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Best Robo-Advisor for Beginners – Get Started with Investing

Disclosure: Please note that this article may contain affiliate links

You want to invest, but don’t know how. It’s too scary to just jump in headfirst and besides, you don’t know the first thing about investing.

What do you do?

Well, you could avoid investing, but then you’ll always be a beginner – you’ll never gain experience and you won’t grow your money.

… Or you could jump in and try it and see what happens.

Once you’re ready to jump in, decide what type of ‘beginner’ you are:

This is actually the most important question you have to ask yourself when choosing the right service

Do you want to invest, but don’t know how or when?

Do you want a hands-off method so you don’t have to be too involved? Do you want a set-it-and-forget it method?

Then go for an automated robo-advisor.

Do you want to invest and want to be ‘all in’?

Do you want to set up and customize your own portfolio? Do you want to know what’s going on at all times?

Then go for a DIY robo-advisor.

No matter where you fall, there is a good robo-advisor for you. Check out the options below. Are you ready to finally jump in and get started?

Hands-off – Automated Robo-Advisors for Beginners

I’ve rounded up the 7 best robo-advisors for beginners. I’ve broken them down by hands-off robo-advisors for those beginners that just want to invest but don’t want to be too involved and hands-on or DIY robo-advisors. We’ll get started with the automated ones, and analyze the DIY options further down in the article.

1. Betterment

Are you looking for a robo-advisor that’s easy to set up and get started? Look no further than Betterment.

All you need to sign up is your age, annual income, and a chosen goal. That’s it. Betterment doesn’t ask crazy risk-based questions or make you jump through hoops. Instead, they show you portfolio suggestions and explain its risk. You then adjust the percentages until the portfolio has a risk that matches your tolerance.

Betterment watches your goals and prompts you to make changes when your portfolio may fall short of your goal. This may include adjusting your portfolio or making higher or more contributions.

Best service
logo of betterment
Account Minimum
$0 for Betterment Digital and $100,000 for Betterment Premium
Management fee
0.25% for Digital and 0.40% for Premium
Portfolio
ETFs from about 12 asset classes. The user can choose between a recommendation or decide the percentage of portfolio in each investment.
Rebalancing
Tax Loss Harvesting
Frational Shares
Human Advice
Smart Beta
401(k) Assistance
SRI
Automatic Deposits
Supported Accounts
Individual and joint accounts. Roth, traditional, SEP and rollover IRAs. Trusts. 401(k) plans. (Betterment for Business) Non-profit.
Best for
Investors who are looking for hands-off, "set it and forget it" type of robo advisor with low fees.
Summary
Betterment uses a goal-based investment approach. The portfolio consists mainly of low fee ETFs. The service is great, it is easy to use and very beginner friendly. It is also the largest independent robo-advisor. The premium allows for in-depth investment advice and unlimited access to certified financial planners. The only downside is that fees increase once you hit $100,000.
Best service
logo of betterment
Account Minimum
$0 for Betterment Digital and $100,000 for Betterment Premium
Management fee
0.25% for Digital and 0.40% for Premium
Portfolio
ETFs from about 12 asset classes. The user can choose between a recommendation or decide the percentage of portfolio in each investment.
Rebalancing
Tax Loss Harvesting
Frational Shares
Human Advice
Smart Beta
401(k) Assistance
SRI
Automatic Deposits
Supported Accounts
Individual and joint accounts. Roth, traditional, SEP and rollover IRAs. Trusts. 401(k) plans. (Betterment for Business) Non-profit.
Best for
Investors who are looking for hands-off, "set it and forget it" type of robo advisor with low fees.
Summary
Betterment uses a goal-based investment approach. The portfolio consists mainly of low fee ETFs. The service is great, it is easy to use and very beginner friendly. It is also the largest independent robo-advisor. The premium allows for in-depth investment advice and unlimited access to certified financial planners. The only downside is that fees increase once you hit $100,000.

