Author: Michael J. Peterson

If you’re looking to invest in socially responsible companies, look no further than OpenInvest.

Not only do they have the largest selection of socially responsible assets, but they are also the most transparent company in terms of fees and terms.

OpenInvest is more than a trading platform, it’s a chance for investors to cast their support in the form of investments in the companies that they believe in and do right by the universe.

With OpenInvest, there’s no guessing – you know exactly what you get. Check out our review on this great platform to see if it suits your investment needs.

What is OpenInvest?

OpenInvest is a robo-advisor, much like its competitors, such as Ellevest and Wealthfront. What it does different, though, is its socially responsible investing. Whereas other robo-advisors have a few socially responsible investment options, OpenInvest focuses on them, providing mostly socially-conscious investments.

You won’t find the standard survey or questionnaire when you open your account. You are in charge of the assets you put in your portfolio based on your ethical preferences.

You choose the causes that interest you the most – whether it’s fossil fuel producers, LGBTQ rights, or women-centric companies – honestly the sky’s the limit. Think of your cause and there’s likely assets that align with it in OpenInvest.

Don’t worry, these unique benefits don’t mean you must sacrifice other important robo-advisor benefits including low fees, tax-loss harvesting, and a variety of account options. With OpenInvest, you can have it all – a socially-responsible, affordable, and balanced portfolio.

Impact Investing - No ETF fees

Account Minimum

$3,000

Management Fee

0.50% Another 0.22% will be applied if you want to add the green bond fund. (=0.72%) BUT: No ETF fees

Portfolio

ETFs, customize your portfolio by using companies whose values you agree with.

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Supported Accounts

Individual, Joint, Traditional and IRA, Rollover IRA, SEP IRA, Custodial

Best for

Socially responsible investors who want to have a say in which cause they want to support.

Summary

The fees may seem a little on the higher side however with OpenInvest you will not pay any ETF expense ratio fees. OpenInvest is as transparent as it gets.

Review

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Current Promotion

Visit Website

Impact Investing - No ETF fees

Account Minimum

$3,000

Management Fee

0.50% Another 0.22% will be applied if you want to add the green bond fund. (=0.72%) BUT: No ETF fees

Portfolio

ETFs, customize your portfolio by using companies whose values you agree with.

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Supported Accounts

Individual, Joint, Traditional and IRA, Rollover IRA, SEP IRA, Custodial

Best for

Socially responsible investors who want to have a say in which cause they want to support.

Summary

The fees may seem a little on the higher side however with OpenInvest you will not pay any ETF expense ratio fees. OpenInvest is as transparent as it gets.

Review

-

Current Promotion

Visit Website

How does it work?

Account opening

Investors need a minimum $3,000 to open an account. When you sign up, you’ll see different questions than you’re used to. These questions are based on your beliefs rather than your goals and risk tolerance.

They do ask about your investment objective, which can include your goals, but most people using this platform for its socially responsible investing, of course they want to make money too, but the focus is on social responsibility. They will create a sample portfolio with recommendations that you may use or customize as you see fit.

Deposit and withdrawal

OpenInvest makes it easy to set up automatic deposits. Just email the team at support@openinvest.com to tell them the amount you want to deposit and how often. Once you set it up, you don’t have to do anything else. The deposits are done for you. Of course, you can also make manual deposits if you’re more comfortable with it.

Withdrawals are 100% manual through OpenInvest as well. Email the support team and tell them how much you want withdrawn and where you want it sent – usually you send it to your linked bank account.

Interface

The interface is simple, but user-friendly. OpenInvest has a mobile app along with its web-based platform where you can see the status of your investments at any given time. You may also take part in shareholder resolutions by casting your vote in the app.

This gives you a say in the companies you invest your money in – helping the world with more than your money, but your ideas too.

Trading options

OpenInvest offers a wide selection of account types including:

• Taxable account – This is a standard investment account. You pay taxes on your capital gains, but OpenInvest offers tax-loss harvesting to minimize your tax liabilities. They allow individual, joint, and custodial taxable accounts.
• Traditional IRA – Get ready for retirement with a socially responsible IRA. You contribute your funds pre-tax, but pay taxes on the contributions and earnings when you withdraw them, at your taxable rate during retirement.
• Roth IRA – If you’d prefer to contribute after-tax dollars and let your contributions and earnings grow tax-free, consider the Roth IRA. You pay no taxes when you withdraw your funds.

What can you trade?

Another factor that differentiates OpenInvest from other robo-advisors is the asset selection. Yes, you can invest in ETFs with low-cost management fees like many other robo-advisors, but they also offer 60+ individual stocks to choose from as well as bonds (Vanguard Total Bond Market) and a Green Bond Fund.

**Please note, if you choose the Green Bond Fund there’s an additional 0.22% of assets under management fee on top of the regular 0.50% annual fee.

Costs

OpenInvest is one of the most affordable socially responsible investment firms available today. While their annual management fee seems higher than most robo-advisors, it encompasses almost every fee you could encounter.

Investors investing in standard investments pay 0.50% of assets under management. Any investor choosing the Green Bond Fund pays an addition 0.22%.

Here’s where OpenInvest truly shines (aside from their socially responsible investing) – there are no ETF expense ratios. Most robo-advisors have a management fee plus the expense ratios. Everything is wrapped into the 0.50% fee.

OpenInvest also reimburses investors whose IRA charges them to transfer their account over to OpenInvest.

Additional features

• Passive investment strategy – OpenInvest uses a passive investment strategy. They aren’t in it to beat the market. Instead, their portfolios ‘hold’ the market by diversifying and minimizing fees.
• Diversification – Most portfolios have no less than 60 stocks that coincide with your chosen theme, along with bonds to offset the riskiness of the stocks if you have a more conservative risk tolerance.
• Tax-loss harvesting – All equities accounts automatically have tax-loss harvesting benefits to help minimize your tax liabilities.
• 401K rollover services – You can rollover your 401K into an OpenInvest IRA of the same type (traditional or Roth). This makes it easy to keep your retirement investments on track while having choices with your investments.
• Customer service – OpenInvest has customer service hours via phone and email during the hours of 9 AM – 5 PM PT.
• Research – OpenInvest doesn’t offer 3^rd party research, but they do have a blog updated with the latest newsworthy information.

Video

OpenInvest Pros and Cons

FAQ

What is the mission of OpenInvest?

OpenInvest has a mission to help everyday investors invest in the things they believe in. They don’t focus on beating the market, but rather mimicking it by investing in large cap stocks that are socially conscious and align with each investor’s beliefs.

Does OpenInvest diversify your portfolio?

Yes, OpenInvest starts with stock or equity assets that mimic your beliefs and investment goals. They balance it out with bonds according to your risk profile, including the Green Bond fund if applicable. OpenInvest is very transparent with their offerings, fees, and how the process works.

How is OpenInvest different than other robo-advisors?

The premise is the same among most robo-advisors, but OpenInvest has one difference – the socially responsible investments. They don’t stick you in a predefined portfolio based on the answers in your survey. Instead, they listen to your beliefs and what you desire and they help you invest in the assets that mean the most to you rather than using a one-size-fits-all approach.

Does OpenInvest manage IRAs?

Yes, you can rollover an existing IRA or 401K or open a new account with OpenInvest. The options include a traditional IRA, Roth IRA, and SEP IRA for self-employed individuals. However, if you’re opening an SEP IRA or rolling over an existing 401K, it’s best to contact customer service first.

Can I connect my OpenInvest account with other tracking software, such as Mint?

Yes, OpenInvest makes it easy to track your account via any software you use. You’ll first have to set up the allowance through Apex Clearing, as that is the custodian that holds onto your investments.

Can I invest in equities not listed in OpenInvest’s offerings?

OpenInvest has an ‘open’ environment where they accept requests for certain investments, but they may not be able to grant all of them. Contact customer support if you want to add an investment to your portfolio. For the most part, they offer a large list of large-cap investments plus the bond funds to diversify the portfolio.

What are Green Bonds?

Green bonds are tax exempt bonds. The funds are used by the government to develop undervalued areas that are run down or underdeveloped, but that usually have low pollution levels. Bonds are loans to help build up the areas and enhance the environmental friendliness of the area.

How does OpenInvest make money?

Like any robo-advisor that charges an annual management fee, OpenInvest makes money on the money you invest. They withdraw the fee on a monthly basis (dividing the annual fee by 12 months).

Alternatives

OpenInvest vs TD Ameritrade

TD Essential Portfolios is another socially conscious investment option. Investors need a minimum of $5,000 unless they sign up for recurring deposits, then the minimum drops to $500.

The account management fee is 0.3% and the ETF expense ratios are 0.10% – 0.17%. TD Ameritrade offers tax-loss harvesting and they have what they call ‘Socially Aware Portfolios’ which investors may choose instead of the standard portfolio options.

TD Ameritrade Essential Portfolios is good for investors that already have a TD Ameritrade account and have an interest in socially responsible portfolios.

Current Promotions

There are currently no promotions.

Worth It or a Scam?

OpenInvest is certainly worth it for investors that want a say in where their money goes. If you’d rather not invest in companies whose beliefs don’t align with yours, you won’t. They’ll let you choose and keep you informed throughout the process. Because of their involvement in choosing socially responsible investments, they engage with investors more than other low-cost robo-advisors, ensuring that your portfolio always aligns with your beliefs, even as companies evolve.

Summary

If you’re looking for an ‘activist’ type portfolio, you’ll find it at OpenInvest. Nowhere else do you get the say or level of engagement you get at OpenInvest.

While you should be careful not to make rash investment decisions based on changes a company makes, there are times that you may want to pull out of a company because of their change in ethics or involvement in their socially responsible decisions.

If you believe in socially-responsible investments, this is the platform for you. Most other platforms make socially-responsible investments an after-thought, but OpenInvest makes it the priority.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

Are you looking for a robust investing platform that provides research, guidance, and affordable fees?

Look no further than Merrill Edge, a product of Bank of America’s purchase of Merrill Lynch.

This advisory has multiple account options, investors looking for a hands-off approach enjoy the convenience Merrill Edge offers.

Merrill Edge brings together the brilliance of technology and human advisors, giving investors the best of all worlds.

While the fees aren’t the lowest in the industry, the benefits it comes with make up for the higher costs.

Read on to learn my thoughts in this Merrill Edge Guided Investing review and see how it stacks up.

What is Merrill Edge?

Merrill Edge offers guided investing in one of three ways:

• Self-directed – Investors that want to invest their own way but with the guidance of professionals enjoy the self-directed account. There’s a $0 minimum investment and $0 stock, ETF, and option trades. You get insights in layman’s terms, and answers to your questions to help you make profitable decisions.
• Merrill Guided Investing – If you’d rather have your portfolio built for you, choose Guided Investing. You’ll need a minimum of $5,000 invested but you’ll get tailored investment strategies based on your risk tolerance and goals. Your portfolio will consist of ETFs and mutual funds and be rebalanced as needed.
• Merrill Guided Investing with an Advisor – If you want the advice of a personal (human) advisor in addition to everything offered in the online version, you’ll get it in this package. However, you need at least $20,000 invested.

Human Portfolio Management

Account Minimum

$5,000

Management Fee

0.45% or 0.85% for a dedicated human advisor ($20,000 Minimum)

Portfolio

ETFs, actively managed

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Supported Accounts

Individual, Joint, Traditional and Roth IRA, Rollover IRA, SEP IRA

Best for

Investors who want actively managed portfolios and a hands-off approach. This is definetely a choice to consider if you already have an account with Bank of America or Merril Edge.

Summary

The fees are higher than most other robo advisors. However Merril Edge uses human portfolio management which would explain the higher cost.

Sign Up

Read Review

Human Portfolio Management

Account Minimum

$5,000

Management Fee

0.45% or 0.85% for a dedicated human advisor ($20,000 Minimum)

Portfolio

ETFs, actively managed

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Supported Accounts

Individual, Joint, Traditional and Roth IRA, Rollover IRA, SEP IRA

Best for

Investors who want actively managed portfolios and a hands-off approach. This is definetely a choice to consider if you already have an account with Bank of America or Merril Edge.

Summary

The fees are higher than most other robo advisors. However Merril Edge uses human portfolio management which would explain the higher cost.

Sign Up

Read Review

How does it work?

Account opening

Choose the account option that suits your needs, whether you want self-directed investments or guided investing. You must meet the minimum investment requirements, as I spoke about above, with $5,000 the minimum for guided investments.

Merrill Edge has a similar application process as many other robo-advisors. After you enter your personal information, you’ll answer questions about your intention for the investment account, your goals, and risk tolerance.

Deposit and withdrawal

Merrill Edge has the unique benefit of a direct relationship with Bank of America, which is why it’s so great for Bank of America customers. All transfers, whether deposits or withdrawals are immediately posted. If you transfer your funds from an external account (another bank account), clearing your account may take a few days.

Bank of America customers can set up regular automatic deposits or send one-time deposits as needed. You can also transfer assets, using the asset transfer tool.

Interface

Merrill Edge’s interface is easy to use for beginners and experts alike. It’s clean and user-friendly, making it easy to screen for specific assets and it’s easy to understand how to make trades and/or make changes to your account.

The platform is easy to use whether you trade right on the website or you open MarketPro, the advanced trading platform which is available to everyone. You can’t customize your options on the website itself, but you can customize MarketPro.

Merrill Edge clients can set up a taxable or retirement account, both single and jointly owned.

What can you trade?

Merrill Edge clients can trade stocks, options, ETFs, and mutual funds. Choose from a variety of portfolios including socially responsible and governance portfolios.

Costs

As I stated above the Merrill Edge Self-Directed accounts are free. There’s no management fee and no commissions on most stocks and ETFs. Guided Investing incurs fees including:

• Merrill Guided Investing – 0.45 percent of assets under management annually, however, Bank of America Preferred Rewards members get a discounted fee, as low as 0.30 percent.
• Merrill Guided Investing with an Advisor – 0.85 percent of assets under management annually, however, Bank of America Preferred Rewards members get a discounted fee as low as 0.70 percent.

Other fees include:

• No commissions for online stock and ETF trades
• Options have a $0.65 per contract fee per leg
• Mutual fund commissions are $19.95
• Wire fees are $24.95
• Closing an account is $49.95 for a full transfer and free for a partial transfer
• Using a live broker costs $29.95 per trade

The fees aren’t the lowest, but there’s a good reason. If you compare the fees to the fees standard in-person brokerage firms charge, you’d see the value and the savings.

