The Best Robo Advisors (2016 Update) for Automated Investing

The introduction of robo-advisors has helped more people get into investing and save for their future without the costs of standard financial advisory services.Here’s the thing.

Investing should be for everyone.

The introduction of robo-advisors has helped more people get into investing and save for their future without the costs of standard financial advisory services.

According to a BI Intelligence, “robo-advisors will manage around 10% of total global assets under management (AUM) by 2020. This equates to around $8 trillion.”

This is good news!

While there are different flavors of robo advisors, they all rely on technology and online portfolio management to reduce costs for the investor. For a small fee and sometimes no minimum initial investment you can receive professionally based portfolio recommendations in minutes.

Many of the technologies will automatically rebalance your investments when the time is right (a hassle for most people) and use tax harvesting strategies to reduce your tax liability. More than that, they provide user friendly websites and mobile apps.

With that, check out our list of the best robo advisors to get a better idea of what’s available, their fees and more.

The Best Robo Advisors of 2016

BettermentBetterment – Based on your timeline, goals and risk tolerance, Betterment offers an automated service to build a customized investment portfolio. The founders created Betterment based on a desire for investment services that would deliver the best possible results while saving time and money. There is no minimum investment or balance requirements. Management fees are .15% to .35% depending on your balance. Invests in globally diversified low cost ETFs and has free tax lose harvesting for all accounts.

TradeKingTradeKing Advisors – No minimum to open and no trade fees. Provides two managed portfolio options: Core and Momentum. Core is adjusted when needed to stay on track with goals. There is a .25% yearly advisor fee after the first year and minimum investment required of $5,000. Momentum responds to market changes and is reviewed monthly for new investments. There is a .5% yearly advisor fee after the first year and a $25,000 minimum investment.

Personal CapitalPersonal Capital – Offers free software that blends technology with financial advice. Has a mission to make investing services more accessible to people. More than investing, provides the ability to view your entire portfolio, cash flow management, portfolio tracking and even has a fee analyzer for your investments. Also provides a Wealth Management service to work directly with an Advisor. Minimum investment is $100,000 and fees are based on your assets under management and are billed monthly.

Rebalance IRARebalance IRA – A passive IRA investment strategy used to meet your retirement goals. Rebalance IRA recommends a portfolio and long-term plan and transforms your assets to meet this plan with your investment platform of choice (Fidelity, etc.). They handle the rebalancing of your portfolio as well.  The minimum size portfolio is $100,000. Fees are .5% per year and there is a one-time set up charge of $250 per account. Other fees include ETF fund fees of less than .2% and trading costs between $50 and $70 when rebalancing.

VanguardVanguard Personal Advisor Services – Invest with Vanguard mutual funds and ETFs (certainly, not a bad thing), provides automatic rebalancing and more features. Fees are .3% annually based on account balance and there is a $50,000 minimum investment to get started. Vanguard quickly rose to the top of the heap of robo-advisors in terms of assets under management when rolling out their service in 2014.

Financial GuardFinancial Guard – Online investment advice and you don’t move your money. Simply link investment accounts and receive advice as well as transparency to hidden fees. The technology examines over 28,000 mutual funds and ETFs each month and assigns them a grade. The investing advice provides the reasons why they’re making the recommendations they do. Fees are $15.95 per month or $149.95 per year and is the same price regardless of the portfolio size.

LearnVestLearnVest – An online dedicated financial planner service that provides a personalized plan and the tools to implement it. LearnVest doesn’t hold assets or place trades. There planners make recommendations you then execute yourselves. Their mission is to provide affordable, accessible and delightful financial planning services. Fees are $299 up front and $19 per month thereafter.

Charles SchwabSchwab Intelligent Portfolios – An automated investment advisory service that builds and rebalances your portfolio. Minimum investment is $5000 and there are no advisory fees or account service fees. Invests in a diversified portfolio composed of ETFs handpicked by the CSIA team. Tax loss harvesting is available to clients with $50,000 or more invested.

FutureAdvisorFutureAdvisor – Online financial advisor and investing advice service that provides automated investing, rebalancing and tax loss harvesting.  Offers three services: Free DIY investing, automated investing and rebalancing (.5% management fee) and free investment management service for educational accounts like 529s, Coverdells and UTMAs. New accounts have a $10,000 minimum initial deposit. Invests in low fee and commission free ETFs and seeks a passive long-term return strategy.

