Best Robo Advisor in 2021

Reviews, Fees, & Ratings [2021]

For those looking to leverage the latest information technology applications to manage their assets, automated investing has become a popular way to grow wealth. Whether you’re preparing for retirement, allocating funds for a house purchase, or simply want to make your money work for you without resorting to the DIY approach, getting a robo advisor is something you might want to check out.

If you’re considering getting an automated investment manager to do most of the legwork, here are some of the best robo advisor companies for you.

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9 Best Robo Advisor Companies for 2021

1. Wealthsimple

Wealthsimple offers an easy to use platform for those looking to automate their wealth management portfolio. You can start investing for as little as $1, and this robo advisor will automatically spread funds over a diversified automated portfolio that matches your profile and investing goals. Full Review

  • No minimum funds
  • Simple registration
  • No maintaining balance
VISIT SITE

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Wealthsimple offers an easy to use platform for those looking to automate their wealth management portfolio. You can start investing for as little as $1, and this robo advisor will automatically spread funds over a diversified automated portfolio that matches your profile and investing goals. Full Review

Investment Choices

★★★★★ 5/5

Ease of Use

★★★★★ 5/5

Features

★★★★☆ 4/5

Fees

★★★★★ 5/5

2. Ellevest

Ellevest is a robo advisor primarily run by women and catering especially to women. The company considers the inherent scenarios of the female demographic to create each investing strategy aligned to specific goals. There is no maintaining balance required, and management fees are fixed depending on the chosen tier program. Full Review

  • Goal specific portfolio management
  • Caters to specific situations for women
  • No minimum balance required
VISIT SITE

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Ellevest is a robo advisor primarily run by women and catering especially to women. The company considers the inherent scenarios of the female demographic to create each investing strategy aligned to specific goals. There is no maintaining balance required, and management fees are fixed depending on the chosen tier program. Full Review

Investment Choices

★★★★★ 5/5

Ease of Use

★★★★★ 5/5

Features

★★★★☆ 4/5

Fees

★★★★☆ 4/5

3. SoFi

SoFi is a company that offers free robo advisor services. Registration is easy and will automatically match clients with the appropriate portfolio based on their goals and tolerance for risk. All portfolios are automatically rebalanced to follow preferred ratios. Funds are invested in low-cost ETFs which help keep SoFi’s services free. Full Review

  • Great mobile app
  • Based on machine and human experience
  • Mostly free services
VISIT SITE

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SoFi is a company that offers free robo advisor services. Registration is easy and will automatically match clients with the appropriate portfolio based on their goals and tolerance for risk. All portfolios are automatically rebalanced to follow preferred ratios. Funds are invested in low-cost ETFs which help keep SoFi’s services free. Full Review

Investment Choices

★★★★★ 5/5

Ease of Use

★★★★☆ 4/5

Features

★★★★☆ 4/5

Fees

★★★★★ 5/5

4. M1 Finance

M1 Finance’s services mix traditional investing with modern automation. This robo advisor is primarily designed to be a mobile app for both active traders and passive investors. Their “Pie” system does a great job of allocating funds to the desired proportions and is regularly rebalanced at no extra cost. Full Review

  • Good for automatic and manual investing
  • Excellent mobile application
  • Wide array of very usable template portfolios
VISIT SITE

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M1 Finance’s services mix traditional investing with modern automation. This robo advisor is primarily designed to be a mobile app for both active traders and passive investors. Their “Pie” system does a great job of allocating funds to the desired proportions and is regularly rebalanced at no extra cost. Full Review

Investment Choices

★★★★☆ 4/5

Ease of Use

★★★★★ 5/5

Features

★★★★★ 5/5

Fees

★★★★☆ 4/5

5. Blooom

Blooom is an automated investment advice company specifically catering to employees who wish to maximize the growth of their retirement savings. This 401k robo advisor can also manage IRA funds held in Vanguard and Fidelity which makes them one of the best IRA accounts managers out there. Full Review