Additional features

• Cash account – You can earn interest on your idle cash in either a regular bank account or a money market account. Merrill Edge sweeps the money into your designated account and pays interest on the funds. If you don’t opt to have the cash swept into either account, you’ll earn a base 0.05 percent in interest.
• Human advisors – Merrill Edge offers human advisors for you to talk to, but if they execute trades for you, there’s an extra fee. As an added bonus, if you live near a Bank of America branch, you may walk in and get support from a representative there. These professionals usually help with life stage planning, such as retirement, but they are there if you need them.
• Customer service – Customer service is available 24/7 for Merrill Edge customers on the phone and online. They also have a robust FAQ section where you can find answers to previously asked questions.
• Research – Merrill Edge has robust research options including third-party research, all of which is offered free of charge. Some of the research options include a stock screener, ETF screener, mutual fund, and options screener. As far as the third-party research, it goes back at least six months to give you historical data on particular equities. They also offer robust charting capabilities.
• Education – Merrill Edge also shines in the education department. They have educational materials for beginner, intermediate, and advanced investors. You can select your choices by topic or format including videos, articles, and webinars. They have calculators and tools and even a Morningstar Classroom that provides courses to help you understand your investment options, plan for retirement and so much more.

Video

Merril Edge Guide Investing Pros and Cons

FAQ

Is Merrill Edge only for Bank of America clients?

No, anyone can use Merrill Edge whether or not they have a Bank of America account, but there are many benefits if you are a Bank of America customer. First, you have all of your accounts in one place. With one log in you can see your banking and investments. Second, Bank of America Preferred Rewards members get significant discounts on the management fees for the robo-advisor.

Does Merrill Edge trade penny stocks?

No, Merrill Edge doesn’t trade stocks valued at less than $5 per share. They also don’t trade stocks that have little information available or are valued at less than $300 million. In short, they don’t offer penny stock trading.

Can you perform the same functions on the Merrill Edge app?

The Merrill Edge app is very versatile and provides many of the same functions you’ll get online. You can check your investments and do your research, however, charting is a bit hard to decipher on the app, so you may want to reserve it for the web platform only.

Do active traders do well with Merrill Edge?

While Merrill Edge is a robo-advisor that offers mostly hands-off investing, they do offer the use of the MarketPro technology that’s great for active investors. With robust charts, alerts, and real-time quotes, active investors have the information need to make quality trades. Alternative robo advisors for investors who are looking to actively trade are RobinHood and M1 Finance, find out which we think is better.

Does Merrill Edge offer platform customization?

Looking at the same dashboard and information isn’t always ideal for investors. Some investors are particular about the information they see, especially active investors that need to make split-second decisions. Merrill Edge focuses on personalization, allowing investors to get the information they need the way they want it. While it’s not perfect, it’s more user friendly than other platforms.

What is the Merrill Edge Portfolio Story?

The Portfolio Story gives investors a robust view of their portfolio and how it functions. Investors can compare it to those on the market and can see a detailed breakdown of their portfolio, its allocation, and get detailed information that may prompt asset allocation changes or even investment changes. It’s a more diverse look into the portfolio than a dashboard could provide.

Is Merrill Edge good for beginners?

I like to think Merrill Edge is great for beginners not only because of its affordable fees and robust research, but also its 24/7 customer service. It’s unusual to get around-the-clock support, especially when working with a robo-advisor. You’ll get the hand-holding you need while making brave and important investment choices to plan for your future.

Alternatives

Merrill Edge vs TD Ameritrade

TD Ameritrade is great for active investors looking to save on fees. With $0 on stocks, options, and ETFs, investors can save quite a bit of money. TD Ameritrade doesn’t have an account minimum and offers free research.

Investors can trade a wide range of investments including stocks, bonds, ETFs, mutual funds, options, and futures, and is a great platform for both beginning and intermediate investors. If you aren’t a Bank of America customer, TD Ameritrade is a good alternative.

Merrill Edge vs Robinhood

Robinhood also offers commission-free trades, and in fact, was one of the first robo-advisors to offer it. Most have followed, but Robinhood is great for investors looking to trade not only ETFs but stocks and options too. Some investors may also be eligible for the cryptocurrency beta.

Robinhood doesn’t require a minimum amount invested, but they only have taxable accounts – you can’t start a retirement account. We do love that they buy fractional shares, though, allowing you to invest in just about any stock.

Merrill Edge vs Betterment

Betterment is a robo-advisor that’s great for beginners. Betterment Digital is their flagship program.

It costs 0.25 percent of assets under management and is great for investors with little money to invest and/or those looking for retirement investments. Betterment has a $0 minimum balance requirement and invests in ETFs from 12 different asset classes. Betterment even offers socially responsible investment options.

Merrill Edge vs Fidelity Go

Do you want the best of both worlds between an automated advisor and a human advisor? Fidelity Go offers this. You get their robust technological platform with humans overseeing your account.

The human advisors reallocate your balance as necessary but you don’t talk to the financial advisors like you would with a standard brokerage. They are just the human touch to your account but still provide you with the hands-off approach to investing traditional robo-advisors offer. Fidelity Go is also free until you have $10,000 of assets under management.

Current Promotions

There are currently no promotions.

Worth It or a Scam?

Merrill Edge is a trustworthy company with the backing of one of America’s largest banks – Bank of America. To top it off, they go to great lengths to take proper security measures using bank-level security to keep your information safe.

If you’re a Bank of America customer, it makes sense to have everything in one place. Since Merrill Edge has such great reviews and offers such robust tools, it just makes sense. If you aren’t a BofA customer and you don’t need the benefit of a human advisor to talk to, you may want to look elsewhere, although Merrill Edge is definitely legit.

Summary

Explore all your options when looking for a robo-advisor. If you’re a hands-off investor looking for a quality broker with a household name, you’ve found it with Merrill Edge.

If paying slightly higher fees for the reassurance of having a human to talk to and run your ideas past is worth it, then you’ll love Merrill Edge.

I encourage you to compare fees and programs to see what others offer, but you’ll likely find that Merrill Edge is a hot contender.

Robo Chooser

Use the following Quiz and find out which robo advisor is best for you.

If you have any questions, please comment below.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

If you’re looking for easy, transparent, and low-cost investments, Interactive Advisors claims they have it all.

With a large selection of portfolios created by professional portfolio managers and fees ranging from 0.08 to 1.5 percent of assets under management, there’s something for everyone here, according to IA.

If you’re an existing IBKR client, it’s a no-brainer to partition some of your assets into automated investing taking the pressure off yourself. Don’t worry, you still have a say in what you invest in, it’s just a more laid back experience.

If you aren’t already an IBKR client, Interactive Advisors is best for the experienced investor looking for a little bit of a hands-off approach to investing that can meet the minimum requirements and can afford the fees.

Keep reading to learn my thoughts in this Interactive Advisors review.

What is Interactive Advisors?

Interactive Advisors has a different model than your standard robo-advisor. Rather than setting goals and letting the robo-advisor pick your assets, you invest in a portfolio. You can choose from rules-based portfolios to diversified and asset allocation models.

How does it work?

There are automated portfolios managed by the algorithms and automatically rebalanced and portfolios run by money managers (humans), which cost more. You decide what you want out of your portfolio and they manage the rest.

In addition, clients can upgrade to an Interactive Brokers Universal Account at any time. This account allows you to trade your own assets including stocks, bonds, options, and ETFs at low commission rates.

Experienced Investors

Account Minimum

$1,000

Management Fee

The fees vary between 0.08% to 1.50% depending on the level of advice you choose.

Portfolio

A lot of different options. Anything from automated, diversified or actively managed. Again, this depends on how much you are willing to spend.

Rebalancing

Tax Loss Harvesting

Fractional Shares

Smart Beta

Automatic Deposits

SRI

401(k) Assistance

Human Advice

Best for

Sophisticated investors who don´t mind the high fees and are looking to invest in actively managed portfolios.

Account Types

Individual, Joint, Trust and IRA

Summary

Interactive Advisors offers a wide variety of active and passive portfolios for experienced investors.

Review

-

Current Promotion

Go To Website

Experienced Investors

Account Minimum

$1,000

Management Fee

The fees vary between 0.08% to 1.50% depending on the level of advice you choose.

Portfolio

A lot of different options. Anything from automated, diversified or actively managed. Again, this depends on how much you are willing to spend.

Rebalancing

Tax Loss Harvesting

Fractional Shares

Smart Beta

Automatic Deposits

SRI

401(k) Assistance

Human Advice

Best for

Sophisticated investors who don´t mind the high fees and are looking to invest in actively managed portfolios.

Account Types

Individual, Joint, Trust and IRA

Summary

Interactive Advisors offers a wide variety of active and passive portfolios for experienced investors.

Review

-

Current Promotion

Go To Website

Account opening

Like most robo-advisors, you’ll answer questions when you sign up for Interactive Advisors. The questions help IA create your diversified portfolio maximizing profits and limiting your costs based on your goals and risk tolerance. But, it’s not the same as the traditional model. You choose the portfolio manager you want to follow/mimic and your money is invested accordingly.

All you need is $100 to open an account for an automatically managed portfolio, of which there are 50 or more portfolios to choose from. If you prefer a more advanced portfolio managed by a money manager, the account minimums vary at much higher amounts, with the average around $5,000 but go all the way over $100,000.

Deposit and withdrawal

Interactive Advisors offers several ways to deposit and withdraw funds including incoming and outgoing wires, ACH transfers, and mailed in checks.

Please note, you must inform Interactive Advisors when you initiate a deposit or withdrawal so they can watch for the funds and/or honor the request. You’ll see how to do this on your dashboard.

Interface

Interactive Advisors is available on web browsers and mobile devices. It works best with large screens, though as they push out a lot of information at one time, which means a lot of scrolling if you’re on a small screen or a mobile phone.

Trading options

You can open any type of account at Interactive Advisors including individual and joint accounts. They have taxable and retirement accounts, but they don’t have SEP accounts. All accounts are ‘cash accounts’ which means you can use your proceeds of a settled sale immediately to invest in another portfolio rather than waiting the typical 2 days.

Choosing your Portfolios

This is the most important part of IA. You mimic portfolio managers’ investments, but IA limits what portfolios you have access to by using your initial questionnaire. Your risk score from the questionnaire must be higher or equal to the portfolio you’re choosing in order to be eligible. You must also meet the minimum investment amount and have margin permission should you need to purchase securities on margin.

What can you trade?

Interactive Advisors has some of the largest selections of assets/portfolios including:

• Industry leaders
• Undervalued companies
• Growth companies
• Global companies
• Social justice
• Socially responsible *Check out OpenInvest if you are interested in SRI.
• Technology
• Healthcare
• Small or large-cap companies

Costs

Interactive Advisors’ costs work a little differently than other robo-advisors, as they have several tiers. On average the fees range from 0.08% – 1.5% per year depending on the chosen portfolio. They charge the fees monthly but don’t charge fees on un-invested cash. As far as fees go, there are certainly cheaper options out there.

Additional features

• Cash account – You can have a cash account at Interactive Advisors, but they pay very little interest, if any on your balance
• Human advisors – Once you sign up for an Interactive Advisors’ account, you have access to unlimited help from their advisors over the phone
• Customer service – If you have general account questions or need help, you can contact customer service 9 AM – 6 PM ET Monday-Friday
• Education – Interactive Advisors has plenty of articles and videos on their website for educational purposes, but some of the data is outdated.

Interactive Advisors Pros and Cons

FAQ

Can I invest in multiple portfolios?

Yes, you can invest in as many portfolios as you want, as long as you have the funds. Your Interactive Advisors dashboard will show each portfolio individually as well as an aggregate of all your accounts. Investing in multiple portfolios is nice if you have multiple goals you want to fund and want to keep the funds separate.

Will my portfolio exactly mimic the portfolio managers’ fund?

In some cases, there may be some performance drift. This happens most commonly when you exclude certain stocks from your portfolio that the portfolio manager included. It can also happen if you have a cash flow issue that directs your portfolio the wrong way.

Can I see the available portfolios and their details?

To an extent, you can see the available portfolios before you fund your account. You’ll see a high-level overview of what it entails, but you can’t see actual details until you fund your account and are choosing your portfolio. If that makes you doubt if to invest with Interactive Advisors, take this quiz to see if a different robo could serve you better.

How many stocks does a portfolio contain?

On average, a portfolio has up to 300 different stocks in it because Interactive Advisors invests in fractional shares, giving you a much greater chance at diversification. You can also choose from a large variety of ETFs from Vanguard, Wisdom Tree, and State Street.

Does Interactive Advisors use Modern Portfolio Theory?

Unlike traditional robo-advisors, Interactive Advisors does not use Modern Portfolio Theory. Instead, they follow the portfolio manager’s investments. You can choose actively or passively managed portfolios, but overall, you have the final say eliminating certain stocks from your portfolio or pulling back on aggressive investments when you get closer to your goals timeline.

Can you borrow from your portfolio?

Yes, Interactive Advisors offers both margin lending and loans you can borrow against your portfolio. They offer low-interest rates on both accounts. However, to take advantage of either option, you must have an Interactive Brokers account (separate from IA).

How often are portfolios rebalanced?

The rebalancing frequency depends on the portfolio manager and type chosen. Accounts managed by portfolio managers are rebalanced on an as-needed basis. Other accounts are rebalanced either quarterly or monthly. You can see before you invest how often accounts are rebalanced.

How does Interactive Advisors make money?

Interactive Advisors makes money on the management fees they charge as well as trading commissions on individual assets.

Alternatives

Interactive Advisors vs M1 Finance

M1 Finance works differently than Interactive Advisors. This broker offers commission-free trades that you create in pies rather than choosing prebuilt portfolios. You can choose prebuilt pies, similar to the prebuilt portfolios IA offers or you can build your own.

Like IA, you can invest in fractional shares and you may borrow against your balance. Like IA, you’re in charge of choosing your assets, and M1 manages the portfolio for you. As far as cost goes, though, M1 wins as there’s no management fee or commissions in most cases. If you’re cost-conscious, but are an advanced investor, M1 may be a good choice.

Interactive Advisors vs Betterment

Betterment is generally for beginning investors, but if you have least $100,000 to invest, the Betterment Premium account offers many benefits. Betterment is a more hands-off investment platform, unlike Interactive Advisors.

You can invest in fractional shares, and your portfolio is determined for you based on answers to their initial questions that determine your risk profile and goals. With Betterment Premium, you get unlimited access to certified financial planners, which is nice for investors that want that bit of reassurance that they’re doing things right.

Current Promotions

There are currently no promotions.

Worth It or a Scam?

Interactive Advisors is completely different than most robo-advisors out there. It’s worth it if you’re an experienced investor that wants to mimic experienced portfolio managers. You basically mirror everything they do, which is a great way to catch on to different ways of investing. The fees are high, but if you want the experience, it may be worth it.

The fact that IA recently brought their minimum opening balance down from $5,000 to $1,000, it’s much more attainable for many investors, including those that want to try their hand at investing for themselves with still a bit of handholding.

Summary

Is Interactive Advisors right for you? Think about what you want. If you’re looking for a robo-advisor that handles everything for you including picking your portfolio, IA isn’t the one.

