If you’re on the lookout for a hands-off option to make investments, robo-advisors is usually a sensible choice. These on-line funding platforms usually present automated funding administration and sometimes accomplish that for minimal price and little effort in your half. Merely reply a questionnaire about your monetary targets, timeline, threat tolerance, and different preferences and the platform selects belongings and designs a portfolio for you.
However not all robo-advisor platforms are created equal. Some are costlier than others or require a steep minimal steadiness to get began. Some supply one-on-one steerage from a monetary skilled, whereas others might supply no human help in any respect.
To assist make the choice course of a bit simpler, the Fortune RecommendsTM editorial staff reviewed almost two dozen robo-advisor platforms and got here up with an inventory of our high 10 picks. When conducting our evaluation we thought of the minimal required deposit to open an account, fee charges, annual charges, buyer help, one-on-one advisory service, sign-up bonuses, and account closure charges. (Learn our full methodology right here)
All charges listed are updated as of December 16, 2022.
- Schwab Clever Portfolios
- Merrill Edge Guided Investing
- Ally Make investments Managed Portfolios
- INVEST for Amex by Vanguard
- Constancy Go
- SigFig
- UBS Recommendation Benefit
- E*TRADE Core
- Wealthfront
- Betterment
The ten greatest robo-advisors
Right here’s a better take a look at the highest 10 on our record together with key details about their charges, customer support choices, and different necessary data to contemplate when opening an account.
1. Schwab Clever Portfolios: For the investor searching for minimal charges and customized help
Key numbers
Fee: $0
Account minimal: $5,000
Annual advisory price: $0
Signal-up bonus: $0
Account closing price: $0
Why we picked it: Schwab Clever Portfolios presents the perfect throughout service for the value Although the preliminary deposit to get began is steeper than many different platforms, there’s no advisory charges, no commissions, and no account closure charges. As well as, clients get 24/7 reside help from U.S.-based professionals and the Schwab robo-advisor actively screens and routinely rebalances your portfolio when wanted. Along with telephone help, the platform additionally presents chat help with account specialists.
2. Merrill Edge Guided Investing: For these searching for a sign-up bonus
Key numbers
Fee: $0
Account minimal: $1,000
Annual advisory price: 0.45%–0.85%
Signal-up bonus: $100–$600
Account closing price: $49.95
Why we picked it: Merrill Edge comes with extra charges than among the different accounts that made our record. Nevertheless it’s additionally one of many few platforms presently providing a sign-up bonus. Although you’ll must deposit a major sum of money to earn a bonus. Those that fund their account inside 45 days of opening with at the least $20,000 will obtain a $100 money bonus. The bonus will increase to $150 while you deposit from $50,000 to $99,000 inside 45 days, whereas deposits of between $100,000 to $199,999 earn $250.
Those that deposit $200,000 or extra earn a $600 bonus. One other good thing about this platform is telephone entry to customized service from advisors. Nevertheless, the $1,000 minimal to open an account with Merrill Edge could also be too excessive for some and there are some charges to contemplate, together with advisory and account closure charges.
3. Ally Make investments Managed Portfolios: For traders who’ve much less cash to get began however nonetheless need customized help
Key numbers
Fee: $0
Account minimal: $100
Annual advisory price: 0%–0.30%
Signal-up bonus: $0
Account closing price: $0
Why we picked it: Ally makes it simple to get began investing with only a $100 minimal deposit requirement and few charges for its service.Those that open Ally’s Money-enhanced portfolio, which requires setting apart 30% of your portfolio in money to behave as a buffer towards volatility, received’t pay advisory charges.
Nevertheless, when opening Ally’s Market-focused portfolio, which solely requires a 2% money buffer put aside, there’s a 0.30% advisory price. Ally Make investments clients get entry to portfolio specialists by way of telephone Monday via Friday. The Ally platform presents chat customer support and you may also attain out with questions by way of e-mail.
