Domain Money Review – Crypto and Stock Investment Portfolios

Actively Managed Crypto Portfolios and Self-Directed Investing

If you’re excited about cryptocurrency and want to include stocks and digital currency in your investment portfolio, then Domain Money might be for you. In this Domain Money review we’ll delve into the four Domain Money portfolios, their investments, and provide you with the information to decide if this investment mobile app and desktop platform are for you.

*Disclosure: Please note that this article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link.

Domain Money offers both self-directed investing in stocks and ETFs as well as actively-managed crypto and stock portfolios. So, it’s worth a look for investors comfortable with risk and those shopping around for an investment app. The Domain Money app was founded by Adam Dell, creator of the Clarity Money App which was later acquired by Goldman Sachs.

Domain Money Review

domain money review

Name: Domain Money Review

Description: Investment app for actively managed crypto and stock portfolios.

  • Fees

    (3)

  • Investment Choices

    (3)

  • Ease of Use

    (4.5)

  • Tool & Resources

    (3)

3.4

Summary

Domain Money is an investment app best for:

  • Investors seeking stock and crypto portfolios
  • Investors striving to outperform the market

Pros

  • Actively managed crypto and stock portfolios
  • Great customer service

Cons

  • 1% management fee higher than other robo-advisors
  • Limited investment types

What is Domain Money?

Domain Money distinguishes itself from other money apps with a new take on investing, combining crypto and stock within one managed portfolio. 

Domain Money is an investing app (available from the Google Play Store and the Apple App Store) and desktop investment platform for those who prefer actively managed portfolios and self-directed investing over passive strategies. It has marketed itself more toward crypto investing but a Domain Money account actually gives you access to both stock and crypto portfolios. The Domain Money team is nonetheless offering more crypto incentives than stock incentives, so those looking for free stocks upon signup you might be better off with Webull or Robinhood.

However, if you are into cryptocurrency and want an actively managed portfolio, Domain Money is worth a look. Soon, Domain Money is launching a credit card with crypto rewards and margin-borrowing of up to 40% of your portfolio value.

Domain Money Highlights

  • Invest in up to five different actively managed crypto, stock and blended portfolios.
  • Access to 4,000+ stocks and ETFs, and 49 cryptocurrencies, all in one account.
  • Can borrow up to 40% against your account.
  • Low minimum investment.
  • Signals and metrics used in picking investments (e.g., social sentiment).
  • Crypto lending; earn interest when you make your coins available for borrowing.
  • No lock-up period; cash withdrawals available within several days.
  • Crypto rewards credit card. (coming soon)

How Domain Money Works

The Domain Money sign up process is similar to robo-advisor platforms and includes a questionnaire about your financial goals and risk tolerance. Your answers to the questionnaire help the investment platform determines your designated “Domain Strategy” and creates a portfolio with a balanced risk/reward, suitable for you.

Domain Money asks that you update your personal information and investment goals when they change to a significant degree to keep your Domain Strategy in alignment with your risk tolerance. It should be noted that Domain Money maintains that all of its Domain Strategies are considered speculative. Thus, Domain Money might be for you if you:

  • Are comfortable with risk and portfolio volatility.
  • Value capital growth over income.
  • Prefer a professionally managed portfolio with exposure to both crypto and stocks.

If you’re seeking an investment vehicle with access to more conservative strategies, you might take our robo advisor quiz to find another investment management solution.

Features at a Glance

FeaturesDomain Money
Overview

Actively managed investment portfolios of stocks and crypto currencies. 

Minimum Investment$5 – Stock, ETF and crypto investing
$100 – $500 – Crypto and stock managed portfolios
Top FeaturesActively managed crypto and stock portfolios
Rebalancing
Self directed trading – crypto, cash and ETF
Fee StructureManaged portfolios – 1.0% AUM
Stock and ETF investing – $0.00
Crypto investing – 1.5% per trade


InvestmentsStocks
ETFs
40 Digital Coins
Contact & Investing AdviceEmail
In app message
WebsiteVisit Domain Money Now

Pros and Cons

As with any investment platform, Domain Money has its advantages and disadvantages. Weigh them properly before deciding whether this platform is right for you.

Pros

  • Actively managed portfolios that focus on balancing crypto with traditional assets.
  • Multiple fund choices, matched to your personal investment goals, financial standing and risk tolerance.
  • Rebalancing and portfolio management.
  • Great for diversification if you’re engaging in self-directed trading, as you have access to stock trading, ETFs, and crypto asset classes all in one account
  • Fast, responsive customer support

Cons

  • Limited assets – no mutual funds
  • Limited account type – Individual brokerage account only
  • No viable investment options for conservative investors

Who is Domain Money Best for?

