There are a number of online brokers out there that provide you with the chance to invest on your own at a reasonable price. One of the more novel brokerages is Motif Investing, a discount brokerage that helps you invest based on themes. Its like building your own mini-ETF.

Recently Motif ranked number four of CNBCs Disruptor 50 in changing the investing landscape. This review has been updated for 2015.

Themed Investing with Motif Investing

CEO Hardeep Walia states Motif Investing is like combining the investment experience of Peter Lynch with the diversification of Jack Bogle. You invest in groups of investments that share similar characteristics. Each motif features between 20 to 30 stocks or ETFs that can be said to follow specific themes, such as Healthy and Tasty, Utility Bills, Recession Resistant, and Biotech Breakthroughs.

There is even a Lots of Likes motif that focuses on companies with the most Likes on Facebook. Its an interesting twist on the theme of asset allocation, since you can choose from a number of different asset classes to create a one-of-a-kind portfolio.

You can look through motifs using different criteria, such as exploring by industry or looking for motifs based on current events. Its also possible to screen motifs by looking at daily change, one year return, and popularity. The screener allows you the chance to really find just what youre looking for.

Motif is quite cost-efficient as well. You get access to each of the stocks in the motif for one flat fee of $9.95 per transaction. No matter how much you customize a motif. There are no management fees, and no activity requirements. However, the fact that you can get 30 stocks or ETFs at once, for less than $10, is a big deal. Any time you trade a motif, you just pay the flat transaction fee.

If you want to buy more of a particular stock or ETF in one motif, without purchasing another entire motif, you will pay $4.95 for each. The same is true if you decide to sell shares of an individual stock or ETF inside a Motif. The cost is $4.95 per stock/ETF.

Theres no deposit amount required to open an account with Motif Investing, but you need to at least deposit $250 to make a trade. If you want to trade on margin, you will need to maintain a minimum balance of $2,000. Motif Investing is a FINRA member and SIPC insured.

Customizing Your Motif

What if you dont like all of the stocks offered in your motif? The company allows you to customize your motifs. The company allows you to customize your motifs before you buy. After you buy your Motif, you can add more stocks/ETFs, or sell the shares you dont want.

If you like a general motif, but want to customize what is included, its possible to tweak matters to your liking. Recession Resistant offers some solid dividend paying stocks, and you can switch some of the stocks you dont like with the dividend aristocrats that you prefer if you are trying to build a dividend portfolio. Currently there is no way to automatically reinvest your cash, so if you do receive dividends in your account, you will have to reinvest them on your own.

On top of that, you can also customize the weighting in your motif. That way, you can switch up how your money is distributed throughout the motif, as well as purchase fractional shares. This gives you a little more control over how your overall portfolio looks, and it can provide you with just what you need to reach your investing goals.

There are a lot of interesting options for your money with motifs. It is a little clunky if you are trying to customize, but it still works reasonably well. And, of course, one of the big selling points is the cost. You can essentially create your own customized ETF, but you dont have a management fee to pay (even a small one); you just pay your flat rate for trades.

Another unique feature of Motif Investing is the ability to create your own custom motif, and can share with others. If individuals use your motif, you will get a royalty commission. So not only can you show off your investing expertise with others, but can make money doing so. Every time someone purchases or rebalances a motif youve built from scratch, you will get $1. Granted you wont make bank from doing this but still a neat feature of their service.

Horizon Motifs

Motif Investing recently introduced commission-free Horizon Motifs. So with these motifs you do not pay the $9.95 commission. These motifs are similar to retirement target date funds.

All you do is select the time horizon and Motif Investing does the rest. If anything they are now more like the robo-advisors Betterment, Wealthfront and FutureAdvisor where you are letting service automatically create your asset allocation. Target date fund asset allocation do have their issues, but does open up Motif to a much wider audience of investors.

Grow Your Dough Challenge

For 2015 I have joined in with nineteen others for the Motif Investing Grow Your Dough Challenge. This contest not only is to compete against other personal finance bloggers, but also kick the tires more with Motif Investing. The contest is until Thursday December 31, 2015. Each competitor is required to construct and maintain a motif with a maximum of 30 positions. The motif can be constructed using any tradable security supported by the motif platform. Each competitor may place up to six rebalance trades throughout the contest. At the time of this updated review, my motif is third place.

Motif Investing Promotion

Get up to $150 when you open a new account with $2,000. It is currently one of the best cash promotions available. If you are interested in a 7.5% ROI in 50 days, you can sign up for a special offer from Motif: Fund your shiny new account with $2,000, and get up to $150.

The new funds must be deposited into the account within 10 calendar days of creating the account. The total bonus will be based on motif trades made within 45 calendar days of funding as follows: one motif trade will receive $50, three motif trades will receive $75; five motif trades will receive $150.

A motif trade is defined as a completed purchase or sale of a motif for $9.95 commission. Individual stock trades are not included with this promotion.

What I Like About Motif Investing

• Easy way to Diversify Great service to diversify into specific sectors and investment ideas
• Low Cost Trades Its $9.99 per motif trade
• Custom Motifs Can use the pre-made motifs, or roll your own. You can then get paid for each customer who uses your publicly created motif

What I Don’t Like About Motif Investing

• No Automatic Dividend Reinvestments Currently Motif will not automatically reinvest dividends
• Lacking Social Features Features are missing in the social section like the ability to search

Summary

Overall, Motif is great way to invest, and a unique service in the traditional brokerage firm space.

Motif Investing is especially helpful for those who are looking to invest in trends, or who want to exposure to a particular sector.

The pricing is very competitive, and tax efficient (if you dont trade stocks in and out of your motif). Its a great way to diversify with small amounts of money to invest. Its nice that you can customize your motif, so you arent limited to pre-created motifs.

Currently the only disadvantage of Motifs service is the lack of automatic dividend reinvestment, so I would not recommend the service for any dividend stocks.

Disclosure: I have an account with Motif Investing for reviewing purposes, and have $2,600 invested.

Readers: What do you think of Motif Investing theme concept?