What is a Robo Advisor?

If you are interested in the stock market and want to invest, there are two options of how you can handle it: first, you can DIY (Do-It-Yourself); or you can hire a financial investment advisor (FIA). Today, as technology constantly develops, businesses provide another option to handle the stock market for potential investors. They introduced the "Robo Advisor". This service uses automation to select the investments that meet clients' temperament and goals. This automated investment service promises to make investing easy, inexpensive and fun. They take care of constructing a portfolio, investing in ETFs, rebalancing, reinvesting dividend and harvesting tax losses. All an investor needs to do is simply choose a stock and bond allocation, and the Robo Advisor will do the rest.

There are several Robo Advisors that you can choose from and if you are not yet familiar with stock market and how it works, then you might think that all of them are the same, but they are not. It is important to know how these services differ from one another. By understanding the different features and costs of these services, you will be able to select the Robo Advisor that best meets your needs. And this is the main topic of our website. In the succeeding articles we will tackle different Robo Advisors and their key features. But to give you a general idea, here are their key differences in every one of them: