The Best Robo Advisors – Dip Your Toe into Investing
Joy Wallet is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. To read our full disclosure, click here.
Robo advisors are digital investment platforms that can replace human financial planners. To use a robo advisor, you enter information about your financial situation and goals, much like you would if you visited a traditional financial planner. Then, the robo-advisor uses your information to offer advice and invest your assets. Robo advisors are typically inexpensive, making it a great option if you’re interested in dipping your toe into investing. It’s important to choose the robo advisor with the opening balance and costs that work for you. You’ll also want to look for a robo-advisor that offers the services and strategies that best fit your needs.
In this article
Overview of the best robo advisors
- Best for micro investors: Acorns
- Best for tax strategies: Betterment
- Best for traditional financial planning: Charles Schwab
- Best for women: Ellevest
- Best for no commitment investing: Fidelity
- Best for beginners: Stash
- Best for managing accounts: SigFig
- Best for low-cost: SoFi
- Best for cost transparency: Wealthfront
- Best for free portfolio review: Wealthsimple
Compare the best robo advisors
Robo advisor | Description | Minimum balance | Costs |
Straight forward investing with retirement accounts. | $0 to open an account, $5 to start investing | $3 to $12 per month | |
Betterment offers crypto, tax loss harvesting and socially responsible investing. | $ 0 | $0 to 1% annual fee, depending on plan | |
A well known name, Charles Schwab offers an end to end investing solution. | $5,000 to $25,000 | $0 to $30 per month | |
Built for women, Ellevest has a no-fuss plan ideal for investors in all stages. | $ 0 | $12 monthly | |
Beginners to professionals can benefit from Fidelity with its low cost options. | $0 to open, $10 to invest | $0 per month to 0.35% of assets yearly | |
Stash has a straightforward fee structure and offers dividend reinvestment. | $ 5 | $3 to $9 monthly | |
SigFig can help manage all your existing accounts on multiple platforms. | $ 2,000 | Free for the first $10,000, 0.25% after that | |
SoFi offers one stop solution for all your financial needs and gives access to human advisors. | $ 1 | $ 0 | |
Wealthfront has a transparent fee structure and offers financial planning tools. | $500 for investment accounts, $1 for cash management accounts | 0.25% of assets each year | |
Wealthsimple offers personalisation with expert financial advice and dividend reinvestment. | $ 0 | 0.40% to 0.50% of assets annually |
- In under 3 minutes, start investing spare change, saving for retirement, earning more, spending smarter, and more.
- Make your first successful Recurring Investment (min $5) - get your $20 bonus within 10 days of following month
- Over 13M All-Time Customers
- Over $22B Invested
Best for micro investors: Acorns
Pros & cons
Pros
- Easy to use.
- Automated Investing.
- Offers retirement plans and banking services.
Cons
- High monthly fees.
- Limited portfolio options.
Cost: $3 to $12 per month
This robo-advisor became popular because of its simple investment approach. The basic idea is that if you let Acorns round up your purchases to the nearest dollar, you’ll have money set aside to invest without even noticing it. You only need to link your credit card or checking account and let Acorns do the work for you. Then, you can invest your spare change in amounts as small as $5.
Acorns also offers other financial products, including a retirement account called Acorns Later. Like the Invest account, you can start by investing as little as $5 in your retirement account. Acorns can select the appropriate option for you if you’re unsure which retirement plan to choose. Acorns Bronze includes a Personal subscription, Acorns Invest, and a checking account called Acorns Spend. You’ll also receive access to over 55,000 fee-free ATMs nationwide and worldwide. The Acorns Later and Investments accounts are all included in the Personal subscription for $3 per month.
Acorns also allows you to begin investing for your children cheaply. Its Gold subscription includes everything that’s in the Personal subscription, as well as an investment account for kids called Acorns Early. The Acorns Early investment account includes automatic recurring investments and free financial advice, and you can add multiple kids at no additional cost. The funds in the Acorns Early accounts can be used for anything that benefits the child, not just education. The Acorns Silver subscription is $6 per month and the Gold plan is $12 monthly.
Visit Acorns
Or read Joywallet's review of Acorns.
