Traditional in-person investment advice can be expensive. Robo-advisors offer a cheaper solution through automated portfolio rebalancing and investment opportunities. Robo-advisors are increasingly popular investment platforms that offer a cost-effective alternative to advisor-managed 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 affordable and accessible for beginners.
Here are the best robo-advisors Business Insider's personal finance editors picked in 2025.
Best Robo-Advisors
- Betterment Investing: Best overall robo-advisor
- Fidelity Go: Best robo-advisor for low-fees
- Wealthfront Investing: Best robo-advisor investment selection
- Acorns Invest: Best robo-advisor for beginners
- SoFi Robo Investing: Best robo-advisor for CFP access
- E*TRADE: Best robo-advisor for educational resources
- Vanguard: Best robo-advisor for retirement plans
Find a Financial Advisor
Best Overall
$0 to open, $10 to start investing ($100,000 for premium plan)
$4 per month (or 0.25%/year) for digital plan; 0.40%/ year for premium plan; 1%/year for crypto portfolios and 0.15% per crypto trade
- No minimum for standard investing account
- Goal-based planning, tax-loss harvesting, charitable giving, and socially responsible investing available
- Access to certified financial planners
- Mobile app with external account syncing options
- You'll have to pay to consult a human advisor, unless you have the premium plan
- $4 monthly fee (or 0.25% annual fee)
Betterment is best for hands-off investors who want to take advantage of professionally built, personalized ETF and cryptocurrency portfolios. The platform offers CFP access, so it could suit those in search of additional guidance from human advisors.
Betterment- Promotion: None at this time.
- App store rating: 4.8 iOS/4.7 Android
- Consider it if: You want access to robo-advice with multiple service levels.
Betterment is our top pick for the best overall robo-advisor. It's at the top of our list for being cost-effective, trustworthy, and offering a diverse selection of securities, including stock and bond ETFs.
Beginners can easily build a diversified investment portfolio tailored to their risk tolerance and financial goals. Strategies like socially responsible, high-growth, and tax-advantaged investing are readily available.
Users can unlock access to CFPs, but unlimited guidance is only available through the premium plan (which requires a $100,000 minimum).
Betterment protects users' personal data and accounts through strong browser encryption, fraud monitoring, and biometric authentication. The platform's dedicated customer support team is available 24/7 by phone, email, or virtual assistant.
Betterment has a rating of 4.8/5 on the Apple Store and 4.7/5 on Google Play.
Pros of Betterment
- $0 minimum requirement to open an account
- Tax-loss harvesting available
- Goal-based financial planning and availability of human advisors
Cons of Betterment
- 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.
Best for Low Fees
$0
0.35% for accounts with balances of $25,000 or more
- Low-cost, hands-off investment account that combines automated features with management from a team of human investment professionals
- No expense ratios
- Great for those who want to start investing with an account balance below $25,000 (Fidelity Go charges $0 for balances below this amount)
- Supports individual, joint, traditional IRA, Roth IRA, rollover IRA accounts, and HSA
- Can't actively trade different investments or capitalize on short-term stock market trends
- Doesn't offer ETFs
- No tax-loss harvesting
Fidelity Go is one of the best robo-advisors for mutual funds. It's best suited for hands-off investors looking for automated investment management with low fees, and it doesn't require an account minimum to get started.
Fidelity Go- Promotion: None at this time.
Fidelity Go is a highly-regarded robo-advisor for beginners and hands-off investors, as it offers cost-effective portfolios personalized to your goals and financial situation.
Fidelity Go seamlessly integrates with other Fidelity accounts and has no minimum account requirement. For only $10, get free portfolio management for balances under $25,000. If your account balance exceeds $25,000, you may even be able to access guidance from human advisors for no extra cost.
One of the best parts about Fidelity Go is its low fees. The platform relies on mutual funds (Fidelity Flex mutual funds) that don't contain expense ratios.