If, on the other hand, you love the freedom of choosing portfolios, excluding certain assets, and making changes with the reassurance of professional help, IA may be the right choice for you.

Robo Chooser

Use the following Quiz and find out which robo advisor is best for you.

If you have any questions, please comment below.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

Axos Invest, formerly Wise Banyan, is a ‘free’ robo-advisor great for beginners, but don’t get too caught up in the word ‘free.’

There aren’t any management fees, but there are plenty of other add-on fees that decrease your profits if you aren’t careful.

Investors looking for minimal fees, investing for a specific goal, or are brand new investors do well with Axos Invest as it is a hands-off platform.

Check out my review on Axos Invest below.

What is Axos Invest?

Axos Invest is an automated investment platform that truly lives up to the name ‘invest and forget.’ They created Axos Invest with beginners in mind. It’s a platform that levels the playing field, making investing possible for anyone, even those with only a few dollars to invest.

You set your goals, fund your account and Axos Invest does the rest. Your portfolios are personalized for you – it’s not a one-size-fits-all approach. We love it for investors with specific goals. Saving for a house, a car, or for retirement? Just let Axos Invest know during setup and they’ll get you on the right path.

No management fee

Account Minimum

$1.

Management Fee

No management fee however you will be charged for different add-ons like tax loss harvesting which comes at 0.24% with a cap of $20/month.

Portfolio

21 ETFs. For a monthly fee of $3 you may access additional ETFs and build a custom portfolio.

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Best for

Investors who want a fee-free basic investing service without human financial advice.

Supported Accounts

Individual, Roth, traditional, SEP and rollover IRAs.

Summary

Axos Invest has great goal-based guidance. Even if the "free management" only applies until you´re in need of tax loss harvesting, it is still a very low cost option.

Review

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Current Promotion

Visit Website

No management fee

Account Minimum

$1.

Management Fee

No management fee however you will be charged for different add-ons like tax loss harvesting which comes at 0.24% with a cap of $20/month.

Portfolio

21 ETFs. For a monthly fee of $3 you may access additional ETFs and build a custom portfolio.

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Best for

Investors who want a fee-free basic investing service without human financial advice.

Supported Accounts

Individual, Roth, traditional, SEP and rollover IRAs.

Summary

Axos Invest has great goal-based guidance. Even if the "free management" only applies until you´re in need of tax loss harvesting, it is still a very low cost option.

Review

-

Current Promotion

Visit Website

How does it work?

Account opening

You need just $1 and your personal information to sign up for Axos Invest. Start with your email address and then answer the simple questions. All questions pertain to your personal identity (verify you are who you say you are) and your financial goals. Are you saving for a rainy day fund, to buy a car, buy a house, or retirement? These are just a few of the options.

The information you provide determines the portfolios Axos Invest creates. They base it on your time horizon, risk aversion, and money saved. They ask about your milestones (goals) and your risk tolerance. Axos uses this to create your portfolio. You can change its selections before finalizing your account, though, so you still have some control.

Deposit and withdrawal

During the sign up process, you’ll link an external bank account to your Axos Invest account. This is your ‘funding’ account. You can transfer funds to your Axos Invest account or withdraw them and transfer them to your linked account.

Withdrawals take 5 to 7 days depending on the investment you sold and its clearing time. You choose the goal to withdraw from and Axos Invest determines which securities to sell. They attempt to sell the investments with the highest tax lot to reduce your tax liabilities. After they sell the security, it takes 3 business days for it to settle and then transfer.

Trading options

Axos Invest does the trading for you, but you can customize your portfolio and/or change your risk score which they assign after you answer questions, at any time. Many robo-advisors don’t allow you to change your risk tolerance, so this is a nice feature.

They will split your portfolio up into stocks and bonds, showing you the allocation based on your risk tolerance. You’ll see a pie chart with your recommended allocation, such as 40% stocks, 60% bonds (for a conservative portfolio).

What can you trade?

Axos Invest uses the modern portfolio theory (like most robo-advisors). After you answer the risk-based questions, they create a portfolio based on your goals and risk tolerance. They use a combination of ETFs to create your portfolio. Axos uses low-cost ETFs with an average expense ratio of 0.12%. The ETFs come from domestic, international, and emerging markets, including stocks, bonds, and Treasury securities. Most ETFs are Vanguard or iShares.

Costs

Here’s where things get tricky. Axos Invest claims it’s a ‘free’ robo-advisor and it is, but with many add-ons, that for the standard investor makes it not quite as free. Some add-ons are a flat fee and others are a percentage of your assets under management.

The free features include:

• Free account setup
• Free portfolio setup
• Funding your account
• Automatic rebalancing
• Portfolio management

The paid features include:

• Portfolio Plus $3/month – Get access to 30 additional ETFs, with a more focused strategy. For example, if you have an interest in block chain stocks, precious metal stocks, socially conscious stocks, or marijuana stocks, you’ll find them in Portfolio Plus among many other categories.
• Fast Money $2/month – Get your deposits working faster without a waiting period or set up automatic deposits to regularly increase your account balance with no effort. It also offers overdraft protection to avoid going over your balance before withdrawing your automatic deposits from your linked account. There may be other fees included with these features charged by the clearing company including wire transfer fees and account transfer fees.
• Tax Protection 0.24% of assets under management (max $20/month) – This package includes tax loss harvesting, elimination of specific ETFs from your portfolio, and IRA conversions (allow investors to convert a traditional IRA to Roth IRA).

**Note, if you want to open an IRA account, you must buy the Tax Protection package.

Additional features

• Fund multiple goals – You may fund as many goals as you want at one time. For example, investors saving for a house and retirement at the same time may set up two goals with their own timelines, risk tolerance, and financial goals.
• Customer service – Axos Invest doesn’t have human advisor support, but you may call customer support Monday – Friday 7 AM to 5 PM PT with your questions, you just won’t receive individual financial advice.
• Cash milestone – You may set up a cash milestone, keeping a portion of your funds liquid, but it doesn’t earn interest, so keep that in mind.
• Automated financial advice – Axos doesn’t have human advisors, but its algorithms and software programs offer automated financial advice based on the information you provide.

Axos Invest Pros and Cons

FAQ

How does Axos Invest work?

Axos Invest utilizes goal-based investing using the modern portfolio theory. Axos uses your timeline, amount contributed, amount already saved, and risk tolerance to create your milestone accounts. The algorithms help you reach your goals by suggesting specific contribution amounts and reallocating your investments as needed.

Is Axos Invest good for beginners?

Beginning investors need a platform with low minimum opening balance requirements and simple questions with automated rules that set up their accounts for them. Axos Invest provides all of this and more. While it’s a simplified platform (the free version), it’s a great robo advisor for beginners that have never invested or only have a little money to invest.

Is Axos Invest safe?

Axos Invest protects its investors. While no investment brokerage is without its risks (no investment is 100% fail-proof), Axos Invest is SIPC insured. Your investments are protected up to $500,000 should Axos Invest go out of business and up to $250, on cash balances.

What is an Axos Invest ‘risk score’?

After you answer Axos Invest’s initial questions, it assigns you a risk score and creates a portfolio allocation based on your answers. The score ranges from 1 – 10, with 1 being the lowest risk tolerance and 10 the highest risk tolerance – most people fall somewhere in between. Along with your tolerance, you’ll see a portfolio suggestion, such as 60% stocks, 40% bonds.

Are there other fees besides the add-on fees?

Axos Invest prides itself on its free service and many investors can use the free platform. However, all investors pay expense fees. These aren’t Axos Invest fees, but rather the management fees from the ETF sponsor. Axos keeps these fees as low as possible, choosing low-cost ETFs, but know the full cost before choosing an investment. If you want to find out more about the different hidden fees you may encounter, check out this article.

How does Axos Invest make money?

Axos Invest’s basic features are free, but beyond that, they make money on their additional packages/charges. Basic or beginning investors may start with the free options, but most investors add on features and packages as they get comfortable, which is how Axos makes money.

What are fractional shares?

Axos Invest offers fractional share investments, which is great for beginners. You don’t have to buy full shares at prices you can’t afford. Let’s say Stock XYZ’s share is $50 per share, but you only have $10 to invest. Axos Invest will purchase a fractional share prorated to the amount you can afford. Now you can invest in XYZ sooner.

Does Axos Invest automatically diversify and reallocate your portfolio?

Axos Invest offers many features including diversification and reallocation. When they create your portfolio allocation, it’s a suggestion. You may alter it as you need, but they do create a diversified portfolio that best suits your risk tolerance. They also rebalance your portfolio as necessary as time goes on and the market changes.

Alternatives

Axos Invest vs Betterment

Axos Invest and Betterment are both great robo-advisors for beginners, but what sets Betterment apart is its access to human advisors.

If you prefer that human touch, Betterment is a better option.

Betterment doesn’t’ require a minimum investment and they charge 0.25% of assets under management. If tax loss harvesting is important to you, Betterment includes it in their basic package (not an add-on like Axos).

Axos Invest vs Ally Invest

Ally Invest is another great robo-advisors for beginners, but those leaning toward options trading benefit the most. Ally Invest offers commission-free trades and excels in its strategic tools (something Axos Invest lacks).

Ally Invest has no fees, no minimum balance, and no commissions, but you’ll pay the expense fees on ETFs, just like Axos.

Current Promotions

There are currently no promotions.

Worth It or a Scam?

Axos Invest is worth it, at least for beginners. You’ll get a free platform with no minimum balance requirements. If you want the add-ons, such as a retirement account or tax loss harvesting, the fees are minimal, but then you may look elsewhere as many robo-advisors include it in their basic packages. Axos is upfront about its additional fees, so as long as you look around, you’ll know what your account will cost.

Summary

If you want a hands-off approach and don’t want to obsess about your investments, Axos Invest makes it easy. With no minimum balance requirement and free offerings including automatic rebalancing, it’s a great robo-advisor for beginners.

If you’re a bit more advanced, Axos Invest offers a variety of packages, but compare them carefully to other robo-advisors offering the same features at lower costs (or even no cost) in some cases.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

If you’re looking for an online broker that does it all – managed portfolios and self-directed investments, check out Ally Invest.

Whether you have a short-term goal to save for a house or a long-term retirement goal, Ally invest offers multiple account options and commission-free trades, catering to different types of investors.

Is Ally Invest right for you? Check the important information in this review before you sign up.

What is Ally Invest?

Ally Invest is an investing platform offering both a DIY platform and robo-advisor. They trade stocks, bonds, options, ETFs, and mutual funds. Some investors may also trade forex, but Ally Invest recommends a minimum balance of $2,500, even though their ‘required’ investment is $250.

Ally Invest falls under the parent company Ally Financial, Inc. which also houses Ally Bank, an online-only bank with high APYs and low loan interest rates. Ally Financial purchased TradeKing in 2016, one of the lowest-cost investment platforms at the time, improved its programs, and removed commission fees.

No management fee

Account Minimum

$100.

Management Fee

0.00% or 0.30% for the legacy Managed Portfolio option

Portfolio

Goal and risk based. 17 ETFs.

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Best for

Investors who are looking for a low-cost hands off solution. Great if you already have an account with Ally.

Supported Accounts

Individual, Joint, Roth, traditional and rollover IRAs. Custodial accounts.

Summary

AllyInvest allows hands-off investing with no fees. It offers 4 different portfolio types: Core, Income, Tax-optimized and Socially Responsible

Review

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Current Promotion

Visit Website

No management fee

Account Minimum

$100.

Management Fee

0.00% or 0.30% for the legacy Managed Portfolio option

Portfolio

Goal and risk based. 17 ETFs.

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Best for

Investors who are looking for a low-cost hands off solution. Great if you already have an account with Ally.

Supported Accounts

Individual, Joint, Roth, traditional and rollover IRAs. Custodial accounts.

Summary

AllyInvest allows hands-off investing with no fees. It offers 4 different portfolio types: Core, Income, Tax-optimized and Socially Responsible

Review

-

Current Promotion

Visit Website

How does it work?

Account opening

Opening an account at Ally Invest takes less than 10 minutes.

After clicking ‘Get Started’, choose Self-Directed or Managed Portfolios. A self-directed account requires you to buy, sell, and manage your investments. Ally Invest doesn’t rebalance your portfolio, but they provide educational and research tools to assist you.

The robo-advisor or managed portfolio program, walks you through the steps including identifying questions. You’ll answer questions about your goals and risk tolerance and Ally Invest’s program provides you with portfolio options based on your answers. Ally’s automated program rebalances your portfolio, reducing the risk of emotionally-charged investment decisions.

Deposit and withdrawal

Ally Invest offers four ways to deposit funds:

• ACH transfer – Transfers from an Ally Bank account post immediately. All externally linked accounts take up to 5 business days.
• Wire transfer – Wire transfers are the fastest. They post within a few hours up to one day depending on the bank.
• Broker transfer – Transfer your brokerage account online. If you transfer $2,500 or more, Ally Invest reimburses the transfer fees.
• Check – Personal checks take up to 3 business days to clear, but bank issued checks clear upon receipt and verification with your bank.

You may withdraw funds by selecting ‘Transfers.’ Transfer the funds to your linked checking account, request a wire ($30 fee) or a mailed check ($5 fee). Most transfers require a 3-5 day clearing period.

Interface

Its web-based interface provides real-time updates on any internet-enabled device. Trade, obtain quotes, conduct research, or check your balances on your customizable dashboard. Best of all, the interface is user-friendly and has a mobile app option too.

Trading options

We love the fact that Ally Invest’s managed portfolios offers four portfolio choices:

• Core – Select your risk tolerance from conservative to aggressive and Ally Invests creates a mixed portfolio of domestic and international assets including stocks and bonds.
• Income – Investors with a lower risk tolerance choose this portfolio for its dividend yields and conservative investments.
• Tax optimized – Further your after-tax retirement funds with this portfolio which focuses on tax-exempt or tax-advantaged investments.
• Socially responsible – Focuses on companies with sustainable practices, focusing on environmentally-conscious, energy-efficient, and socially responsible practices.

If you choose a self-directed trading account, you manage your portfolio, buying and selling assets as you want using Ally Invest’s intuitive trading tools. Think about your options before signing up. How much control do you want? Are you a hands-off investor or does handling your own portfolios excite you?

What can you trade?

Trade any of the following on Ally Invest:

• Stocks
• Bonds
• Mutual funds
• ETFs
• Forex
• Options
• If you are looking to trade Crypto, you will be better off with a different robo-advisor, such as RobinHood for example.

Costs

Neither the self-directed or managed portfolio has advisory fees. Ally Invest also doesn’t charge commissions on stock or ETF trades priced $2 and up. Options trade for $0.50 per contract (no commission) and bonds trade at $1 each. No-load mutual funds trade at $9.95 per fund.

