Launched in 2012, Motif Investing allows you to put your money into ideas without a lot of hassle or expense. Similar in some ways to ETFs, “motifs” are groups of up to 30 securities – usually researched and assembled by Motif staff – that are arranged around a theme, like small-cap stocks or companies involved with elder care. The brokerage also offers a selection of fixed-income motifs, like Corporate Bonds and California Munis. There are almost 100 motifs to choose from, and you can trade each for only $9.95, as much as one stock trade with a firm like E*Trade.

How Do Motifs Work?

Motif Investing sets itself apart from other brokerages – and motifs from other investment vehicles, like ETFs – in the level of power they give customers. The securities in every motif are weighted by the motif’s creator. However, before you purchase one, you can customize it, adding or deleting stocks and changing their weights. You can also backtest the performance of your new motif before you buy. If one of your individual securities tanks later, you can sell it, and replace it with something else, for $4.95 a trade. The firm also rebalances their motifs quarterly; updates run $9.95 each.

If you’d prefer even more control, you can design your own themed motif for the brokerage’s catalog. When other customers purchase or re-balance it, you’ll receive royalties. And if that’s not enough, Motif is home to a burgeoning investor community. You’re encouraged to comment on each motif, offering a bullish or bearish rating and reasoning for your decision. You can also form a “circle” with other users – as on Facebook or Google+ – to share your investing ideas more privately.

How Does Motif Stack Up to the Competition?

Motif isn’t the only brokerage trying to attract younger investors by embracing some aspects of social media. Brokerage firms such as TradeKing and eToro are striving to create active user communities in addition to advanced trading tools.

While Motif doesn’t offer the trading tools and research opportunities of some traditional brokerages, Motif does offer investors the opportunity to essentially create their own ETFs. This can be an amazing opportunity for long term investors, though motifs require an initial investment of at least $250, which might be prohibitive for some beginners.

What’s the Catch?

Like all brokerages, Motif provides its customers a lot of options but cant make tell them which are the best investment decisions. This is why Motif provides research on each security – this includes the market cap, dividend yield, P/E ratio and performance over the past month and year – as well as a chart, comparing the performance of the motif to the S&P 500. In addition, the site has educational resources to help inexperienced investors get started, though investors are responsible for taking the time to learn everything themselves. For example, when exploring motifs, you’re greeted with the fund’s one month return, which investors should know doesn’t mean much in isolation.

And while Motif certainly has a great variety of options in terms of how to invest, it still can’t compete with the big names in overall selection of financial products. The firm offers a limited number of securities and investment vehicles. You can set up a joint or individual brokerage account, or a Traditional, Roth or rollover IRA. If you’re looking for banking services or DRIPs, you’re out of luck, though you can trade via a mobile app.

Who Should Sign Up?

Motif definitely isn’t a one-stop shop for all of your investing and research needs. That said, the brokerage’s investment minimums make starting a long-term portfolio more manageable than going directly through, say, Vanguard. And Motif’s unique structure allows you to cash in on hot, money-making trends as an exciting supplement to your core investments.

In addition, Motif is currently offering investors the chance to make up to $150 just for trading with Motif. New accounts funded with at least $2,000 are eligible, and you make more money by making more trades. One trade within the first 45 days of opening the account gets you $50, three trades gets you $75, and five trades gets you $150.

Interested investors can learn more and sign up  for Motif Investing here.