It provides users with an accessible, mobile trading experience with access to tax-efficient strategies, goal-based planning, and powerful trading tools and solutions.
Fidelity is one of the safest online brokerages, with top-notch security features and a long history of trustworthiness.
Fidelity has a rating of 4.8/5 on the Apple Store and 4.6/5 on Google Play.
Pros of Fidelity Go
- $0 minimum requirement to open an account
- Fidelity Flex mutual funds have no expense ratios
- Access to human advisors
Cons of Fidelity Go
- Fidelity Go doesn't offer tax-loss harvesting
- Must have at least $25,000 in your account to unlock human advisors
Best for Investment Selection
$1 ($500 for automated investing)
$0 for stock trades. 0.25% for automated investing (0.06% to 0.13% for fund fees)
- Low annual fee for investment accounts; crypto trust investments available
- Tax-loss harvesting, portfolio lines of credit, 529 college savings plans available
- Cash account
- Mobile app and investing and retirement tools
- You need at least $100,000 to utilize additional investment strategies
- No human advisor access
Wealthfront is one of the best robo-advisor options if you're in search of low-cost automated portfolio management, and one of the best socially responsible investing apps for features like tax-loss harvesting, US direct indexing, and crypto trusts.
Wealthfront- Consider it if: You're balancing several goals and want to streamline your finances.
- Promotion: Fund your first taxable investment account with at least $500 in the first 30 days of account opening and earn a $50 bonus.
Wealthfront Investing is a pioneer in the robo-advisor space, similar to Betterment.
Wealthfront has the largest automated investment selection, providing passive investors access to competitively-priced ETFs, index funds, crypto trusts, portfolio lines of credit, and bond ETFs. It is also a stand-out option for socially responsible investing through its Blackrock ESG funds that track socially responsible indexes defined by MSCI.
If you have at least $100,000 to invest, you can access Wealthfront's US direct indexing and risk parity investing strategies. Direct indexing allows you to harvest losses on individual stocks to reduce your overall tax liability.
Additional features of Wealthfront include tax-loss harvesting, smart beta investing (which pairs with US Direct Indexing to outperform an existing market index through tax efficiency, enhanced diversification, and reduced risk), and risk parity portfolios.
If you're interested in adding cryptocurrencies to your asset allocation, Wealthfront mitigates portfolio risk by only allowing a 10% allocation for crypto trusts.
Wealthfront also offers an automated high-yield bond portfolio in which hands-off traders can get a customized low-cost bond ETF portfolio. Wealthfront Automated Bond Portfolio pays a 4.85% yield, which is even higher than Wealthfront's cash account, which pays 4.00% APY.
Wealthfront has a rating of 4.8/5 on the Apple Store and 4.8/5 on Google Play.
Pros of Wealthfront
- Automated bond portfolio
- ETFs, index funds, an automated bond portfolio, ESG funds, crypto trusts, and portfolio lines of credit
- Auto-rebalancing and tax-loss harvesting available
- Smart-beta strategies
Cons of Wealthfront
- $500 minimum requirement to open an account
- No ongoing human financial guidance
- Must spend at least $100,000 to use strategies like direct indexing and risk parity
Best for Beginners
$5
Monthly plans start at $3 for Bronze, $6 for Silver, and $12 for Gold
- Low fees
- Helpful automatic saving and investing tools
- Portfolio suggestions built to match your risk level
- "Acorns Earn" invests a percentage of your purchases from certain companies
- Flat monthly fee is on the high side, especially for smaller accounts
- The option to choose individual investments requires a Premium plan
Acorns is one of the best investment apps for beginners and hand-off investors who want to start investing but are overwhelmed by the choices with other investing apps. This simple and easy-to-use platform offers a low investment minimum, portfolio diversification, and beginner-friendly charting tools. Acorns is more expensive than other zero-fee apps out there, but the ease of use may make it worthwhile for certain users.
Acorns- Get started in under 5 minutes
- $3/month gets you a full financial wellness system with connected investment, retirement, and saving accounts.