Assets priced below $2, cost $4.95 base fee plus $.01 per share traded with a maximum of 5% per asset value, so keep that in mind if you trade penny stocks – they don’t fall under the no-commission category.

Other fees include:

• $25 IRA closure fee
• Paper tax documents $50
• Outgoing wire transfer (full or partial) fee $50
• Check withdrawal $5
• Domestic wire $30
• Returned check $30

Additional features

• Each of Ally Invest’s Managed Portfolios has a cash enhanced portfolio feature for the risk-averse investor. Best of all, it sets aside 30% of your portfolio in cash and earns a minimal interest rate. This account is not FDIC insured.
• Access customer service via chat email or phone 7 AM to 10 PM Eastern Time Monday – Sunday.
• Perform in-depth stock, ETF, and mutual fund research. It may not compare to its bigger competitors, such as Charles Schwab and Fidelity, but it’s plenty for beginners and low-key investors.
• Ally Invest offers plenty of education geared toward beginning investors. It’s not on the Ally Invest website, but you can find it

Tutorial

Ally Invest Pros and Cons

FAQ

Is Ally Invest good for beginners?

Ally Invest’s commission-free structure, detailed educational tools, and research options help beginners learn the ropes. With only $100 minimum for managed portfolios, it is among the best robo advisors for beginners. Many people can start investing even with a little money. If you prefer self-directed investing, the lack of account balance minimum requirement and robust research helps beginners invest.

Is Ally Invest safe?

Ally Invest is a member of SIPC which protects your accounts up to $500,000. Note, SIPC doesn’t guarantee share price, just a return of your shares should Ally Invest go under. If the share price decreases, SIPC coverage doesn’t help; it just ensures the return of your shares. Ally Invest has additional insurance through London Underwriters for accounts greater than $500,000.

Can you make money with Ally Invest?

Like any broker, there’s a chance you’ll make or lose money. With the right steps, a bit of luck, and plenty of research, you can make money with Ally Invest. Choosing a managed portfolio increases your chances of earnings because Ally Invest creates portfolios based on your risk tolerance and automatically rebalances your portfolio if it goes astray.

Does Ally Invest offer forex trading?

Investors can try their hand at forex trading with Ally Invest. This is one area they offer a practice account, giving you $50,000 in virtual funds to try your hand at forex trading for 30 days. The practice account provides access to the desktop, web-based, and mobile platforms giving you a true feeling of forex trading.

How long do Ally Invest transfers take?

It depends on how you transfer the funds. Transfers between Ally Bank and Ally Invest take less than 2 minutes, posting immediately. Transfers between external accounts take 3 – 5 business days depending on your bank’s process. Ally doesn’t transfer funds on weekends or holidays.

What type of accounts can you open with Ally Invest managed portfolios?

Ally Invest offers a large selection of accounts whether you want an individual taxable account or a retirement account. Investors may open an individual or joint account (taxable or tax-advantaged), traditional or Roth IRA, rollover IRA, and custodial accounts. If you have short-term goals, open an individual or joint taxable account, but if retirement is your goal, choose from one of the many IRA options.

Does Ally Invest offer a dividend reinvestment plan?

A dividend reinvestment plan reinvests your dividends in securities, buying whole or fractions of shares. Ally Invest offers DRIP for all securities priced over $4. You can have all dividends reinvested or only specific dividends. There is no charge.

How does Ally Invest make money?

Without advisory fees and no commissions, how does Ally Invest make money? As you can see above, they charge fees in other areas making up for the lack of commissions or advisory fees. They also encourage the use of Ally Bank for instant and easy transfers, earning money on both sides of the coin.

Alternatives

Ally Invest vs E-Trade Core Portfolios

If you have at least $500 to invest, E-Trade Core Portfolios offers professionally managed ETF portfolios create to meet your goals. E Trade has five portfolio options and its powerful software program reallocates your investments as needed. You can update your goals at any time and stay informed 24/7.

Ally Invest vs Fidelity

If you have at least $25,000 to invest, consider Fidelity. Like Ally Invest, Fidelity offers commission-free trades. They offer both a robo-advisor (fully digital) and a combination robo-advisor/human coaching option.

The robo-advisor program doesn’t have a minimum balance requirement and only allows a single goal.

The combination account requires $25,000 invested but offers ‘live coaching’. Both accounts have advisory fees of 0.35% and 0.50% respectively.

Ally Invest vs Vanguard

If your primary focus is mutual funds and ETFs, consider Vanguard. Known for their low-cost ETFs, Vanguard trades both mutual funds and ETFs commission-free. Vanguard offers an all-digital advisor and Personal Advisor services, but the advisors work on a fiduciary basis, so advisors must work to your benefit, not the size of their paycheck.

Vanguard Personal Advisor charges 0.3% of assets under management, but you have access to a human advisor.

Ally Invest vs TD Ameritrade

Like most online brokers TD Ameritrade offers commission-free trading and no account minimums. If you love research or making complex trades, choose TD Ameritrade. It’s great for day traders or active traders that want more than what a typical robo-advisor offers.

Ally Invest vs Robinhood – Robinhood is good for investors looking for complete control. Robinhood pioneered the $0 commission trades, but they aren’t your traditional robo-advisor. You select and manage your portfolios. Keep in mind, Robinhood only trades stocks, ETFs, options (and soon cryptocurrencies).

Current Promotions

Currently there are no promotions.

Worth It or a Scam?

Ally Invest is worth it for beginners. With no commissions and only $100 minimum for a managed portfolio, anyone can invest. They have a limited number of portfolios, but sometimes less is more. We also like its self-directed accounts for beginners, despite its lack of a paper trading account. The minimal fees, easy-to-use interface, and multiple platforms work great for investors starting a new investment journey.

If your focus is mutual funds, though, look elsewhere. Its lack of no-transaction-fee mutual funds is minimal and better suited for other online brokers such as Sofi Invest or Wealthfront.

Summary

Ally Invest offers the best of both worlds. New investors testing the waters with a robo-advisor or new self-directed investors find value in this platform. With no advisory fees and minimal trading fees, Ally Invest works great for beginner investors with little money to invest but a drive to dive in and meet their financial goals.

Robo Chooser

Use the following Quiz and find out which robo advisor is best for you.

If you have any questions, please comment below.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

TIAA Personal Portfolios has a slightly higher minimum required balance than your typical robo-advisor, so it’s best kept for experienced investors looking to switch advisors.

TIAA uses a passive investment strategy, which is great for those investing for the long-term, such as retirement.

This advisor doesn’t have the lowest management costs in the industry, but they aren’t the highest either.

Check out my review on this established robo-advisor to see if it’s right for you.

Reliable

Account Minimum

$5,000.

Management Fee

0.30% (charged quarterly, cash not included)

Portfolio

Goal-based, ETFs

Supported Accounts

Individual, Joint, Roth, traditional and rollover IRAs.

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Best for

Investors who are interested in a variety of investment and goal planning tools. Both active and passive investment approaches.

Summary

TIAA comes with a competitive management fee and excellent goal-planning tools. Unfortunately the service does not include tax loss harvesting.

Review

-

Current Promotion

Visit Website

Reliable

Account Minimum

$5,000.

Management Fee

0.30% (charged quarterly, cash not included)

Portfolio

Goal-based, ETFs

Supported Accounts

Individual, Joint, Roth, traditional and rollover IRAs.

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Best for

Investors who are interested in a variety of investment and goal planning tools. Both active and passive investment approaches.

Summary

TIAA comes with a competitive management fee and excellent goal-planning tools. Unfortunately the service does not include tax loss harvesting.

Review

-

Current Promotion

Visit Website

What is TIAA Personal Portfolios?

TIAA Personal Portfolio is an online investing platform that helps you achieve long-term financial goals, such as retirement. TIAA offers unique investing opportunities, including the option to invest in socially responsible companies – something not all robo-advisors offer and if they do, it’s an afterthought, not the focus.

They offer human advisor services as needed and you can check your account’s progress easily by logging into your account.

How does it work?

Let’s look at how TIAA works.

Account opening

TIAA’s account minimum of $5,000 is a little steep for a traditional robo-advisor, which is why we say it’s great for established investors. TIAA asks the typical robo-advisor questions when you sign up for an account so they can get a feel for your risk tolerance, timeline, and financial goals.

They create a portfolio based on these answers so you can meet your targeted goals. For the most part, TIAA is a passive investment tool, but it depends on the investments you choose. Since they do rely on mutual funds, you may have more actively managed investments than you would with any other advisor.

Deposit and withdrawal

You can deposit and withdraw funds from your TIAA account by logging into your account. If you want seamless transactions, link your checking account to your account and click ‘transfer funds’ in your dashboard. From there, follow the instructions to deposit or withdraw funds. Just know if you withdraw funds that are tied to an asset, you may have to wait 3 – 5 days for the account to settle and funds to disburse.

Interface

The interface is a little confusing, to be honest. Since TIAA has many other offerings besides the robo-advisor, they send you to their main website for everything. You have to toggle through the menu to get where you want to go. On the desktop, this is fine, but on the mobile app, it’s a little confusing and time confusing to get where you need to go.

Trading options

TIAA has both individual and joint taxable accounts as well as IRA and Roth IRA options to help you save for retirement.

What can you trade?

TIAA offers two types of investments – mutual funds and ETFs. While they are similar, they have a few key differences that could affect your bottom line. The assets you invest in depend on the portfolio chosen for you:

• Basic – This portfolio consists mostly of ETFs that mimic or track the market. This portfolio has the lowest expense ratios.
• Insight – This portfolio is for aggressive investors that want to beat the market. It focuses primarily on mutual funds, which have larger expense ratios.
• Impact – This portfolio focuses on socially responsible investments and tries to track the market, not beat it.

Costs

TIAA charges 0.30% of assets under management (you pay it quarterly). This excludes any cash balances and only pertains to the money currently invested. The fee covers everything required to manage your account within TIAA. It does not include the expense fees involved with the mutual funds or ETFs you invest in.

How does TIAA make money?

TIAA makes money off the annual assets under management fee charged to every investor.

Additional features

Cash Account

TIAA offers an interest-bearing account on any amount in your cash balance that isn’t invested. They call it the TIAA Bank Sweep Account.

Human advisors/customer service

TIAA offers a combination of human advisor and customer service. You can get ‘some’ financial advice, but it’s not from a certified financial planner or investment specialist, so most of your questions should be basic enough for the agent to help.

Research

TIAA advisors research for you, selecting the best mutual funds and ETFs that meet your goals, timeline and align with your personal preferences (aka social responsibility).

Education

TIAA offers a variety of educational opportunities on their website. It’s not all related to investing, since TIAA offers other services, but we could all use help in the personal finance sector once in a while.

TIAA Pros and Cons

FAQ

Are your investments secure at TIAA?

Yes, TIAA is SIPC insured, which means all invested funds up to $500,000 are covered should TIAA go out of business, as is up to $250,000 in cash. Additionally, any funds in the TIAA Bank Sweep Account have FDIC insurance, which covers each individual up to $250,000.

Can you exclude certain investments?

If you want to exclude a specific ETF or mutual fund, whether due to ethical reasons or otherwise, you can apply for an exception with TIAA by calling customer service. They’ll consider your request and see what they can replace the asset that you want to replace with that’s comparable to what you have.

Can you change your profile?

Yes, life happens and TIAA recognizes that. Some robo-advisors keep you stuck in the same risk tolerance and portfolio for the life of your investment, but TIAA doesn’t. You can log into your dashboard and update your investment profile at any time. If you do, it may change the trajectory of your asset allocation, which TIAA handles for you.

Does TIAA offer tax loss harvesting?

Unfortunately, TIAA doesn’t offer tax loss harvesting, but they have an alternative. They recognize the need to lower the tax liabilities as much as possible, so they use tax efficiency methods by rebalancing your portfolio. This means they may sell assets at a loss before they sell assets at a gain to offset the capital gains and therefore lower your tax liability.

Is investing in TIAA for the socially responsible investments worth it?

If you’re a socially responsible investor, it makes sense to try TIAA. Their low management fee compared to other socially-responsible brokerage firms is low and they have an extensive selection which is surprising for a robo-advisor that doesn’t focus solely on socially responsible investments. Most brokers make ethically responsible investments seem like an afterthought, but TIAA doesn’t.

Does TIAA rebalance portfolios?

Yes, they aren’t transparent on how often they rebalance, but some data leads to the thought that they micro rebalance, checking the portfolio daily, and making minor adjustments. You can always check your portfolio at any time and call with questions if you have concerns.

Is TIAA only for retirement accounts?

You can open a TIAA for a variety of reasons. They offer calculators for retirement, as well as saving for college, and even saving for a house. They have a long-term mindset, but they support investors with a variety of goals.

Alternatives

TIAA vs Vanguard

Vanguard’s robo-advisor has a steep minimum investment of $50,000, reserving this service for wealthy and experienced investors.

Vanguard has an impressive investment list and access to financial advisors. Its fees are the same as TIAA but you get unlimited access to financial advisors, which is important when you have as much as $50,000 invested.

TIAA vs Fidelity

Fidelity Go is Fidelity’s robo-advisor with no account minimum. It sounds great, especially for beginners, but know that Fidelity doesn’t offer tax loss harvesting, which can be a large downside if you have a lot of capital gains.

Fidelity combines the robo-advisor with human advice, giving investors the best of both worlds. Its management fee is along the lines of most robo-advisors at 0.25 percent and is great for beginners, especially those that have a Fidelity account already.

Current Promotions

There are currently no promotions.

Worth It or a Scam?

TIAA is good for those already with an account at TIAA. If you aren’t eligible through your organization, then TIAA won’t be an option. For those that are eligible, it’s a great solution for a robo-advisor as long as you have at least $5,000 to invest.

Summary

TIAA’s robo-advisor is new to the industry, but it’s quickly making a name for itself, especially with its ethically responsible investments. Its goal-based investing and human touch make it a good resource for those that are eligible for the program.

Robo Chooser

Use the following Quiz and find out which robo advisor is best for you.

If you have any questions, please comment below.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

You’ve likely heard of Wealthfront, as it’s one of the most popular robo-advisors available today. Is it worth it or is yet another scam just to make some money off you?

I signed up and explored all that Wealthfront offers and I’m sure you’ll be surprised at what I learned.

Check out my review below.

What is Wealthfront?

Wealthfront is a digital investment advisor that manages your investments for a low management fee. Its goal-setting technology surpasses those of many other robo-advisors, and its Path financial planning tools help you forecast, change, and improve your financial situation.

Wealthfront situates itself as more than a robo-advisor, but more of a financial planning tool that helps beginner and advanced investors achieve their financial goals.

