Wells Fargo Advisors Review
If you are in search of a brokerage firm with a straightforward, low-cost investing platform, you should consider adding Wells Fargo to your list of candidates. The firm is registered as both a broker-dealer and an investment advisory, competing in a market with other big banks as well as a growing group of smaller brokerages.
Wells Fargo offers three types of investing plans, each providing users with access to online research, commentary, and guidance from their esteemed affiliate, Wells Fargo Investment Institute.
Wells Fargo Intuitive Investor
Similar to many other banks with brokerages, Wells Fargo’s online investing platform features a robo-advisor that can actively manage a client’s portfolio. The feature is part of the firm’s Intuitive Investor program, and it incorporates technology that monitors client investments and rebalances them as necessary in order to maintain the portfolio’s target asset allocation. The platform is designed to be user-friendly and accessible to investors of all experience levels, with a focus on providing personalized recommendations and guidance based on the user's financial goals and risk tolerance.
In order for the robo-advisor to tailor a portfolio to meet an individual’s financial goals, prospective clients create an investment profile with Wells Fargo. By answering a series of questions about their investment goals, risk tolerance, and time horizon, the program recommends a portfolio that best fits the needs of the client.
Intuitive Investor is not only eligible to individuals, other account types offered include joint accounts, trust accounts, and custodial accounts (UGMA/UTMA). Additionally, clients who open retirement accounts such as a Roth IRA, Traditional IRA, SEP IRA, Inherited Roth IRA, and Inherited Traditional IRA can also take advantage of this plan.
Wells Fargo offers nine model portfolios to select from, consisting of a broad range of ETFs from several well-known firms, including Vanguard, Goldman Sachs, and Blackrock’s iShares. The portfolio structures are geared toward the individual’s specific investing goals, and comprise of structures for both income and growth:
- Conservative Income - 20% stocks / 78% bonds / 2% cash
- Moderate Income - 31% stocks / 67% bonds / 2% cash
- Aggressive Income - 39% stocks / 59% bonds / 2% cash
- Conservative Growth and Income - 48% stocks / 50% bonds / 2% cash
- Moderate Growth and Income - 57% stocks / 41% bonds / 2% cash
- Aggressive Growth and Income - 65% stocks / 33% bonds / 2% cash
- Conservative Growth - 76% stocks / 22% bonds / 2% cash
- Moderate Growth - 84% stocks / 14% bonds / 2% cash
- Aggressive Growth - 93% stocks / 5% bonds / 2% cash
Once a client selects a model portfolio, they are given the option to choose between two investment styles to help strategize their positions: Globally Diversified, and Sustainability Focused. Globally Diversified portfolios offer a combination of low-cost investment strategies that include both domestic and foreign markets. Sustainability Focused portfolios feature a mix of low-cost globally diversified investment strategies, while also incorporating environmental, social, and governance (ESG) factors into investing decisions. It is important to note that financial plans are provided on a one-time basis and do not include ongoing advice.
The plan also has an optional tax-loss harvesting feature, which assists in lowering a client’s tax liabilities by selling some of their holdings at a loss - limiting the recognition of short term capital gains. Additionally, Intuitive Investor added a smart beta ETF component, whose goal is to provide higher returns than market indexes by taking on greater risk, while considering value, momentum, and volatility. Clients are also provided with a 24/7 phone-based team of advisors to answer any questions they have about portfolio performance.
Intuitive Investor Fees
The Intuitive Investor program has an annual advisor fee of 0.35% - which is typically steeper than Wells Fargo’s competitors - and has a $500 minimum account requirement. However, the advisor fee lowers to 0.30% when linked to a Wells Fargo Prime Checking account, and 0.25% when linked to a Wells Fargo Premier Checking or Private Bank Interest Checking account. It is worth noting that advisor fees are billed on a quarterly basis, based upon the account value on the last day of the prior quarter.
What if I just want to invest and trade by myself?
For individuals looking to manage their own portfolios as they see fit, Wells Fargo offers WellsTrade as a self-directed investing and trading platform. The program provides clients with market news, research, and stock screeners to assist in building their portfolios. WellsTrade can be used for regular trading accounts, as well as IRAs and Educational Savings Accounts. Additionally, clients have the ability to invest in mutual funds and ETFs, as well as government, corporate, and municipal bonds. The user interface features all of the basic essentials for trading, but compared to other advanced applications it can seem bland. WellsTrade does not support futures options, crypto, or forex trading, which are areas that other brokerages have capitalized on to attract new users.
Active traders are probably better off using other platforms, as options trading incurs a charge
of 0.65% per contract. Unlike other brokers on the market, users of WellsTrade aren’t able to
purchase fractional shares of a stock, so lower-net-worth individuals may find this as a barrier to
investing with Wells Fargo.
Investors with a Wells Fargo Banking account can seamlessly transfer funds into a WellsTrade account, and can view a snapshot of their balances on the bank’s website/mobile app home screen. Individuals who prefer a consolidated view of their financials can appreciate this feature, as it conveniently summarizes their assets in a neat manner.
WellsTrade Fees
Wells Fargo charges a Household Annual Fee of $30 for the WellsTrade program. However, clients can easily avoid this fee in a variety of ways. These include enrolling in electronic delivery for statements, having $250,000 or more in household balances, or linkage to a Wells Fargo checking account. Commission rates are $0 for trading stocks and ETFs online, while trades placed over the phone with an agent incur a $25 agent-assisted fee. There are no account minimums required to enroll in WellsTrade.
Dedicated Financial Advisor
Another program offered by WellsFargo is the opportunity to work one-on-one with a financial advisor. Clients can meet with their financial advisor to discuss investment strategy, recommendations, and obtain guidance specific to their needs and goals. During these meetings, members should bring up any life events, outstanding debts, and plans for retirement.
The program also seeks to educate clients by providing resources from Wells Fargo Investment Institute, distributing publications to help investors build their financial acumen, and offering periodic client education calls.
Wells Fargo suggests that clients meet with their Financial Advisor annually (at a minimum) to review their financial situation, investment performance, and discuss any changes in goals. Other than investing and wealth accumulation, specific areas that a client can plan with their Financial Advisor include insurance, healthcare, and estate planning strategies.
Wells Fargo Financial Advisor Fees
The payment structure for the plan is dependent on the service that the client uses, as the program provides both investment advisory and brokerage services. For investment advisory, clients pay a percentage of assets held in their account, while for brokerage sales, clients are charged based on a commission or sales charge for each transaction. Exact fee amounts vary, and are agreed upon beforehand between the client and their advisor.
Find a Financial Advisor
If you are looking for a professional money management service in your area, you can
find a Financial Advisor on the Wiser Advisor
(or read
Wiser Advisor review).
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Wells Fargo Advisors Review Recommendations
Individuals that would be the best fit for enrollment in Wells Fargo’s investing platform are:
- Current Wells Fargo banking clients. They can seamlessly transfer funds between banking and investing accounts, as well as view an all-in-one snapshot of their assets. Linking accounts may also allow for lower advisory fees, depending on the client’s plan of choice.
- Investors that are looking for a simple platform to buy and hold stocks.
- Each of Wells Fargo’s three investing plans are relatively basic and bare bones when compared to
competitors. While trading is easy within the online and mobile applications,
active traders will feel more at home using other brokerages with modern designs and sleek features.
Updated on 6/26/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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