Why is Honest Dollar so cheap? How do you make money?

Transparency is one of our core tenets. Honest Dollar charges a “wrap” fee, which is currently structured as a single per-user fee that covers most investment expenses that are typically paid by investors, such as: retirement account establishment/maintenance expenses, investment advisory fees, and brokerage fee.  Expenses that are excluded from the wrap fee and for which you are independently responsible are listed in the Investment Advisory Agreement and include, for example, underlying ETF fees and certain fees for ancillary services.      

Because we charge a flat dollar fee that does not vary based on the size of your account, the overall fee may be disproportionately high relative to the value of your account.

You should understand that our advisory program was designed with frequent investing in mind and the fee structure may not be economical or appropriate for individuals looking to make few or infrequent small-dollar investments.  In addition to our fee, you may incur certain third-party costs, such as custodian fees and ETF manager fees.  Please refer to the Wrap Fee Brochure and the Investment Advisory Agreement for additional information about these costs.