4. INVEST for Amex by Vanguard: For American Categorical Card members who need help investing
Key numbers
Fee: $0
Account minimal: $10,000
Annual advisory price: 0.50%
Signal-up bonus: $0
Account closing price: $0
Why we picked it: INVEST for Amex by Vanguard is designed for primary American Categorical cardholders and presents membership rewards factors while you make investments. One other significantly notable function of this platform is the devoted, one-on-one session it offers with a Vanguard consultant when you enroll. On the draw back, whereas there’s no advisory price for the primary 90 days, after that clients pay a price of as much as 0.50% on belongings managed by the INVEST platform.
5. Constancy Go: For these searching for minimal opening deposit necessities
Key numbers
Fee: $0
Account minimal: $10
Annual advisory price: $0
Signal-up bonus: $0
Account closing price: $0
Why we picked it: In the event you’re interested in robo-advisor platforms however don’t have a lot cash obtainable to get began, Constancy Go could also be a good selection. There’s no deposit required to open an account and simply $10 is required to get began investing and exploring the robo-advisor expertise. Yet one more good thing about the Constancy Go platform is the dearth of charges throughout the board. For individuals who have lower than $25,000 below administration, there’s no annual advisory price. Nevertheless, these with $25,000 or extra in a Constancy Go account pays a 0.35% every year. In alternate for that 0.35% price, clients get limitless one-on-one teaching.
6. SigFig: For these searching for limitless entry to advisors
Key numbers
Fee: $0
Account minimal: $2,000
Annual advisory price: 0%–0.25%
Signal-up bonus: $0
Account closing price: $0
Why we picked it: Maybe probably the most notable function a few SigFig robo-advisor account is that it presents limitless entry to advisors it doesn’t matter what your account steadiness. This is a useful function. The platform’s customer support choices are additionally admirable and embrace telephone, e-mail, and chat. The platform additionally always screens your account and rebalances it when essential. On the draw back, you’ll want $2,000 to open a SigFig account. And whereas your first $10,000 invested is managed totally free, past that you just’ll pay a 0.25% annual price.
7. UBS Recommendation Benefit: For individuals who have a considerable sum of money to start investing with
Key numbers
Fee: $0
Account minimal: $10,000
Annual advisory price: 0.75%
Signal-up bonus: $0
Account closing price: $0
Why we picked it: At $10,000, UBS has the steepest minimal steadiness on our record. Nevertheless, customers are in a position to contact UBS monetary advisors at any time when they’ve questions. Advisors could be reached Monday via Friday from 8:30 a.m. EST till 7:30 p.m. EST. You’ll additionally pay an advisory price with UBS, which is price protecting in thoughts. Nevertheless, the platform presents automated rebalancing, tax-loss harvesting, and ongoing oversight by skilled monetary professionals.
8. E*TRADE Core Portfolios: For brand new traders who need entry to instructional data
Key numbers
Fee: $0
Account minimal: $500
Annual advisory price: $0
Signal-up bonus: $50–$3,500
Account closing price: $75
Why we picked it: Maybe among the finest identified robo-advisors, E*TRADE presents an a variety of benefits together with no annual advisory charges and a sliding scale sign-up bonus that begins at $50 for many who deposit at the least $5,000 inside 60 days of opening an account. Its platform can also be simple to make use of and presents a set of instructional data and articles for customers who’re new to investing. On the draw back, the $500 account minimal could also be a problem for some and there’s additionally an account closure price. Customer support choices embrace 24/7 telephone, e-mail, and chat by way of the E*TRADE web site.
9. Wealthfront: For these fascinated by personalized robo-portfolios
Key numbers
Fee: $0
Account minimal: $500
Annual advisory price: 0.25%
Signal-up bonus: $0
Account closing price: $0
Why we picked it: Wealthfront’s robo-advisor platform permits customers to create portfolios which can be curated and customised primarily based on particular pursuits resembling social duty. You’ll want $500 to open a Wealthfront account nevertheless, which might not be accessible for everybody. As well as, there’s an advisory price of 0.25% per 12 months. Wealthfront clients have telephone entry to product specialists and may also attain professionals by way of e-mail. The platform guarantees emails are answered inside one enterprise day.