Wealthfront at a Glance

Best for low fees

Account Minimum

$500

Management fee

0.25%

Portfolio

ETFs from 11 different asset classes

Rebalancing

Tax Loss Harvesting

Frational Shares

Automatic deposits

Smart Beta

SRI

Human Advice

401(k) Assistance

Account Types

Individual, Joint, Roth, traditional, SEP & rollover IRAs. Trusts and 529.

Best for

Investors who are looking for a low-cost, hands-off investing approach. The service is completely software-based so if you are looking for a dedicated human advisor it would be better to look elsewhere.

Summary

Wealthfronts portfolio consists of ETFs with very low expense ratios. It stands out not only due to its low fees but also due to their "Path Algorithm". The Algorithm will help you keep track on your goals.

Sign Up

Read Review

Best for low fees

Account Minimum

$500

Management fee

0.25%

Portfolio

ETFs from 11 different asset classes

Rebalancing

Tax Loss Harvesting

Frational Shares

Automatic deposits

Smart Beta

SRI

Human Advice

401(k) Assistance

Account Types

Individual, Joint, Roth, traditional, SEP & rollover IRAs. Trusts and 529.

Best for

Investors who are looking for a low-cost, hands-off investing approach. The service is completely software-based so if you are looking for a dedicated human advisor it would be better to look elsewhere.

Summary

Wealthfronts portfolio consists of ETFs with very low expense ratios. It stands out not only due to its low fees but also due to their "Path Algorithm". The Algorithm will help you keep track on your goals.

Sign Up

Read Review

How does it work?

Signing up for Wealthfront is easy. It took me only a matter of minutes. After providing your personal identifying information, you complete a questionnaire. Pay close attention to this step, as it determines your risk tolerance and financial goals.

Wealthfront creates a portfolio with several asset classes. It chooses an ETF for each asset class chosen, again, based on your risk tolerance and goals. For example, if you have a long-term goal, it may choose slightly more aggressive investments for the time being until you get closer to your target date. At that point, it may make the portfolio more conservative to avoid the last-minute loss.

Deposits and withdrawals

Wealthfront makes it easy to deposit and withdraw funds. If you’re depositing into your cash account, you can deposit as little as $1, but your investment account deposits must be in increments of $100. You can make manual deposits or set up automatic deposits, depending on your preferences.

I set up recurring deposits via ACH (checking account transfers). This way I don’t have to think about making my contributions – it’s done for me.

You may withdrawal from your cash account at Wealthfront at any time and in any increments. If you want to withdraw from your assets, though, you may only withdraw in $250 increments, so keep that in mind.

Withdrawals take a few days, depending on the type of withdrawal:

• Cash withdrawals – Complete in 1 – 3 business days depending on your bank’s speed
• Asset withdrawals – Complete in 3 – 4 business to allow time to settle the trade

Account access

Wealthfront is available on the web and Android or iPhone apps. You can access your account anywhere you have internet access. Your account updates in real-time, so you have the most current information no matter which device you use.

What can you trade?

Wealthfront works across 11 asset classes. Wealthfront typically trades ETFs, but you may find some mutual funds in there too. Depending on your risk tolerance, your ETFs may contain some or all of the following asset classes:

• Domestic stocks
• Foreign stocks
• Emerging stocks
• Dividend stocks
• TIPS (Treasury Inflation Protected Securities)
• Bonds – corporate, municipal, and government
• Emerging market bonds
• Natural resources
• Real estate

What are the costs?

Wealthfront, like many other robo-advisors, charge an annual management fee equal to 0.25% of the assets under management.

If you just open a cash account, there are no fees, but it doesn’t make much sense to open just a cash account and not invest it.

They deduct the annual management fee monthly. So if you have $5,000 in your investment account, you’d pay $1.02 per month. Wealthfront deducts it from your account automatically.

You may also pay ETF expense ratios. Wealthfront tries to limit its offerings to low-cost ETFs, ranging from 0.06% to 0.13%, but there are fees nonetheless.

Additional features

• Tax favorable investments – Wealthfront automatically uses strategies to lower your tax liabilities while increasing your earnings.
• Financial planning – Wealthfront does more than manage your investments. They help you plan for your financial future too. Using their Path tool, you can estimate how much you need to buy a house, save for retirement, or achieve any other financial goal.
• Cash account – Normally, a cash account creates an opportunity cost, but at Wealthfront, they pay 0.35% APY on your cash balances. While it’s not a ton, it helps you earn a little while you figure out what to do with your money.
• Types of accounts – Wealthfront offers a variety of account types including taxable, college savings, and retirement savings.
• Customer service – Even though it’s a robo-advisor, Wealthfront offers access to human customer service agents Monday – Friday 7 AM – 5 PM PT.
• Education – Wealthfront has a hefty learning center that provides plenty of articles and videos on retirement savings, investing, and college savings. They also offer financial guides for specific strategies including financial health, home buying, and equity strategies.

Screenshots / Tutorial

This is probably easiest explained by a video. Check out this great tutorial from Carlo Santo Ana to get a better feel for the platform.

Wealthfront Pros and Cons

FAQ

Can you use Wealthfront for free?

No. There is an account minimum of $500 however you don’t have to open an investment account. Anyone can link their bank and brokerage accounts to Wealthfront and use their financial planning tool Path.

Is there a fee for tax-loss harvesting?

No, Wealthfront includes tax-loss harvesting strategies in their annual management fee.

How can you transfer other investments to Wealthfront?

Some assets may automatically transfer over to Wealthfront. If they don’t match with Wealthfront’s investments, though, they may have to sell your current assets and re-buy assets that align with Wealthfront strategies.

What is Wealthfront’s college planning tool?

Not only can you set up a college savings plan at Wealthfront, but you can use its College Planning tool to get recommended contribution amounts, and conservative investment advice to help you have the funds needed for college.

Who can take out a Wealthfront line of credit?

If you have at least $25,000 in your Wealthfront account, you may borrow up to 30 percent of your portfolio’s value. You don’t need to go through a credit check or even complete an application – it’s automatic for investors with $25,000.

Does Wealthfront have a rebalancing schedule?

Wealthfront doesn’t rebalance at predetermined times. They rebalance when the portfolio significantly drifts from its goals.

Can you open a Roth IRA and a traditional IRA?

Yes, Wealthfront offers both Roth IRA and traditional IRA options. If you’d rather have the tax advantages when you retire, the Roth IRA may be the better choice.

Alternatives

Wealthfront vs Betterment

Wealthfront and Betterment go hand-in-hand, as they have the same management fees and similar structures.

However, Betterment doesn’t require a minimum opening deposit and allows you to set up multiple goals. Betterment offers human financial advice in its premium plan, but it costs 0.4% annually.

Wealthfront vs Vanguard

Vanguard has a much higher minimum balance requirement of $50,000. It also charges 0.30% of assets under management and has a tougher set-up process, but it includes the use of a human financial advisor.

Wealthfront vs Robinhood

Robinhood doesn’t have a minimum opening balance requirement, and it offers free stock trades, without an annual management fee. You may only open a taxable account at Robinhood and you have access to customer service via phone from 9 AM to 6 PM ET.

Worth It or a Scam?

Is Wealthfront worth it? It’s definitely not a scam as Wealthfront has made quite a name for itself. Its low management fee, a large number of asset classes and low-cost expense ratios make it great for beginners and experts alike.

Summary

If you want a low cost, hands-off approach to investing that focuses on goals and rebalancing your portfolio to get you there, Wealthfront is a good choice.

While it has tough competition out there, Wealthfront is upfront about its fees, I couldn’t find any hidden fees and the process to start and stay invested is user-friendly and functional.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

Have you always wanted a second opinion on your investments? Don’t we all, right? It’s hard to know when what you’re doing is right.

FutureAdvisor gives you that second opinion with a free analysis and/or investment management, depending on the program you choose.

You can get away with the free analysis and get free recommendations based on your goals and risk tolerance, using the same modern portfolio theory used by a majority of robo-advisors.

If you’re a DIY investor, you can take the information and do it yourself. If not, FutureAdvisor has a paid version, which I’ll cover in this review.

Retirees

Account Minimum

$5,000

Management Fee

0.50%

Portfolio

14 ETFs

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

Human Advice

Best for

Investors who are looking for a great allrounder, especially when your already have an account with Fidelity or TDAmeritrade.

Supported Accounts

Individual, Joint, Traditional, Roth, rollover & SEP IRAs. Fidelity 401(k)

Summary

FutureAdvisor does not have the lowest fees however offers they do offer a great service with free tools and human advice.

Review

-

Current Promotion

Visit Website

Retirees

Account Minimum

$5,000

Management Fee

0.50%

Portfolio

14 ETFs

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

Human Advice

Best for

Investors who are looking for a great allrounder, especially when your already have an account with Fidelity or TDAmeritrade.

Supported Accounts

Individual, Joint, Traditional, Roth, rollover & SEP IRAs. Fidelity 401(k)

Summary

FutureAdvisor does not have the lowest fees however offers they do offer a great service with free tools and human advice.

Review

-

Current Promotion

Visit Website

What is FutureAdvisor?

I’d like to say FutureAdvisor is a robo-advisor, and it is, but with a unique aspect. Not too many robo-advisors offer free services let alone a full analysis of your existing investments and that’s what FutureAdvisor offers. Right there, it’s worth its weight in gold – who wouldn’t want a second opinion on such a big part of their life?

They have a premium offering too, which as the name suggests isn’t free, but most robo-advisors aren’t free. In fact, when we refer to a free robo-advisor, it usually means that there is no management fee. There is a separate article for such “free” robos, you can find it here.

FutureAdvisor’s management tool oversees your investment accounts, including automatic rebalancing and tax loss harvesting. If that’s not enough, you also get access to financial advisors – something most robo-advisors don’t offer.

Here’s the catch –

They only work with accounts at TD Ameritrade or Fidelity. If you don’t have an account with either one yet, you’ll need one.

FutureAdvisor is great for DIY investors, those who want a hands-off approach but the ability to talk to someone, and of course current TD Ameritrade and Fidelity investors.

To use FutureAdvisor, you must give them management rights to your account at either broker. This means they can execute trades on your behalf. If you don’t have an account there yet, FutureAdvisor can help you transfer your assets over, but you may incur more charges.

How does it work?

Account opening

Like most robo-advisors, setting up a FutureAdvisor account is simple. You answer questions so the advisor can determine your risk tolerance and goals. Since they use the Modern Portfolio Theory, they use these two factors to choose the right investments. With the answers, they’ll determine the right asset allocation to meet your goals.

You need a minimum of $5,000 to start, and can transfer over assets from other brokers to meet the minimum, but you may incur charges. Please note that you have little control of your assets once FutureAdvisor takes over.

If you have certain stocks you already own that you don’t want sold, you can put them on a ‘do not sell’ list, but only if they make up a small fraction of your portfolio.

When you set up your account, you’ll choose one of three options:

• Are you saving for retirement?
• Are you investing to save for a major purchase?
• Are you looking for general investments?

The answer to this question plus your risk tolerance and amount invested helps them determine your asset allocation.

Investors may open both individual and joint accounts both taxable and retirement. In addition, you may open 529 college savings plans. You may also rollover old retirement accounts.

Deposit and withdrawal

Depositing money in your FutureAdvisor account is easy. Just link your external checking account to make transfers. FutureAdvisor doesn’t have automatic deposit capabilities, though. You must manually transfer any funds.

Withdrawals are just as simple. Using the same interface, you request your withdrawal; however, it may take up to 4 business days to complete.

Interface

FutureAdvisor works on both desktop and mobile devices. The website itself is rather limited, since most of what they do is behind the scenes in your TD Ameritrade or Fidelity account.

Trading options

Your trading options are somewhat limited to what’s offered at TD Ameritrade or Fidelity. You can open individual or joint accounts, though, which many robo-advisors don’t offer. As far as retirement accounts, you can open a traditional, Roth, rollover, or even self-employed IRA. The only retirement account they don’t oversee is the 401K.

What can you trade?

FutureAdvisor manages ETFs from up to 12 asset classes. They aren’t very transparent about the number of ETFs they have to choose from, but upon the latest findings, it looks like they have 14 ETFs to choose from, which don’t include socially responsible investments.

Costs

As I said above, the portfolio analysis is free. DIY investors can take the recommendations and create/manage their own portfolios. This doesn’t cost anything.

If you sign up for the premium account, you pay 0.50 percent of assets under management, plus the expense ratios which are an average of 0.14 percent to 0.18 percent.

Additional features

• Cash Account

FutureAdvisors doesn’t have a cash account, but they also don’t have asset accounts. They manage your investments at TD Ameritrade or Fidelity, both of which have cash accounts. If you have cash drag, you may earn interest on the money that sits idle while you decide how to invest it.

• Human advisors

Premium clients have access to a team of financial advisors. While you may not get the same advisor every time you call, your team works on your behalf and is always on the same page. You’ll get the same answer no matter which advisor you talk to on your team of advisors.

• Customer service

Customer service is rather lacking with FutureAdvisor, unfortunately. You don’t have a phone or live chat option. Instead, you may send a message and wait for a response. They also offer their FAQ where you may find answers to your questions if they’ve already been asked. If you pay for the premium service, though, you have access to the financial advisors, which may help you out further.

• Research and education

Since FutureAdvisor is a management service and not the investment broker itself, they don’t offer research and education, however, you can get the services from TD Ameritrade or Fidelity, both of which offer robust research and educational opportunities.

FutureAdvisors Pros and Cons

FAQ

Is FutureAdvisors right for beginning investors?

FutureAdvisors is unique in its offerings. It’s only for existing TD Ameritrade or Fidelity clients. It’s an add-on service that helps manage your accounts, giving you that robo-advisor feeling without using a robo-advisor. In most aspects, FutureAdvisors is best for experienced investors, especially if you don’t want to pay the additional 0.5 percent of assets under management on top of the fees you pay TD or Fidelity. Find our guide on beginner-friendly Robo-Advisors here. DIY investors are experienced investors that can handle the work and stress involved in managing your own account.

How does the second opinion work?

If you just want the second opinion, get the free analysis of your existing portfolio. You’ll receive a report of suggested portfolio options. You can compare it to what you have now and make decisions based on what FutureAdvisors offers. If you don’t agree, you don’t have to make any changes, but since FutureAdvisors has nothing to gain with your free analysis, it’s fair to believe that they have your best interests in mind and may be offering a legitimate way to improve your portfolio.

Should you move your investments to TD Ameritrade or Fidelity?

If you want to try FutureAdvisors services, you must have an account at TD or Fidelity. That doesn’t mean everyone should shift their assets over to them, though. Make sure it makes financial sense to do so. You’ll likely incur tax liabilities and possibly penalties if you aren’t’ careful. Consult with your tax advisor before switching over.

Why are FutureAdvisors fees so high?

FutureAdvisors fees are higher than most robo-advisors and it’s in addition to the other investment fees you may incur. While they try to stick to commission-free trades, we all know that’s not 100 percent possible all the time. This means you may incur more fees, adding to the 0.5 percent fee.