Best for tax strategies: Betterment
Pros & cons
Pros
- Several plan options.
- Gold based focus.
- Tax-loss harvesting.
- Low fees.
Cons
- Limited customisation.
- Additional cost for human financial advisors.
Cost: 0% to 1% annual fee
Betterment has three plans — Cash, Digital Investing, and Crypto. The first one is free and comes with a high-yield cash account earning a variable 4.50% APY and bucket money for individual goals and plans. Investing charges a 0.25% annual fee and unlocks socially responsible investing options, low-cost investment portfolios built and managed based on your priorities, automatic features like portfolio rebalancing, dividend reinvestment, auto-adjust, and advanced tax-saving strategies. As the name suggests, the final plan caters only to crypto enthusiasts and charges a 1% annual fee.
In addition to investing, Betterment offers cash management products, retirement planning, and access to financial advisors. You can speak with Betterment’s financial advisors about various topics, from marriage planning to retirement planning. These advice packages charge 0.65% annual fee and require $100,000 minimum investing balance.
Betterment also offers a satisfaction guarantee. So if you use Betterment and decide you’re unhappy with your experience, you can expect Betterment to try to make it right. According to its website, it’ll even waive the asset-based advisory and brokerage fees on your investment accounts for up to 90 days.
Visit Betterment
Or read Joywallet's review of Betterment.
Best for traditional financial planning: Charles Schwab
Pros & cons
Pros
- Solid investment tools.
- Excellent customer service.
- Satisfaction guarantee.
Cons
- Could be overwhelming for new investors.
- There is a separate interface for futures.
Cost: $0 to $30 per month
This leading investment firm understood the value of robo advisors and now offers its own — Schwab Intelligent Portfolios. You can count on the robo advisor to monitor your investments and automatically rebalance your portfolio when necessary. Since markets constantly fluctuate, automatically rebalancing your accounts can help reduce your risk over time to keep it in line with what you’re comfortable taking on and market volatility.
So is it right for you? While working with a recognizable brand may be appealing, you should know that to use this robo advisor, you must have a minimum investment starting balance of $5,000 for the basic tier and $25,000 for the premium tier. On the bright side, you won’t be charged advisory fees or commissions in the basic tier, but the premium plan costs $30 monthly.
There are several account options if you use Schwab Intelligent Portfolios. There are taxable and tax-advantaged accounts; you can even roll over your 401(k) or IRA if you want. Schwab Intelligent Portfolios also uses automatic tax-loss harvesting so you can offset the taxes on your investment gains.
Looking to get more from your robo advisor? Then you might be interested in Schwab Intelligent Portfolios Premium. This allows you to combine the benefits of using a robo-advisor with the traditional 1-on-1 experience of working with a financial planner. To use this service, you must have a minimum starting balance of $25,000. You’ll also pay a one-time $300 set-up fee and a monthly advisory fee of $30.
Visit Charles Schwab
Or read Joywallet's review of Charles Schwab.
Best for women: Ellevest
Pros & cons
Pros
- Sleek digital interface.
- Transparent fee structure.
- Low cost.
- Robust educational resources.
Cons
- Low savings rate.
- Very limited portfolio options.
- Certified financial advisors come at a cost.
Cost: $12 monthly
According to Ellevest, the financial industry was failing women, so it created an investment algorithm that factors in important things like gender pay gaps, career breaks, and women's longer average lifespans. This is another great option if you’re just starting to explore the world of investing. There is no required minimum account balance.
Ellevest offers a single, no-frill plan for $12 per month. The Digital Plan membership includes your personalized investment portfolio, retirement planning, tax minimization strategies, automatic rebalancing, and discounts on personalized financial guidance. You’ll also have unlimited access to workshops and courses by Ellevest’s financial planners and career coaches.
Ellevest also offers private wealth management services for investments starting from $1,000,000. Its fees vary. As a fiduciary, you can expect Ellevest to help you pick the right mix of investments to help you reach your goals.
Visit Ellevest
Or read Joywallet's review of Ellevest.
Best for no commitment investing: Fidelity
Pros & cons
Pros
- Excellent customer service.
- Low cost.
- Robust research.
Cons
- High fees for broker-assisted trades.