Main Features

  • No minimum opening balance required
  • Portfolios built based on your financial goals
  • Betterment works as your fiduciary basing their investment advice on your best interests
  • Offers tax loss harvesting to minimize your tax liabilities
  • Allows customization of the portfolios it suggests

Pros and Cons

PROs
Perfect for easy, hands-off investing – Once you have set your goals you can lean back and let Betterment do the rest.
CONs
Difficult to cancel the account – Betterment makes it paperwork heavy to leave them.
Rebalancing and Daily tax-loss harvesting – Minimize your tax liabilities with daily tax-loss harvesting, selling off your losses to offset your gains
Encourages you to invest your emergency fund – Most financial experts recommend keeping your emergency fund liquid, but Betterment recommends a specific portfolio that is on the aggressive side and could put your emergency fund at risk.
Offers a variety of tools – Betterment helps you plan your financial future by making smart financial decisions with your investments and regular accounts too.
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No minimum deposit – You don’t need any money to open an account, but even better is the low $100,000 minimum for Betterment Premium which offers access to professional financial advisors.
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Low management fees – Betterment charges just 0.25% for less than $100,000 and 0.40% for over $100,000
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PROs
Perfect for easy, hands-off investing – Once you have set your goals you can lean back and let Betterment do the rest.
Rebalancing and Daily tax-loss harvesting – Minimize your tax liabilities with daily tax-loss harvesting, selling off your losses to offset your gains
Offers a variety of tools – Betterment helps you plan your financial future by making smart financial decisions with your investments and regular accounts too.
No minimum deposit – You don’t need any money to open an account, but even better is the low $100,000 minimum for Betterment Premium which offers access to professional financial advisors.
Low management fees – Betterment charges just 0.25% for less than $100,000 and 0.40% for over $100,000
CONs
Difficult to cancel the account – Betterment makes it paperwork heavy to leave them.
Encourages you to invest your emergency fund – Most financial experts recommend keeping your emergency fund liquid, but Betterment recommends a specific portfolio that is on the aggressive side and could put your emergency fund at risk.
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2. Fidelity Go

Fidelity go was created for beginners. Its user-friendly interface makes investing simple, and not overwhelming. Setting up an account is easy. You answer five simple questions about your finances and goals and Fidelity Go provides an array of portfolios for you.

Fidelity Go openly shows you the fees involved with the chosen portfolio so you know upfront what to expect. Fidelity Go offers advice for all major milestones, and planning tools to help you make the most out of your investments.

No Account Minimum
Account Minimum
$0
Management Fee
0.35%
Portfolio
Proprietary mutual funds only
Rebalancing
Tax Loss Harvesting
Fractional Shares
Smart Beta
Automatic Deposit
SRI
401(k) Assistance
Human Advice
Supported Accounts
Individual, Joint, Roth, traditional and rollover IRAs.
Best for
Investors who are looking for a hands-off, low cost robo advisor without the need of human financial advice.
Summary
Fidelity Go uses index funds, mainly its own, to build portfolios. Investors don´t pay the expense ratio on these funds. The portfolios are monitored and rebalanced by humans.
No Account Minimum
Account Minimum
$0
Management Fee
0.35%
Portfolio
Proprietary mutual funds only
Rebalancing
Tax Loss Harvesting
Fractional Shares
Smart Beta
Automatic Deposit
SRI
401(k) Assistance
Human Advice
Supported Accounts
Individual, Joint, Roth, traditional and rollover IRAs.
Best for
Investors who are looking for a hands-off, low cost robo advisor without the need of human financial advice.
Summary
Fidelity Go uses index funds, mainly its own, to build portfolios. Investors don´t pay the expense ratio on these funds. The portfolios are monitored and rebalanced by humans.

Main Features

  • Provides a suggested portfolio based on your risk tolerance and goals
  • Fidelity advisors change your portfolio if the market shifts
  • You can easily manage your account online, including scheduling deposits and tracking your progress

Pros and Cons

PROs
No minimum balance - however you need $10 to invest
CONs
The advisory fee is a bit higher than other ‘beginner’ robo-advisors - Fidelity charges 0.35% of assets under management
Low expense ratio ETFs - That will save you money in the long run.
You can only manage one goal at a time - which is difficult if you have several goals to manage
You can change your investment strategy as needed
No SRI - Fidelity Go doesn’t offer socially responsible portfolios
You get access to all Fidelity tools - Access to tools that used to be reserved for ‘regular’ investors.
No Tax Loss Harvesting This becomes more important as your portfolio grows.
PROs
No minimum balance - however you need $10 to invest
Low expense ratio ETFs - That will save you money in the long run.
You can change your investment strategy as needed
You get access to all Fidelity tools - Access to tools that used to be reserved for ‘regular’ investors.
CONs
The advisory fee is a bit higher than other ‘beginner’ robo-advisors - Fidelity charges 0.35% of assets under management
You can only manage one goal at a time - which is difficult if you have several goals to manage
No SRI - Fidelity Go doesn’t offer socially responsible portfolios
No Tax Loss Harvesting This becomes more important as your portfolio grows.

