With RoboAdvisor software, you self-manage your portfolio or can manage your investments without taking any consultation from the financial advisor. It is the class of financial advisers that provide financial advice or investment management services online with moderate to minimal human involvement.

Robo Advisors give digital financial advice based on mathematical algorithms or rules. They are computerized portfolio managers. You can consider them as an autopilot for investors or financiers.

After initially answering a series of questions about an investor’s resources and business goals, your Robo Advisor will make relevant decisions about how to invest your money. Robo advisors are most common in the US, but they are also present in Europe, Australia, India, Canada, and Asia.

Best Robo Advisors of 2020

✔ Betterment – Best for service

✔ Wealthfront – Best for low fees

✔ Ellevest– Best for goal-based investing

✔ SoFi Invest – Best for educational resources

✔ Charles Schwab Intelligent Portfolios – Best for usability

✔ Future Advisor of BlackrobRobo Advisor

✔ Vanguard Robo Advisors

✔ Nutmeg Robo Advisors

✔ Morgan StanelyRobo Advisors – aimed at affluent millennials


If you are looking for a Robo-advisor, then choose the Robo advisor by focusing on the investment fund fees, tax-loss harvesting, fees, and the track record of your topmost choices than the primary market benchmarks, like the S&P 500.

You could be a winner if you could find an advisor that helps you reach your goals while saving money. Your solution to the problem is Robo-advising; it enables you to decide which firm is right for you and your needs. Here are the best Robo advisors in 2020:

Betterment Robo Advisor

betterment robo advisors

It is considered best for its service and credited as the oldest Roboadvisor and has secured top position on the heap. ‘Betterment’ is the largest of the independent Roboadvisor firms with assets of 13.5billion dollars under management.


Fee: Betterment offers accounts with annual fees that range from 0.25% to 0.40%, depending on the opening deposit size gives up to a free year of management. Premium accounts are also offered with added features for accounts over $100,000 with a 0.40 percent fee.

A new account can be open with no minimum balance making it attractive to new investors with a low budget. To register for Betterment, you will answer a short questionnaire about your investment goals and risk tolerance. These answers will then be turned into an automatic investing portfolio.


Pros: Betterment customers features have the facility of tax loss harvesting to get even higher gains.


Stars: ⭐⭐⭐⭐⭐

Wealthfront Robo Advisor

wealthfront roboadvisors

It is considered best for low fees. With over $10 billion in assets under management, Wealthfront is another great Robo Advisor option.

Fee: The majority of accounts pay 0.25 percent annual management fee whereas, ETF fees charge 0.08 percent APR, which is the lowest rate among all.

You can register your first $5,000 account without paying any management fee. Your deposit is managed for free, making Wealthfront the best choice for those looking to test business venues in Robo-advising.


Pros: Wealthfront ranks top on adopting Modern Portfolio Theory to build portfolios of low-cost ETFs. It also offers direct indexing for accounts with $100,000 or more, with direct investments in stocks to capture the maximum tax-loss harvesting benefits.



Ellevest Robo Advisor


It is applauded for its goal-based investing by providing a great investment mix. It is best known for its focus on women investors. Ellevest has competitive rates.


Fees: Investors pay 0.25% for accounts up to $50,000. Once you reached $50,000, you can upgrade to a premium service with access to executive coaches and financial planners. Ellevest has an excellent tax strategy, but it offers personalized portfolios at a high rate. It only invests in ETFs with 0.06 to 0.16 percent annually in fees.


Pros: It provides unrestricted access to financial advisors via text and e-mail. Its team includes financial professionals who can advise on a range of financial topics such as consolidating and managing old retirement accounts, customizing your account to reach your goals, and managing investments to pay off debt.


Stars: ⭐⭐⭐⭐

SoFi Robo Advisor


It is known best for educational resources with an educated, expert team of professionals to refinance student loans plus other investment and loan management. You won’t pay fees for wealth management if you have existing loans at SoFi.