  • Simple and straightforward
  • Perfect for maximizing 401(k) and IRA returns
  • Free assessment
VISIT SITE

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Blooom is an automated investment advice company specifically catering to employees who wish to maximize the growth of their retirement savings. This 401k robo advisor can also manage IRA funds held in Vanguard and Fidelity which makes them one of the best IRA accounts managers out there. Full Review

Investment Choices

★★★★☆ 4/5

Ease of Use

★★★★☆ 4/5

Features

★★★★★ 5/5

Fees

★★★★★ 5/5

6. Personal Capital

Personal Capital is a financial technology company for high net worth individuals seeking to grow their wealth through an automated investment platform combined with actual human guidance. Clients are thoroughly assessed according to their individual situations and are given fine-tuned recommendations that already consider tax minimization. Full Review

  • Tax-loss harvesting
  • Access to dedicated human advisors
  • Comprehensive assessment for wealth maximization
VISIT SITE

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Personal Capital is a financial technology company for high net worth individuals seeking to grow their wealth through an automated investment platform combined with actual human guidance. Clients are thoroughly assessed according to their individual situations and are given fine-tuned recommendations that already consider tax minimization. Full Review

Investment Choices

★★★★★ 5/5

Ease of Use

★★★★★ 5/5

Features

★★★★★ 5/5

Fees

★★★★☆ 4/5

7. Ally Invest

Ally Invest is an automated financial advisor that is convenient for both beginner investors and anyone who likes to put their asset management on autopilot. This robo investment advisor offers a diversified asset allocation with the option to concentrate on tax-optimized and socially responsible portfolios. Full Review

  • Competitive management fee for no cash holding
  • No management fee for accounts with 30% cash holding
  • Held cash earns interest at competitive rates
VISIT SITE

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Ally Invest is an automated financial advisor that is convenient for both beginner investors and anyone who likes to put their asset management on autopilot. This robo investment advisor offers a diversified asset allocation with the option to concentrate on tax-optimized and socially responsible portfolios. Full Review

Investment Choices

★★★★☆ 4/5

Ease of Use

★★★★☆ 4/5

Features

★★★★★ 5/5

Fees

★★★★★ 5/5

8. Betterment

Betterment offers both robo advising and human advising services. Based on the client’s profile and situation, Betterment can suggest goals on which you can base your portfolio. For asset allocation, funds are invested in a good mix of asset classes. They have many tax-optimized portfolios and also offer tax-loss harvesting. Full Review

  • Offers tax-loss harvesting
  • Great for retirement planning
  • Has tax-optimized portfolios
VISIT SITE

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Betterment offers both robo advising and human advising services. Based on the client’s profile and situation, Betterment can suggest goals on which you can base your portfolio. For asset allocation, funds are invested in a good mix of asset classes. They have many tax-optimized portfolios and also offer tax-loss harvesting. Full Review

Investment Choices

★★★★★ 5/5

Ease of Use

★★★★★ 5/5

Features

★★★★☆ 4/5

Fees

★★★★★ 5/5

9. Schwab

Schwab offers a hybrid of robo and human portfolio management services for individuals looking to grow their wealth. They also offer great financial tools that can help clients make investment decisions for a variety of purposes. Fund allocations are well diversified with Schwab offering options for limited tweaking. Full Review

  • Highly diversified asset classes
  • 24/7 customer support
  • Free services for basic tier
VISIT SITE

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Schwab offers a hybrid of robo and human portfolio management services for individuals looking to grow their wealth. They also offer great financial tools that can help clients make investment decisions for a variety of purposes. Fund allocations are well diversified with Schwab offering options for limited tweaking. Full Review

Investment Choices

★★★★★ 5/5

Ease of Use

★★★★★ 5/5

Features

★★★★☆ 4/5

Fees

★★★★☆ 4/5

How We Created This List – Our Methodology

In crafting this list of robo advisors, we’ve made sure to take note of the following:

  • Notable features.

We’ll let you know all about nifty features such as automatic rebalancing, mobile app support, tax-loss harvesting, financial tools, and other things that make each stand out.