- Invest in a diversified, expert-built portfolio
- No expertise required
- Invest your spare change with Round-Ups (nearly $5,750,000,000 in Round-Ups invested and counting)
- Set easy, automatic Recurring Investments
- See your account performance right in the app and play with the interactive Potential screen
- All you need to start investing is $3
- 14M all-time customers served. Everyday Americans have invested over $25 billion with Acorns, much of it in spare change
If you are new to investing and prefer to manage your investments on your mobile device, Acorns is a standout investment app designed for investors with little to no trading experience. Although its investment selection and trading tools are limited, it is a great choice for those who lack the ability or willingness to invest large sums of money from the get-go.
You can start investing with only $5 and set recurring contributions to build your portfolio slowly over the long term. The Acorns Round-Up feature can automatically invest spare change from your transactions when you link your credit or debit card to your Acorns brokerage account.
You can open an individual brokerage, IRA (Acorns Later), custodial account (Acorns Early), and emergency fund all under one login. However, access to certain accounts, investment strategies, and reward-earning opportunities is limited by membership tier.
You must be an Acorns Gold member to access Acorns Early accounts, hand-picked stocks and ETFs, and a 3% match on IRA contributions (1% match with Silver membership). A Gold membership costs $12 a month.
Acorns Invest is not the best option for more experienced traders, active traders, or those wanting greater investment opportunities beyond stocks and ETFs.
Acorns has a rating of 4.7/5 on the Apple Store and 4.7/5 on Google Play.
Pros of Acorns Invest
- Only $5 to start investing
- Streamlined interface suitable for beginners
- Up to a 3% match on IRA contributions (must be a Gold member)
- Micro-investing strategies
Cons of Acorns Invest
- Limited to stocks and ETFs
- No access to human financial advisors
- Must pay at least $3 a month to use Acorns Invest
Best for CFP Access
$0
0.25% annual advisory fee
- No account minimum or management fees to invest
- Goal planning and automatic portfolio rebalancing
- Range of other account options across SoFi website
- SoFi offers complimentary CFP access across all accounts
- No tax-loss harvesting
- No socially responsible portfolio options
SoFi Invest is one of the best investment apps and the best investment apps for beginners. It's a great platform for US investors who are looking for an intuitive online trading experience or an open active or automated investing account.
SoFi Robo Investing- Promotion: None at this time.
- Consider it if: You're new to investing and want to leave the trading decisions to professionals.
If you're looking for affordable guidance from financial planners, SoFi Robo Investing is the way to go. SoFi's low-cost automated trading platform offers several perks: It has a $0 account minimum, doesn't charge any fees, and provides CFP access when you sign up for automatic deposits (or pay $10 a month).
Like several other investment platforms mentioned in this list, SoFi allows you to also invest on your own, thanks to SoFi's active investing accounts.
As a streamlined and robust robo-advisor, SoFi invests your funds into a diversified mix of ETFs eligible for automatic portfolio rebalancing and goal-planning tools.
SoFi's support multiple accounts, including individual and joint accounts, traditional IRAs, Roth IRAs, SEP IRAs, and 401(k) rollovers. You can earn a 1% match on IRA contributions or when you roll over your retirement funds to a new SoFi IRA.
SoFi Invest has a rating of 4.8/5 on the Apple Store and 3.9/5 on Google Play.
Pros of SoFi
- $0 minimum requirement to open an account
- Complimentary access to vetted financial planners (unlimited access with SoFi Plus)
- IRA contributions earn a 1% match from SoFi
Cons of SoFi
- SoFi Active Invest® automated portfolios don't offer tax-loss harvesting
- Limited to US-based securities
Best for Educational Resources
$0 ($500 Core Portfolios)
0% (0.30% Core Portfolios)
- No commissions on US-listed stocks, options, and exchange-traded funds
- Wide selection of investments available for most accounts
- Thousands of no-load, no-transaction-fee mutual funds available
- Competitive mobile and online offerings for digital investors and traders
- 24/7 support and live chat
- Need at least $500 for automated investment management
- Infrequent traders pay more for options contracts
E*TRADE is a great fit for frequent traders interested in low-cost stock, ETF, and options trading. The brokerage also offers a robust mobile app for Apple and Android devices, and it supports less active investors through its managed and automated portfolio offerings.
