The Best Robo Advisors (2019 Update) to Automate Your Investing

 

Here’s the thing. Investing should be for everyone. It should just be for people who are already rich and can (and want to) pay for expensive advisory services.

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!

What is a Robo Advisor?

You may be asking, “what is a robo advisor?” Here’s what you need to know.

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 2019

Betterment

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 .25% to .40% depending on your balance. Invests in globally diversified low cost ETFs and has free tax lose harvesting for all accounts. Get started with Betterment

(Check out our full Betterment review!)

Betterment Betterment is an online financial advisor that uses technology to efficiently manage your money and help increase returns. Get Started Betterment We earn a commission if you click this link and make a purchase at no additional cost to you.

Wealthsimple If you click this link and make a purchase, we earn a commission at no additional cost to you.

Wealthsimple also allows U.S. and Canadian investors to create personalized portfolios of low-fee ETFs. Services include automatic reinvestment of dividend income, automatic rebalancing, auto-deposits on your preferred schedule, payment of any transfer fees your bank charges to transfer your account to Wealthsimple, automatic tax loss harvesting for accounts over $100,000, and options for socially responsible investing. Balances up to $100,000 have a flat 0.5% annual fee; balances over $100,000 have a flat 0.4% annual fee.

(Check out our full Wealthsimple review!)

M1 Finance If you click this link and make a purchase, we earn a commission at no additional cost to you.

With M1 Finance, you can create your own portfolio with their Expert Pies, which help guide you in selecting the amount to invest in particular stocks. With the Pie visual, you will easily be able to see all of your holdings as “slices,” and you can choose the weight of each slice. Slices that outperform their target weight will grow and underperforming slices will shrink. M1 Finance also lets you trade fractional shares. You can use M1 Finance free of charge with a $100 minimum investment for standard accounts.

(Check out our full M1 Finance review!)

Swell Investing If you click this link and make a purchase, we earn a commission at no additional cost to you.

If you’re passionate about investing with socially conscious companies, Swell Investing lets you select from six diversified portfolios made up of different stocks. Each company selected must align with 1 of the 17 United Nations Sustainable Development Goals. Swell Investing determines each company’s weight in your portfolio by assessing investment fundamentals that may enhance the risk to return ratio. Swell Investing requires a $50 investment and charges a flat fee of 0.75% annually on your balance.

Vanguard Personal Advisor Services

There’s a Vanguard Robo Advisor? Yes! 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.

Related Article: Vanguard Vs Betterment: Both are Great, but Which is Best for You?

Ally Invest Managed Portfolios

There is a $2,500 minimum to open and no trade fees, of course. There is a .30% yearly advisor fee. Since Ally Financial purchased TradeKing and TradeKing Advisors, this platform has been simplified greatly. They no longer have the 2 tier model. It’s a simple automatically managed and rebalancing account with a simple fee and simple minimum to get started.

(Check out our full Ally Invest Managed Portfolios review!)

Schwab Intelligent Portfolios

An automated investment advisory service that builds and rebalances your portfolio. The minimum investment is $5,000 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.

Blooom If you click this link and make a purchase, we earn a commission at no additional cost to you.

This Robo Advisor has found a unique niche: It exclusively manages defined contribution plans, which include: 401(a)s, 401(k)s, 403(b)s, 457s and thrift savings plans. They charge a standard monthly fee of $10 and don’t require a minimum investment to join. You can receive a free analysis of your current employer-sponsored plan before moving forward. They evaluate your expense ratio as well as your investment mix. Blooom also offers email and chat support during normal business hours. They will provide additional financial advice such as debt repayment or budgeting. Get started with Blooom by getting your free 401k check-up.

(Check out our full Blooom review!)

Rebalance 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 .7% 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.

(Check out our full Rebalance IRA review!)

FutureAdvisor

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 Investing If you click this link and make a purchase, we earn a commission at no additional cost to you.

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, the annual fees are either .5% or .25% depending on your options. Motif costs $4.95 per trade for auto invest trades, $9.95 for next market open trades, and $19.99 for real time trades. You can get started with as little as $250.

Market Riders If you click this link and make a purchase, we earn a commission at no additional cost to you.

Web-based investment management software to build a globally diversified low-cost retirement portfolio. Works with any brokerage. Fees are $14.95 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.

SigFig

Creates a portfolio based on your goals and keeps it balanced and diversified. No annual fees for accounts under $10,000 and .25% annually for SigFig managed account over $10,000.  There is a minimum balance required of $2,000 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.

Wealthfront

Automated investing service that does all the management and rebalances for you. The strategy includes investing in ETFs that track indexes for 11 major asset classes. The minimum investment amount is $500. Accounts are held with Apex Clearing Corporation. Fees are charged on a monthly basis based on the annual fee rate of .25%.  Minimal ETF trading fees are in addition.

Related: Betterment Vs. Wealthfront: Which is the Better Robo-Advisor?

WiseBanyan

WiseBanyan believes investing is a right and not a privilege and people should be able to invest for free. Money is invested in 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.

