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The biggest difficulty that scares off new traders is the necessity to devote many hours to scrupulous and monotonous price monitoring day after day. If one wants to succeed in this business, one cannot take decisions by guess. But there is good news ― one can apply specialized IT solutions to automate market analysis.
One of the optimal solutions is a robo advisor. It is a program, which provides automated guidelines on trading and investments. Its operation is based on an algorithm. Meanwhile, it provides personalized advice, which means it takes into account your financial goals, risk tolerance, strategy, and methods. In many cases, traders utilize robo advisors for earning passive income, i.e. they enter the preferable assets, acceptable sum limits, and other parameters and let the algorithm manage their trading accounts in an automated mode.
Now, let us mention the names of the most sought-after programs available on the market:
- Interactive Advisors. This product stands out from its competitors due to a huge range of portfolios and special services, like the Socially Responsible Investing function intended to block investments in dishonest companies or doubtful spheres.
- Sofi Invest. It is a perfect option for newbies, as it offers an extremely user-friendly interface, a $0 minimum investment limit, and 0% management charges.
- Betterment. It is one of the biggest platforms of this kind, so its functionality is pretty extensive and includes multiple optimization features, for example, for minimizing tax charges.
- E*Trade. This high-tech company offers both an advanced desktop platform and two mobile apps along with 0% stocks and ETFs trading and a huge base of research and educational content, including global analytics, pre-set scans, video tutorials, live streams, etc.
- M1 Finance. This finance management tool combines trading and banking services and provides its clients with credit cards and loans (of up to 35% of their balance).
- Wealthfront. In addition to automated trading, it offers multiple personal finance services like debit cards, bill payments, check deposits.
- Schwab Intelligent Portfolios. It is most known for affordable fees, a vast variety of asset types, a tax-loss harvesting tool, and 24/7 customer support.
- Ellevest. The exclusive feature of this source is that its algorithm takes into consideration gender differences such as male and female life length or maternity leave.
- Vanguard Digital Advisor. This automated-investing service is under development as of now, yet, it is still worth considering due to its profound financial planning functionality that allows getting fully prepared for both retirement and other possible expenses.
- Acorns Investment. It is a basic automated saving tool with affordable fees, a career finding feature, and over 350 cashback offers.
In sum, a robo advisor is the easiest and most affordable solution for those who need assistance in creating their portfolios and planning investments, savings, and expenses.