Magnifi Review – Is This AI Mediation Worth Using?

Magnifi is one of the first brokerage platforms to integrate an AI-powered chatbot to help you invest. You can ask Magnifi's AI to help you find stocks, build a portfolio, plan for retirement, and more.

While AI can be helpful in some situations, it is not yet a replacement for a human advisor. In our Magnifi review, we'll explain how this AI investment platform works and highlight its advantages and disadvantages.

Magnifi Pricing Options

Magnifi costs $14 per month or $132 per year. Stock and ETF trades in your Magnifi account are completely commission-free. You can try Magnifi free for 7 days.

Advantages of mediation

Before we dive into Magnifi's AI assistant, it's helpful to know what brokerage features this platform offers.

Magnifi enables you to buy and sell portions of stocks and ETFs commission-free. The minimum investment is only $5. Magnifi only offers traditional brokerage accounts, not IRAs or other account types.

The platform has a unique ordering interface that looks more like an e-commerce checkout page than a traditional brokerage order form. When you buy or sell a stock, you add it to your Buy or Sell Cart, select the amount and click the checkout button.

The nice thing about this approach is that you can add multiple stocks to your cart at once and easily adjust the amount of each to purchase before executing your purchases all at once. However, you lose the ability to place limit orders or use risk management tools such as stop losses or take profit orders. You also can't view important information like spreads or trading volume that indicate how liquid a stock is.

If you have accounts with other brokerages, you can link them to Magnifi using Plaid. Most major brokerages are supported, including Fidelity, Robinhood, Vanguard, and Charles Schwab. Once the accounts are linked, you can view all your investments in your Magnifi dashboard.

Great AI

Magnifi's AI Assistant is what makes this platform unique. You can ask him a wide range of investment and market-related questions including things like:

• What is the latest market news?
• How did the different sectors perform?
• What can I invest in for my retirement portfolio?
• How are my investments performing compared to the market?
• What stocks have dividends coming tomorrow?

Magnifi's AI does a good job of providing concise answers to these questions, and includes charts and graphs to illustrate things like performance.

It also has some neat stock analysis features. For example, you can ask him to compare the performance or volatility of several stocks. You can also ask the AI ​​how higher interest rates or inflation will affect your investment portfolio.

You can also use artificial intelligence to help you build a portfolio. For example, you could ask it to create a portfolio of stocks in a particular industry or that fit a specific theme, such as green energy or artificial intelligence (although it produced some interesting results – the majority of the green energy portfolio contained Exxon Mobil stocks) . You can also ask him to build a portfolio with dividend stocks yielding more than 5% and a market capitalization of more than $10 billion.

While some of the chatbot's capabilities were impressive, it also had a lot of shortcomings. He seems to do very well using the suggested prompts, but has a lot of trouble if you ask him to build on his findings or do something more complicated.

For example, you can ask the AI ​​to “compare stock returns of AMZN, NVDA, and AAPL,” and it will produce a useful graph. However, if you ask it to “add META to analysis”, it will return an error. You must repeat the original prompt but add META to the list.

The chatbot also had difficulties with prompts such as:

• Show me the biggest gainers in the stock market today
• What are the best high-risk, high-reward stocks?
• What are some global stocks yielding 5% or higher?

Additionally, unlike ChatGPT, Magnifi's AI will not generate answers to open-ended questions using information from news articles or web pages. For example, you can't ask what analysts think about a particular stock and get answers based on analytical articles on sites like Seeking Alpha or Motley Fool.

Is Magnefi worth it?

Magnifi is among the first investment platforms – and to our knowledge, the first brokerage platform – to integrate new AI-powered chatbot technology. The platform looks as if Robinhood merged with ChatGPT, and many of Magnifi's features have more in common with ChatGPT than with traditional stock analysis tools.

Although Magnifi is neat, it's hard to find great value in the platform. Commission-free stock and ETF trades are great, but you can get that from many major brokerages without paying for a subscription.

You can also replicate Magnifi's chatbot features at no cost using ChatGPT. In fact, if you use ChatGPT instead, you'll be able to ask more open-ended questions and get more information from existing stock analysis articles. ChatGPT is prone to hallucinations that can make it difficult to use as an investment tool, but our tests found that Magnifi AI also provides strange answers to some claims.
Magnifi may be useful for new investors who want help assembling a portfolio or who want help analyzing portfolios across multiple brokerage accounts. However, Magnifi's AI still needs to make a lot of progress before you can fully rely on its answers. At this point, it's certainly not a replacement for traditional investment learning resources or stock picking services.