  • Investment choices.

You’ll find out where each company allocates funds – this may include individual stocks, exchange-traded funds (ETFs), mutual funds, bonds, etc.

  • Ease of use.

We’ll discuss how convenient these services are, evaluating everything from the ease of registration to access to human support.

  • Fees, minimum deposits, returns.

Subscription costs, required balances, and initial deposits have also been taken note of.

  • Customer reviews.

We’ll look into reviews from actual users to bring you the real pros and cons of each company.

Detailed Reviews

Wealthsimple
Wealthsimple

Best Robo Advisor for Beginning Investors

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  • No maintaining balance
  • No minimum funds
  • Simple registration
  • Limited human financial advisor support
  • Limited financial tools for self-trading

For new investors who still find the thought of building portfolios on their own daunting, Wealthsimple’s novice-friendly automated investment service makes it a go-to among neophyte players. For starters, there is no minimum balance required to open and maintain an account. Registering is also very easy – you only need your social insurance number. You’ll have to answer a few questions which will assess your tolerance for risk and your investing goals. From there, the system automatically matches you with a suitable portfolio.

You can start investing for as little as $1. Once you fund your account, Wealthsimple’s robo advisor will do the investing for you where your funds will be spread to different asset classes including stocks, bonds, commodities, etc. The management fee for this feature is 0.5% for accounts below $99,999, and 0.4% for accounts $100,000 and above. This tier also gives you access to Wealthsimple’s in-house registered financial planners.

Wealthsimple actively rebalances your portfolio to maximize growth. Any dividends received will also be reinvested the following day. Another benefit is Wealthsimple’s RoundUp feature. Purchases using linked savings or credit card accounts will be rounded up where any spare change will automatically be diverted for investing. If you opt to invest by yourself, Wealthsimple’s platform may not provide you with the robust financial tools commonly needed for active trading.

For the environmentally and socially conscious, Wealthsimple does not have any assets with involvements in tobacco, weaponry, and fossil fuel. A halal portfolio is also offered for those who would like to keep their investments Shariah-compliant.

Ellevest
Ellevest

Best Robo Advisor for Women

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  • No minimum balance required
  • Goal specific portfolio management
  • Caters to specific situations for women
  • No option for tax-loss harvesting
  • Only accommodates individual accounts
  • Coaching sessions are pricey

The main thing that sets Ellevest apart from other robo advisors is that the platform is built and generally run by women, and caters primarily to women. Ellevest’s portfolios and automated investing strategies are aligned to the specific situations that are unique to the female demographic. For instance, Ellevest considers that women have a lower median salary than their male counterparts. Women also tend to live longer than most men. These are all factors being considered in building portfolios. Needless to say, male clients are also welcome.

There is no minimum balance required to open an Ellevest account. You open a portfolio for as low as $1 and just keep adding along the way as you become more comfortable with the system. Unlike most robo advising companies that charge according to a percentage of allocated funds, Ellevest charges a fixed amount of management fees, based on three tiers. Their most basic service, the Ellevest Essential goes for $1/month. Higher tiers, the Ellevest Plus and Ellevest Executive goes for $5/month and $9/month respectively. Each of these tiers has its own perks, such as discounts on coaching access, retirement planning, and multi-goal investing, which all become available the higher you move up the tiers. These discounts can be useful as coaching sessions can be quite expensive starting at $160.

Another great feature that’s unique with Ellevest is their goal-based investing. Rather than the generic approach done by many robo advisors which is primarily based on tolerance for risk and personal situation, Ellevest structures portfolios based on very specific goals like retirement and family building, just to cite a few.

Ellevest only accommodates individual accounts, so if you’re planning on setting up a joint account or trust account, you’ll have to look elsewhere. There is also no offer for tax-loss harvesting.

SoFi
SoFi

Best Robo-Human Hybrid Advisor

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  • Mostly free services
  • Great mobile app
  • Based on machine and human experience
  • Only invests in ETFs
  • No option for tax-loss harvesting

SoFi is a popular investment vehicle for millennials who want to put their wealth management on autopilot. This technology-first financial company grants access to automated investing portfolio management with access to human advisors at a very low to no cost.