Domain Money’s major draw is its actively-managed portfolios. Domain Money is appropriate if you want a stock plus cryptocurrency professionally managed portfolio and are comfortable with risk or volatility.

Even if you don’t want to employ the actively managed investment strategies Domain Money offers, the platform could still be a good choice if you’re looking for access to both stock trading and crypto. Investors with $100 to $500 receive professional investment management and commission-free trading for stocks and ETFs. The crypto investments, through the Gemini platform cost approximately 1.5% per trade, a bit above average.

However, there are some caveats: Domain Money says itself that its portfolios are designed for long-term growth. But potential investors should be aware that Domain Money portfolios are of higher volatility than the standard portfolio described as “designed for long-term growth.” In other words, anyone interested in investing via Domain Money’s actively managed portfolios should be able to handle high volatility investing. In other words, expect large swings in your capital over the course of your investment.

If you can accept the volatility, Domain Money’s portfolios might be attractive to an investor looking for actively managed investment strategies that include crypto assets and stocks. Smaller investors, will appreciate the opportunity to pay a flat 1% management fee, and not higher fees charged by traditional financial advisors and hedge funds.

Investing Strategy

Domain Money’s actively managed portfolios come in five flavors and are suitable for different types of investors.

Domain Core

Domain Core stock portfolio
Domain Money Core Portfolio

The “flagship” Domain Strategy, Domain Core is for growth-seeking investors who want an all stock mid- and large-cap growth portfolio. The 20 to 40 stocks within Core have meaningful growth prospects, competitive advantages and an expectation to outperform the S&P 500 over the long term.

  • Minimum investment: $500
  • Management fee: 1% AUM

Domain Balanced

Domain Balanced stock and crypto portfolio
Domain Money Balanced Portfolio

As the name implies, the balanced strategy weights stocks and crypto equally. The stocks are similar to those in the Domain Core strategy – many focused on tech innovation. The crypto assets include established and up and coming coins.

  • Minimum investment: $500
  • Management fee: 1% AUM

Domain Access

Domain Access portfolio with 80% stocks and 20% crypto
Domain Money Access

Domain Access weights the stocks more than the crypto and is a bit more conservative than the Domain Balanced portfolio. Domain Access holds 80% equities and 20% cryptocurrencies, essentially toning down the crypto exposure from the Balanced portfolio.

  • Minimum investment: $500
  • Management fee: 1% AUM

Domain Edge

Domain Edge - 100% crypto portfolio
Domain Money Edge

Domain Edge is an actively managed 100% cryptocurrency portfolio. This portfolio is highly aggressive and provides access to approximately 10 to 20 digital assets, and thus it’s rather diversified within the crypto sector.

  • Minimum investment: $100
  • Management fee: 1% AUM

Domain Metaverse

Domain Metaverse - crypto and stocks from companies dominating the metaverse
Domain Money Metaverse

The metaverse is one of the hottest speculative sectors at the moment. The Domain Metaverse strategy invests in 10 to 20 metaverse-exposed stocks and the same number of cryptocurrencies to address the demand for investment in this burgeoning idea. The investments span those that support the metaverse and related areas such as blockchain, data storage, virtual and augmented reality, and computing resources. This narrowly focused portfolio is likely second in riskiness to the all-crypto Domain Edge.

  • Minimum investment: $500
  • Management fee: 1% AUM

Self-Directed Investing

Domain Money also offers users the opportunity to trade thousands of stocks and ETFs as well as approximately 40 cryptocurrencies.

Currently, Domain is the only investment platform that offers actively managed crypto and stock portfolios as well as self-directed stock, ETF and crypto trading. Although M1 Finance offers both managed portfolios and individual stock and ETF trading.

Minimums and Fees

There are no minimums to open an account.

Minimums

Domain Strategy managed portfolio minimums:

The Domain Edge Strategy – $100
All other Strategies: Core, Balanced, Metaverse, Access – $500

The self-directed account minimum – $0.00

  • ACH transfers from your external bank to the Domain Money Cash Account have a $5 minimum.
  • Orders of crypto, stocks, and ETFs have a $5 minimum.

Fees

  • Management fee for Domain Strategy portfolios: 1% AUM
  • Trade Stocks and ETFs: Free
  • Trade Cryptocurrency: 1.5% per transaction
  • Performance fee: 0%

Domain’s Management Fee doesn’t include transaction and custodial fees, expenses, costs and other
amounts that might be charged by Apex and Gemini.

Account Types

Domain money offers an individual taxable brokerage account. At present, they do not support joint brokerage or retirement accounts.

A company representative mentioned that the firm is exploring adding additional account types.

Customer Service

The team of customer support personnel are easy to access and quick to respond.

  • In-app message
  • Email 24/7 – replies between 9:00 AM and 6:00 PM ET week-days

Domain Money does not have financial advisors on staff and support is related to platform features and access.

Security – Is Domain Money Safe?

Domain Money protects your assets, privacy, and data in accord with the industry standard today.

All information is encrypted and stored with AES-256 encryption. Systems are safeguarded via SSO and multi-factor authentication.

Domain Money Advisors LLC is registered with the U.S. Securities and Exchange Commission (SEC) and abides by their requirements. While all personnel are thoroughly vetted. Accounts are held in custody by Apex Clearing and securities are protected up to $500,000 by SIPC. Cash is Insured up to $250,000 by FDIC and held at WebBank. The insurance protects against broker failure, not losses due to market movements.

Gemini Trust Company, LLC holds the cryptocurrency assets which are not SIPC or FDIC insured. Cryptocurrency trading is risky and subject to hacking and wide swings in value.

New Domain Money Features Coming Soon

Domain Money Cryptocurrency Rewards Credit Card – Earn cryptocurrency when shopping with the rewards card.

Borrowing – Borrowing will be available up to 40% of your account value. Loans will be provided by WebBank.

Domain Earn Rewards – You will be automatically enrolled in the rewards program when you hold supported crypto on the platform.

Domain Money vs Crypto Platforms

Domain Money’s major draw is the ability to pool your capital with other investors in the company’s managed investment products. This is something you do not get with Coinbase and Gemini, which only allow you to trade crypto. In this regard, Domain Money is superior to these platforms, as you can also trade crypto in Domain Money. Although trading fees are higher at Domain than at Coinbase and Gemini. Yet, the convenience might offset the additional fees.

You can also purchase crypto from crypto trading platforms, such as Robinhood and SoFi. At present, these platforms work in the same way as Domain Money: The cryptocurrency you purchase through the platform remains on the platform’s wallet. In that sense, you don’t actually own any of the crypto in your account, as the wallet technically belongs to the trading platform. Thus, your only option to “withdraw” your crypto is to do so by converting it to cash and withdrawing it.

However, Domain Money aims to make available to Domain Money users crypto withdrawals into their own wallets. While not yet implemented, this feature would give Domain Money an advantage over the Domain Money alternatives, at least for crypto-heavy investors.

You also have some robo-advisors offering cryptocurrency portfolios. These platforms, such as Wealthfront and Betterment, currently lack the diversification of funds that Domain Money offers. Wealthfront, for example, only offers two funds and does not allow the purchase of individual coins. At this time, Domain Money seems to be the go-to choice for a crypto robo-advisor.

FAQ

Is Domain Money a robo-advisor?

Domain money has features in common with robo-advisors, such as rebalancing back to the agreed-upon asset allocation. Yet, unlike most robo-advisors, Domain Money offers a limited selection of asset types. Domain Money is predominantly for aggressive investors.

Who is Domain money for?

Domain Money is primarily for investors who are:
-Tolerant of risk
-Seeking actively managed funds that include crypto
-Concerned about high fees of managed funds
-Smaller investors

Domain Money Wrap Up – Is it for you?

If you are a small-time crypto trader, Domain Money could work out well, as the 1.5% transaction fee is mathematically trivial for small accounts, whereas the flat trading fee charged by other crypto platforms is not. But once you start trading large amounts, the 1.5% transaction fee should start to become numerically big, and you’ll probably want to jump ship to a platform with lower fees.

If you’re looking for an actively-managed portfolio that includes cryptocurrency but don’t want the egregious fees that come with the standard actively-managed fund, Domain Money is an objectively good choice, with its 1% annual fee. As few crypto-centric investing funds are available at present, Domain Money is worth a look.

Conservative investors should look elsewhere. Domain Money is for investors comfortable with cryptocurrency investing and not those seeking stable cash flow.

Source: https://domainmoney.com/assets/library/form-adv-2a

Disclosure: Please note that this article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link. That said, I never recommend anything I don’t  believe is valuable.

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