Terrific question. Cutting unnecessary fees out of people's portfolios is a huge driver behind why we offer SigFig Asset Manager.
Turns out, 90% of fees are avoidable. The typical American’s portfolio is $200,000 smaller than it should be at retirement, simply because of high fees. We point out where you’re paying too much in fees.
We don't charge commission, transaction or trade fees. The funds we buy and rebalance with also don't have trading commissions.
Each of the underlying ETFs charge a management fee (commonly called an expense-ratio) and those fees are deducted directly from the fund. Our average expense ratio on the funds we user is well below industry average (0.15%).
When you first get started, there may be transaction fees at your broker for removing positions you are currently holding. We review these potential fees when making our initial portfolio rebalancing and may continue to hold certain positions where the fee to trade is high relative to the value of the position.