Robo advisor comparison and reviews

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.

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.

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.

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.

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.

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

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Name	Product	International exposure type	Available asset types	Annual fee	Signup bonus
Wealthfront Finder Rating: 4 / 5: ★★★★★ Wealthfront Finder Rating: 4 / 5: ★★★★★			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.	Go to site More Info		loading Fetching your data...
Acorns Finder Rating: 4 / 5: ★★★★★ Acorns Finder Rating: 4 / 5: ★★★★★			Stocks, ETFs	$36 per year	Get a $20 bonus when you set up an account and make your first recurring investment (min. $5)	Go to site More Info		loading Fetching your data...
JPMorgan Automated Investing Not rated yet JPMorgan Automated Investing Not rated yet			ETFs	0.35%	N/A	Open an automated investing account with as little as $500 and pay an advisory fee of 0.35%	Go to site More Info		loading Fetching your data...
M1 Finance Finder Rating: 3.7 / 5: ★★★★★ M1 Finance Finder Rating: 3.7 / 5: ★★★★★			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.	Go to site More Info		loading Fetching your data...
Titan Finder Rating: 3.8 / 5: ★★★★★ Titan Finder Rating: 3.8 / 5: ★★★★★			ETFs	0%	N/A	While not technically a robo advisor, Titan offers a hands-off investment platform that seeks to outperform the market.	Go to site More Info		loading Fetching your data...

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*Signup bonus information updated weekly.

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

• Are robo-advisors a good idea?

  Robo-advisors can be a good idea for investors who don't have the time to research and select individual companies to invest in.

• Is it worth paying for a robo-advisor?

  It may be worth paying for a robo-advisor if you are a hands-off investor who wants portfolio management and investment advice at a lower cost than what you would find with most human financial advisors.

• What is one of the biggest downfalls of robo-advisors?

  One of the biggest downfalls of robo-advisors is that they often offer narrow investment options and generic portfolios based on questionnaires. Automated portfolios are not entirely personalized.

• What are two negatives of using a robo-advisor?

  Two negatives of using a robo-advisor are the limited investment options and the lack of personalization.

• What are the benefits of robo-advisors?

  Robo-advisors are easy to set up, some even provide tax-loss harvesting and you don't have to log in daily to make changes. The computer algorithm behind the robo-advisor does all the work for you.

• What is a disadvantage of a robo-advisor?

  The lack of human interaction and flexibility are the main disadvantages of robo-advisors. You don't get to consult with human professionals — although some robo-advisor companies offer this feature for a fee — and you can't swiftly change your investment options as you would with individual stocks.

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