Covestor Ltd

Item 5: Fees and Compensation

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Interactive Advisors advisory fees are calculated and charged to clients investing in portfolios through its website on the
following basis:

Annual Management Fees
If engaged, Interactive Advisors charges an annual fee based upon a percentage of the market value of the assets being
managed by Interactive Advisors, i.e., the assets that a client chooses to invest in a Manager or Interactive Advisors
Portfolio (“Management Fee”).
Clients are able to invest in more than one portfolio available on https://interactiveadvisors.com. Interactive Advisors
charges distinct Management Fees for investments in each portfolio. If clients choose to invest in multiple portfolios, they
will be charged the sum of the fees associated with each portfolio they invest in. Management Fees vary by Portfolio chosen
and the level of assets invested in that Portfolio. No Management Fees are charged on assets that are not invested in a
Portfolio.
    1.​ For Manager Portfolios, the Management Fee consists of an annual management fee, quoted as an annual
        percentage of the market value of client assets invested in a Manager Portfolio, ranging between 0.25% and
        0.75% of the market value of client assets invested in each Portfolio.
             a.​ The Management Fee charged by Interactive Advisors for investments in each Manager Portfolio may be
                 found on our website at https://interactiveadvisors.com/portfolios.
             b.​ For Manager Portfolios, Interactive Advisors retains 0.25% of any Management Fees charged to its clients
                 and pays any remaining portion of Management Fees collected from clients to the Portfolio Managers.
             c.​ Clients may be able to contract directly with the Portfolio Managers offering their strategies on the
                 Interactive Advisors platform to obtain their advisory services outside of the platform at lower fees
                 than they pay to Interactive Advisors.
    2.​ For the Interactive Advisors Portfolios, Interactive Advisors charges investing clients an annual
        Management Fee ranging between 0.10% and 0.20% of the market value of client assets invested in each
        portfolio.
             a.​ For the Smart Beta, Asset Allocation, and Socially Responsible Investing Portfolios, Interactive
                 Advisors charges 0.20% of the market value of client assets invested in one of these portfolios.
                     i.​   The Asset Allocation Portfolio is made up of ETFs. As explained throughout this Brochure, ETF
                           issuers charge management fees and expenses, which are disclosed in the ETFs’ prospectuses.
                           Clients will be solely responsible, directly or indirectly, for these additional expenses. Interactive
                           Advisors does not receive any portion of these commissions, fees, or costs, including but not
                           limited to the fees or costs charged by ETF sponsors or issuers. Clients may contact Interactive
                           Advisors at any time to get information on the fees and expenses charged by the ETFs in
                           which they are invested through their investment in one or more of the Interactive Advisors
                           Portfolios (e.g., Asset Allocation, SSGA, or WisdomTree Portfolios) or Manager Portfolios.
                    ii.​   Because Interactive Advisors staff have constructed and manage the Smart Beta, Asset
                           Allocation, and Socially Responsible Investing Portfolios without any involvement on the part of
                           Portfolio Managers or a third-party data provider, Interactive Advisors retains the entire fee
                           charged to its clients for investments in these portfolios and does not pay any portion of this fee
                           to any Portfolio Managers or other third-party data providers.
             b.​ For the Index Tracking Portfolios, Interactive Advisors charges investing clients an annual
                 Management Fee amounting to 0.20% (20 basis points) of the market value of client assets invested
                 in one or multiple Index Tracking Portfolios.

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                     i.​   Interactive Advisors remits half of the 0.20% annual management fee collected from investing
                           clients to FTSE International Limited or the Frank Russell Company, the index providers
                           licensing the data necessary to construct and rebalance these portfolios.
             c.​ For the WisdomTree andSSGA, and ETF Portfolios, Interactive Advisors charges investing clients
                 an annual Management Fee amounting to 0.10% (10 basis points) of the market value of client
                 assets invested in those portfolios. Interactive Advisors does not remit any of that fee revenue to
                 WisdomTree orSSGA, but these ETF model providers benefit from the expense ratios associated
                 with the ETFs included in the models they provide to Interactive Advisors.
    3.​ Interactive Advisors’ Management Fee shall be computed daily, but prorated and charged monthly, in arrears or
        retroactively for the previous month (or in connection with a withdrawal from a portfolio), based upon the daily
        market value of invested assets during the previous month. Thus, on a daily basis, the applicable fee rate associated
        with each Portfolio in which a client has invested will be applied to the end-of-day market value of the client’s
...

Item 7: Types of Clients
Interactive Advisors’ clients who invest in its portfolios through its website include individuals, trusts, corporations, and
other legal entities.
Utilizing fractional trading, the majority of portfolios on our platform have an investment minimum of just $100.
Interactive Advisors has established the following account minimums:
    ●​ Manager Portfolios - For most Manager Portfolios the investment minimums range between $500 and $50,000,
       with the majority of these portfolios having minimum required investments of $10,000 and below; and
    ●​ Interactive Advisors Portfolios (e.g., Smart Beta, Asset Allocation, Socially Responsible Investing Portfolios,
       Index Tracking, WisdomTree ETF Portfolios, and SSGA ETF Portfolios) - $100 minimum investment.
Clients may become Interactive Advisors clients and invest in one or more portfolios on the platform in one of two ways:
    ●​ By applying to open an Interactive Advisors account on the Interactive Advisors website; or
    ●​ By authorizing their investment advisor to open an Interactive Advisors account on their behalf on the Interactive
       Advisors website.
Under the first method, clients sign Interactive Advisors’ Investment Management Agreement and acknowledge all required
documents and disclosures online directly.
Under the second method, clients’ investment advisors may hire Interactive Advisors as a sub-advisor. The client’s
investment advisor has responsibility to communicate with the client and to determine the suitability of investments in
Interactive Advisors portfolios based on the client’s financial circumstances, risk tolerance, liquidity needs, net worth,
investment experience, and any other factors that may be relevant and appropriate for such a determination. Clients’
investment advisors gather all information needed to open an Interactive Advisors account on behalf of their clients and
invest clients’ assets in such portfolios as the advisor and the client deem appropriate. These investment advisors are
responsible for providing clients with a current copy of Interactive Advisors’ disclosure statement prepared in accordance
with Form ADV Part 2 (i.e., this Informational Brochure), and any other Interactive Advisors disclosures. Before Interactive
Advisors allows an investment advisor to invest one of its clients in an Interactive Advisors portfolio, Interactive Advisors
will conduct its own due diligence of the advisor and also obtain from advised clients a signed agreement allowing their
advisor to invest their account in Interactive Advisors portfolios (“Client Authorization”).
Interactive Advisors Fund Clients are privately offered pooled investment vehicles, as described in Item 4 above. Fund
Clients only accept as investors individuals or entities qualifying as Qualified Purchasers or Accredited Investors under the

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relevant regulations pursuant to questionnaires administered by IB LLC before such individuals and entities are allowed to
access IB LLC’s Hedge Fund Marketplace, the sole platform on which investors can invest in the Fund Clients.