E*TRADEE*TRADE Core Portfolios is E*TRADE's robo-advisor, requiring a $500 minimum and a 0.30% annual fee.
With E*TRADE's Knowledge, investors get access to expert commentary, informational articles, weekly market recaps, and educational webinars, which are viable for beginners, advanced traders, or those interested in becoming more knowledgeable on personal finance topics like retirement planning, tax planning, and insurance.
You can access tax minimization strategies, top-notch security, and robust investment options (e.g., automating individual and joint accounts, custodial accounts, and IRAs).
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.
E*TRADE has a rating of 4.7/5 on the Apple Store and 4.7/5 on Google Play.
Pros of E*TRADE
- $0 minimum to open a self-directed brokerage account
- In-depth library of educational content and market news through E*TRADE Knowledge
- Powerful trading tools, including interactive charts, market trackers, and paper trading
Cons of E*TRADE
- $500 minimum requirement to open a robo-advisor account
- You can't speak with a human advisor unless you have at least $25,000
- No tax-loss harvesting
Best for Retirement Planning
$100
0.11% - 0.20%
- Low annual fees
- Account is compatible with individual or joint accounts, traditional IRAs, Roth IRAs, and rollover IRAs
- Portfolio in 4 Vanguard ETFs allocated according to your goals and risk tolerance
- Retirement-focused support and financial planning tools like retirement and debt payoff calculators
- Offers tax-loss harvesting
- Platform is still expanding its account options to support other investing goals like college planning, emergency-fund saving, and homebuying
Vanguard Digital Advisor is one of the best robo-advisors and one of the best retirement plans for passive investors looking for personalized, automated investment portfolios. It now offers an automated tax-loss harvesting feature.
Vanguard Digital Advisor- Promotion: No advisory fee for first 90 days after enrollment.
Vanguard Digital Advisor is one of two automated investing accounts the online brokerage provides (the Vanguard Personal Advisor Services account is the other option).
You can build your retirement savings with a Vanguard IRA (traditional, Roth, rollover, SEP, and inherited) and invest in one of the portfolio mixes: all-index, active/index, or ETFs.
Vanguard Digital Advisor is a stand-out option for retirement planning because of its financial planning resources, low fees, and tax-efficient funds and rebalancing tools. Additionally, investors can access detailed educational guides on topics like:
- Social Security
- Retirement withdrawal strategies
- Investing in retirement
- Medicare and factoring in healthcare costs
Vanguard is renowned for its first-rate customer service and user experience. It requires a $100 minimum balance and has some of the lowest expense ratios in the industry (ranging from 0.03 to 0.46%)
This robo-advisor mainly allocates your assets across four Vanguard ETFs for easy portfolio diversification and tax-efficient investing. These include the Vanguard Total Stock Market ETF, Vanguard Total International Stock ETF, Vanguard Total Bond Market ETF, and Vanguard Total International Bond ETF.
Vanguard has a rating of 4.7/5 on the Apple Store and 3.5/5 on Google Play.
Pros of Vanguard
- Tax-loss harvesting available
- Low-expense ratios for Vanguard ETFs
- Retirement-specific financial planning tools and resources available
Cons of Vanguard
- Doesn't offer complimentary CFP access
- $100 minimum requirement to open an account
Find an Advisor
What Is a Robo-Advisor?
Robo-advisor technology has revolutionized investing, making financial guidance more accessible than ever. Essentially, robo-advisors are automated brokerage accounts that create and manage investment portfolios on behalf of users. Some robo-advisors use more advanced AI to personalize investment strategies, but that is not always the case. Consumer-facing robo-advisors have been around for about 15 years, well before the current AI boom.
