TradeKing announced the formation of a new subsidiary: TradeKing Advisors. TradeKing Advisors is an SEC-regulated online investment advisory service that offers professionally managed investment portfolios online at a reasonable price. TradeKing says the goal here is to make advisory not only affordable, but also accessible and approachable for more people.

TradeKing has partnered with Morningstar’s Ibbotson Associates on the portfolio creation and management. TradeKing co-founder and long-time president and COO Richard J. Hagen Jr. will take over the role of President and CEO of TradeKing Advisors. Hagen spoke about the fact that while TradeKing has found many investors are good at self-directed investing, there are also many investors floating around out there who don’t have the time or expertise to navigate through the fluctuations of the market. In other cases, some people just don’t have the money available to have a professional manager. Hagen said, “TradeKing Advisors will attempt to solve that disconnect by making professionally managed portfolios accessible to more people at all stages of their life at an affordable price.”

TradeKing Advisors services will be available starting this summer. To invest in a TradeKing Advisor portfolio existing clients must answer right questions online to gauge their risk tolerance and investment time horizon. They then select a recommended model portfolio designed by Ibbotson composed of Exchange Traded Products. After these two steps are completed, it is time set up and fund an account online.

TradeKing Advisors will offer two main groups of portfolios: core and momentum. Each of those will contain five portfolios that range from aggressive down to conservative. The fee for Core Portfolios is 0.75% of the account balance annually with a $10,000 minimum balance. The fee for Momentum Portfolios is 1.00% of the account balance annually with a $25,000 minimum balance. Clients with account balances over $250,000 will see their portfolio fees reduced by 0.25%.

For more on the launch of TradeKing Advisors click here for the full press release.