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Robo-advisors are automated investment platforms that use computer algorithms and/or expert oversight to build personalized portfolios for retail investors. These automated investing accounts commonly use ETFs as their primary investment vehicles, but some robo-advisors also offer mutual funds, index funds, and crypto investments.
Best Robo-Advisors
Betterment Investing - Product Name Only : Best robo-advisor overallFidelity Go - Product Name Only : Best robo-advisor for beginnersWealthfront Investing - Product Name Only : Best robo-advisor for higher balancesSoFi Invest - Product Name Only : Best robo-advisor for low feesCharles Schwab Intelligent Portfolios - Product Name Only : Best robo-advisor for account flexibilityE*TRADE - Editorial Name Only : Best robo-advisor for mobileVanguard automated investing - Product Name Only : Best robo-advisor for retirement plansInteractive Brokers - Product Name Only : Best robo-advisor for socially responsible investingM1 Finance - Product Name Only : Best robo-advisor for investing and banking with the same platform
Here are the best robo-advisors (aka automatic investing platforms) as picked by Insider's editors.
Robo-Advisor Reviews
Best Overall Robo-Advisor
Betterment Investing
It was founded in 2008 and is one of the first platforms to offer robo-advice. Some of Betterment's offerings include goal-based investing, tax-loss harvesting, charitable giving options, cryptocurrency portfolios, and socially responsible portfolios.
It offers two plans: digital and premium. This robo-advisor also offers access to CFPs, but you can only take advantage of unlimited guidance if you're enrolled in its premium plan. You won't need a minimum amount to set up its digital plan, but you'll need at least $100,000 for the robo-investing premium plan.
And while you can't utilize ongoing advice with this robo-advisor's most basic account, you can still purchase consultations on the side. Betterment currently supports several investment accounts, including individual and joint accounts, trusts, traditional IRAs, Roth IRAs, SEP IRAs, inherited IRAs, and 401(k) rollovers.
Betterment is also a suitable automated platform for passive investors, beginners, and for personalized retirement plans.
What to look out for: If you don't have at least $100,000, you won't get unlimited access to a CFP; you'll have to pay for each consultation (these cost around $299).
Best Robo-Advisor for Beginners
Fidelity Go
Most robo-advisors use investment funds (typically ETFs or mutual funds) that have expense ratios. One of the best parts about Fidelity Go is that it not only offers low fees, but this automated investing platform also relies on mutual funds (i.e., Fidelity Flex mutual funds) that don't contain expense ratios.
Fidelity Go utilizes both technology and its own team of experts when building and managing its portfolios. And as for account types, it supports individual, joint, traditional IRA, Roth IRA, or rollover IRA accounts.
What to look out for: Fidelity Go doesn't offer tax-loss harvesting, and those with over $25,000 will have to pay a 0.35% advisory fee. You also don't get access to human advisors unless you have at least $25,000 in your account.
Best Robo-Advisor for Higher Balances
Wealthfront Investing
The robo-investing platform invests in ETFs and index funds, and its portfolio options and account types are also competitive. Wealthfront offers socially responsible portfolios, tax-loss harvesting, smart beta investing, and risk parity portfolios.
In addition, you can customize your portfolio's ETF allocation if you don't like the investments Wealthfront selected.
The robo-advisor's account selection includes individual accounts, joint accounts, trusts, traditional IRAs, Roth IRAs, SEP IRAs, and 529 plans. And while it's great for those who want exposure to cryptocurrencies, it protects your portfolio against risk by only allowing an allocation of 10% for crypto trusts.
Wealthfront also now offers an automated high-yield bond portfolio which hands-off traders can get a customized low-cost bond ETF portfolio.
What to look out for: You won't get access to ongoing, one-on-one advisor consultations at Wealthfront, and you'll need at least $100,000 to utilize strategies like direct indexing and risk parity.
Best Robo-Advisor for Low Fees
SoFi
SoFi's automated investing platform has several perks: It has a $0 account minimum, it doesn't charge any fees, and it provides complimentary CFP access.
In addition to automatic portfolio rebalancing and goal planning, the robo-advisor invests your funds into a diversified mix of both SoFi ETFs and non-SoFi ETFs. SoFi's robo-advisors also supports multiple accounts, including individual and joint accounts, traditional IRAs, Roth IRAs, SEP IRAs, and 401(k) rollovers.