10. Betterment: For starting traders on the lookout for an easy-to-use platform and minimal charges
Key numbers
Fee: $0
Account minimal: $0
Annual advisory price: 0.25%
Signal-up bonus: $0
Account closing price: $0
Why we picked it: Betterment presents a really user-friendly platform that permits for organising your account inside only a few minutes after answering a number of questions. You don’t want any cash to open an account however you’ll need $10 to start out investing. The platform presents computerized rebalancing and dividend reinvestment for no added price. Customers may also arrange automated deposits to their Betterment account to proceed funding their funding targets.
One disadvantage to contemplate nevertheless is that there’s a price to entry one-on-one recommendation from licensed monetary planners. Clients might want to buy a one-time bundle for that help, which prices $299 to $399, or change to a premium plan that features steady help. Premium plans have a 0.15% add-on annual advisory price.
What’s a robo-advisor?
Robo-advisors are platforms that provide automated investing and wealth administration companies primarily based on using mathematical algorithms. Clients present some preliminary details about their monetary targets, threat tolerance, and private background and the robo-advisor identifies appropriate belongings and creates a portfolio. Many robo-advisors additionally routinely rebalance portfolios and supply tax-loss harvesting.
These on-line portfolio administration companies first emerged on the scene again in 2010 and over time the sphere has grown to incorporate greater than 100 robo-advisor platforms throughout 15 nations, in response to a report from Deloitte.
How do I open a robo-advisor account?
Opening a robo-advisor account is easy. It usually entails finishing a web based questionnaire that requires offering details about your self, your monetary targets, and your threat tolerance. After that, you fund the account to get began.
Are you able to lose cash with a robo-advisor?
As with every sort of investing, there are dangers concerned and it’s attainable to lose cash with the ups and downs of the market.
Our methodology
To establish our high picks for the perfect robo advisors, Fortune RecommendsTM in contrast 20 completely different robo advisor platforms. We ranked every account primarily based on seven classes: fee charges, account minimal, annual advisory charges, customer support, human advisor availability, sign-up bonus, and account closure (ACAT) charges.
The entire accounts on our record can be found to anybody within the U.S., so you’ll be able to join any providing regardless of the place you’re positioned.
The core classes we analyzed are:
- Fee price (25%): This represents the price some funding platforms or brokers cost for getting or promoting shares at your request. It’s generally known as a buying and selling price.
- Account minimal (20%): Some robo advisors require a minimal deposit to ascertain an account, which in some situations could be as excessive as $10,000 or extra. We ranked robo advisors with low to zero minimal opening balances larger.
- Annual advisory price (20%): An annual advisory price is charged by some robo advisors to cowl the companies supplied by the monetary platform and its professionals. The price is charged as a flat greenback quantity or as a share of belongings below administration on the platform. To calculate this price for platforms charging a share, we used the minimal required opening steadiness of $10,000, which is the very best minimal steadiness quantity amongst all robo advisors we reviewed.
- Customer support (10%): The power to get questions answered simply is essential on the subject of managing your cash. High picks in our rating supply clients varied methods to get involved: chat help, by telephone, and even e-mail—with telephone help being probably the most extremely rated.
- Signal-up bonus (10%): Some robo advisors periodically present a money sign-up bonus to draw new clients. In some instances the bonus is as excessive as $600 or extra.
- Human advisor (10%): Not all robo advisor platforms supply clients the flexibility to work together with a monetary advisor however the perfect do. Those that present skilled, one-on-one monetary steerage had been scored extra favorably.
Account closing price (5%): Charges can add up rapidly. Yet one more price charged by some platforms is an account closure or ACAT price. Robo advisors that don’t cost ACAT charges had been rated larger.
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