Fees: No fees are paid up to a $10,000 portfolio for investment management compare to portfolio size at Wealthfront and charges 0.25 % for balance over $10,000. You can open an account with only $100.


Pros: SoFi is a hybrid Robo advisor where wealth members also get access to human advisors other than computer investment management for advice on setting things up, ensuring they are on the right track, and accessing free SoFi events. They also provide access to a career coach for salary guidance.



Charles Schwab Robo Advisor

charles schwab robo advisory

It is best known for intelligent portfolios and major brokerage. A Robo-advisor product, Schwab Intelligent Portfolios, is from Charles Schwab, United States, with $3.36 trillion in assets under management and $23 billion in Robo-advising accounts.


Fees: It is the fees that make Schwab Intelligent Portfolios remarkable, not the investment company, as Schwab charges no advisory or management fees, and you can initiate an account with a $5,000 opening minimum balance.

You will fill out a questionnaire at Schwab Robo advisor to set your goals, risk tolerance, and timelines for investment. From there, Schwab will put your funds into a diversified portfolio of ETFs.


Pro: Schwab Intelligent Portfolios give investors the best likely deal by using tools of tax-loss harvesting and automatic rebalancing.



FutureAdvisor of Blackrock Robo advisor


With approx. $6 trillion in the assets managed, Blackrock is the largest financial management service all over the world. Due to this reason, some people call Blackrock the largest ‘shadow bank’ of the world.

They bought the Robo advisor to compete the Betterment, Personal Capital, and Wealthfront. Blackrock’s future advisor does compete with these Robo advisors, but it is not simply a revise of Betterment service.


Fee: FutureAdvisor is a bit more expensive as compared to its competitors, but its additional features are worth it. Besides, they also offer clients to try FutureAdvisor version for free. It requires a minimum of $10,000 account balance to manage all your investments by FutureAdvisor regardless of where they are located.


Pros: FutureAdvisor has a fancy, intuitive app, and they also help to create the portfolios as per the Modern Portfolio Theory. Their plus point is that they offer personalized advice and free services that other Robo advisors don’t offer.



Nutmeg Robo Advisor


With more than 75k customers, Nutmeg was the first digital wealth manager in the UK.  There are two types of services that Nutmeg offers for its clients. The first service is the ‘Fully managed Portfolio,’ which is monitored continually by the advisors’ team who implement strategic opportunities based on the client’s needs.

The second service is the ‘Fixed allocation Portfolio.’ It does not offer strategic advice continuously. The in-house team of Nutmeg creates various intelligent portfolios that can be adjusted to the client’s style and risk appetite.


Pros: They have no financial jargon or complex pricing structure hidden. Nutmeg uses ETFs for different assets that client portfolios are invested in.


Fees: Clients get investments that are fully diversified by using ETFs at a low cost. To create the portfolio of the customer, Nutmeg first determines the time horizon and risk portfolio for the customer.

Then with this information, the right portfolio is constructed using ETFs over different asset types, industry sectors, and countries. This spread out the risk across various assets while enhancing the opportunity for high returns.

In the last step, the portfolio is rebalanced and periodically monitored when the asset allocation changes because of the reasons that how well the market does or does not do.



Morgan StanelyRobo Advisor

morgan stanley roboadvisors

It was launched in December 2017 when Robo advisors were on the rise. The Morgan Stanely Access Investing service is aimed for those younger investors who will probably want a full-time advisor someday.


Fees: A minimum of $100 investment and an annual fee of 0.35% is needed for the undermanaged assets. At Morgan Stanely, investment professionals manage all investments made over the Robo-advisory service.


Pros: There is a mix of investments that portfolio features. Investors can choose from a range of strategies that include active and passive investments. A portion of the portfolio can also be devoted to the theme that focuses on the investment idea or particular market trend.

