Motif Investing enables customers to buy baskets of up to 30 stocks each that fit various themes. The company is one of several using the Internet and social networking to challenge traditional investment advisory firms.
Mirror investing lets you link your investment account to someone else's: When they make a trade, you automatically trade too. It guarantees that the person guiding you has skin in the game, but is it really wise to put your investment decisions in the hands of a stranger?
Covestor lets its users easily mirror the portfolios of other successful investors. On the other hand, investors who want to showcase the stock-picking work they've done and build up their portfolios can use the technology to earn a following -- and get compensated in the process. Covestor's Simon Veingard explains.