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Alto's Account Fee FAQ

View frequently asked questions about Alto's pricing.

What has changed?

We’ve updated our pricing structure to a quarterly Account Fee model based on the value of your account’s Total Invested Capital. We have also amended our service fees. See below for more information.

Why is Alto changing its pricing?

Since our launch in 2018, Alto has established itself as a market leader, growing our community of customers to over 25,000 investors and 2,000 issuers, and our assets under custody to $1.2B. We’ve been recognized for our exceptional customer service and our easy-to-use tech forward platform as evidenced by reviews posted on trustpilot and conducted by third parties. Our commitment to delivering outstanding value remains unwavering. As part of our ongoing efforts to enhance the quality and reliability of our product and customer service as well as address the rising costs of inflation and the technologies and services critical to our business, we are updating our pricing structure. This strategic adjustment better aligns our business with industry rates and is necessary to support innovation and maintain the high standard of client experience our customers have come to rely on.

How is the Account Fee being calculated?

The Account Fee is based on the Total Invested Capital within your account. We've introduced an investment cost component to ensure fairness by excluding unrealized gains from the calculation. 

Total Invested Capital is determined as follows: 

Initial investment amount plus subsequent or additional investments, minus returns of capital or principal distributions. 

For customers with Checkbook LLCs, the Total Invested Capital will include the sum of cash sent from an Alto IRA to a Checkbook LLC.  

For customers who have transferred securities to their Alto IRA, each private security transfer will be valued at $1.00.

For customers with assets (including cash) held as a wallet-style partner (i.e. cash owned by an Alto IRA but held at an investment platform), the sum value of assets held with the wallet-style partner will be included in your Total Invested Capital.  

Please note:

  • Dividends, interest, and capital gains do not factor into the investment’s cost.  
  • Available and Uninvested Cash balances do not count towards Total Invested Capital

When will I be charged?

Your account will transition to the new quarterly Account Fee at the conclusion of your existing subscription cycle on or following March 11th, 2024. The Account Fee will be charged on the 1st of each quarter. 

For example, if your subscription renews on the 10th of each month, your account will be transitioned to the new pricing model on April 10th.  At that time, your account will be charged a prorated fee for the remaining days in Q2, April 10th to June 30th. On July 1st, your account will be charged your next quarterly Account Fee based on your Total Invested Capital 5 days prior to the beginning of the quarter.

E.g., On April 10th, the Total Invested Capital in your account is equal to $25,000, your prorated fee will be calculated as (81 days / 90 days) * ($37.50 quarterly fee), or approximately $33.75. If on July 1st your Total Invested Capital remains at a balance of $25,000, you will be charged $37.50 for Q3, as determined by calculating (90 days / 90 days) * ($37.50 quarterly fee).

If your Alto subscription renews annually, Alto will honor your existing subscription through the expiration of your current term. On the day of your annual renewal, your account will transition to the new pricing model. 

Does the charge cover the previous quarter or the upcoming quarter?

The quarterly Account Fee is billed for the upcoming calendar quarter. For example, an Account Fee assessed and charged on July 1st, 2023 will cover the entirety of Q3, and on October 1st, Total Invested Capital will be assessed and the Account Fee charged accordingly for Q4.

I’m on an Annual Subscription Plan and just paid my annual fee. How will this impact me now that my fee structure is changing? Are you double-charging me?

Rest assured, if you're currently on an Annual Subscription Plan and have paid your annual fee, there's no need to worry about double charges. We are committed to honoring all existing subscriptions until their next renewal. When your annual (or monthly) subscription reaches its expiration, your account will seamlessly transition to the updated Account Fee model.

Will I be charged a quarterly Account Fee if my account is empty? 

No.  Accounts that do not have a Total Invested Capital balance will not be charged an Account Fee.

Can I pay my fees out of my IRA cash balance ?

We are actively researching the possibility of allowing you to pay your fees from your IRA cash balance, enhancing your payment options. Once this feature is ready for launch, we will promptly notify you. 

Should you wish to express your interest in utilizing this payment method, please don't hesitate to let us know at help@altoira.com!

Where can I see my Account Fee charges or Total Invested Capital calculation?

You will be able to view your Account Fee charges as well as your estimated Total Invested Capital at any point in time after March 11th by navigating to your Account Settings and then clicking Payment Settings. In the meantime, for assistance in estimating your Account Fee or with any related queries, contact a member of our dedicated team by emailing help@altoira.com.

What other fees does Alto have?

Alto continues to maintain the right to charge Service Fees, while most of our Service Fees have remained unchanged, our schedule has been updated and can be viewed on our pricing page.