The service offers continuous ongoing automatic rebalancing, portfolio monitoring, and tax-loss harvesting. Morgan Stanley Robo advisor is best for those who want a distant approach and those who are interested in value-oriented and socially responsible investing.


Cons: The only drawback is that fees do not account for the operating expenses of a few mutual funds. Due to this, returns may be lower. Besides, they cannot provide service on Access Investing accounts.



Vanguard Robo Advisor

vanguard robo advisory

In the business of investment management, Vanguard is the behemoth. They transformed the investment business with over $51 billion in assets by offering index funds lost.

Vanguard Personal Advisor is their newest service. They provide a hybrid human-Robo platform and not a simple Robo advisor service. The hybrid Robo advisor offers personalized advice to develop a portfolio that Vanguard manages by using its technology platform.


Fee: The lowest cost ETF and mutual funds that clients can get access to, is Vanguard Admiral available in the industry. Vanguard Personal Advisor Services charge 0.30% fee of assets under management.

With $50,000 of minimum investment, the fee equates to at least $150 annually. This fee is much lower compared to the traditional advisor services. Vanguard offers a wide range of regular investment accounts and major retirement accounts as well available for investors in the United States.


Pros: The advisors help investors to create a portfolio with fewer assets, assist in tax minimization, and act as their investing coach to ensure the decisions they took are right. Vanguard Personal Advisor Services pick its fund from over 100 mutual Vanguard funds and individual investment objectives based on the client’s ETFs.



Robo Advisors Revolutionizing Investment

The art of investment was revolutionized when the first Robo advisor, ‘Betterment,’ was launched in 2008 and started investor’s accounts in 2010, during the recession. The technology was not new as traditional wealth managers have been using automated portfolio provision software since the early 2000s.

Their first objective was to rebalance assets within the mutual fund as a way for investors to manage assets passively—secondly, buy-and-hold investments through a simple online user interface. The technology was not new, but they were the only ones until 2008 who could buy the technology, so clients hired financial advisors to benefit from the innovation.

Today, most RoboAdvisors are using passive indexing strategies, optimized by using some type of modern portfolio theory (MPT). Some RoboAdvisors provide improved investment portfolios for socially responsible investing (SRI), Halal investing, or tactical strategies that mimic hedge funds.

The introduction of RoboAdvisors has entirely changed that narrative by delivering the service straight to consumers. In the span of ten years of advancement, RoboAdvisors have become skilled in managing sophisticated tasks of tax-loss harvesting, investment selection, and retirement planning.

The industry has tremendously grown; as a result, assets managed by RoboAdvisors touched $60 billion in 2015 and are predicted to stretch US$2 trillion by 2020 and $7 trillion worldwide by 2025.

Some other designations that are common for RoboAdvisors are “automated investment management,” “digital advice platform,” and “automated investment advisor.” All these terms are referring to the same financial technology (Fintech) applications for consumer investment management.

What Is Sample Robo Advisor Portfolio?

Robo-advisors use thoroughly explored investment practices to build well-diversified portfolios to ensure that main asset types are included in each portfolio. This provides the investor with broad market exposure, which in turn maximize gains and minimize risk through diversification.

Risk is then managed by changing the amount of exposure to equities.

  • If the investor is less enthusiastic about taking risks, he will place less money into investments.
  • If the investor has a longer timeframe before retirement and is willing to take the risk, the equity component increases.

The asset distribution is determined during the account set up through a detailed questionnaire that scans the investor’s goals, time horizon, and willingness to take risks. The investor’s money is automatically allocated in a portfolio once it has been set up with the given information.

After that, all the work is done by Robo advisor. To make sure that the percentages of target asset allocation are maintained, money is rebalanced as the performance in each asset type changes over time. With the chosen level of risk, the target returns are achieved.

Benefits Of Using Roboadvisors

The benefits of using RoboAdvisors:

  • High-Quality, Low-Cost Portfolios
  • Ease of Use
  • Tax Efficiency

RoboAdvisors take emotion out of the investing activities; they also handle all of the mechanical processes for you.