3. Wealthfront

Wealthfront helps clients create the complete financial picture. They focus on your investment at Wealthfront, but also consider other information to help create a clear financial picture. Wealthfront is all about setting and achieving goals, and they make it very user-friendly with their mobile apps and online platform.

As a part of the sign-up process, you’ll link your payment account (such as your checking account), which makes it easy to make regular contributions to your Wealthfront account for investing. Wealthfront’s website is a wealth of information with guides and articles to help you make the right financial choices.

Best for low fees
wealthfront-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.
Best for low fees
wealthfront-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.

Main Features

  • Open a taxable, retirement, or college savings plan
  • Wealthfront doesn’t charge any other fees outside of the advisory fee
  • Easily link an external bank account or transfer funds from another broker to fund your account
  • Set up multiple goals using the Wealthfront Path system that helps you manage your goals and the trade-offs of each
  • Wealthfront automatically rebalances your portfolio

Pros and Cons

PROs
Low ETF expense ratios
CONs
Wealthfront’s advanced features are reserved for investors with at least $100,000
A large number of investment options
You can’t buy fractional shares
Low annual management fees
You can only get customer service via phone, no online chat
Free financial planning tools that even non-Wealthfront clients can use
You need at least $500 to get started
Earn interest on your cash account
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Regular tax-loss harvesting
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Automatic rebalancing
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Help setting financial goals
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Line of credit available for large investors
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PROs
Low ETF expense ratios
A large number of investment options
Low annual management fees
Free financial planning tools that even non-Wealthfront clients can use
Earn interest on your cash account
Regular tax-loss harvesting
Automatic rebalancing
Help setting financial goals
Line of credit available for large investors
CONs
Wealthfront’s advanced features are reserved for investors with at least $100,000
You can’t buy fractional shares
You can only get customer service via phone, no online chat
You need at least $500 to get started
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4. Merrill Guided Investing

Merrill Guided Investing makes it easy to get started investing. All you have to do is answer some questions and choose a goal. Merrill takes into consideration any other investment accounts you have going to determine how much you must invest with the robo-advisor to meet your goals.

Merrill Guided Investing walks you through the process, asking simple questions to make it easy to set up and reach your goal. Every screen offers assistance and assesses your risk tolerance along the way. Merrill’s principal purpose is to help save for retirement, but you can set up other goals too.

Pros and Cons

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.
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.

Main Features

  • Get a recommended portfolio from Merrill investment advisors
  • Your portfolio consists of ETFs and mutual funds that align with your goals
  • Merrill investment advisors rebalance your portfolio as it changes
  • Many investment planning tools on the Merrill Edge website
PROs
You can get in person advice - at one of the branches. Of course you can also talk to human advisors on the phone
CONs
You need at least $5,000 to open an account
A human manages your portfolio rather than a computer - Combining the best of both worlds (robo-advisor and human advisor)
You can’t make changes to the portfolio - only to your goals
Change the goals in your portfolio - A change of heart? change your goals as often as you want
The annual management fee is high - High compared to other beginner robo-advisors
PROs
You can get in person advice - at one of the branches. Of course you can also talk to human advisors on the phone
A human manages your portfolio rather than a computer - Combining the best of both worlds (robo-advisor and human advisor)
Change the goals in your portfolio - A change of heart? change your goals as often as you want
CONs
You need at least $5,000 to open an account
You can’t make changes to the portfolio - only to your goals
The annual management fee is high - High compared to other beginner robo-advisors

5. E*TRADE Core Portfolios

E*TRADE Core Portfolios is a great first step for investors. Its automated system walks you through the investment process, allowing you to tailor your investments based on your risk tolerance and goals. E*TRADE’s system walks you through the questions easily, but you can also request more information if you’re ever stuck.

New investors appreciate the human help E*TRADE offers its robo-advisor clients, as you can talk to a representative on the phone or in person at a local location.

Pros and Cons

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.
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.

Features

  • E*TRADE has both an online platform and mobile app, but the mobile app is more user-friendly
  • E*TRADE automatically rebalances your portfolio to keep you on track to meet your goals
  • Offers a variety of investment options including socially responsible and tax sensitive options
  • Get access to all of E*TRADES robust tools and research offered to full-blown investors
PROs
Core Portfolios offers the best of both worlds – investments human professionals select with technology handling the account management.
CONs
No human advisors – Core Portfolios is a true robo-advisor that doesn’t offer financial advice from a human advisor
Fair assets under management fee – Core Portfolio’s management fees are along the lines of most other robo-advisors today
No tax loss harvesting - If you sell assets, there’s no guarantee that they’ll be cost-effective trades, which may mean higher tax liabilities.
User-friendly – Right from the start, E*TRADE uses simple language and provides support through every question in the profile questionnaire. They ask the questions both verbally and graphically to ensure everyone understands.
You may be charged account cancelation fees
Your risk tolerance with a series of 9 questions
Only rebalances twice a year
Change your goals at any time – Many robo-advisors don’t allow changes to your risk tolerance, but with Core Portfolio, you can change your goals based on your current situation at any time
One pot for multiple goals – Some robo-advisors create multiple ‘buckets’, one for each goal, but Core Portfolios doesn’t. All money goes into one pot, which can be convenient but also makes it hard to differentiate your progress.
Low expense ratios – ETFs can eat at your earnings if you don’t watch the expense ratios. E*TRADE sticks with low-cost ETFs to avoid that risk.
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PROs
Core Portfolios offers the best of both worlds – investments human professionals select with technology handling the account management.
Fair assets under management fee – Core Portfolio’s management fees are along the lines of most other robo-advisors today
User-friendly – Right from the start, E*TRADE uses simple language and provides support through every question in the profile questionnaire. They ask the questions both verbally and graphically to ensure everyone understands.
Your risk tolerance with a series of 9 questions
Change your goals at any time – Many robo-advisors don’t allow changes to your risk tolerance, but with Core Portfolio, you can change your goals based on your current situation at any time
Low expense ratios – ETFs can eat at your earnings if you don’t watch the expense ratios. E*TRADE sticks with low-cost ETFs to avoid that risk.
CONs
No human advisors – Core Portfolios is a true robo-advisor that doesn’t offer financial advice from a human advisor
No tax loss harvesting - If you sell assets, there’s no guarantee that they’ll be cost-effective trades, which may mean higher tax liabilities.
You may be charged account cancelation fees
Only rebalances twice a year
One pot for multiple goals – Some robo-advisors create multiple ‘buckets’, one for each goal, but Core Portfolios doesn’t. All money goes into one pot, which can be convenient but also makes it hard to differentiate your progress.
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Hands-on – DIY Robo-Advisors

6. M1 Finance

If you’d rather have a say in the investments your robo-advisor chooses, you’ll love M1. You choose the investments and M1 manages the portfolio for you. M1 has pre-built pie portfolios, but you can customize them further by adding stocks from the New York Stock Exchange to them. M1 bases your purchases on the portfolio you chose.

You’ll choose from pies that pertain to your goals. For example, are you saving for retirement, do you want to invest in all responsible sectors, do you have your eye on a specific industry, or do you prefer investing in just stocks and bonds?

M1 lets you lead, and they pick up where you left off, managing the portfolio for you.

Pros and Cons

Best for DIY
Account Minimum
$100
Management Fee
0.00%
Portfolio
The user can create portfolios which consist of low-cost ETFs or individual stocks
Account Types
Individual and joint taxable accounts; traditional, Roth and rollover IRAs, trusts and even business accounts.
Rebalancing
Tax Loss Harvesting
Fractional Shares
Automatic Deposits
SRI
Human Advice
Best for
DIY Investors. If you are enthusiastic about getting your feet wet in the investing world, M1 Finance is the robo advisor of your choice
Summary
M1 Finance is the best choice for self-directed investors that want to pick from existing portfolios or customize their own.
Best for DIY
Account Minimum
$100
Management Fee
0.00%
Portfolio
The user can create portfolios which consist of low-cost ETFs or individual stocks
Account Types
Individual and joint taxable accounts; traditional, Roth and rollover IRAs, trusts and even business accounts.
Rebalancing
Tax Loss Harvesting
Fractional Shares
Automatic Deposits
SRI
Human Advice
Best for
DIY Investors. If you are enthusiastic about getting your feet wet in the investing world, M1 Finance is the robo advisor of your choice
Summary
M1 Finance is the best choice for self-directed investors that want to pick from existing portfolios or customize their own.

