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Robo advisor comparison and reviews

These automated investment platforms are ideal for newbies and hands-off investors.

Robo-advisors are automated investment advisory services that use algorithms to build and manage portfolios of stocks, bonds, exchange-traded funds (ETFs), cryptocurrencies and more, and they continue to gain in popularity. Based on parameters such as your financial goals, time frame and risk tolerance, these automated services may recommend pre-built portfolios or a certain portfolio allocation to maximize diversification – or they may let you choose your own investments entirely.

Beginners, hands-off investors, really anyone looking for investment advisory services at a fraction of the cost of a traditional, human advisor will find robo-advisors an option worth your consideration. Here’s how different robo-advisors compare and what you should look for when choosing the right automated investing platform for you.

Robo advisor reviews

  1. Wealthfront
  2. Betterment
  3. InteractiveAdvisors
  4. SoFi
  5. Acorns

1. Wealthfront

Wealthfront is one of the most popular robo-advisors, with over $43 billion in assets under management (AUM). Choose from more than 200 ETFs across 17 global asset classes to build your investment portfolio, including cryptocurrencies via Grayscale’s Ethereum (ETHE) or Bitcoin (GBTC) funds, with automatic rebalancing and tax-loss harvesting.

However, the required minimum investment is $500, and it will cost you 0.25% annually to keep your account.

Pros

  • Multiple account options, including individual, joint and trust accounts, traditional IRAs, Roth IRAs and SEP IRAs.
  • High customization options with ETFs and cryptocurrencies
  • Tax-loss harvesting

Cons

  • $500 minimum deposit
  • No fractional shares
  • 0.25% annual management fee

Learn more about the Wealthfront robo-advisor in our review.


2. Betterment

Launched in 2008, Betterment is one of the oldest robo-advisors in the industry. It’s also one of the largest in the industry with more than $36 billion in AUM.

Expert-built portfolios with fractional share investing, tax-loss harvesting and ongoing portfolio optimization make Betterment an excellent option for hands-off investing. Plus, crypto portfolios for added diversification and access to human advisors for additional guidance.

Pros

  • Individual accounts, joint accounts, retirement accounts and more
  • Tax-loss harvesting, automatic rebalancing and fractional shares
  • ETFs and crypto portfolios
  • Optional add-on human advice consultation packages

Cons

  • 0.25% annual management fee
  • $100,000 minimum balance required for Betterment Premium

Learn more about the Betterment robo-advisor in our review.


3. InteractiveAdvisors

InteractiveAdvisors, the robo-advisory service by Interactive Brokers, offers an impressive selection of portfolio options. Custom-built portfolios tailored to you, but also access to over 70 curated portfolios of stocks, ETFs or a combination of the two.

While some management fees are as low as 0.08%, others go as high as 0.75%. InteractiveAdvisors also requires a minimum investment of $100, and this fee can go as high as $50,000 for certain portfolios.

Pros

  • Vast selection of portfolio options
  • Low-fee portfolio options
  • Fractional shares and tax-loss harvesting

Cons

  • Minimum investment ranges from $100–$50,000
  • No cryptocurrency investment options
  • Management fee ranges from 0.08%–0.75%

Learn more about the Interactive Brokers in our review.


4. SoFi

Unlike most robo-advisors, SoFi’s automated investing service comes at no additional cost. Yes, you read that right. There’s no management fee to use SoFi Automated Investing. Invest with as little as $1 in a custom-built portfolio of ETFs with automatic rebalancing. Plus, get unlimited one-on-one advice from SoFi financial planners, also at no additional cost.

But SoFi’s automated investing is limited to ETFs, and it doesn’t include tax-loss harvesting strategies like many other robo-advisors.

Pros

  • No management fees
  • No-cost financial advice
  • Fractional shares
  • Multiple account types, including individual brokerage accounts and traditional, Roth or SEP IRAs

Cons

  • No tax-loss harvesting
  • Limited to ETFs

Learn more about the SoFi robo-advisor in our review.