Since, to solve investment problems and manage online accounts, Robo advisors use technology. A certain trust and comfort level in technology and online services is very important to boost investor confidence.

What Are B2B Robo Advisors?

In B2B Robo advisors, there is a network of brokers and RIAs who want to take advantage of cost-effective Robo advisory platforms and then pass these platforms on to their clients. Also, by joining the Robo advisors, financial advisors can make their established clients into a dominating fintech world.

There are various ways in which B2B Robo advisory platforms run. These include having a tailored platform that is being developed mainly for the existing non-discretionary platform, sticks with the needs and operations of the financial institution that acclimates it. It associates with the financial advisors that can combine the B2B Robo advisors into their routine activities.

How Safe Are Robo Advisors?

Robo Advisors are completely safe because;

  • Supported by Custodian Bank:For large financial institutions, RoboAdvisors have arrangements that act as custodians for all the assets held on behalf of the client. Highly regulated custody banks hold your financial assets. Robo advisors only invest the money on the client’s behalf.

The assets held include any type of financial asset: stocks, bonds, commodities, metals, commercial paper, etc. Custody banks offer customized banking services for unusual assets.


  • Data Security: Roboadvisors have the best software and security checks on their system with advanced security systems of encrypted data in terms of data security.

It is as safe as any other financial institution or bank. Most RoboAdvisors also use multiple data centers to ensure t uninterrupted system accessibility.


  • Assets are insured: Robo advisors also offer some level of insurance to transfer risk associated with owning assets. For example, the assets may be insured up to ÂŁ85,000 in the UK by the Financial Services Compensation Scheme.

Similarly, investments can be covered by the CIPF insured up to $1,000,000 in Canada. These security measures ensure the safety of the client’s money, and the transfer of data is secured from unauthorized access.

Are Robo Advisors Good For Short-Term Use Or Long-Term?

Robo advisors are not designed for short-term investors or savers. Robo advisors are best suited for activities like saving for college or retirement or long term. Market fluctuations cause Robo advisor portfolios to take time to work, so they are best suited for investors with longer time horizons.

While thinking about investing, you might have so much in your life that is going on to get seriously involved in it. Roboadvisors are suits best to this kind of lifestyle. All a client has to do is simply turn the money over to the Roboadvisor, who manages every investing work for you.

This way, you get time to focus on other activities and opportunities in life. This can be important, especially if you are struggling for a demanding career, have young children and elderly parents to care for, or even just a very busy social life.

The time that you do not have to spend on investing matters can be devoted to those other important aspects of your life.

What Are The Main Differences Among The RoboAdvisor Firms?

It is important to learn the differences between different Robo-advisors before choosing the best performing Robo advisor to manage your money since not all investment tools are created equal.

One has to keep in view, especially new investors, all the features, whether available or not of RoboAdviser, to avoid the risk of selecting a Robo adviser that is incompatible with their means and objectives.

Below are some of the common features of RoboAdvisors that can differentiate between different investment methods. While some RoboAdvisors may have a high annual fee scale than others like Future Advisors, they may also provide services or investment opportunities that the low-cost RoboAdvisors do not.

There are various things you should check before choosing a RoboAdvisor. For instance, the license and credentials of their team and also make sure to check their experience and qualifications.


  • Less deposit amount: The minimum deposit differs from companies to companies get started. Some take a more substantial investment to open the account, whereas others require nothing.


  • Human Versus Robotic Assistance: For unique circumstances, RoboAdvisors are automated with no or little human support. On the contrary, there are also some RoboAdvisors that provide services that are primarily robotic, but with the option of getting human advice.

Potential customers need to consider their comfort levels and their need with Robo advisors to define which mix medium will be suitable for them.


