In this Domain Money review, we’re going to be discussing the new platform that’s rocking the investing world.
If you’re looking for an ultra-secure, all-in-one platform that will expose you to some exciting investments, then read on!
What Is Domain Money?
Domain Money is a new stock and cryptocurrency investment platform that aims to make investing easier for its users while focusing on top-notch security.
Domain Money is partly a robo-advisor, as it has a collection of four different actively managed strategies for you to choose from.
Is Domain Money a Robo-Advisor?
Well, kind of.
Domain Money takes the best part of a robo-advisor but still lets you have control over your exact level of risk exposure.
Domain has a set of four premade strategies for you to choose from.
These strategies center on a mix of stocks and crypto, ranging from almost 100% stocks on the conservative side to 100% crypto on the aggressive side.
You can invest in multiple strategies at once, and change the amount you have invested in each strategy to adjust your asset allocation.
You cannot, however, make your own strategy or invest in individual stocks or cryptocurrencies.
So, let’s say you wanted to invest in a Domain strategy that is part stocks and part crypto, but the Balanced strategy is too risky for you and the Access strategy is too conservative for you.
You could put some of your money into Balanced and some of your money into Access and you’ll end up with an asset mix that is more than 20% but less than 50% crypto!
Domain Money Features
Investment Strategies is Domain Money’s investing feature that includes four preset portfolios for you to choose from.
The portfolios aim to give investors a solid mix between stocks and cryptocurrency.
The strategy options are:
Domain Edge is a portfolio made up of 100% cryptocurrency. This is considered the “aggressive” portfolio.
This strategy is 50% stocks, 50% cryptocurrencies.
Domain Access is the “conservative” strategy, as it is 80% stocks and 20% cryptocurrencies.
The Domain Metaverse strategy is more than just an asset allocation prescription. It’s a portfolio focused around the Metaverse that exposes you to different companies and tools that are integral to the Metaverse. Given how popular the concepts of NFTs and the Metaverse are right now, this strategy is especially hot.
Domain Money is planning on releasing a cryptocurrency rewards credit card for its users.
While we don’t have a ton of information yet, it looks like the Domain Money Crypto Rewards Credit Card will grant you cash back that you can use to invest in crypto or buy some other type of reward.
The card will sync with your Domain Money account and make spending and investing seamless.
Domain Money’s margin program is another yet-to-be-released feature, but one we’re really looking forward to.
The Borrow feature will let you borrow up to 40% of the value of your portfolio and charge you a 7% APR.
If you need a refresher on investing using margin, check out our article on How to Use Debt to Your Advantage.
Is Domain Money Safe?
You might be worried about trusting a newer platform with your money since it hasn’t had the chance to prove itself yet.
But we can assure you that even though the platform is new, Domain Money is safe!
First of all, the Domain Money team is made up of industry experts who have worked for Goldman Sachs, Morgan Stanley, Bridgewater Associates, and more.
Any money that you invest on Domain Money will be insured by the SIPC, and any cash in your account is insured by the FDIC.
Your cryptocurrency is kept in cold storage (offline) and locked up securely, and any assets that are held in hot storage (online) are insured.
On top of all this insurance, Domain Money adheres to the highest security standards, such as biometric authentication, compliance with security regulations, and limited access to customer data.
Domain Money Fees
Investment Strategies Fees
If you open up an Investment Strategies account, you’ll be paying an annual management fee of 1% of AUM, or assets under management.
This means that you’ll pay $1 per year for every $100 in your portfolio.
Domain Money does not charge commissions for stock trades made in your Investment Strategies portfolio.
But for crypto trades, there is a 1.49% transaction fee for every trade.
You’ll also have to pay a network fee whenever you withdraw crypto from your account, but this fee goes to the network providing the cryptocurrency, not to Domain Money.
Domain Borrow Fees
The upcoming Borrow feature will have a 7% APR charged on borrowed money for investing on margin.
Who Is Domain Money For?
Domain Money is for:
While Domain does offer you some control over the amount of risk in your portfolio, none of its strategies would be considered “low risk.”
In fact, the least risky strategy offered is the Domain Access strategy, which is 80% stocks and 20% crypto.
That’s a whole lot riskier than your typical “conservative” portfolio, which is usually made up of 50% or more bonds and the rest stocks and cash.
So, if you’re looking for a more exciting portfolio to help you take some risks in the pursuit of some big rewards, then Domain Money might be just the platform for you.
But we wouldn’t recommend jumping into a portfolio that risky if you’re closer to retirement or planning on making a big withdrawal soon.
Investors who want a little help.
If you don’t have the experience, time, or interest to completely build your own portfolio from the ground up, but you still want to have a say in where your money is going, Domain Money could be a great choice for you.
You basically get to tell Domain how risky you want to be, and they’ll take it from there and do the work for you!
Domain Money is not for:
Investors who want complete control over their portfolios.
Domain gives you more control over your investments than a typical robo-advisor would, allowing you to mix and match strategies at your own discretion.
But you still have to choose from their preset strategies and you can’t choose individual securities to add to your portfolio.
If you’re looking for a platform for long-term investors that gives you complete control over your portfolio without any of the robo-advisor help, we recommend M1 Finance.
Is Domain Money Worth It?
Domain Money has the potential to be a real trendsetter in the investing world.
Its seamless integration of stocks, crypto, banking, and spending could be a hit for users who want to be able to manage their money all in one place.
The only concern we have is the management fee.
1% is not a horribly high fee, but it seems to be a bit much given that it doesn’t come with a human advisor or financial advice.
The Investment Strategies portfolios are actively managed, though, which is probably where that higher fee comes from.
So as long as those actively managed portfolios are performing well, then Domain Money is worth it!
We hope this Domain Money review gave you all the information you need to know about the platform.
While Domain Money might not be the perfecting investing tool for everyone, it’s perfect for those investors who want to take on a little risk and gain exposure to some more modern assets!