Manage FAQ

Frequently Asked Questions

What is the interaction between an Account, a Portfolio and a Model?

Accounts represent your brokerage account. Depending on your broker, you can link the Accounts with your broker and send orders from Portfolio123. Accounts can also be "paper", which use play money to simulate a real brokerage account. Within Accounts, Strategies are used to organize the holdings and transactions. Strategies can be either manually managed or following a model. Strategies are a great way to track separate investing ideas within the same account.

What is a Rebalance?

A Rebalance notice happens when either of these conditions exist in a Portfolio:

  1. The holdings do not match the Model

  2. The holdings drift exceeds a preset threshold

When you Rebalance you will get the necessary buy and sell transactions to realign the Portfolio with the Model. Rebalancing is a very quick operations of a few clicks regardless of how many transactions are needed.

What are Portfolio123 Models?

Portfolio123 Models are Investment Models built by our own expert analysts based on academic and empirical research. The Portfolio123 Models are specifically designed to be transparent, reliable, broadly diversified, and easy to use.

Is model performance real?

It's not real in the sense that there are no actual transactions behind the results. It's realistic, though, because we include real-world assumptions like slippage (market friction) and commissions in the returns. In addition we record transaction prices that would be achievable to an average investor.

To learn more about how our simulated transactions work please see the article Simulation Assumptions

What is IEX Real Time Prices?

Portfolio123 incorporates free IEX Real Time prices in many places to improve the user experience. IEX is a new stock exchange founded in 2012. Based on our own observation we have determined that their real time prices are quite accurate regardless of market cap. However IEX's bid-ask spreads are not very useful for lower liquidity stocks right now due to IEX's relatively low trading volumes. We are therefore not showing them at the moment to avoid confusion. The IEX prices presented on Portfolio123 are best efforts by both IEX and Portfolio123. We will fall back to delayed (SIP) prices via IEX for stocks without recent trades on IEX. At the moment stocks not listed on IEX will fall back to previous close.