  • Available Account Types: The Robo advisors support account types that are different from each other. For instance, the UK’s available options may be Self-Invested Personal Pension, a Stock % Share ISA, and a General account.

The account types in the United States include joint, individual, 401(k) plan or IRA. While choosing, it is important to ensure that the Robo advisor has the right account for the client’s needs.


  • Tax harvesting: Some Robo advisors offer this service and do not. Besides, there are a variety of tools that each Robo advisor offers to manage a portfolio. These tools include retirement calculators and fee calculators. To determine how to manage your portfolios, some of these tools can be very beneficial.


Benefits With a RoboAdvisor

Here are some benefits that depict in what ways RoboAdvisors is beneficial for you.


✔ Less Expensive

As compared to traditional human advisors or counterparts, RoboAdvisors are cost-effective, and this is the main advantage. By eradicating or minimizing human labor, online platforms can provide the same services at the lowest possible cost.

Most RoboAdvisors charge an annual fee of 0.2% to 0.5% of a client’s total brokerage account balance. Whereas human, financial advisors charge the typical rate of 1% to 2% and possibly more for commission-based accounts. Moreover, it requires considerably less capital to begin.

The required minimum asset to register for an account is typically in the hundreds to thousands. $5,000 is a standard starting point.‘ Betterment,’ which is one of the most popular RoboAdvisor, requires no account minimum at all.

Contrary to this, human advisors do not usually take on clients with less than $100,000 in investable assets, particularly those who are well established in the business. They prefer individuals with high investable worth who need a range of wealth management services and can have the funds to pay for them.


✔ Ease of Access

Robo advisors are highly accessible. They add value by allowing investors to invest in many different asset types conveniently and register online through mobile phones or web applications. Their availability is 24/7, as long as the user has an Internet connection.


✔ Fast and Secure

Complete access to portfolio management tools is provided by RoboAdvisors to offer more flexibility and security to users. Roboadvisors provide full transparency. You can see what funds your money is invested in and can change your risk preferences instantly.


✔ Efficient

Efficiency is another significant advantage these online investment platforms have. For instance, traditionally, if a client wants to execute a trade, he/she would have to set a meeting with a financial advisor to explain the needs, fill out the paperwork, and wait. Now, all that can be done with the click of a few buttons wherever you are.

Why Do Robo Advisors Use ETF’s?

RoboAdvisor uses ETFs based on two main features: liquidity and cost. It means they are freely traded. Therefore, they have higher trading volume and more liquidity.

Most Robo Advisor companies exclusively use open-ended index-tracking ETFs rather than mutual or closed-end funds due to access to many stocks across various industries. This also includes their low manager risk through diversification, low embedded costs like fewer broker commission and low expense ratios, and natural tax efficiencies. 

What Fees Do Robo Advisors Charge?

The fee that RoboAdvisors usually charge is a management fee. They are surprisingly cheaper when compared to conventional financial management firms. The fee is charged on the assets under management (AUM) or amount invested.

The associated maintenance cost for Robo Advisors is very low, around 0.15%. The fees charged usually fall into two classes. First are the fees charged by the Robo advisor company, while the second is ETFs.

How Do Roboadvisors Work?

Through an online questionnaire, a new client supplies necessary information about his investment goals. These questions may focus on issues like; investment timeline, risk tolerance, and how much money you have in savings.

Robo Advisors then process those answers through a computer algorithm and build portfolios of varied investments that meet your investment goals.

What Do RoboAdvisors Invest In?

RoboAdvisors allocate the assets of the client on the basis of the desired target return and risk preference. They are capable of allocating the clients’ assets in different investment products such as bonds, stocks, real estate, commodities, and futures. Often, the funds are directed towards the ETF portfolios.

What Are ETF’s?

ETF means exchange-traded funds. It is a type of security that involves a collection of securities. ETFs can contain many types of investments, for instance, stocks, commodities, bonds, or a mixture of investment types. Some offer the United States only holdings, whereas others are international.