SoFi charges no management fees for their robo investing program so all funds deposited by the clients will go straight into their investments. Instead, SoFi generates revenues through their other products which enables them to offer these free services.

As with many robo advising companies, opening an account is easy and straightforward. You’ll have to provide essential information such as your name and tax number. You’ll also be asked questions regarding your financial background, tolerance for risk, and investment goals. After filling up, the system will automatically analyze your provided information and suggest automated portfolios specifically tailored to your needs. Funds in SoFi are invested in stocks and bonds through low-cost ETFs.

Automatic rebalancing is done by the system to ensure that any changes in your portfolio, whether due to market conditions or additional funding, will still follow your preferred allocations. It is important to note though, that SoFi does not offer many tax optimization features such as tax-loss harvesting, etc. They also have a great mobile app for both Android and iOS.

If you’d like access to human advisors, SoFi’s in-house certified financial planners are available at no additional cost. Here’s where you can ask for advice from registered investment advisors regarding various investment concerns. This comes in very handy for those who are looking for human counsel rather than leaving everything to machines when making financial decisions.

M1 Finance
M1 Finance

Best Robo Investing App

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  • Wide array of very usable template portfolios
  • Good for automatic and manual investing
  • Excellent mobile application
  • Limited companies in the roster
  • Does not include mutual funds

M1 Finance is an automated investing solution that is primarily designed as a mobile app interface. Although there is also a desktop platform available, their robo investing app is where most transactions are intended to be done.

M1 Finance’s blend of traditional investing and robo investing is great for those who like investing both in autopilot and manual mode. The company’s approach is also different from many other robo investing companies. Typical robo advisors would build an investment portfolio generally based on tolerance for risk and investment goals as provided in registration questionnaires. M1 Finance uses its Pie allocations, which show where investors wish to place their funds, as the foundation of its entire system.

For manual investing, you can opt to build a portfolio from scratch by choosing from among the available companies, ETFs, and other instruments in M1 Finance’s limited roster which also does not include mutual funds. From there, you’ll have to assign a fixed ratio of how much percentage of your funds you want to be kept allocated for each. Once funded, the robo trader will allocate these funds according to your chosen ratios and rebalance them to consistently follow these proportions.

Another useful feature would be its Expert Pies. These are template portfolios created and curated by M1 Finance that you can opt to use if you don’t want to build one yourself. There are 30 varied automated portfolio templates you can choose from depending on how you wish to invest, from general-purpose investing portfolios to those that emulate portfolios of well renowned financial gurus and hedge funds.

Blooom
Blooom

Best Robo Advisor for 401(K) And Ira

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  • Free assessment
  • Simple and straightforward
  • Perfect for maximizing 401(k) and IRA returns
  • Focuses mainly on index funds
  • Human advisor access is not available on the basic tier

What Blooom uniquely brings to the investment table is its focus on 401(k) plan management and other employer-sponsored retirement plans. This automated investment service caters to employees who wish to maximize their retirement accounts at a very reasonable cost. Services are also simplified so clients can be completely hands-free.

Registering with Blooom is quick and straightforward, and it will grant you a free assessment of your current 401(k) allocations. There is no need for employer consent. You’ll simply provide a secured link to your 401(k) account via Blooom’s website and they will do the rest. Since the assessment is free, you can alternatively opt to go for the DIY approach following Blooom’s recommendations. But if you decide to follow Blooom’s recommendations as a registered client, you’ll have to pay for their annual subscription which will give you access to passive investing and other services.

Rates depend on the type of package you choose. There are three tiers in Blooom’s service, starting with the most basic, the Essential package, which is $45/year. This package gives you a personalized portfolio with rebalancing features. If you’re looking for more features, then go for the higher tiers, the Standard and the Unlimited. These feature-enhanced packages cost $120/year and $250/year respectively. Access to financial advisors is only available for the Standard and the Unlimited subscribers.