OnTrajectory

A financial planning and advising application. It allows you to enter in your current financial plan and see if you are on track for your future financial goals. You can create goals and adjust your current contributions to see the difference it will make in your net worth. After the 14-day free trial, the program is $7 a month, or $63 per year. This program is great for forecasting how simple adjustments in your spending habits can make a large impact on your future.

Nest Wealth If you click this link and make a purchase, we earn a commission at no additional cost to you.

Canadians pay some of the highest fees in the world for investment services, and Nest Wealth wants to fix that. Depending on the size of your portfolio, Nest Wealth charges $20, $40, or $80 per month. These flat fees can save you hundreds or thousands of dollars over what you would pay with a comparable portfolio of mutual funds. Signing up with Nest Wealth gets you a customized portfolio of ETFs, diversified asset allocation, consistent monitoring, automated rebalancing, support from a registered advisor, and transparent fees. Nest Wealth is only available for investors in Canada.

Emperor Investments If you click this link and make a purchase, we earn a commission at no additional cost to you.

Emperor Investments uses technology and human expertise to evaluate the most compatible companies to place in your portfolio. In order to select the right portfolio for you, Emperor Investments gets to know you and your goals to determine which portfolio will help you achieve your objectives. Their mission is to provide consistency without sacrificing returns. Emperor Investments requires a $500 minimum investment and charges a 0.60% annual fee.

Compare the Top Robo Advisors

Robo-Advisor
Fees
Minimum Investment
Reviews
Betterment
.25% to .40% annually depending on balance
None
“SignFull Review
Wealthsimple
Flat annual 0.5% up to $100,000, flat annual 0.4% over $100,000
None
“SignFull Review
M1 Finance If you click this link and make a purchase, we earn a commission at no additional cost to you.
No fees
$100 for standard accounts, $500 for retirement accounts
“SignFull Review
Emperor Investments
0.6% annually
$500
“SignFull Review
Swell Investing If you click this link and make a purchase, we earn a commission at no additional cost to you.
0.75% annually
$50
“SignFull Review
Ally
Invest Managed Portfolios
.30%
$2,500
“SignFull Review
Vanguard Personal Advisor Services
.3% per year
$50,000
“SignFull Review
Schwab Intelligent Portfolios
None
$5000
“SignFull Review
Blooom
$10 per month
None
“SignFull Review
Rebalance IRA
.7% per year, one time set up fee of $250 and trading fees
$100,000
“SignFull Review
FutureAdvisor
.5% per year
$3000 minimum deposit.
“SignFull Review
Motif Investing
.25% or .5% annually and either $4.95, $9.95, or $19.99 per trade to purchase a portfolio of up to 30 stocks or ETFs
$250
“SignFull Review
MarketRiders
$14.95 per month
None
“SignFull Review
SigFig
Under $10,000 free and over is .25% of investment
$2000
“SignFull Review
Wealthfront
monthly fee of .25%/12
$500
“SignFull Review
WiseBanyan
No fees based on account size
None
“SignFull Review
OnTrajectory
$7 per month or $63 per year
None
“SignFull Review
Nest Wealth
$20, $40, or $80 per month
None
“SignFull Review

While the concept and investment strategies (and thus, performance) 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.

Should I Use a Robo Advisor?

At this point you may be asking, “should I use a robo advisor?” I answered this question for myself by answering two other questions:

  1. Do I believe in the idea of low-cost, diversified, long-term investing vs actively managed investing? Yes, I do. If you believe in this too (meaning, you think this approach is going to give you the best chance at long-term investing success), then a robo advisor may be for you. But you then have to ask yourself a second question…
  2. Do I want to outsource the picking of those low-cost funds and rebalancing the asset allocation through the years? I said no to this question. Sort of. I chose to pick my own funds over at Vanguard. And the single fund I chose was VFORX, which is a target date fund (made up of three index funds) that automatically balances itself as I get older.

So in essence, I decided that it wasn’t worth the additional cost of a robo advisor to pick funds for me.

I do, however, still use a robo advisor, Betterment If you click this link and make a purchase, we earn a commission at no additional cost to you. , as an emergency fund overflow account. When my emergency fund (in a simple savings account) reaches a certain limit ($10k), Betterment pulls the overflow money into their account. This is called SmartDeposit and you can read more about it in my full review of Betterment.

Robo Advisors vs Financial Advisors

One last question you might have is, “what’s better? robo advisors vs financial advisors?” And to that question I say–you don’t have to choose. You can use both. I plan on using both in my life to achieve financial success.

“Robo advisor” is such an unfortunate name for these tools. It makes it sound like you don’t need another human to help you make financial decisions. That’s just not accurate. It should be named robo investor or robo trader.

A financial advisor can do much more for you: help you get rid of debt, teach you to properly manage your money, advise you on insurance, social security, estate planning, and the list goes on.

In fact, many financial advisors are using robo advisor software now to actually manage your specific investments for you. So even if you try to choose one over the other, you may eventually end up using both anyway.

I personally use a financial advisor every five years or so in a one-off meeting to check my progress towards my goals. I pay a one-time fee.

Got an opinion on Robo Advisors? Let us hear from you in the comments below.