And like several other investment platforms mentioned in this list, you can also invest on your own, thanks to SoFi's active investing accounts.
What to look out for:
Check out Insider's guide to the best rollover IRAs>>
Best Robo-Advisor for Account Flexibility
Charles Schwab Intelligent Portfolios
Charles Schwab's most basic automated investing account,
The automated accounts also offers automatic rebalancing, and it re-adjusts your portfolio's target allocation any time you add or withdraw money. Schwab Intelligent Portfolios gives you access to more than 51 ETFs (including Schwab ETFs), and it supports individual and joint accounts, trusts, custodial accounts, and IRAs.
You can even utilize tax-loss harvesting, but this feature is only available to those with at least $40,000 in their robo accounts.
What to look out for: You'll need at least $5,000 to set up a robo account.
Schwab Intelligent Portfolios review
Best Robo-Advisor for Mobile
E*TRADE
E*TRADE's automated investing mobile app allows commission-free trading of stocks, ETFs, mutual funds, and options. The app lets users manage their money, transfer cash, deposit checks, and pay bills. The robo-advisor also includes Bloomberg TV, which gives investors third-party research and news updates.
You can also check out the Power E*TRADE app. Unlike the regular E*TRADE app, the Power E*TRADE app provides you with user-friendly tools, advanced investing features, potential spot trades, dividends, and much more.
Download the E*TRADE app for Apple/Google Play
Download the Power E*TRADE app for Apple/Google Play
What to look out for: You can't be able to speak with a human advisor unless you've got at least $25,000, and the annual fee exceeds that of many competitors.
Best Robo-Advisor for Retirement Plans
Vanguard Digital Advisor
When it comes to account setup, this automated platform offers a similar approach to other robo-advisors: You provide details on things like your investing goals, risk tolerance, time horizon, and Vanguard builds a personalized ETF portfolio for you.
This robo-advisor mainly allocates your assets across four Vanguard ETFs. These include the Vanguard Total Stock Market ETF, Vanguard Total International Stock ETF, Vanguard Total Bond Market ETF, and Vanguard Total International Bond ETF. Expense ratios for these funds range from 0.03% to 0.07%.
In addition, Vanguard Digital Advisor supports individual and joint accounts, traditional IRAs, Roth IRAs, rollover IRAs, and eligible Vanguard-administered 401(k) retirement accounts. The robo-advisor also has a great offering of retirement tools and resources like tax-loss harvesting and socially responsible investing options.
What to look out for: Vanguard Digital Advisor has a $3,000 account minimum.
Vanguard Digital Advisor review
Best Robo-Advisor for Socially Responsible Investing
Interactive Advisors
In addition, the robo-investing platform provides four different ETF portfolio options: asset allocation, actively managed, smart beta, and socially responsible. The asset allocation portfolios focus your funds into a diversified portfolio, but Interactive Advisors' actively managed portfolios utilize the expertise of both its team and registered investment advisors (RIAs).
With its smart beta portfolios, you'll gain exposure to a strategy that seeks higher returns, and its socially responsible option invests in companies that positively impact the world.
What to look out for: Investment minimums and fees for actively managed portfolios are on the higher side. You may need as much as $50,000 to get started with this automated investing platform.
Best Robo-Advisor for Investing and Banking with the Same Platform
M1 Finance
M1 Finance's robo-advisor offers multiple investment options (such as stocks, ETFs, fractional shares, and crypto), DIY trading, and automatic investing options. Moreover, M1 Plus members get access to loans, high-yield savings accounts, and the M1 Finance credit card.
It also utilizes pie-based models so users can select how much or how little they want to invest in stocks or ETFs. M1 Finance also offers retirement savings accounts, like traditional and Roth IRAs, as well as a crypto account and custodial account option.
What to look out for: M1 Finance doesn't offer human advisor access or tax loss harvesting features.
Best Robo-Advisors Frequently Asked Questions (FAQs)
What is a robo-advisor?
Robo-advisors are automated investing accounts that use computer algorithms and/or advisor oversight to create self-managing investment portfolios. When setting up your account, these platforms ask questions about things like your investing goals, risk tolerance, time horizon, initial deposit, and monthly contribution.
