Wells Fargo Advisors has reduced the advisory fee on its digital advisory service along with the platform’s minimum account size.
The annual advisory fee for the service, known as Intuitive Investor, was cut from 0.50% to 0.35% for new customers, and the minimum account size slashed from $10,000 to $5,000.
Existing bank customers will pay just 0.30% if they link their Intuitive Investor brokerage account to the bank’s Portfolio by Wells Fargo, a relationship program with premium benefits based on a Wells Fargo checking account.
“We continue to enhance our platforms to attract the next generation of investors and compete with our peers,” said Joe Nadreau, head of independent brokerage and platform services at Wells Fargo Advisors, in a statement. “We know our clients enjoy having access to financial advisors and ongoing account monitoring and rebalancing of their portfolios.”
Wells Fargo’s new minimum and advisory fee for its digital advisor is in line with offerings from Morgan Stanley, TD Ameritrade and TIAA, but unlike most robo-advisory services at that price and minimum, it also provides interactions with human advisors.
“Wells Fargo is stepping up the fee pressure in the space by reducing their management fee to 0.35%,” said David Goldstone, Head of Research for Backend Benchmarking, publishers of The Robo Report and Robo Ranking. That fee “for a product that offers access to live advisors is at the low end of available ‘hybrid’ advice products.“