What fees does Wefunder charge investors? (2024)

FAQs

How much does Wefunder charge investors? ›

For payments made by bank ACH, wires, or checks, Wefunder charges investors a transaction fee of 2%, with a minimum of $8 and a max of $150. For credit cards, Apple Pay, or Google Pay, Wefunder charges a 5.5% fee + $2, with a minimum of $10 and no maximum - per transaction.

If you invest through a WeFund, you will hold an interest in the WeFund instead of holding the company's securities directly. We will manage and sell the company's securities on your behalf, and distribute any proceeds to you upon such a sale.

Investment fees are fees charged to use financial products, such as broker fees, trading fees, and expense ratios. Investment fees are one of the most important determinants of investment performance and are something on which every investor should focus. Over time, minimizing fees tends to maximize performance.

Investment fees are charges investors pay to use certain financial products and services. Some common investment fees include loads (which are basically sales commissions on the stocks you buy), management fees, advisory fees, broker fees, and trading fees.

A fair percentage for an investor will depend on a variety of factors, including the type of investment, the level of risk, and the expected return. For equity investments, a fair percentage for an investor is typically between 10% and 25%.

Range: 5% – 15%, average 10% . Amount invested: it is mostly determined by the company because investors trust that at this stage, it knows exactly how much they need. Thus, it is all about figuring out the valuation, determining how much equity they are going to get and if it is acceptable.

As of July 2022, Wefunder has helped 2000+ founders raise over $500 million. Over 500,000 people have invested on Wefunder, with a median investment of $250.

Yes. You can change your mind anytime up until 48 hours before your funds are transferred to the company that you are investing in and you will receive a full refund, including any fees.

We know you might be hesitant to provide this information, but we guard your SSN like our life depends on it. We encrypt and store Social Security Numbers (SSNs) on a separate group of servers from wefunder.com.

‍Advisor (Management) Fees

The industry typically refers to this as an investment management fee and averages between 1-2% of assets (i.e. A $100,000 investment could cost you between $1,000 - $2,000 annually).

Is a 1% management fee high? ›

The Bottom Line. A 1% management fee is well within the average for most financial advisors, who tend to charge around 0.5% and 2% for their services. The bigger question, though, is whether you feel like you're getting what you pay for because, even at small percentages, those management fees aren't cheap.

A reasonable expense ratio for an actively managed portfolio is about 0.5% to 0.75%, while an expense ratio greater than 1.5% is typically considered high these days. For passive funds, the average expense ratio is about 0.12%.

Many private equity firms charge a two-and-twenty fee structure. Fund investors must therefore pay 2% per year of assets under management (AUM) plus 20% of returns generated above a certain threshold known as the hurdle rate.

You will likely pay a commission when you buy or sell a stock through a financial professional. The commission compensates the financial professional and his or her firm when it is acting as agent for you in your securities transaction.

Many private equity firms charge a two-and-twenty fee structure. Fund investors must therefore pay 2% per year of assets under management (AUM) plus 20% of returns generated above a certain threshold known as the hurdle rate.

Some firms may charge a flat fee for their services, while others may charge a percentage of the overall value of the transaction. The average fee charged by brokerage firms is typically between 1% and 2% of the total transaction value.

Requirements to Be an Accredited Investor

A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.