Are robo-advisors a good idea?
These automated accounts are great for beginners, but they're also a good idea for those who prefer hands-off investing. Robo-advisors handle everything for you; you'll just need to fund the account and keep your investing goals, risk tolerance, and time horizon up to date.
Are robo-advisors free?
It depends on the platform you use. Some robo-advisors (e.g., SoFi Automated Investing, Ally Invest Managed Portfolios, and Schwab Intelligent Portfolios) don't charge any advisor fees. But you may pay monthly fees or percentage-based fees at other robo-advisors.
Is it worth investing with a robo-advisor?
It may be worth investing with a robo-advisor if you're interested in hands-off (or passive) investing. Robo-advisors consider personal information and individual financial goals to generate investments using an algorithm. But if you have more complex financial goals, or prefer an active investing strategy, a robo-advisor may not be the best option.
How much money do I need to invest with a robo-advisor?
How much money you need to invest with a robo-advisor varies by platform. Some robo-advisors require a minimum investment amount to open an account or stop investing. For example, minimum investments for a robo-advisor can be between $5 to $500. But there are robo-advisors with no minimum requirement to invest and others with much higher minimums, like Vanguard Digital Advisor that has a
How many funds should I be investing with a robo-advisor?
How much you invest with a robo-advisor varies based on your investment goals and the platform you're investing through. You'll need to invest a least the robo-advisor's minimum investment to get started. After that, how much you invest depends on your individual goals and budget. Some asset classes, such as IPO stock, may cost more than low-cost investments like index funds.
Why You Should Trust Us: How to Choose a Robo-Advisor
We used Personal Finance Insider's methodology for rating investment platforms when reviewing nearly two dozen robo-advisors to find the best platforms for low fees, portfolio types, human advisor access, and customer service. We also favored platforms that offered a range of other features and products, such as tax-loss harvesting and flexible account types. Investment platforms are given a rating between 0 and 5.
What to Look for When Choosing a Robo-Advisor
Robo-advisors are popular automated investment platforms for passive and beginner investors looking for accessible market access and hands-off trading strategies. A robo advisor is generally a cost-effective method of investing with low fees and minimum deposits.
When choosing the best robo-advisor for you, you'll want to look for a platform that offers investment options, account options, and features that best suit your individual needs. Robo investing platforms mainly offer ETFs but other advisory platforms — such as E*TRADE and M1 Finance — may also offer other asset classes like stocks, mutual funds, and options.
The best robo-advisor for you varies depending on factors like your risk tolerance, time horizon, and how much you're willing to invest. For example, most automated platforms don't offer human advisor access. However, some platforms — like Wealthfront — allow account holders to consult with CFPs. So if human advisor access is important to you, Wealthfront may be a good option for you.
You'll also want to seek out robo-advisors that offer features like tax loss harvesting, automatic portfolio rebalancing, 24/7 customer support, low fees, and socially conscious investing options.
How Does a Robo-Advisor Work?
Robo-advisors utilize AI algorithms to customize and manage automated investment portfolios. Investment managers and brokers have been using robo-advisors since the 1980s. But now consumers can use these robo platforms directly making investing more accessible for beginners.
The algorithms used by robo-advisors were designed to choose investment options that maximize returns for investors without subjecting them to unnecessary risk. Moreover, the AI incorporates your individual risk tolerance, time horizon, and investing goals to customize your portfolio.
You can open some of the best robo-advisor accounts online or through a traditional brick-and-mortar brokerage firm. Traditional, in-person broker firms are often best suited for higher balances and may charge more fees. Online robo-advisors, however, tend to have lower fees and are suitable for smaller balances.
What is a Hybrid Robo-Advisor?
Hybrid robo-advisors are investing platforms that pair automated investing strategies and AI with the benefits of human advisors. Hybrid robo-advisors get you the best of both worlds by utilizing automated portfolio managemnt with expert guidance from financial advisors and CFPs.
Hybrid investing platforms offer low fees, accessible trading, customized investment portfolios, guidance from human advisors, and automated investment tools like portfolio management and tax loss harvesting. Beginners and passive investors wanting more account flexibility and expert guidance may benefit from a hybrid robo-advisor.