Aside from 401(k)s, quality individual retirement account (IRA) management is also offered, as long as they are held in either Fidelity or Vanguard. As for portfolio mix, Blooom focuses mainly on index funds and some actively managed funds.

Personal Capital
Personal Capital

Best Robo Advisor for High Net Worth Individuals

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  • Comprehensive assessment for wealth maximization
  • Tax-loss harvesting
  • Access to dedicated human advisors
  • Expensive subscription
  • Very high maintaining balance

With its more personal approach to investment management, Personal Capital performs more like a traditional investment advisor than a robo advisor. The company uses modern tools to present clients with studies and options that will maximize asset growth through actual human interaction rather than relying solely on preset algorithms and mechanical discretion.

Personal Capital caters more to high net worth individuals. You’ll need at least $100,000 to be able to avail yourself of their services. This gives you access to a team of financial advisors dedicated to your account. These advisors can be contacted directly and can be asked for counsel concerning not only your account but other areas in finances which can even cover personal finance and 401(k) plan analysis. The higher tier which is reserved for those allocating funds above $200,000 will have access to two dedicated advisors. The desktop interface as well as their robo advisor app both have robust financial tools you can use for financial analysis and making your investment strategies.

Unlike the typical robo financial advisor where clients are simply matched with a portfolio based on a few questions regarding tolerance for risk and investment goals, Personal Capital matches clients with human advisors who can best offer guidance for growing their wealth. These advisors probe clients on various areas that robo advisors do not consider, such as saving habits, compensation analysis, estate planning, insurance coverages, and more.

Personal Capital invests in ETFs and individual stocks. This allows your portfolio to be fine-tuned to your goals which also gives opportunities for tax-loss harvesting. This further maximizes growth potential while minimizing your tax obligations. For those reaching the $1 million tier, there is an option to be able to invest in individual bonds. Management fees for their services can range from 0.49% to 0.89% of the total asset allocations.

Ally Invest
Ally Invest

Best Value Robo Advisor

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  • Held cash earns interest at competitive rates
  • Competitive management fee for no cash holding
  • No management fee for accounts with 30% cash holding
  • No access to human advisors
  • Lacks asset classes such as commodities and REITs

Ally Invest is a good robo advisory company for those who are just starting to explore the idea of investing. Many beginning investors are averse to investment risk and are uncomfortable with having all their funds exposed to market conditions. Ally Invest addresses this by keeping 30% of the allocated funds in cash while the rest is invested. This basic package also lets cash funds earn interest at a competitive rate, while also entitling clients to zero management fees. For customers comfortable with going all-out on investing in the market, the management fee is a competitive 0.3% of the total assets. Initial deposits to maintain an account are $100.

Registering is pretty standard as with most robo investors. You’ll be asked for your personal and financial information to verify your identification. You’ll then be asked a series of questions related to your tolerance for risk and investment goals. From there, Ally Invest will be able to build a recommended portfolio that should suit your needs.

Funds are invested through a portfolio of ETFs. There are many portfolios to choose from based on asset types. For those socially conscious, Ally Invest offers portfolios with funds invested in more socially responsible assets. They offer no tax-loss harvesting but this can be compensated by their tax-optimized portfolios. Ally Invest’s portfolios are well mixed, however, they fall short on non-market assets such as commodities and REITs.

Customer support is available during designated times via chat, email, and phone. There is no option to speak to a registered investment adviser. Customer support is only available for questions regarding tech support on accounts and other similar backend concerns and does not cover financial or investment advice.

Betterment
Betterment

Best Robo Advisor for Tax-Loss Harvesting

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  • Lacks asset classes such as commodities and REITs
  • Lacks features for DIY investors and traders
  • Has tax-optimized portfolios
  • Offers tax-loss harvesting
  • Great for retirement planning

Betterment is one of the largest robo advisors that offer services suitable for both casual investors and those looking to build and maximize their retirement accounts. At the higher subscription tier, Betterment offers a combination of robo advising with actual human advising.