In many ways, ETFs are similar to mutual funds. Though mutual funds are traded once in a day once the market closes while ETF’s share prices fluctuate and are sold and bought throughout the day. SPDR S&P 500 ETF (SPY) are some well-known examples. These tracks the S&P 500 Index.

An ETF is marketable security. It has an associated price that allows it to be easily bought and sold and easily converted into cash. Instead of individually purchasing the stocks, it’s better to go for ETF as it offers fewer broker commissions and low expense ratios.

Does Using Robo Advisor Mean No Personalized Advice?

The majority of investors do not need personalized advice or complicated investment plans. Most investors only require well-designed portfolios based on a pre-determined risk and reward profile that methodically invests based on academically backed portfolio theory and best practices.

Only a very small percentage of the clients actually need complicated investment plans and investment products like very affluent people or families with multi-generational wealth with multiple interests in multiple countries.

For the rest of us, a Robo advisor service is all that is required to invest cost-effectively and efficiently. The basic provision of Robo advisor service is through the automated investment platforms, but a few Robo-advisors also offer personalized advice.

In fact, more number of Robo advisors are starting to complement their Roboadvisor services with a human advisor to help their clients through more complicated circumstances. Clients can discuss specific questions through online conversation or could use the phone to take advice regarding those queries.

Who Should Use Robo Advisors?

Robo advisors are an excellent choice for starters or investors with smaller accounts because of their low fees as traditional investment advisors charge high fees to manage portfolios, low-cost starting point investment, and ease of use.

They provide advanced professional investment management that previously was offered and tailored to larger or high net worth individuals or investors. With an amount of $25,000 or less to invest, automated advisors may be the best choice for you to initiate a business.

Robo advisors can answer a high minimum balance requirement and high fees. For example, Robo advisor Wealthfront could register accounts with an amount as small as $500.Whereas, Betterment has no minimum starting deposit requirement.

You can open up an account with no money. However, Betterment requires you to set up an automatic funding provision to open an account through both RoboAdvisors charges an annual management fee of 0.25% of your account balance.

On the other hand, traditional investment managers charge 1% to 2% of your account balance. However, some firms like Charles Schwab’s own Roboadvisor service require no annual management fee at all.

The general fee range for RoboAdvisors is between zero and 0.50%, though some RoboAdvisors do charge higher fees for expanded services. Apart from the fact that 

RoboAdvisors is perfect for those with no or little investment knowledge and experience. They don’t need to worry because all the work is done by RoboAdvisors, and they invest based on the modern portfolio best theory practices.

You just have to fill the questionnaire and do the risk tolerance test and leave the rest to automated managers. As the entire system is automated, customers might not make an effort to understand how the service works or continuously monitor their investments.

What Are The Different Categories Of Investors?

The degree of risk aversion points to the limit to which investors are keen to lower returns in order to reduce uncertainty. It usually varies from individual to individual depending on the financial goals and time horizon of the investment.

For example, a retired person would prefer more towards risk-averse investments as he can’t afford to lose his life savings. Whereas, a young investor may be inclined towards risk-seeking with huge profit incentives, as they have time to recover lost funds.

Types Of Investors

The investors can be categorized as:

  • Risk-averse: Risk-averse investors usually seek safe investments, although they may get relatively lower returns.


  • Risk-neutral: Risk-neutral investors incline to be indifferent between comparatively risky and safe investments.


  • Risk-seeking: Risk-seeking investors usually go for riskier investments that offer high rewards.

Transform Your Investments With Robo Advisors Today aims to revolutionize investing. If you have a big enough portfolio, our Robo investing manager will help you to build a portfolio to manage the risks while increasing the reward. However, our Robo advisor services do not end here.

We also offer our financial assistance to those who have just begun to invest and want to see their money grow. We will make portfolio management and investing affordable and easy for everyone.

So, what better deal are you waiting for?