One of the main selling points for robo-advisors is that they're automated, so you don't have to think about that investment actively. However, if you're looking to choose certain shares, you may be disappointed with the level of freedom a robo-advisor will give you.
Although robo-advice isn't as personalized as advice from human advisors, the average retail investor can now access fundamental investing strategies and knowledge without burning a hole in their wallet.
However, trust in these automated portfolios differs across generations. According to a MagnifyMoney survey, millennials and Gen Z investors are far more likely to trust robo-advisors than Boomers and Gen X.
How Robo-Advisors Work
Robo-advisors use algorithms and questionnaires to determine which personalized investment strategies makes the most sense. While some platforms will only ask basic questions, others will pose a more detailed range of queries to better identify the client's specific financial needs and provide regulated advice.
"An investor typically provides information about his or her risk tolerance, time horizon, and investing goals, and based upon that information, a portfolio is recommended, usually comprised of low-cost ETFs, that are managed and rebalanced as needed," says Keith Denerstein, a broker at J.P. Morgan.
Robo-advisors are typically created by professional financial advisors who implement long-term growth earnings and risk-adjusted strategies into the algorithms.
Automated platforms manage portfolios by keeping each asset (usually stock and bond ETFs) within a certain percentage range.
For example, let's say that your robo-advisor has allocated 20% of your portfolio toward the Vanguard S&P 500 ETF. The robo-advisor will give it a little wiggle room, such as plus or minus 5%. If the Vanguard allocation drops below 15% or exceeds 25%, it will rebalance your portfolio.
The Evolution of Robo-Advisors
The first robo-advisors are generally considered to have started around 2008, and in 2010, Betterment Investing and Wealthfront Investing launched the first robo-advisors available to the general public.
Since then, robo-advisors have continued to grow in popularity among investing novices and passive investors. And as the technology evolves, so does the terminology.
"Over the past few years, the 'catch-all' term 'robo-advisor' has become increasingly obsolete, with firms preferring more specific terms such as Digital Wealth Service, Automated Advice, Hybrid Advisor or even Bionic Advisor to describe better what they actually do," says Simon Bussy, consulting director at Behavior Consulting Limited.
Today, robo-advisors fall into two basic categories: those that are exclusively online — like Acorns Invest — and those offered by brick-and-mortar brokerages and financial service firms, like Charles Schwab automated investing.
Traditional firms tend to cater to investors with a bit more capital, often requiring higher minimum deposits and charging higher fees — but also sometimes providing additional services, like access to live support from financial professionals.
Additional Features and Services
Robo-advisors come with various helpful features and services that help beginners and passive investors make informed investment decisions without being overwhelmed.
Some of the best services and features of robo-advisors include:
- ESG funds
- Tax-loss harvesting
- Curated ETF portfolios
- Long-term portfolio projections
- Automatic rebalancing
- Goal-based investing strategies
- Mobile access
Robo-advisors commonly offer top-level security features that match industry standards. These features include encryption technology, third-party testing, risk disclosures, and vetted investments.
Benefits of Using a Robo-Advisor
Inexpensive Compared With Human Advisors
Robo-advisors generally cost less than human financial advisors and investment managers. For example, automated investing apps charge roughly 0.25-0.50% of investment portfolios annually. Traditional wealth managers typically charge around 1% of assets under management (AUM).
"The typical retail investor using a robo-advisor can potentially benefit from professional portfolio management at a cost far lower than that traditionally charged by a live advisor," says Denerstein.
Lower Account Minimums and Fees
Other benefits of automated investment advice include lower account minimums than traditional brokerages and investment managers. For example, Vanguard has a minimum for its robo-advisor service, while some financial advisors have minimums that are several thousands of dollars, if not hundreds of thousands.