There is no minimum balance or required initial deposits to open an account. Accounts below $99,999 get clients started with their basic package, Betterment Digital. This gives access to Betterment’s robo funds for a management fee of 0.25%. Accounts of $100,000 or more fall under Betterment Premium. This service charges a management fee of 0.40% and includes every feature of Betterment Digital while throwing in unlimited access to registered investment advisors.

Getting started is just like with other robo advisor companies. However, instead of immediately receiving portfolio suggestions simply based on the information you’ve provided, you’ll be given goal suggestions, from where you can create or pick a portfolio to suit these goals. These goals may be for setting up emergency funds, funding your retirement, or general wealth accumulation.

Betterment also has a retirement planning tool that you can link to your 401(k) accounts. The tool analyzes the information and offers advice on how to maximize your retirement funds and monitor whether you’re aligned with your goals.

As for tax minimization, Betterment does offer tax-loss harvesting for every taxable account. Betterment also has a tax-coordinated portfolio tool that helps keep tax obligations at a minimum.

Betterment invests funds in a variety of asset classes with the exclusion of commodities and REITs. Betterment’s automated portfolio also has great tools for anyone looking to go hands-off with investing, however, it’s not designed with the more advanced DIY investors and manual traders in mind.

Schwab
Schwab

Best Robo Advisor for Asset Diversification

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  • Free services for basic tier
  • Highly diversified asset classes
  • 24/7 customer support
  • No fractional shares
  • High maintaining balance

Schwab is one of the biggest robo advisors that, for the most part, offer services for free. This makes them an attractive choice for individuals willing to invest at least $5,000 with an automated financial advisor. This free service gives clients access to Schwab’s fully automated portfolios. Like most robo advisors, there is regular automatic rebalancing to keep the ratios of your portfolio of stocks always consistent.

You can also opt for their Premium service which is available for a fee of $30/month ($90 billed quarterly). On top of these robo advisor fees, there’s a one-time fee of $300. This Premium subscription also requires a minimum balance of $25,000. In exchange for the free services, Premium gives access to unlimited 24/7 consultations with Schwab’s certified financial planners. You can also be assigned a dedicated advisor at no extra cost. Premium also lets you use their robust financial tools which can simulate various scenarios that can affect your investing results. This is practically useful for planning ahead and preparing for any unexpected situations.

With regard to investment portfolios, Schwab allocates funds in diversified asset classes from a wide array of different ETFs. These portfolios are derived from each client’s unique situation which takes into consideration the age, financial capabilities, goals, and tolerance for risk. You have the option to follow the recommendation straight up, or apply some limited tweaking to better suit your needs. You can have as many as 10 portfolio accounts, each with at least $5,000, which you can fund to serve different investment goals.

Schwab offers 24/7 phone and live chat support for technical and account concerns. Schwab does not offer fractional shares which also should be taken into consideration.

Robo Advisors – Buyer’s Guide

In a nutshell, robo advisors are simply automated financial management services that are designed to manage financial assets with very minimal to no human intervention. Robo advisors employ both standard practices and unique tools in asset management intended to preserve, optimize, and protect wealth based on each individual’s unique situation.

How Do I Choose a Robo Advisor?

There is no cookie-cutter approach when picking the best robo advisor as every individual has different circumstances. Here are the essential factors to consider:

Purpose.

Some robo advisors do better than others in certain areas, so make sure to match your choice with your goals.

Services offered.

Check which services are a must and which ones you can do without. Do they offer regular rebalancing? Tax-loss harvesting? Trust accounts? Do they have good financial tools? Some companies offer these as add-ons for additional fees so that’s also something to take note of.

Preferences.

There are many types of companies offering robo advisor services. Some of them are connected to banks, while some are run by self-directed brokerage services. These affiliations may affect certain regulations and legalities. Some robo advisors also have portfolios that cater to social advocacies like those that hold “green-only” assets. Check your preferences and pick a robo advisor that matches them.

