features such as automatic tax-loss harvesting, portfolio rebalancing and dividend reinvestment, and the availability of individual stock trading and access to financial advisory services.

Automatic tax-loss harvesting

Providers that offer automatic tax-loss harvesting earn the highest rating, while those that don’t earn the lowest.

★★★★★ 5/5 — N/A

★★★★★ 4/5 — N/A

★★★★★ 3/5 — Yes

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Automatic portfolio rebalancing

Providers that offer automatic portfolio rebalancing earn the highest rating, while those that don’t earn the lowest.

★★★★★ 5/5 — N/A

★★★★★ 4/5 — N/A

★★★★★ 3/5 — Yes

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Automatic dividend reinvestment

Providers that offer automatic dividend reinvestment earn the highest rating, while those that don’t earn the lowest.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Recurring deposits

Providers that offer recurring deposits earn the highest rating, while those that don’t earn the lowest.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Commission-free individual stock trading

Providers that offer commission-free individual stock trading earn the highest rating, while those that don’t earn the lowest.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Fractional shares

Providers that offer fractional share trading earn the highest rating, while those that don’t earn the lowest.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Access to financial advisors

If a provider offers access to human financial advisors, it earns the highest rating. Providers that don’t offer access to financial advisors aren’t penalized.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Free financial planning tools

If a provider offers access to free financial planning tools, it earns the highest rating. Providers that don’t offer access to free financial planning tools aren’t penalized.

★★★★★ 5/5 — Yes

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Customer support

This category rates the provider’s customer support accessibility and evaluates available support channels, such as live chat, phone and email.

★★★★★ 5/5 — Offers 24/7 phone support

★★★★★ 4/5 — Offers phone support and/or live chat but only during regular market hours

★★★★★ 3/5 — Offers email support only, and it took more than a day to hear back

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Account fees

This category evaluates important account fees, including outgoing account transfer fees, outgoing wire transfer fees and margin rates.

Full outgoing ACATS fee

If an investor can transfer their account to another broker or advisor, the provider earns the highest score. If the platform charges an outgoing ACATS fee or $101 or more, it earns the lowest score.

★★★★★ 5/5 — $0

★★★★★ 4/5 — $1–$75

★★★★★ 3/5 — $76–$100

★★★★★ 2/5 — $101 or more

★★★★★ 1/5 — N/A

Outgoing wire transfer fee

If a provider charges no fee for an outgoing wire transfer, it earns the highest score. If the platform charges an outgoing wire transfer fee of $15 or more, it earns the lowest score.

★★★★★ 5/5 — $0

★★★★★ 4/5 — $1–$15

★★★★★ 3/5 — $16 or more

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Margin rates

If a provider charges margin rates of less than 10%, it earns the highest score. If the platform charges margin rates of 10% or more, it earns the lowest score.

★★★★★ 5/5 — Less than 10%

★★★★★ 4/5 — More than 10%

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Account types and signup process

This category assesses available account types and the signup process to start indexing.

Individual brokerage accounts

If a provider offers individual brokerage accounts, it earns the highest score. If the provider doesn’t offer individual brokerage accounts, it earns the lowest score.

★★★★★ 5/5 — N/A

★★★★★ 4/5 — N/A

★★★★★ 3/5 — Yes

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Joint brokerage accounts

If a provider offers joint brokerage accounts, it earns the highest score. If the provider doesn’t offer joint brokerage accounts, it earns the lowest score.

★★★★★ 5/5 — N/A

★★★★★ 4/5 — N/A

★★★★★ 3/5 — Yes

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Trust brokerage accounts

If a provider offers trust brokerage accounts, it earns the highest score. If the provider doesn’t offer trust brokerage accounts, it earns the lowest score.

★★★★★ 5/5 — N/A

★★★★★ 4/5 — N/A

★★★★★ 3/5 — Yes

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Business brokerage accounts

If a provider offers business brokerage accounts, it earns the highest score. If the provider doesn’t offer business brokerage accounts, it earns the lowest score.

★★★★★ 5/5 — N/A

★★★★★ 4/5 — N/A

★★★★★ 3/5 — Yes

★★★★★ 2/5 — N/A

★★★★★ 1/5 — No

Signup process

If a customer can sign up for direct indexing online themselves, the provider earns the highest score. If a customer must submit a contact form or call to speak with a representative to open an account, the provider earns the lowest score.

★★★★★ 5/5 — Customers can sign up online themselves

★★★★★ 4/5 — N/A

★★★★★ 3/5 — Customers must submit a contact form and wait to be contacted or must call to sign up

★★★★★ 2/5 — N/A

★★★★★ 1/5 — N/A

Mobile app rating and security

This category analyzes a mobile app’s security measures and user reviews and ratings.

Security measures

If a broker offers two-factor authentication (2FA), it earns the highest score. If a platform doesn’t offer 2FA, it earns the lowest rating.

★★★★★ 5/5 — Offers 2FA

★★★★★ 4/5 — N/A

★★★★★ 3/5 — N/A

★★★★★ 2/5 — N/A

★★★★★ 1/5 — Doesn’t offer 2FA

App store ratings

We take the average of the broker’s ratings across the Apple App Store and Google Play App Store to calculate a final score.

Cash account

This category assesses the annual percentage yield (APY) offered through the provider’s cash account or equivalent cash savings account that offers immediate access to cash balances. If a provider offers an APY of over 5%, with automatic sweeps and no additional account needed, it earns the highest score. If a provider doesn’t offer a cash account, it earns the lowest score.

★★★★★ 5/5 — Offers an APY of over 5% on uninvested cash, with automatic sweeps and no additional account needed

★★★★★ 4/5 — Offers an APY of over 5% on uninvested cash but may require the customer to sign up with a separate product

★★★★★ 3/5 — Offers an APY of between 1% and 5% on uninvested cash and may require the customer to sign up with a separate product

★★★★★ 2/5 — Offers an APY of less than 1% on uninvested cash

★★★★★ 1/5 — Doesn’t offer a cash account

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