Wealthfront's "managed for free" balance is per client not per account.
When you invite friends and family, we’ll waive fees on $5,000 for both you and your friend when they fund an account.
We compute the fee each day by taking the combined account balances every day, subtracting the “managed for free” amount, and then applying our management fee on the remaining balance. Your monthly fee is then assessed by adding up the fee computed for each day in the given month.
For example, if you have two accounts that when added together have a constant daily balance of $25,000 for the entire month of June, Wealthfront charges a fee of $5.13 ($25,000 multiplied by our annual management fee of 0.25% divided by 365 days times 30 days in the month). We split this fee across accounts based on the proportion of your total Wealthfront assets you hold in each account.
Note: The fee waiver only applies for investment accounts. Any balances held in a Wealthfront cash account do not count towards your 'managed for free' amount.
*If you signed up prior to April 1, 2018, you will receive your first $10,000 managed for free.
Wealthfront prepared this article for informational purposes and not as an offer, recommendation, or solicitation to buy or sell any security. Wealthfront and its affiliates may rely on information from various sources we believe to be reliable (including clients and other third parties), but cannot guarantee its accuracy or completeness. See our Full Disclosure for more important information.
Wealthfront and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisor. Financial advisory and planning services are only provided to investors who become clients by way of a written agreement. All investing involves risk, including the possible loss of money you invest. Past performance does not guarantee future performance.