Posted by Don L on March 29, 2016

Published on March 29th, 2016 | by Don L


[Dead] A Complete Guide To Motif Investing Promotional Bonus Offers ($100-$150)

This is a guest post by reader Don L, it’s probably one of the most thorough posts I’ve read so give it a go. 

DoC has written about Motif Investing in the past. In this post, I will:

  • Tell you why I believe the Motif investment bonuses can be viewed like bank bonuses (closely equivalent to bank bonuses and available nationwide), and
  • Breakdown the current promotional offers

Making an Investment Bonus Nearly as Safe as a Bank Bonus (Low Risk Execution Strategyi)

Invest in Money Market Funds

To complete this bonus, you need not invest in high risk assets.

You can invest in money market type investments. The ETFs available can lose value (prices float, are set by market trading) but on any regular day only move fractions of a percent in price.

A motif is a portfolio that you build and trade as a unit. I built the following motif (“Prime Money Market Fund” [if interested you can use it tooii]):

It’s an equally weighted allocation across the full universe of money market ETFsiii.

In addition to the low risk nature of money market like funds, by putting multiple funds within the motif (portfolio) you lower the risk of principal loss even further.

Buy Motif One Day, Sell the Next Day

To trigger my bonus, I purchased the Motif on Monday and sold it on Tuesday.

In this case you only accept a day’s worth of price movement.

You may be able to buy and sell on the same day and still trigger the bonus, but I didn’t want to risk it. I thought it best to allow the trade some time to settle.

Invest the Minimum Required Amount

As with all deals, only make the minimum required investment; this places the smallest amount of principal at risk.

A minimum Motif investment is $250 (smaller minimums apply to other trades – more info below)

Breakdown of Current Deals

Two general promotions are currently being offered:

  • $100 1-Trade Offer (Refer-a-Friend), and
  • $150 5-Trade Offeriv

$100 1-Trade Offer (Refer-a-Friend)

The Offer

  • Open a Motif Investing Account
  • Fund with $1000 (must remain for 45 days)
  • Execute one Motif Trade (minimum of $250 investment)
  • Bonus ($100) posts within 75 days

The Rules (Fine Print)v

  • Funds must post within 10 days of account opening
  • Non-retirement accounts
  • Must be at least 18 Years Old

Net Bonus (Cash ~$130, Value ~$122)

Following the strategy above you actually need to make 2 trades, one trade to buy the motif and a second trade to sell the motif; each trade costs approximately $10vi. So the net bonus is:

$100 (New Member Bonus) – $10 (Buy Commission) – $10 (Sell Commission) = $80

But the advantage of the refer-a-friend bonus, is that the referrer (the referee? – the person providing the referral link) also receives a $100 bonus. If you make arrangements with your trustworthy friend (counterparty) to split his side of the bonus 50/50 this adds another $50.

$80 + $50 (Half of Old Member Bonus) = $130

I would also subtract an opportunity cost for the interest that your $1000 could have been earning in a 5% promotional account for around two months – approximately $8. To get a net value of the bonus of:

$130 – $8 (Lost Interest) = $122vii

This calculation doesn’t take your time into account, but the account opening and funding process is smooth, and it only took me a total of about 15 minutes to complete the steps aboveviii.

If you would rather look at it as a return on your investment you would earn about 13% in 2 months (or annualized rate of around 108%)ix.

In a quick summary table:


$150 5-Trade Offer