Should only DIY investors use FutureAdvisors?

FutureAdvisors is great for DIY investors because it’s like reassurance that you’re doing something right or that you need to make changes. That doesn’t mean only DIY investors should use it. If you’re looking for free advice, yes, only DIY investors should use it. But, if you have a TD or Fidelity account and want that second opinion, it may be worth it to get more advice on your account.

Is FutureAdvisor better than paying for a human advisor?

If you compare the cost of a human advisor and a robo-advisor like FutureAdvisor, you’ll see the tremendous savings. While you don’t work with an advisor one-on-one, but rather have a team of advisors, you still get the same great advice and keep more of your earnings in your pocket.  You must be comfortable with digital management of your portfolio as most of FutureAdvisor’s management is electronic.

How does FutureAdvisor get access to your accounts?

It seems crazy to let another company handle your investments at TD Ameritrade or Fidelity, but it’s possible. You just need to grant management permission. This gives FutureAdvisor the ability to make trades on your behalf and adjust your portfolio. You can cancel this option at any time, though.

How does FutureAdvisor make money?

FutureAdvisor makes money on the premium account holders. They charge the fee quarterly. While it seems like they would lose money on self-managed accounts, the premium accounts make up for the ‘free’ services they offer.

Alternatives

Future Advisor vs Personal Capital

Like FutureAdvisors, Personal Capital gives you access to a team of advisors, but their minimum required investment is a lot higher. You need $100,000 invested with PC in order to use them and they charge between 0.49 percent and 0.89 percent.

Only investors with at least $200,000 invested get access to two dedicated financial advisors. But, if you meet the minimum investment requirement and want a balance between a robo-advisor and human advisor, Personal Capital offers the best of both worlds.

Future Advisor vs SigFig

SigFig has a much lower account balance requirement of $2,000 and they even offer free management services on your first $10,000 invested. You get unlimited meetings with a financial advisor and pay just 0.25 percent of assets under management.

SigFig is best for hands-off investors that want automatic rebalancing rather than handling the investments themselves at a cost that’s a fraction of a human advisor.

Future Advisor vs Wealthfront

Wealthfront is one of the most well-known and most affordable robo-advisors. They charge just 0.25 percent of assets under management and ensure all investments are tax optimized. They automatically rebalance your portfolio and offer a 529 college savings plan too. Wealthfront, like FutureAdvisors offers free advisory services even if you don’t open an account. Wealthfront is great for beginning investors.

Current Promotions

Currently there are no promotions.

Worth It or a Scam?

Is FutureAdvisor worth it? If you’re an experienced investor looking for a second opinion, yes for sure. If you are a beginner or you already use a robo-advisor that manages your account, there’s no need or use for it. You have to have an account with Fidelity or TD Ameritrade, so for those clients, yes FutureAdvisor could be the best option that helps you stay on track.

Summary

The bottom line is FutureAdvisors is great for anyone that wants a free analysis. Who would turn down a free analysis, right? If you could hear that you’re doing things right or that you need to change things, you’d want to know. Anyone can use those services, no matter where you have an account.

Now, if you want FutureAdvisor to manage your investments for you, that’s when you need a brokerage account at either Fidelity or TD Ameritrade. If you’re a DIY investor that can handle doing it yourself, though, take advantage of the free analysis and make the tweaks they suggest so you can get your account on track.

If the above doesn’t apply to you, check out our quiz to see which may be the right fit for you.

If you have any questions, please comment below.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

If you’re looking for a robo-advisor that uses a combination of technology and human advice, check out United Income.

You’ll get personalized plans that work for you and aren’t based on anyone else’s financial goals.

United Income relies heavily on global diversification, which according to United Income, outperforms domestic focused portfolios and is more responsive.

If you’re retiring or are retired and are looking for a robo-advisor that caters to people in your age group, United Income may have what you need.

I review what they offer in detail below.

What is United Income?

Let’s start with where United Income is different than your traditional robo-advisor. When you invest with brokerages like Sofi Invest or TD Ameritrade, they try to mimic the market – they aren’t in it to beat it. That’s where United Income differs – they are in it to outperform the market.

Beyond that, United Income caters to retirees. Most robo-advisors cater to the younger investors looking to save for retirement, so it’s a completely different demographic they entertain.

United Income focuses not only on keeping your retirement accounts intact, giving the funds you need throughout retirement, but they also provide advice on regular retirement income and insurance (Social Security and Medicare). Advisors will help you navigate the required minimum distribution questions and even help you make financial decisions moving forward, such as ‘should you downsize or stay put?’

United Income has two plans, each with a different account minimum and offers:

Premium Plan offers:

• A personalized financial plan
• Advice on collecting Social Security
• Personalized portfolio advice and allocation
• Technical support
• Yearly meetings (on the phone) with your investment manager

Private Wealth Plan offers:

• Everything the Premium Plan offers
• More advanced investment advice
• Unlimited meetings with your wealth manager
• Analyses for refinancing, downsizing, tax optimization, Roth conversion, and estate planning

Premium

Private Wealth

Account Minimum

$10,000

The management fee is between 0.45% and 0.80%. This depends on the add-ons that are chosen. The account minimum is $300,000.

Management Fee

0.50%

-

Portfolio

Customized for each client

-

Supported Accounts

Individual, Joint, Traditional and Roth IRAs, Trusts

Individual, Joint, Traditional and Roth IRAs, Trusts

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Best for

Investors who are 50+ years old that are looking to invest for retirement.

Investors who are 50+ years old that are looking to invest for retirement.

Summary

United income has diversified portfolios that attempt to beat market returns.

United income has diversified portfolios that attempt to beat market returns and are in need of extra services such as securtiy planning

Review

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Current Promotion

Visit Website

Visit Website

Premium

Account Minimum

$10,000

Management Fee

0.50%

Portfolio

Customized for each client

Supported Accounts

Individual, Joint, Traditional and Roth IRAs, Trusts

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Best for

Investors who are 50+ years old that are looking to invest for retirement.

Summary

United income has diversified portfolios that attempt to beat market returns.

Review

-

Current Promotion

Visit Website

Private Wealth

Account Minimum

The management fee is between 0.45% and 0.80%. This depends on the add-ons that are chosen. The account minimum is $300,000.

Management Fee

-

Portfolio

-

Supported Accounts

Individual, Joint, Traditional and Roth IRAs, Trusts

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

401(k) Assistance

Human Advice

Best for

Investors who are 50+ years old that are looking to invest for retirement.

Summary

United income has diversified portfolios that attempt to beat market returns and are in need of extra services such as securtiy planning

Review

-

Current Promotion

Visit Website

How does it work?

Account opening

United Income has two programs – Premium and Private Wealth. To open a premium account, you need $10,000 and to open a Private Wealth account, you need $300,000.

Before you open an account, you must reach out to United Income to set up a consultation. Together, you’ll decide if United Income is right for your financial needs.

Deposit and withdrawal

All deposits and withdrawals occur without fees.

Accounts

You may open any type of account whether retirement or taxable. Either account may be individual or joint, and they also offer trust accounts.

What can you trade?

United Income trades low-cost index funds from both the US and internationally. They also offer individual domestic and international stocks and bonds.

Costs

As I stated above, United Income has two plans. The premium plan costs 0.50 percent of assets under management and the Private Wealth plan costs 0.45 percent to 0.80 percent of assets under management. The exact cost depends on the amount invested (the more you have invested the lower your fees become).

Additional features

Human advisors

Unlike most robo-advisors, United Income provides the human touch most investors want. They create personalized strategies to help meet your investment goals. Advisors look at your current financial status and asset wealth when determining what investment strategy fits best with your goals.

Customer service

United Income offers phone and email customer service options.

Education

They offer a ‘library’ of advice and tips to help investors make the most of their money during their retirement years.

United Income Pros and Cons

FAQ

Does United Income automatically rebalance my portfolio?

Yes, United Income takes rebalancing seriously. They watch your portfolio to ensure it’s in line with your investment strategy. If it’s changed, they will rebalance it to meet your needs. They also watch your accounts to see if rebalancing is necessary to offset your tax liabilities.

Do you get a financial advisor with United Income?

Yes, you are assigned a wealth manager that you talk to at least once a year (more often with the Private Wealth plan). You also have a robust team of associates that can help you with questions or problems. The platform itself is also robust and can provide plenty of advice and help when choosing your investments.

What is the holistic approach to finances?

United Income looks at more than what you’re investing. They look at your overall finances, which is very important during retirement. They realize that your finances are comprised of more than your investments. They look at your income, future assets (downsizing, estate, etc.) and put it all together to determine the best financial moves given your circumstances.

Does United Income help plan retirement spending?

Yes, as a part of their holistic approach, United Income looks at all aspects of your finances including helping you choose the right spending plan. They’ll help you create a ‘baseline spending amount’ so you know where you stand and can enjoy retirement rather than live in fear of not having enough money.

What is the United Income Paycheck?

United Income can issue you a monthly paycheck from your investment account. They automatically recalibrate your paycheck based on the balance, and your overall spending needs. Discuss your needs with your advisor if you think the amount should be different.

Can United Income help with my Social Security Income?

Yes, the advisors help with all aspects of retirement income, including your Social Security income. They help you determine when to start taking it and how to maximize your benefit. United Income also has Social Security specialists on staff to help you further.

Can United Income help with my legacy gift planning?

Yes, as a part of their financial planning services, United Income helps plan legacy and charitable gifts, helping you make the most of your estate.

How does United Income make money?

United Income makes money off the fee they charge on your assets under management. All clients pay the fee.

Alternatives

United Income vs Future Advisor

Future Advisor requires a $5,000 investment and charges 0.5 percent of assets under management. They work a little differently, though, you must hold an account at Fidelity or TD Ameritrade for Future Advisors to manage your account.

They offer retirement planning tools and are great for investors that already have an account with TD Ameritrade or Fidelity that wants a second opinion on their investments.

United Income vs Betterment

Betterment has always been a robo-advisor leader. They have two options, of which the Betterment Premium most compares to United Income. You need a $100,000 account balance and they charge 0.40 percent of assets under management.

Betterment is great for those looking for a hands-off approach to investing as Betterment handles all portfolio management once you answer the risk-based questions.

United Income vs M1 Finance

M1 Finance is a robo-advisor with a twist. You can choose one of M1’s premade ‘pies’ with predetermined allocations or create your own based on the advice they provide. M1 has 2,000 ETFs to choose from and they give you complete control of your portfolio.

It’s best for investors that want a hands-on approach to their investments.

Current Promotions

Currently there are no promotions.

Worth It or a Scam?

If you’re looking for more than an investment service and want an advisor that helps with financial planning too, look no further than United Income.

They help a unique set of investors (those already in retirement or about to be in it). If you want someone telling you how to manage your money during retirement including your investments and retirement income, you’ve found it in United Income.

Summary

The United Income fees are higher than many other robo-advisors, but they offer unique opportunities that other robo-advisors don’t offer.

They are the answer many retirees need as they’ve already achieved their retirement goals, but now need to manage their funds to ensure they still have enough to live out their retirement years and plan for the future generations.

Robo Chooser

Use the following Quiz and find out which robo advisor is best for you.

If you have any questions, please comment below.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

Stash Invest is like the investment coach you’ve always wanted.

It’s a great program for beginners that want to handle their investments themselves, but need advice along the way.

It costs a fraction of what a human advisor charges but offers similar advice.

Check out my review of Stash Invest to see how it stacks up.

Theme-based

Account Minimum

$0

Management Fee

Subscription of $1 to $9 monthly depending on which program you chose.

Portfolio

Theme-based.

Supported Accounts

Taxabable, traditional and Roth IRA

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

SRI

Human Advice

Best for

Self-directed beginner investors who are looking to get their feet wet in the investing world

Summary

If you want to get started with DIY investing, Stash Invest will help you with advice along the way, the theme-based investing style is innovative and fun.

Review

-

Current Promotion

Visit Website

Theme-based

Account Minimum

$0

Management Fee

Subscription of $1 to $9 monthly depending on which program you chose.

Portfolio

Theme-based.

Supported Accounts

Taxabable, traditional and Roth IRA

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

SRI

Human Advice

Best for

Self-directed beginner investors who are looking to get their feet wet in the investing world

Summary

If you want to get started with DIY investing, Stash Invest will help you with advice along the way, the theme-based investing style is innovative and fun.

Review

-

Current Promotion

Visit Website

What is Stash Invest?

Stash Invest isn’t your typical robo-advisor. Rather than handling your investments for you, they give you advice and you do it. I think it’s great for beginners that want to step away from the traditional robo-advisor and start learning how to invest themselves.

If you’ve never invested before, it’s also great for you, if you dare to manage the investments yourself. There’s no minimum balance required, which is great for those just figuring out the ropes.

How does it work?

Account opening

Like most robo-advisors, you’ll answer the traditional questionnaire. This helps Stash figure out your timeline, financial goals, and risk tolerance. They use this information to guide your investments.

You’ll link your bank account to Stash and once you finish the questionnaire, they’ll create a portfolio that’s either conservative, moderate, or aggressive. Within each category, Stash has recommendations for investments, which they’ll help you choose.

Deposit and withdrawal

Stash limits deposits and withdrawals to $10,000 a day. Once you link your bank account, you can make deposits and withdrawals as needed through the app.

Interface

The Stash interface is clean and user-friendly. They have three screens that make it easy to see the information you want without getting overwhelmed. The portfolio screen is where you see an overview of your portfolio, your cash balance, and your return percentage. If you want more detailed information, click on the ‘balance’ tab so you can see your balance over time and your ‘potential’ tab lets you play with monthly deposit amounts to see how your portfolio would look after 1, 5, and 10 years.

Accounts

Investors may open a individual taxable account as well as traditional or Roth IRAs. Stash also allows custodial accounts of parents that want to open an account for their kids.

What can you trade?

Stash trades only ETFs and individual stocks, but they have more than 2,000 investments to choose from. Stash doesn’t work in traditional portfolios – instead, they work in themes. (Similar to M1s “pies” or Folio Investing)

You can pick and choose from your favorites, such as healthcare, and Stash will direct you to the right investments based on your criteria.

Costs

Stash Invest is a subscription-based robo-advisor. You pay a monthly fee based on the program you want:

• Beginner – Cost is $1/month and includes one taxable account, a bank account, and provided education
• Growth – Cost is $3 month/ and includes a taxable account, retirement account, bank account, and provided education
• Stash+ – Cost $9/month and includes everything in the growth account plus an investing account for 2 children and a monthly insights report

Stash includes ‘most’ fees in the monthly subscription, but a few extra fees show up including:

• Paper confirmations $2
• Paper statements $5
• Outgoing ACAT $75

Additional features

Cash Account

Stash Invests cash account is called Stash Banking. Every investor receives access to it. The bank account includes a debit card and does not have any overdraft or maintenance fees. You can withdraw funds from one of the many free ATMs and set up direct deposit with your employer.