Main Features

  • M1 automatically reinvests any dividends earned once you reach $10
  • Choose from as many as 2,000 ETFs and individual stocks
  • If you have at least $10,000 invested, you have access to a credit line of up to 35% of your portfolio
  • Invests in ‘pies’ that have pre-selected categories
PROs
No account fees
CONs
No human (or digital) advisors
Option to borrow money against the value of your portfolio
Fairly new brokerage, accounts are protected up to $500,000 (SIPC)
Choose your own investments
You can only trade once or twice a day (M1 Plus members with a min. balance of $25,000 can trade during both windows while members with a balance of less than $25,000 can only trade once a day)
Option to invest in individual stocks & fractional shares
If you want to trade options you will need a different brokerage
Great, intuitive platform (lets you creat a very diversified portfolio)
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Great for every experience level
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Rebalancing is automated
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The initial deposit of only $100 is a great incentive to just try it out and get your feet wet
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PROs
No account fees
Option to borrow money against the value of your portfolio
Choose your own investments
Option to invest in individual stocks & fractional shares
Great, intuitive platform (lets you creat a very diversified portfolio)
Great for every experience level
Rebalancing is automated
The initial deposit of only $100 is a great incentive to just try it out and get your feet wet
CONs
No human (or digital) advisors
Fairly new brokerage, accounts are protected up to $500,000 (SIPC)
You can only trade once or twice a day (M1 Plus members with a min. balance of $25,000 can trade during both windows while members with a balance of less than $25,000 can only trade once a day)
If you want to trade options you will need a different brokerage
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7. MarketRiders

Do you want a complete DIY investment option with a robo-advisor touch? MarketRiders is a great option. The MarketRiders Do-It-Yourself platform allows you to invest in low-cost ETFs. Beware, though, MarketRiders charges trading fees on top of its management fees and ETF expense ratios.

MarketRiders’ professionals always provide unbiased advice and you get a free 30-day trial. You can manage up to 10 portfolios with one account and get as little or as much help as you want with MarketRiders. They’ll help you choose the right ETFs to buy or sell to rebalance your portfolio and they’ll send alerts if your portfolio goes too far off track.

Pros and Cons

DIY Investing
Account Minimum
$1,000
Management Fee
$14.95 per month or $149.95 a year
Portfolio
DIY or 20 ETFs selected according to your goals
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, Trusts
Best for
DIYers, Investors who want to be in charge of their portfolios. Perfect for the advanced.
Summary
MarketRiders is an established and trusted company. It is great for DIY investing however if you are just starting out and prefer more of a hands-off approach you will probably better off with a different robo advisor.
DIY Investing
Account Minimum
$1,000
Management Fee
$14.95 per month or $149.95 a year
Portfolio
DIY or 20 ETFs selected according to your goals
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, Trusts
Best for
DIYers, Investors who want to be in charge of their portfolios. Perfect for the advanced.
Summary
MarketRiders is an established and trusted company. It is great for DIY investing however if you are just starting out and prefer more of a hands-off approach you will probably better off with a different robo advisor.

Main Features

  • Works with any brokerage account
  • Help you minimize fees, keeping more of your earnings
  • Focuses on low-cost ETFs to minimize risk and increase your earnings
  • Easily access your account on the web-based platform and know where you stand at any time
PROs
Versatil - Has options for both hands-on and hands-off investors
CONs
Relatively high fees - ($14.95) a month for the DIY option
Convenient - MarketRiders works hard to find the lowest cost investments to maximize your earnings
You have to manually buy/sell the assets MarketRiders suggests you trade
Adjustability - You can change the risk tolerance of your portfolio at any time
Many of the tools offered can be found for free at other brokerages
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PROs
Versatil - Has options for both hands-on and hands-off investors
Convenient - MarketRiders works hard to find the lowest cost investments to maximize your earnings
Adjustability - You can change the risk tolerance of your portfolio at any time
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CONs
Relatively high fees - ($14.95) a month for the DIY option
You have to manually buy/sell the assets MarketRiders suggests you trade
Many of the tools offered can be found for free at other brokerages
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Bottom Line

So what’s the best robo-advisor for hands-off investing?

Wealthfront takes the cake. You can open any type of account (taxable, retirement, or college savings), and you’ll pay only 0.25% for the management fee. You can link any external accounts and you’ll get advanced financial planning services that invest in low-cost ETFs, making the most of your money.

If you’re a hands-on investor, M1 finance offers the most benefits. Choose your pre-built pie and adjust it as you see fit. Whether you want to add stocks or reduce the risk with more conservative bonds, you choose how you want your portfolio to look and M1 will support you along the way. With as many as 2,000 ETFs to choose from, M1 has a lot to offer hands-on investors.

How will you invest your money? Are you ready to give robo-advisors a go? Your money isn’t earning anything just sitting there. Why not take a chance and see what a robo-advisor can do for you?

Feel free to share your experience with any of the above mentioned robos in the comment section!

 

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