But why would you choose a digital advisor over a human one? Here are some benefits of the automated help.
Biggest Benefits Of Robo Advisors
They are low-cost. It takes significantly less capital to get started, and robo advisors impose lower fees than those charged by traditional advisors.
They are easy and accessible. They are easy to set up and are available 24/7, as long as the user has an Internet connection.
They are efficient. Everything can be done with the click of a few buttons in the comfort of one's home. You don’t even have to log in to the account and place trades.
What Are The Cons Of Using A Robo Advisor?
Investors who prefer
human assistance, need a
tailored approach or have
multiple investment accounts, probably won’t be satisfied with robo advisers. Robo advisors have been criticized for lacking in empathy and sophistication, while also limiting the options investors can make. Automated services are also ill-equipped to deal with
unexpected crises or extraordinary situations.
Top 5 Robo Advisors
Top 5 robo advisors according to value of assets under their management:
Vanguard - the world’s largest mutual fund company, responsible for making low-cost, passive investing the trend it is today.
Schwab - charges no advisory or management fees, and you can open an account with a $5,000 opening minimum balance.
TD Ameritrade - has a $0 account minimum and offers a wide range of services.
Betterment - the oldest robo advisor with no minimum balance to open a new account.
Wealthfront - the first robo advisor to offer free financial planning that is personalized for its clients.
Should You Get A Robo Advisor?
Beginner or young investors without financial knowledge needed to make informed investing decisions, or professionals who don’t have time to actively manage their fund, may want to put their portfolio on automatic with robo advisors. Additionally, people who don't have the assets or the desire to hire and interact with a financial advisor may want to choose a robo advisor to select investments and place trades
Tags: AI • ARTIFICIAL INTELLIGENCE • CHATBOT • DIGITAL • MACHINE LEARNING • PAYMENTS • ROBOADVISORS • ROBOTS