If you use Stash Banking, you can set up round-ups, which enables Stash to round up your purchase to the nearest dollar every time you use your Stash card. Stash will transfer the spare change to your account to grow your investment account. You can also opt-in to cashback deals, which if you use will earn you cashback on certain purchases. You can send the money to your bank account or your investment account at no charge.

Customer service

Customer support is available via email only Monday – Friday 8:30 AM to 6:30 PM ET and Saturday – Sunday 11 AM to 5 PM.

Education

Education is an area that Stash shines. Since it’s for beginners, it makes sense that they have a robust educational center. Click on any of the many categories and learn how to save, invest, budget, and more. Stash covers a large number of topics in all aspects of investing, especially in the retirement arena, which is important for everyone to understand as early in life as possible.

Stock-Back

Another benefit of using the Stash Debit card is the Stock-Back program. Like the cashback program, if you shop at participating retailers, you can earn fractional shares back rather than cash. It’s only 0.125 percent of your purchase that you earn, but every little bit adds up. Stash also has bonus Stock-Back offers that earn up to 5 percent on your purchases too.

DRIP

Rather than cashing out your dividends, Stash can reinvest them if you opt-in to DRIP. This enables you to compound your earnings on certain investments. On retirement accounts, DRIP is automatic, but on taxable accounts, you must opt-in.

Tutorial

Stash Invest Pros and Cons

FAQ

Who is Stash Invest best for?

Stash Invest works best for beginners. If you want someone holding your hand, telling you what to invest in and how much to invest, you’ll enjoy this service. It enables you to learn the ropes of investing without jumping in headfirst and trying to figure it out yourself.

Can you cancel Stash at any time?

Yes, you can cancel your subscription at any time. It may take up to 10 days to complete. All assets in your account will be sold and all cash in your cash account will get transferred to your bank account. If you’re canceling a retirement account, make sure you talk to your tax advisor first to see how to do it without triggering a tax liability.

Can you change your Stash plan at any time?

Yes, you can change your subscription whenever you want. Stash will figure out your new monthly fees and take them out of your account each month. Keep in mind, if you downgrade from having a retirement account, you may trigger a tax liability if you aren’t careful.

What happens if Stash goes out of business?

Since Stash doesn’t hold your funds, you don’t have to worry about losing everything. Apex Clearing holds your funds and has SIPC insurance, which means your investments are protected for up to $500,000 in assets and $250,000 in cash.

What stocks will I earn with Stock-Back?

Normally, you earn stock back from the company you bought from, such as Walmart or Amazon. If you buy from a company that Stash doesn’t have investments available, they provide you with a diversified ETF instead.

What is Auto-Stash?

Stash has a few ways to automatically save. ‘Set Schedule’ lets you set up automatic deposits at predetermined intervals; Round-Ups rounds up your purchases to the nearest dollar and invests the spare change, and Smart-Stash evaluates your bank account looking for ‘free cash’ that they can sweep into your investment account. Stash won’t sweep more than $5 at a time into your investment account, but every dollar counts.

Can you withdraw money whenever you want?

Yes, you can withdraw from your Stash account whenever you want. However, if Stash has to liquidate an investment, it could take a few days to receive your cash. Only cash in the cash account is immediately transferred.

How does Stash Invest make money?

Stash Invest makes money on the monthly subscription fees. No one can use Stash Invest without subscribing.

Alternatives

Stash Invest vs M1 Finance

M1 Finance is a broker that offers commission-free trades. M1 helps investors create ‘pies’ rather than portfolios. The pies have pieces made of different investments to help diversify the funds.

M1 doesn’t charge management fees or commissions but is best for experienced investors that know what they’re doing but want a little hand-holding.

Stash Invest vs Acorns

Acorns is another great robo-advisor for beginning investors, but also those with little to no money to start. Acorns links to your most used credit card and rounds up your purchases to the nearest dollar.

They sweep the change into your investment account, investing the funds once you accumulate $5. Acorns invests in 5 different asset classes and doesn’t have human advisors available.

Stash Invest vs Robinhood

Robinhood is the pioneer in commission-free trades. It only offers taxable accounts – no retirement accounts, but they offer fractional shares, which not many brokers offer.

Robinhood is good for investors that want to handle their own investments but don’t want the hefty fees. It’s like having an advisor in your back pocket so you don’t make huge mistakes, but you don’t have to pay the hefty fees for a human advisor. You use the expertise of the robo-advisor’s technology.

Current Promotions

Currently there are no promotions.

Worth It or a Scam?

Stash is worth it if you don’t trust yourself to make investing decisions, but don’t want the passive nature of a traditional robo-advisor. You’ll pay heftier fees unless you have a lot invested. Even though $1 a month doesn’t sound like a lot, if you only have a few dollars invested, the percentage of assets under management is high.

Is Stash Invest worth it, though? Yes, it’s especially great for beginners looking to start somewhere. You may not stay there forever, but for the time being while you learn the ropes, it can be a great choice.

Summary

The education Stash offers is incredible for beginners. If you’re looking for a way to avoid expensive mistakes and yet try your hand at investing, Stash Invest is a great way to start.

You can always cancel your subscription once you get the hang of it, but many people find that they love the handholding and end up sticking around.

Robo Chooser

Use the following Quiz and find out which robo advisor is best for you.

If you have any questions, please comment below.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

E*TRADE Core Portfolios is E*TRADE’s version of a robo-advisor. Known for its low expense ratios and household name, cost-conscious investors and investors looking for a hands-off experience choose E*TRADE.

E*TRADE prides itself on its low expense ratios and assortment of educational resources, helping investors meet their investment goals.

Check out this E*TRADE Core Portfolio review to see if it’s right for you.

What is E*TRADE Core Portfolios?

You’ve likely heard of E*TRADE as it’s a household name in investing. Core Portfolios is E*TRADE’s latest installment, meant for beginners and investors looking for low-cost managed portfolios.

You need just $500 to start and E*TRADE invests in low-cost ETFs that match your risk profile and goals. Core Portfolios works much like many other robo-advisors, but it has its unique quirks setting it apart from the competition. If you’re looking for a hands-off investment approach to complement your E*TRADE account or to make your first investment, keep reading to find out more.

Low expense ratios

Account Minimum

$500

Management Fee

0.30%

Portfolio

Great variety, ETF portfolio or hybrid

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

Human Advice

Best for

Investors who are looking to invest hands-off with a low fee advisor. E*TRADE portfolios will especially make sense if you already have an account with them.

Supported Accounts

Individual, Joint, Roth, traditional SEP and rollover IRAs.

Summary

E*TRADE offers a low cost service, the management fee is nothing out of the ordinary however the expense ratios of the ETFs that are used are especially low. Unfortunately the service does not include tax loss harvesting or fractional shares.

Sign Up

Read Review

Low expense ratios

Account Minimum

$500

Management Fee

0.30%

Portfolio

Great variety, ETF portfolio or hybrid

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

Smart Beta

SRI

Human Advice

Best for

Investors who are looking to invest hands-off with a low fee advisor. E*TRADE portfolios will especially make sense if you already have an account with them.

Supported Accounts

Individual, Joint, Roth, traditional SEP and rollover IRAs.

Summary

E*TRADE offers a low cost service, the management fee is nothing out of the ordinary however the expense ratios of the ETFs that are used are especially low. Unfortunately the service does not include tax loss harvesting or fractional shares.

Sign Up

Read Review

How does it work?

Account Opening

Open an account with just $500. Core Portfolios offers individual and joint taxable accounts. You may also open custodial accounts for your children and IRAs.

Like most robo-advisors, the process starts with a questionnaire. E*TRADE’s questionnaire contains 9 questions. You’ve likely seen the questions before if you’ve used a robo-advisor, however, E*TRADE spins them with a few different angles to get a true understanding of where you stand.

After answering the questions, E*TRADE provides a recommended portfolio showing you the asset allocation (stocks vs bonds percentage) but not the exact investments they recommend, until you create the portfolio. You’ll have an idea of how they’ll invest your money, but no specific details until later down the road.

Deposit and withdrawal

E*TRADE encourages automated deposits to keep your account growing, but you can use their various other funds transfer options on the Move Money page. If you have another E*TRADE account, you may transfer funds easily with the intra-firm transfer tool.

You may also transfer existing securities rather than cash. E*TRADE performs the transfers commission-free.

You may also start withdrawals online. E*TRADE tells you how the withdrawal affects your account, including the tax liabilities should there be capital gains. The advisory then withdraws from your cash balance first and then sells investments based on your investment allocation and what affects your taxes the least. If you’ll incur tax liabilities, you should consider your options carefully.

Interface

E*TRADE has a digital dashboard on both the desktop and mobile platforms. Many clients prefer the mobile app, which allows most of the same transactions, including withdrawals. It takes minutes to open an account, transfer funds, or make changes on either platform, but you’ll get more detailed information about fees on the desktop platform.

What can you trade?

Core Portfolios trades ETFs only. They have 5 key portfolios to choose from which they present to you after you complete your risk profile.

When E*TRADE provides you with your portfolio, they also provide alternative portfolio choices. They include socially responsible ETFs and smart beta ETFs.

E*TRADE Core Portfolios trades ETFs from iShares, Vanguard, and JP Morgan. E*TRADE presents you with a recommended portfolio, but you may choose a more aggressive or more conservative portfolio based on your preferences.

Costs

E*TRADE charges 0.3 percent of assets annually under management for their part of the pie, but you’ll also pay expense ratios. Each ETF has a different ratio, but on average they charge 0.06 percent to 0.12 percent per ETF.

E*TRADE also charges a $75 fee for a full transfer out or $25 for a partial transfer out.

Additional features

• Cash account – E*TRADE holds all cash balances in a premium savings account or money market account, paying you a competitive APY.
• Customer service – You can reach representatives Monday – Friday 8:30 AM to 8:30 PM Eastern time via phone or 24/7 via online chat.
• Research – Core Portfolios doesn’t have specific research options, but E*TRADE provides access to all its research and education on its main website. This includes retirement planning and financial planning tools and various research tools.
• Education – E*TRADE sends a monthly newsletter complete with market talk pertaining to the ETFs in the portfolios. All clients have access to E*TRADE’s educational center too which includes video and written content.
• Rebalancing – E*TRADE rebalances accounts semi-annually or whenever the cash balance exceeds 6 percent of your account balance.

Tutorial

Pros and Cons

FAQ

Is E*TRADE Core Portfolios secure?

E*TRADE uses high-level encryption, and all accounts have SIPC protection up to $500,000 and excess protection up to $600,000,000 with London Insurance.

Is E*TRADE Core Portfolios for beginners?

E*TRADE doesn’t offer the handholding that other robo-advisors offer. They started the program as an add-on to its already robust offerings. If you don’t have a solid understanding of how investments work, you may want to look elsewhere.

What is the cash value target?

E*TRADE aims for a 1 percent cash value. They invest the cash in an interest-bearing money market or other alternatives. While you don’t want a large cash balance as there’s an opportunity cost there, having some cash on hand is important.

Does Core Portfolios offer self-directed investments?

No, Core Portfolios is for the hands-off investor that uses the combination of human advisors and technology to create an optimized allocation. If you open a Core Portfolios account, you agree to let E*TRADE manage your account and choose the investments.

Do you need a $500 balance if you have other E*TRADE accounts?

Yes, the $500 minimum balance is irrespective of any other E*TRADE accounts. This means even if you have other E*TRADE portfolios, their balance doesn’t count toward the $500 minimum balance required for Core Portfolios.

Does Core Portfolios offer 401K assistance?

No, but you can roll over an old 401K to your E*TRADE Core Portfolio account. If you have a 401K, you can’t use Core Portfolios to manage it, I would suggest you take a look at a Robo-Avdisor called Bloom instead.

Does E*TRADE have brick-and-mortar locations?

Yes, E*TRADE has 30 locations throughout 17 states. If you live near a brick-and-mortar location, you may visit them in person to get advice and help. If you don’t, there are plenty of opportunities for support over the phone or online.

Alternatives

E*TRADE vs TD Ameritrade

If you already have a TD Ameritrade account, the TD Ameritrade Essential Portfolios robo-advisor may be attractive for you. It’s best for investors with a lot to invest (minimum is $5,000) and their fee is steep at 0.3 percent of assets under management, but they have low expense ratios which are great for investors with a lot invested.

TD Ameritrade invests across 8 asset classes and incudes socially responsible investments. You may open a taxable or retirement account and TD Ameritrade offers tax loss harvesting on all accounts.

E*TRADE vs Interactive Brokers

With just $1,000 investors can use the Interactive Advisors (Interactive Brokers’ robo-advisor). This robo-advisor is a simpler version of the complicated Interactive Brokers and is a great supplement for current Interactive Brokers investors looking for a little bit of hands-off investing.

Interactive Advisors rebalances your account quarterly and lets you see your investments and positions at any time. They create your portfolio based on your goals and risk tolerance, like most other robo-advisors, and charge between 0.08 percent and 1.5 percent in management fees.

E*TRADE vs Robinhood

Robinhood is great for investors looking for commission-free trades. They only offer taxable accounts, though, no retirement accounts. You don’t need an account minimum and the interface itself is rather bland, which works well for beginning investors or those looking for only the basics with no bells and whistles.

What sets Robinhood apart is its available investments. Most robo-advisors stick to ETFs, but Robinhood offers stocks, options, and cryptocurrency too. If you’re looking for robust customer service, you’ll want to look elsewhere, as you’ll only find it online and via email.

E*TRADE vs Fidelity Go

If you prefer a little human oversight on your account rather than just an algorithm, Fidelity Go is the way to go. You get the benefit of technology and no investments with the reassurance that humans are watching your account, reallocating it and keeping everything intact.

This doesn’t mean you’ll get access to financial advisors though – they manage your money but they don’t talk to clients. You need just $10 to invest and pay no management fees until you have at least $10,000 invested.

Current Promotions

There are currently no promotions.

Worth It or a Scam?

E*TRADE Core Portfolios is worth it for the hands-off investor with a decent understanding of investments but don’t have the time to be bothered with managing them. The fees are in line with most other robo-advisors and the investments have low expense ratios, giving you more of your earnings.

Summary

E*TRADE Core Portfolios is great for existing E*TRADE clients and new clients looking for a hands-off way to invest. They use the same methodology other robo-advisors use, assessing your risk profile and implementing the Modern Portfolio Theory.

If you’re looking for human support, you may look elsewhere as most of your contact is online and with a computer, not a person. But casual investors looking for a place to park their money do well with E*TRADE.

Robo Chooser

Use the following Quiz and find out which robo advisor is best for you.