5. Acorns

Acorns offers automated investments in ETFs with monthly fees of $3, $5 or $9 depending on your selected subscription. Invest with as little as $5 and take advantage of Acorns’s round-up feature to invest your spare change and ensure all your money is working for you.

But unlike much of the competition, Acorns offers no tax strategy and its subscription fees can be costly if you have a small portfolio balance.

Pros

  • Multiple accounts options, including individual, custodial or retirement
  • Spare-change investing
  • $5 minimum investment

Cons

  • No tax-loss harvesting
  • Subscription fees can cost more for accounts with small balances

Learn more about the Acorns robo-advisor in our review.


How to compare and find the best robo-advisors in 2022

Consider these factors to find the best robo-advisor for your situation:

  • Fees. Percentage-based fees may be more advantageous for smaller portfolios, while flat fees are more likely to benefit large portfolios.
  • Human support. Those new to investing may feel uncomfortable leaving their money in the hands of a digital algorithm. If that’s the case, seek a platform that offers human customer support or access to human financial advisors.
  • Tax-optimization. Some robo-advisors offer tax-loss harvesting: a feature designed to lessen the impact of capital gains tax. But not all advisors are equipped with this feature. Tax-loss harvesting is really only beneficial if you make more than $40,000 annually — if your income sits below this threshold, you don’t need to worry about capital gains tax.

Compare robo-advisors

1 - 5 of 7
Name Product International exposure type Available asset types Annual fee Signup bonus
Wealthfront
Finder Rating: 4 / 5: ★★★★★
Wealthfront
Stocks, ETFs
0.25%
Get a $50 bonus
when you fund your first taxable Automated Investing Account.
Automated stock and bond ETF investing with the ability to trade individual stocks for as little as $1 apiece.
Acorns
Finder Rating: 4 / 5: ★★★★★
Acorns
Stocks, ETFs
$36 per year
Get a $20 bonus
when you set up an account and make your first recurring investment (min. $5)
JPMorgan Automated Investing
ETFs
0.35%
N/A
Open an automated investing account with as little as $500 and pay an advisory fee of 0.35%
M1 Finance
Finder Rating: 3.7 / 5: ★★★★★
M1 Finance
Stocks, ETFs, Cryptocurrency
0%
Get $75 - $500
when you sign up and deposit min. $10,000 within 14 days. Terms and conditions apply
Build a custom portfolio of stocks and ETFs with automatic rebalancing.
Titan
Finder Rating: 3.8 / 5: ★★★★★
Titan
ETFs
0%
N/A
While not technically a robo advisor, Titan offers a hands-off investment platform that seeks to outperform the market.
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Are robo-advisors worth it?

If you don’t have the time to research individual companies and don’t want to invest in a single index ETF like the S&P 500 or Nasdaq, robo-advisors are definitely worth considering. Their fees are low or on par with single index ETFs, and you don’t have to worry about rebalancing your portfolio.

Some robo-advisors even do the tax-loss harvesting for you, which can be valuable to investors who make more than $40,000 annually.

How many people use robo-advisors?

In the US, just shy of one-in-five adults (17%) say they currently use a robo-advisor to manage their funds, with an additional 18% saying they’ve used one, meaning that a combined third of adults (35%) say they have dabled with the idea of using this hands-off approach to investing.

Of those who actively use a robo-advisor, the majority (53%) say they use it to help them plan for retirement.

Who is a robo-advisor best for?

Robo-advisors are best for hands-off investors who want to grow their wealth but don’t want to actively manage their portfolios.

Robo-advisors are also a solid pick for beginners exploring their investment options for the first time. If you’re hesitant to enter the market, a robo-advisor can provide the support and guidance you need to start learning the ropes.

Bottom line

  • Robo-advisors are financial services that manage your portfolio based on your set parameters.
  • Once you input your financial goals, risk and other relevant data, a computer algorithm will allocate your funds and constantly rebalance your portfolio.
  • Most robo-advisors come with an annual fee, typically as a percentage of your portfolio, and have certain investment minimums. Make sure you compare robo-advisors before you invest your funds.

Frequently asked questions

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