Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

Compare robo-advisors

Which automated adviser is the best option to manage your investments?

Compare robo-advisers

Recent years have seen the emergence of digital financial advisers — known as robo-advisors — which take advantage of modern technology to offer low-cost investment management that rivals professionals for results. Here are some of the choices and how robo-advisors work.

Name Product Asset types Annual fee Minimum deposit to open Stock trade fee Signup bonus
Sofi Invest
Stocks, ETFs, Cryptocurrency
0%
$1
$0
A free way to invest in stocks, ETFs and crypto.
Titan
Stocks
1% on balances of $10,000+
$100
$0
N/A
While not technically a robo advisor, Titan offers a hands-off investment platform that seeks to outperform the market.
Acorns
ETFs
$1 per month
$0
N/A
N/A
Invest your spare change. Anyone can grow wealth.
Betterment
Stocks
0.25% on balances up to $99,999

0.4% on balances of $100,000+
$0
$0
N/A
Betterment's automatic investment site aims to improve your returns and support good financial habits with passive investing and financial planning support.
Blooom
Stocks, Bonds
$45 per year
$0
N/A
N/A
After an analysis, Blooom will place the trades within your 401k, 403b, 401a, 457 or TSP plan account for a low flat fee.
loading

Compare up to 4 providers

Science-fiction writers have long been predicting that robots will take over the world, and those predictions could soon come true in the lucrative investment advice market. Automated investment systems, known as robo-advisors, make investment decisions easy for those without the time or knowledge base to pick investments, at a generally lower cost than professional advisors.

The rise of robo advice

The robo advice revolution started in the US a few years ago, and since then companies such as Betterment, FutureAdvisor and Wealthfront have enjoyed enormous success. Both Betterment and Wealthfront each manage more several billion dollars worth of customer assets, with the market expected to continue to rapidly expand in coming years.

In fact, research by KPMG has predicted that by the year 2020, robo-advisors will manage around $2.2 trillion worth of assets. We’ve profiled and compared the established players below, with several more providers expected to launch their own robo advice services in the next 12 months.

Robo-advisors we’ve reviewed

acorns Logo
Swell
Wealthfront
Betterment
AllyInvest
Emperor Investments
wealthsimple
Titan logo

What is a robo-advisor?

A robo-advisor uses complex algorithms and technology to perform many of the same services as a traditional financial adviser. These digital advisers can provide financial plans to consumers and automatically manage their investments.

Digital advice services are based more on building and maintaining a portfolio than providing strategic advice, so there will still be a place for traditional financial advisers in the future – in fact, the advantages the technology presents could be very useful tools for financial advisers.

Humans vs. robots: Which adviser is better?

How does a robo-advisor work?

Unlike a traditional financial adviser, a robo-advisor isn’t influenced by emotion when making trades — it relies solely on algorithms and mathematical models to determine the right asset allocations for investors. They’re also much cheaper, with robo advice available for as little as one-tenth of the cost of receiving advice the old-fashioned way.

But how does the service match you up with a portfolio?

  • Details. Provide your investment goals, investment timeframe and appetite for risk so it can assess which portfolio you’ll be most comfortable with.
  • Review. The robo-advisor generates a recommended investment portfolio, which is usually based on exchange traded funds (ETFs). Review the portfolio and its terms and conditions to ensure you fully understand the risks of investing.
  • Invest. Once you’ve invested, the robo-advisor manages your portfolio and rebalances it whenever necessary to ensure it remains in line with your risk tolerance levels.

Titan

Our pick: Titan

Titan Invest offers managed portfolios that seek to outperform the market while hedging against market downturns.

  • Two stock-based portfolios
  • Shorting to hedge against downturns
  • Real-time updates
Go to site
on Titan's secure site

Read review
Available asset types Stocks
Stock trade fee $0
Option trade fee
Annual fee 1% on balances of $10,000+

|

Other services

Big banks like TD and Charles Schwab have also moved into the robo advice sector. To align with portfolios that best suit your needs, you’re typically screened questions about your current financial situation and future goals before being provided with tailored advice and assessment.

How do I sign up to a robo advice service?

The signup process differs between robo-advisors, but you’ll generally need to follow these steps:

  1. Provide your name, contact details and proof of identity.
  2. Complete a questionnaire regarding your investment timeframe and your tolerance for withstanding market fluctuations.
  3. The robo-advisor generates a recommended investment portfolio.
  4. If you’re happy with the portfolio, you can proceed with the recommended strategy.
  5. Provide your bank account details to fund the investment.
  6. The robo-advisor invests your money in the chosen portfolio, monitors the account and then makes adjustments to satisfy your tolerance for risk.

Robo advice may change the face of wealth management around the world by offering a more affordable way for you to look after your investments. However, make sure you compare the benefits and features of the different robo-advisors before choosing the right service for you.

Alternative investment classes

  • High interest savings accounts
  • Share trading

More guides on Finder

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

    Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
    Go to site