Robo Advisor Services

Some companies offer purely robo advising services, while others offer hybrid services which include access to registered investment advisors. All robo advisors are guided by the Modern Portfolio Theory (MPT) which emphasizes diversification to mitigate risks and maximize returns.

Typical robo advisor services include:

  • Client assessment – initial assessment of client profiles which will be the basis for portfolio recommendations.
  • Portfolio recommendations – many robo advisors have curated portfolios that are matched according to the client’s goals.
  • Portfolio rebalancing – robo advisors keep the proportion of fund allocations consistent given the changes over time.
  • Financial planning tools – different robo advisors have tools that help clients assess their own situation and goals which help them make sound financial decisions.

Who Can Benefit From Robo Advisors?

One advantage that robo advisors have over human advisors is the lower management costs. Subscription to robo advisor services costs significantly lower and is sometimes even free. Initial deposits and minimum maintaining balances are also lower which could go as low as $1 to start investing. This makes investing with robo advisors an attractive option for starting millennials. Some robo advisors are also used to maximize retirement savings by linking them to 401(k) plan accounts so those planning for retirement can also benefit from this type of service. DIY investors who do wish to keep a portion of their funds growing on auto-pilot would also find robo advisors a good supplement for manual investing.

How to Start Investing With a Robo Advisor?

If you’re considering investing with a robo advisor, here are the usual steps to get you started:

  1. Research – there are many robo advisors out there, so it’s best to research which one would suit you best according to your situation.
  2. Open an account – once you’ve chosen a robo advisor, you can start registering through their online platform.
  3. Connect your bank – choose which bank you would like to use when transacting with your robo advisor. This will be used to fund your account as well as receive withdrawals.
  4. Deposit – once you’ve linked your bank, you’ll have to make your initial deposit to start investing. Take note of the minimum required balance and make sure it’s maintained.
  5. Invest – you can choose to follow the recommended portfolio generated by the robo advisor, or create your own from scratch.

Best Robo Advisor in 2021 at a Glance

  • Wealthsimple – Best robo advisor for beginning investors
  • Ellevest – Best robo advisor for women
  • SoFi – Best robo-human hybrid advisor
  • M1 Finance – Best robo investing app
  • Blooom – Best robo advisor for 401(k) and IRA
  • Personal Capital – Best robo advisor for high net worth individuals
  • Ally Invest – Best value robo advisor
  • Betterment – Best robo advisor for tax-loss harvesting
  • Schwab – Best robo advisor for asset diversification

Key Takeouts

The advent of technology and connectivity has definitely made investing and wealth management very accessible to anyone with income and an internet connection. While there definitely are great advantages to having registered investment advisors manage your portfolio, the steep fees and large funding requirements make them unaffordable to many. Robo advisors come as a great alternative for those who want passive investing at a very affordable cost.

With so many robo advising companies out there, it’s important to know how to skim through them and find the best robo advisor that will match your needs, purpose, and budget.

FAQ

Should I use a robo advisor?

Are you looking to grow your wealth by investing in the market? Do you want a hands-off approach to growing your funds? Are you comfortable with having your funds managed by machine algorithms? If yes, then you should consider getting a robo advisor.

Can robo advisors make you more money?

Yes. That is the main and sole purpose of getting a robo advisor. Statistically, portfolios managed by robo advisors are proven to be able to keep up with market performance.

Can robo advisors minimize the taxes on my assets?

Yes. You should check whether your chosen robo advisor company has tax-loss harvesting as part of their services. If not, you should consider using free accounting software to help you offset capital gains against tax liabilities.

How do I know if a robo advisor company is legit?

One of the best ways to see if a robo advisor company is legit is to check whether they are registered with the Securities and Exchange Commission. You should also research their track record and verify whether they’ve been involved in any questionable activities or scams. The best robo advisors have excellent reputations.

Which is the best robo advisor for me?

The best robo advisor will always be the one that matches your needs most. For example, if your purpose is to maximize your retirement savings, then robo advisors like Blooom and Betterment are well worth considering.