If you have any questions, please comment below.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

eToro is for the investor willing to manage his/her own investments and works well for both the active (day trader) and the occasional investor.

What sets eToro apart is its social and copy trading. Ever wish you could just copy another investor’s portfolio? With eToro, you can.

Check out our review on this fairly new platform to see how it works.

What is EToro?

EToro is a worldwide broker offering social investing. This unique tool helps users copy trades of other successful investors. In the US, the only assets offered are cryptocurrencies, although eToro trades stocks, forex, and other commodities in its other 139 countries.

With eToro, you can start trading based on your insights and desires or copy that of another trader right off the bat. You choose the trader and eToro does the rest. Every time ‘your trader’ trades, you trade, it’s that simple.

Active Investors

Account Minimum

$0

Management Fee

0.00%

Portfolio

Stocks, ETFs, Cryptocurrencies,

Supported Accounts

-

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

SRI

Human Advice

Best for

If you want to manage your own investments with the option to trade crypto, give eToro a shot.

Summary

eToro is a low fee investing platform that has many options and features for both active and occasional investors.

Visit Website

Read Review

Active Investors

Account Minimum

$0

Management Fee

0.00%

Portfolio

Stocks, ETFs, Cryptocurrencies,

Supported Accounts

-

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

SRI

Human Advice

Best for

If you want to manage your own investments with the option to trade crypto, give eToro a shot.

Summary

eToro is a low fee investing platform that has many options and features for both active and occasional investors.

Visit Website

Read Review

How does it work?

Account opening

Opening an account is easy, but it takes a little time to verify your account and begin trading. Once verified, you must deposit at least $50 and you’re ready to trade. You can trade in any dollar amount from $25 and up, and can buy fractions of assets rather than an entire unit if you don’t have the funds.

Deposit and Withdrawal

Like the opening balance, there’s a minimum $50 deposit amount for each deposit. You may deposit via electronic transfer. If you prefer wire transfer, you must deposit at least $500.

You may withdraw funds at any time, but only if you have at least a $50 balance. If you don’t have a $50 cash balance but have open investments, you may close them to have more funds available for withdrawal. It takes up to 7 days to complete a withdrawal.

Interface

eToro has a desktop and mobile app, both with a user-friendly and clean interface. Both platforms allow you to execute trades, copy trades, and follow your social feeds.

What can you trade?

As I said above, eToro only operates in cryptocurrencies in the US right now. They have plans to expand their offerings in the future.

As of today, they have 15 cryptocurrencies you may trade. A few examples include Bitcoin, Ethereum, Dash, and Litecoin, among others.

Costs

Pricing varies based on the market trends, but eToro is transparent with its pricing and recommends investors check their website often. The average fees range from 0.75 percent to 2.9 percent. There are also crypto-to-crypto conversion fees of 0.1 percent and crypto-to-fiat currency conversion of 5 percent.

Additional features

• Social Trading – Follow and copy the traders you choose by clicking a button. Automatically copy what they do and/or add a stop-loss option to limit your losses. You must invest at least $200 to copy an investor. You may copy as many as 100 investors at one time. If you don’t want to copy, but just follow investors, you may follow as many investors as you want.
• Digital wallet – You store your cryptocurrency in a virtual wallet, called the eToro wallet. If you want to covert the cryptocurrency to US dollars, you’ll pay a 5 percent fee. You need to convert a minimum of $125 at a time.
• Customer service – eToro’s customer service is available as an online forum. You submit a ticket and they’ll respond to you in the order of receipt, which currently is 7 days.
• Research – Get the latest trends, news, and charts on eToro’s website.
• Education – eToro offers basic educational materials about cryptocurrency, including how to buy it, and important information.

Tutorial

eToro Pros and Cons

FAQ

Is eToro trustworthy?

eToro has been in the fintech industry for the last 10+ years and is regulated by FCA and CySEC. They are a licensed broker in Europe and the UK and are licensed in the United States, reassuring investors of their trustworthiness.

Is eToro good for beginners?

The social trading platform is good for beginners because you can copy an influential trader’s portfolio. While you still need an understanding of cryptocurrencies as there’s no guarantee of a return even when you copy someone influential, it is a great way for beginners to start. If crypto is not a priority for you, check out this article about the best robo advisors for beginners.

What are round-turn spreads?

eToro charges round-term spreads or the same spread for buying and selling cryptocurrency. This makes it easier to determine your commissions, rather than trying to figure out the different commissions for buying and selling.

How long does it take to open an eToro account?

It may take you 10 – 15 minutes online to start your account, but eToro takes 1 – 4 days to get your account up and running. They must run verifications on your identity to ensure you are who you say you are before they process the account.

Do you have to sell an entire lot or can you sell a fraction of it?

You must sell the entire lot of cryptocurrency that you buy. For example, if you invest $50 in Bitcoin, you must sell the entire $50 worth; you can’t sell just $25 worth and keep the other $25 invested.

Is there live broker support?

No, eToro doesn’t offer live support. Instead, they recommend that you go through their database to find out if anyone else asked your question. If they didn’t, you may submit a question in the online forum. It takes eToro representatives approximately 7 days to respond and the answer is public for everyone to see.

Do you have to invest as much as the CopyTrader you choose?

You are free to invest as little or as much as you want. Your investments will copy the CopyTrader you chose in prorated amounts. Don’t shy away from copying someone you want to copy just because you only have a small amount to invest. You’ll still get the benefit of following a successful investor, just at the rate you can afford.

Alternatives

eToro vs M1 Finance

If you’re a DIY investor looking for a hands-off approach to investing, consider M1 Finance. This unique robo-advisor gives investors a say in their investments while automatically rebalancing them if they fall off target.

As an added benefit, M1 doesn’t charge management fees and only requires a $100 investment for taxable accounts and $500 for retirement accounts. M1 is best for investors with an idea of how to invest, as M1 provides very little support or assistance when choosing investments. M1 doesn’t offer tax-loss harvesting though, which means the tax liabilities may eat at your earnings.

eToro vs Webull

Webull is another commission-free robo-advisor, but is geared to investors looking for technological investments. Webull is much more technical than eToro, but provides investors that know what they’re doing with both taxable and retirement accounts and it runs primarily on as a smartphone app. Webull doesn’t have a minimum investment requirement, but they also don’t allow joint accounts – individual accounts only.

eToro vs Robinhood

Robinhood was one of the first robo-advisors to go commission-free. Since then many brokers have followed their lead, but Robinhood is still a great option. Investors looking for more than ETFs but with no commission fees should consider Robinhood because you can invest in stocks, options, and cryptocurrency too.

Robinhood doesn’t have a minimum account balance requirement but they also don’t offer retirement accounts. One definite perk is the ability to buy fractional shares, leaving little cash drag behind.

Current Promotions

There are currently no promotions.

Worth It or a Scam?

At first glance, eToro looks like a scam, especially since they recently came to the US and aren’t available in every state. However, eToro is reputable. They are licensed and regulated, providing investors with another way to diversify their portfolio in a unique and fun way.

Summary

Trading, like most other financial transactions, has gone social with platforms like eToro. In business for more than 10 years, eToro is making its way to the US, giving everyday investors a chance to get into the investing game by investing in cryptocurrency.

If cryptocurrency interests you, consider eToro.

It’s great for beginners and experienced investors. The social trading platform takes it to an entirely new level, giving you something unique and exciting to consider. With more than 15 cryptocurrencies to choose from, you can experiment (or even experiment with a virtual account) and see what copying successful traders does for you.

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team

Webull is the robo-investor for technological investors looking for commission-free trades.

While you have many options for commission-free trades with robo-advisors today, none focus on technological investors like Webull.

I’ve reviewed Webull below so you can see the differences.

What is Webull?

Webull is a mobile platform that caters to technical traders. The founders created it to provide everyday investors with an affordable professional platform. They provide access to information that’s mostly reserved for professionals and wealthy investors.

Webull offers an incredible amount of research, tools, and analysis tools allowing everyone access to the most robust trading options available today.

Tech-savvy Investors

Account Minimum

$0

Management Fee

0.00%

Portfolio

Stocks, ETFs and options

Supported Accounts

Taxabable, traditional and Roth IRA

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

SRI

Human Advice

Best for

This is a platform for the tech-savy, hands-on type of investor.

Summary

If you are an experienced investor who is looking for a low cost investing platform, you should definitely give Webull a try.

Visit Website

Read Review

Tech-savvy Investors

Account Minimum

$0

Management Fee

0.00%

Portfolio

Stocks, ETFs and options

Supported Accounts

Taxabable, traditional and Roth IRA

Rebalancing

Tax Loss Harvesting

Fractional Shares

Automatic Deposits

SRI

Human Advice

Best for

This is a platform for the tech-savy, hands-on type of investor.

Summary

If you are an experienced investor who is looking for a low cost investing platform, you should definitely give Webull a try.

Visit Website

Read Review

How does it work?

Account opening

All users must download the Webull app either through the app store or online and set up an account. It takes minutes to complete the application and Webull approves most accounts within an hour. If your account needs further verification, it may take longer.

Deposit and withdrawal

You can link your checking account to your Webull account and make deposits and withdrawals at any time. Withdrawals take a few days after they account for the ‘settling days’ after selling the assets. It may take a few days for the money to reach your account too.

Interface

The Webull interface is meant for experienced investors and/or those looking for robust charting and reporting options. You can have as much technical analysis and reporting as you desire, but like I said, it’s easy to get overwhelmed if you don’t already understand how most of this works.

You may open a taxable or retirement account, but for individuals only. Webull doesn’t offer joint accounts.

What can you trade?

Webull trades stocks, ETFs, and options. They have more than 5,000 stocks and ETFs to choose from but they don’t trade mutual funds.

Costs

As I stated above, Webull doesn’t charge commissions, which saves you quite a bit of money on your investments. But you will pay SEC and FINRA fees (they’re minimal) as well as margin fees if you invest on margin (borrow to invest). Margin rates range from 3.99 percent to 6.99 percent.

Additional features

Cash account

You may have cash in an account at Webull, but you don’t earn the interest – they do. It’s a good idea to have a portion of your portfolio in cash should you have an emergency, but be careful how much you keep in there since it’s not earning anything (at least for you).

Customer service

Customer service is available through email. They don’t have a phone support option, but most people get an answer within one hour via email. If you need a more immediate answer, check out their robust FAQ page that contains many of the answers you may need.

Research

If there’s an area Webull excels, it’s research. They have robust screeners and provide valuable information that technological investors need.

Education

Not many robo-advisors offer much in the way of education, but Webull offers informative day trading courses and trading idea courses to help you further your career as an investor. They also have a trading simulator that allows you to play with ‘real’ money while playing the actual market.

Tutorial

Webull Pros and Cons

FAQ

Is Webull secure?

Yes, Webull is a member of SIPC which insures you up to $500,000 ($250,000 in cash). They also have additional insurance from Apex Clearing, which insures investors up to $3.75 million so your money is protected.

Are there any fees to open a Webull IRA?

No, Webull doesn’t charge fees to open, fund, or close an IRA. You may open a traditional or Roth IRA. They also offer an option for a rollover IRA if you want to rollover an existing IRA or 401K.

Is there a fee to transfer funds?

ACH transfers are free, but you can only transfer up to $50,000 a day. If you need to transfer more, you are better off with a wire transfer as they have no maximum limits, but there is an $8/wire fee for incoming wires and $25/wire for outgoing wires.

Who builds my Webull portfolio?

You build your portfolio based on your own needs and risk tolerance. That’s why I suggest Webull for experienced investors. Yes, it’s a robo-advisor, but they don’t create your portfolio after you answer risk-tolerance questions like other robo-advisors do. This is an opportunity for hands-on investors to try their hand at investing for no commissions.

Who should use Webull?

I’ve already said that Webull is best for experienced investors, but more specifically, it’s best for active investors. The robust research and reporting make it great for those that trade often and need up-to-the-second information. If you’re investing your time in active trading, you’ll love what Webull offers.

Is there a human advisor to call?

Unfortunately, Webull doesn’t have a human advisor that can give you advice. That’s why it’s best for experienced investors that know what they want or know they can handle a hands-on approach to investing. There isn’t anyone rebalancing your portfolio or helping you make decisions – it’s all up to you based on the research you find and your existing knowledge.

Can you borrow on margin with Webull?

Yes, Webull does offer borrowing on margin. Like any other advisor, you need at least $2,000 deposited to be eligible (that’s the law). You can day trade and/or buy short positions with your margin investments.

How does Webull make money?

Webull makes money like any other investor, they just don’t make any money on commissions. But they do make money on margin interest, order flow, stock loans, and cash balances.

Alternatives

Webull vs Robinhood

Robinhood started the whole commission-free trade movement. They are similar to Webull, but good for investors just starting to get their feet wet on their own.

They don’t require a minimum balance and you can’t open a retirement account. Robinhood doesn’t have a lot of bells and whistles, but you can trade stocks, options, and cryptocurrency. (If you are looking for a strictly crypto-based service, you are probably better of with a service like “Iconomi”) Like Webull there is no customer service, everything is done via email.

Webull vs M1 Finance

M1 Finance also offers commission-free trades and is great for the investor that wants a hands-on approach. M1 works in pies rather than portfolios. Each pie is broken up according to your risk tolerance.

You can invest in pre-built portfolios or create your own. You choose your assets even if you choose a prebuilt pie – it directs you to the appropriate investments based on your risk tolerance. M1 is great for advanced investors that don’t need robust research or tools.

Webull vs TD Ameritrade

TD Ameritrade Essential Portfolios is a good option for those that already have a TD Ameritrade account. You need at least $5,000 invested and there are fees to the tune of 0.3 percent.

TD Ameritrade trades low-cost ETFs across 8 asset classes and they offer socially responsible investments. TD Ameritrade offers taxable and retirement accounts and they handle tax-loss harvesting for you.

Webull vs Etoro

Etoro is a pioneer in the robo-advisor industry. Like Webull, they have no commissions, but what sets them apart is their social trading.

You can follow traders and even mimic their trades if you like what they do. This gives investors a chance to follow the experts and try to replicate their returns. They have much higher fees than Webull, but the innovative social trading may be worth it.

Current Promotions

There are currently no promotions.

Worth It or a Scam?

Webull is worth it for certain investors – serious investors that take research and tools seriously. The commission-free trades make it worth it for anyone, but if you want to use what they offer and make the most of your investments, it’s best for those that want and will use the robust tools offered.

Summary

Webull is unique as far as robo-advisors are concerned. You don’t have a computer managing your investments – you manage them at an incredible discount. As long as you have some experience and want to try your hand at hands-on investing, it could be worth a try! Promo* Get started on Webull with 2 free stocks here.

Robo Chooser

Use the following Quiz and find out which robo advisor is best for you.

If you have any questions, please comment below.

 

Michael J. Peterson

Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team