The growth and involvement of technology are now clearly visible in many fields, including finance. Investment companies are making use of robo-advisors. The number of providers and the variety of services being offered are increasing with each passing day, and the preference of investors is also gradually shifting due to the low-cost options for every need. A robo-advisor provides automated portfolio management online. These computers are known to function by using algorithms considering one’s risk tolerance and time horizon to choose the right investment plan, and the job is done for a fraction of the price a human financial advisor would charge. Here are some of the best companies offering the services of robo-advisors:
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Wealthfront
This company charges a fee of about 0.25% of the assets and requires the investor to maintain an account minimum of about $500. The company has managed to build client trust by providing free management on the investment of first $10,000.
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Wealthsimple
This company is known to charge a management fee of about 0.4% of the assets and requires absolutely no account minimum to be maintained, which also gives it an edge. The streamlined design that is offered makes it an amazing place for beginners to start their journey in investing. However, the real edge that this company displays comes in the form of socially responsible investment portfolios. Another appreciable offer is that the company provides free tax-loss harvesting for taxable investment accounts.
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Betterment
A management fee of about 0.25% of the assets is charged by this company, and just like Wealthsimple, this company requires no account minimum to be maintained. The company is known to be the largest independent robo-advisors as it provides the perfect mixture of affordable management fee with goal-based tools.
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Ellevest
A fee of about 0.25% of the assets is charged by Ellevest and it doesn’t require one to maintain any account minimum. The marketing focuses on women and puts forth a goal-focused approach factoring in lower incomes, lifetime earning, and longer lifespan.