Beginner-Friendly Investing Strategies
Because they do all the choosing and investing, robo-advisor platforms don't require much from investors. You don't need specialized knowledge of stock markets, P/E ratios, balance sheets, or anything else. While a financial advisor could provide similar help, a robo-advisor is often more beginner-friendly by nature of the lower minimums and automated nature.
Limitations of Robo-advisors
Limited Control
Robo-advisors mainly invest in inexpensive ETFs to keep costs low. However, most services don't let users select which funds are included in their portfolios beyond general guidance, like selecting ESG-oriented funds. Nor do they typically invest in individual stocks, bonds, or alternate investments.
That said, some online brokerages, like Acorns Invest, have started to offer DIY investing by letting some users choose individual stocks and gain exposure to cryptocurrencies.
Limited Flexibility Beyond Pre-Built Portfolios
Robo-advisors apply general criteria when recommending portfolios. They often shoehorn customers into one of their preexisting model portfolios (i.e., growth, income, growth + income) based on the basic risk tolerance, income profile, and rudimentary investment goals indicated in your questionnaire.
"That's why human wealth managers and financial planners argue that 'robos' cannot replace them — they are not sophisticated enough to understand the whole picture or provide fully-rounded advice," says Bussy.
Lack of Personalized Advice and Human Assistance
Robo-advisors usually don't provide clients with a direct line to any human help. The customer service reps, if any, are mainly there for logistical questions or platform errors.
That said, investing through a robo-advisor doesn't prevent you from seeking financial consultation from another brokerage or broker firm. But you will have to pay the additional cost for this service.
Getting Started with a Robo-Advisor
Whether you're opening your first brokerage account, funding your retirement, or saving toward a larger goal, there's often a robo-advisor suitable for your needs. But you'll need to do your homework first to find the best automated investing platform for your situation.
Choosing The Right Robo-Advisor
Choosing the best robo-advisor platform for you depends:
- What you want to get out of these tools
- How much you're willing to pay
- The kinds of securities you're looking to invest in
Make sure to review platforms with a critical eye and consider the full costs of robo-advisors before opening an account. Also, while robo-advisors are generally geared toward beginners, some platforms have more advanced features better suited for experienced investors.
Automated investing isn't for everyone, especially folks wanting a more personal touch or customized approach.
Why You Should Trust Us
We interviewed the following investing experts to see what they had to say about the best robo-advisors.
- Sandra Cho, RIA, wealth manager, and CEO of Pointwealth Capital Management
- Tessa Campbell, Investment and retirement reporter at Personal Finance Insider
What are the advantages/disadvantages of investing through a robo-advisor?
Sandra Cho:
"Advantages include:
- On-demand general guidance: In my experience, robo-advisors are best used as a starting point to determine risk tolerance and get a handle on your financial situation and a broad roadmap to what you need to do. Sometimes you just need a catalyst to get moving in the right direction.
- Simple to use.
- Feeling of control: There is no concern about hurting a person's feelings if you don't take their advice, and you don't feel rushed or pressured."
"Disadvantages of using a robo-advisor
- No one is second-guessing you. Sometimes, you need someone to read between the lines. Maybe you think you are an aggressive investor who can tolerate high risk, but you pull all your money out the minute your portfolio goes down. The risk tolerance result I get if clients complete the questionnaire alone is significantly different from when I walk them through it.
- Lack of EQ, or emotional IQ. EQ is sometimes more important than IQ. It's hard for a robo-advisor also to tell you what you don't know that you don't know. It's hard for a robo-advisor to help you work through concerns, fears, and anxiety and help keep you invested through turbulent markets and life events that inevitably affect your financial path."
Tessa Campbell:
"Robo-advisors do the hard, time-consuming part of investing for you. Once you set your goals, risk tolerance, and time horizon, a robo-advisor can create a customized investment portfolio based on those characteristics. This makes these platforms accessible to beginners and ideal for passive investors.
"Robo-advisors also tend to be the better option for folks wanting low-cost investing as most robo-advisors mainly trade ETFs.
