Investment Advisor

Low Cost Fees

Costs matter. The more you pay in investment expenses, the less you make in return. We have one of the lowest fee structures among investment advisers and while you're paying us a fee, we're teaching you how to invest yourself by using our online financial advisor software so that you can eventually fire us!

Total Investment Cost

With MarketRiders your total investment costs include our low adviser fees, expense ratios in proposed ETFs, trading costs and any administrative charges that may occur. An overview of total investment costs will reassure you that our clients' expenses are some of the lowest in the industry. Not only can you believe us, but you can see it for yourself as we believe in providing you total cost information with every proposal as evidence of our belief in complete transparency.

0.5% Annual Management Fee with a Cap

Our fee schedule is structured so that assets under management (AUM) are charged 0.5% per year for assets up to $10 million and 0% on any assets over $10 million, per client relationship.

The minimum fee is $625 per quarter, or $2500 annually. Basically, our clients with assets less than $500,000 are charged the fixed amount of $625 per quarter rather than the 0.5% annualized rate. For your protection, we reserve the right not to accept an account if the $625 quarterly fixed fee seems excessive, i.e. if this fee is more than 0.9% annualized, based on the value of the portfolio.

We calculate our advisory fees as a percentage of AUM, based on average daily balances from the three months prior for each Client Relationship. Client Relationships include a Client and; (a) a spouse or domestic partner; (b) any minor children; (c) business or non-business entity over the individual and/or other person defined in (a) above exercises control; and (d) trust to which the individual and/or others as defined in the (a) above is the sole trustee. MarketRiders has right to limit the Client Relationship portfolio aggregation policy where the circumstances warrant.

Fund Expenses

Client accounts contain exchange-traded funds (ETFs) which have their own expenses not related to MarketRiders management fees. All ETFs have an Expense Ratio, or operating costs, listed in the prospectus. Typically, selected funds have exceptionally low expense ratios which are generally 80% lower than what you'll be charged for mutual funds or managed accounts. Annual average expense ratios are approximately 0.17%. MarketRiders does not receive compensation from fund companies and we never prefer one fund company over another. Our aim is choosing quality low-cost funds to represent each asset class.

Trading Costs

Charles Schwab Institutional serves as custodian of Client accounts. Schwab receives a commission for any transactions within the accounts. Per trade, the typical commission cost is approximately $15, but total commission fees depend on the frequency and type of securities traded. Annual commission fees payable to Schwab will generally be a few hundred dollars, although MarketRiders may negotiate trading costs with Schwab in order to obtain the best outcome for all Clients. MarketRiders does not receive compensation from commissions and only performs trades to hold to predefined investment strategies.

Examples of Total Cost

Below you'll find a sample of total costs including portfolio management fees, fund expenses and commissions. This sample is similar to what you will receive with each investment portfolio.

In this portfolio, the MarketRiders Asset Management fee is either the monthly minimum fee of $2,500 or 0.5% of your account assets. Add 0.17% as the estimated ETF fund fees for the average MarketRiders portfolio. Rebalancing costs are figured by looking across our portfolios and determining that an average of 12 ETFs per account is typical. We then figure that each ETF will need to be balanced 4 times a year with an average fee of $10 - $12 per transaction.



Please read the MarketRiders ADV Part II (PDF file will download) for more information.