Motif InvestingMotif Investing – Makes it easy and cost effective to invest in ideas. An investor can choose from over 150 professionally built portfolios or from 55,000 in the Motif community. Each motif can be customized to meet your needs and there are no monthly fees. Motif costs $9.95 to purchase a portfolio of up to 30 stocks or ETFs and you can get started with as little as $250.

MarketRidersMarketRiders – Web-based investment management software to build a globally diversified low-cost retirement portfolio. Works with any brokerage. Fees are $12.95 per month and provides recommendations on what to buy. Your portfolio is based on 6 asset classes that aligns with different ETFs. You’ll receive alerts and provides guidance when it’s time to rebalance.

SigFigSigFig – Creates a portfolio based on your goals and keeps it balanced and diversified. Annual fee of .25% for SigFig managed account and $2000 is minimum amount required to get started. ETFs are purchased through Fidelity, Charles Schwab and Ameritrade brokerages. Their investment philosophy is to decrease investment risk while using low cost funds.

WealthFrontWealthfront – Automated investing service that does all the management and rebalances for you. Strategy includes investing in ETFs that track indexes for 11 major asset classes. The minimum investment amount is $5000. Accounts are held with Apex Clearing Corporation. There are no fees on the first $10,000 and amounts over are charged a monthly fee based on annual fee rate of .25%.  Minimal ETF trading fees are in addition.

WiseBanyonWiseBanyan – Believes investing is a right and not a privilege and people should be able to invest for free. Money is invested into a selection of stocks and bonds through ETFs. There are no fees based on account size. There is also no minimum investment amount required! WiseBanyan earns their money based on the products and services you choose that meet your needs.

WorthFM – An all-digital, low-cost, and comprehensive financial management service, WorthFM was created by women for women (although anyone is welcome to invest with them). The advisor offers five low-fee portfolios designed to balance risk and return. Each portfolio is made up of a mix of up to 8 ETFs. You can get started with WorthFM with as little as $50. Fees are $2 per month or 0.5% per year, when your investing and retirement accounts are $5,000 or more. WorthFM is not yet up and running, but interested investors can get on their wait list for early access.

Compare the Best Robo Advisors of 2016

Minimum Investment
.15% to .35% annually depending on balance
“SignFull Review
TradeKing Advisors
.25% to .5% depending on investment program
$5000 or $25,000
“SignFull Review
Personal Capital
Dependent upon assets under management. .49% to .89%
“SignFull Review
Rebalance IRA
.5% per year, one time set up fee of $250 and trading fees
“SignFull Review
Vanguard Personal Advisor Services
.3% per year
“SignFull Review
Financial Guard Services
$15.95 per month or $149.95 per year
“SignFull Review
$299 up front and $19 per month
“SignFull Review
Schwab Intelligent Portfolios
“SignFull Review
.5% per year
$3000 minimum deposit.
“SignFull Review
Motif Investing
$9.95 to purchase a portfolio of up to 30 stocks or ETFs
“SignFull Review
$12.95 per month
“SignFull Review
Under $10,000 free and over is .25% of investment
$2000 is minimum
“SignFull Review
No fees under $10,000. Over $10,000, monthly fee of .25%/12
$5000 is minimum
“SignFull Review
No fees based on account size
“SignFull Review

While the concept and investment strategies are very similar across robo advisors, they’re not all the same as far as fees, minimum investments and level of service for investing. Therefore, we highly recommend you spend some time investigating on your own.

That’s why we created this handy table to get you started. Just follow each link for the robo-advisors that interest you the most and learn more at their website.

Don’t forget to read our more in-depth reviews where available. Also, if you’re using a robo-advisor today, be sure to share your experience in the comments.

Last Edited: November 24, 2016 @ 10:21 pmThe content of is for general information purposes only and does not constitute professional advice. Visitors to should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.
About Jason Price

Jason is a husband, dad, entrepreneur and financial ministry leader passionate about serving people in the area of personal money management. He's been doing so for over 10 years in ministry, coaching, speaking and blogging. Learn more about Jason here, follow him on Twitter or read more of his articles here at PT Money.