"However, robo-advisors can be limiting. You won't get the same level of control or influence over your assets as you would with self-directed investing or a professionally managed platform. If you want to pick and choose how you invest your money, then a robo-advisor isn't the best option for you."
Who should consider opening a robo-advisor?
Sandra Cho:
"Someone who is a DIY investor and is tech-savvy enough to use the software involved. Larger groups of people need to be processed faster, such as participants in a 401(k) or other retirement plan.
"Investors who have smaller amounts of assets might not have the need for sophisticated financial planning."
Tessa Campbell:
"Robo-advisors are best for beginners and passive investors who don't want to be glued to their computers, watching the ups and downs of the market and trying to decide when is the best time to buy and sell.
"It's also the better option for cost-conscious investors. With a robo-advisor, you can easily and affordably get exposure to different sectors of the market with low-cost ETFs. This way, you're paying the price of individual stocks."
Is there any advice you'd offer someone who's considering opening a robo-advisor?
Sandra Cho:
"1) Treat it like a starting point, not the endpoint.
2) Find a good one. Not all robo-advisors are the same. Like financial advisors, there are good and bad ones.
3) Be aware of the investments you have, and do not have, through the robo-advisor you use. For example, if you are using a robo-advisor at a particular investment company, that robo-advisor will likely limit their recommendation to the mutual funds or other investments of only that company."
Tessa Campbell:
"Make sure to compare all the robo-advisor options before opening an account. Not all robo-advisor provide the same investment options, account types, or features. And while many robo-advisors have low-trading fees and account minimums, not all of them do, so make sure you know what you're getting into before opening a brokerage account with an automated investment platform.
"On a different note, make sure that you still frequently monitor your investment portfolio. Although you won't do much on the day-to-day, it's important to update your portfolio based on your current goals, financial situation, and market performance."
Our Methodology
Business Insider's methodology for rating investment platforms was used to analyze and compare dozens of robo-advisor platforms. The best robo-advisor platforms feature some of the lowest fees, multiple portfolio types, human advisor access, and excellent 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 rated between 1 and 5.
FAQs
Can I set up a retirement account with a robo-advisor?
Yes. The use of robo-advisors for retirement planning is common. Many robo-advisors offer retirement accounts, such as traditional and Roth IRAs, with automated portfolio management and rebalancing features. Robo-advisors allocate retirement portfolios based on age and risk tolerance to help you build long-term wealth while mitigating risk.
Can I withdraw my money from a robo-advisor at any time?
Most robo-advisors will allow you to withdraw money at any time without penalty, but make sure to review the terms and conditions of the specific robo-advisors you're using to ensure there are no special fees or restrictions on withdrawals. Moreover, certain account types, such as for retirement, have age restrictions designed to prevent you from withdrawing early, but that is based on IRS rules, not the robo-advisor's rules.
Are robo-advisors safe to use for investing?
Robo-advisors are secure investment platforms equipped with advanced security measures to protect users' personal and financial information. Security features include data encryption software, account activity monitoring, and two-factor authentication. Robo-advisors also must follow SEC or relevant state regulations.
How safe are investments with robo-advisors?
Investments with robo-advisors are generally considered safe. FINRA regulates robo-advisors similarly to other investment apps. Robo-advisors also tend to offer SIPC insurance and are registered with top custodian banks to hold client assets.
What are hybrid robo-advisors?
Hybrid robo-advisors combine some elements of automated investing with the traditional financial advisor model. In other words, you might get some of the best hands-off investing support initially by using a hybrid robo-advisor to construct your investment portfolio, but then if you have questions on what your portfolio includes or want to talk through potential changes, you might be able to chat with a human advisor.
Sofi Active Invest: Investments are not FDIC-insured - Are not bank-guaranteed - May lose value - Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers.
SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth's advisory operations, services, and fees is set forth in SoFi Wealth's current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.
Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions. https://www.sofi.com/invest/clawpromotion/rules.
