Throughout most of modern history, if you needed investment guidance, you had to hire a financial advisor. There are certainly benefits to having the advice of a seasoned professional, but there's one big drawback -- an investment advisor can be expensive.
Now there's an alternative option: robo-advisors. As with any investment method, you should learn a few things about robo-advisors before you start investing your money. In this guide, we'll share our picks for the best robo-advisors and take you through the most important things you should know about investing with a robo-advisor.
Best Robo-Advisors for January 2022
Throughout most of modern history, if you needed investment guidance, you had to hire a financial advisor. There are certainly benefits to having the advice of a seasoned professional, but there's one big drawback -- an investment advisor can be expensive.
Now there's an alternative option: robo-advisors. As with any investment method, you should learn a few things about robo-advisors before you start investing your money. In this guide, we'll share our picks for the best robo-advisors and take you through the most important things you should know about investing with a robo-advisor.
Best robo-advisors at a glance
SoFi Automated Investing
Financial advice
$0 per trade, expense ratio 0.03%-0.08%
Vanguard Digital Advisor®
Low fees and low account minimums
0.20% all-in fee
Betterment
Beginners
$0 per trade, management fee 0.25%
Acorns
Rounding up your purchases to invest
$1-$5 monthly
Ellevest
Women
0.25% management fee
Ally Invest Managed Portfolios
Conservative investors
$0 per trade, management fee 0.30%, expense ratio 0.05%-0.20%
TD Ameritrade Essential Portfolios
Lowering taxes
$0 per trade, management fee 0.30%, expense ratio 0.06%-0.07%
Wealthfront
Lowering taxes
$0 per trade, management fee 0.25%, expense ratio 0.06%-0.13%
E*TRADE Core Portfolios
Socially responsible investing
$0 per trade, management fee 0.30%, expense ratio 0.06%-0.12%
Schwab Intelligent Portfolios
Larger accounts
$0 per trade, $0 mgmt fee, 0.03% to 0.60% expense ratio
Fidelity Go
Minimum balance
Free to 0.35% per year
M1 Finance
Investing and banking in one
$0 commissions and no management fee. 0.06%–0.20% fund expense ratio