Some of the best robo-advisors for hybrid investing include Betterment, SoFi, Ellevest, TD Ameritrade, and Vanguard.
Other Automated Investing Platforms We Considered
These robo-advisors may have not earned a "best of-" category as one of our top picks for automated investing, but that doesn't mean it's a bad idea to invest in them. Here are some of the robo-advisor runner-ups.
Acorns Invest - Product Name Only : Acorns is great for hands-off investors. It offers automated ETF portfolios, IRAs, and tools that invest a percentage of your money from your purchases into companies. A drawback is that you'll have to pay more ($5 per month) to access custodial accounts. It's more expensive than some of the zero-fee platforms and doesn't offer goal-planning tools or tax-loss harvesting features. It's also not as customizable as some other investing platforms.Merrill Edge - Product Name Only : This robo-advisor is unique in that it utilizes both computer algorithms and oversight from Merrill professionals. The platform also offers socially responsible portfolios, perks for Bank of America users, and multiple account types. A downside, however, is that it doesn't offer tax-loss harvesting, and it charges a 0.45% annual fee. It also requires a higher minimum investment than most other automated investing platforms, but also with less account features.FutureAdvisor - Product Name Only : FutureAdvisor offers automated ETF portfolios and employs tax-loss harvesting, but its services are limited. It only manages accounts held at TD Ameritrade or Fidelity.Empower Personal Dashboard™ - Product Name Only : This robo-advisor offers several competitive services. These include free wealth management tools, tax optimization and socially responsible investing strategies, one-on-one advisor guidance, and copious investment types. One thing to look out for, though, is that you'll need at least $100,000 to set up an account. This is significantly higher than most other automated investing platforms.J.P. Morgan Online Investing : JP Morgan's automated portfolios rely on oversight from the company's experts and offer features like automatic portfolio rebalancing and easy account integration for Chase customers. It's not a good option for those in search of tax-loss harvesting, non-JP Morgan ETFs, or socially responsible portfolios. JP Morgan is not as accessible as other robo-advisors, and doesn't offer as many account/portfolio options.Wells Fargo Intuitive Investors - Product Name Only : This robo-advisor offers ETFs for passive investors through individual and joint brokerage accounts, margin accounts, IRAs, and more. Wells Fargo's automated investing portfolio provides dividend reinvesting, automated portfolio rebalancing, and tax-loss harvesting features. But Intuitive Investors has a highWells Fargo Intuitive Investors - Account Minimum account minimum and a 0.35% annual management fee.Axos Invest Managed Portfolios - Product Name Only : Axos lets you invest toward a range of different goals, and its 0.24% advisory fee is quite competitive. It offers automatic portfolio rebalancing, tax-loss harvesting, quick deposits, and an auto-deposit scheduler that lets you determine when extra money goes into your account. But unlike most other robo-advisors that offer access to human advisors, Axos Invest's automated portfolios don't offer ongoing advice and guidance.Marcus Invest - Product Name Only : Marcus Invest offers ETF portfolios for individual and joint accounts and IRAs. Each portfolio factors into your goals, risk tolerance, and time horizon, and Marcus Invest regularly employs asset allocation and portfolio rebalancing. Its simple interface also provides access to more than 50 ETF portfolios (consisting of both stock ETFs and bond ETFs). But Marcus Invest doesn't offer individual stocks, mutual funds, crypto, or other assets.Ellevest - Product Name Only : Besides its low fees and financial planner access,Ellevest - Product Name Only is a great option for female investors, as its strategies work to close the gender money gap by factoring in things like career breaks and women's longer lifespans. While it targets women, its services are open to all investors. The robo-advisor also offers private wealth management for those with at least $1 million to invest. It doesn't offer as much portfolio customization as other robo-advisors, nor does it offer joint accounts or custodial accounts.Ally Invest Robo Portfolios - Product Name Only : If you want to skip out on advisory fees completely, Ally Invest is a great option. Plus, it has a fairly low minimum requirement of $100, and it sets aside 30% of your portfolio as an interest-earning cash buffer to protect you against market risk. But Ally Invest is mainly a DIY investment platform best for active traders.