- Does not offer crypto and futures.
Cost: $0 per month to 0.35% of assets yearly
Fidelity is another known name in investment that now offers its robo advisor, Fidelity Go. Fidelity Go has no account minimum, but you'll need $10 to begin investing. Your advisory fees will depend on your balance.
- Balance under $25,000: $0
- Balance above $25,000: 0.35%/annually
Unlike competitors, Fidelity Go makes it easy to see your investment proposal without commitment. You can answer a few questions on its website to see what it suggests to help you reach your goal. You’ll also see an overview of your total costs for using the robo advisor if you use this strategy. All of this can be done without supplying your contact information, so you can even play around with it if you’re not ready to commit to any robo advisor yet.
You can also enroll in Fidelity Personalized Planning and Advice if you need guidance in addition to your investing strategies. It includes personalized investment management tailored to your goals, 1-on-1 financial coaching, and flexible planning so you can change your financial goals in the future if necessary. To enroll, you must have a minimum account balance of $25,000 and pay 0.35% of assets each year as an advisory fee.
If you’re unsure which Fidelity option is best for you, you can call Fidelity for a free financial assessment. This can help you determine whether you would benefit from 1-on-1 financial coaching or if using a robo advisor is right for you.
Visit Fidelity
Or read Joywallet's review of Fidelity.
Best for beginners: Stash
Pros & cons
Pros
- Fractional share investing.
- Stock back awards.
- User friendly app.
Cons
- Requires a monthly subscription.
Cost: $3 to $9 monthly
A great option for beginners, Stash is a user-friendly platform offered at a fair price. It helps with diversification and its paid service ranges between $3 to $9 per month. The $3 plan offers a personal investment account, a Stock Back card, a bank account and a $1,000 life insurance from Avibra. As you move higher, you enjoy higher perks. The $9 plan has everything from the Growth tier and also gives access to market insights, 1% stock back and an investment account for two children.
Stash has no minimum deposit requirement and you can start investing with as little as $5. Stash's Smart Portfolio will ask you a few questions to understand your risk appetite and will automatically invest for you. The best thing about Stash is that it offers fractional share investing. If you do not have the funds to purchase a full share, you can buy a fractional share. Stash also offers retirement, IRA and custodial accounts.
Visit Stash
Or read Joywallet's review of Stash.
Best for managing accounts: SigFig
Pros & cons
Pros
- Tax-loss harvesting.
- Free access to human advisors.
- Free portfolio analysis tools.
Cons
- Does not offer fractional shares.
- Account minimum of $2,000 to get started.
Cost: Free for the first $10,000
SigFig makes it easy to find the portfolio that is recommended for you. To get started, you must enter your age, financial information, and a few preferences, such as whether you’re investing for the short-term or long-term. You do not need to enter your contact information to see which portfolio SigFig recommends based on your answers.
SigFig doesn’t charge commission, trading, or transaction fees. However, you may have fees embedded in your ETFs. Trading fees may also be included in some new holdings if you enable tax-loss harvesting.
According to SigFig, $2,000 is the lowest amount required for them to find the right asset allocation and effectively manage your account. You should also know that SigFig charges an annual management fee of 0.25% each year after your first $10,000.
One of the benefits of SigFig is that it can manage other accounts for you, including Charles Schwab and Fidelity accounts. If you’re not a beginner, this can make things easier. SigFig also offers the ability to make an appointment with one of its financial advisors.
Visit SigFig
Or read Joywallet's review of SigFig.
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
Best for low cost: SoFi
Pros & cons
Pros
- Easy to get started.
- Ideal for beginners.
- Excellent customer service.
- Low cost.
Cons
- Limits on active traders.
- Does not offer tax-loss harvesting .
Cost: $0
Regarding websites, SoFi’s is the easiest on this list to take in. The website is set up to show you some common financial goals you may want to consider and some recommended investment strategies you might use to achieve them. It also explains why you should start considering investing now, even if you’re nowhere near considering retirement.
While SoFi offers a few investment products, SoFi Automated Investing is what you’ll want to choose if a robo advisor is what you’re looking for. All you need to get started is $1, with no management fees.
Like most robo advisors, SoFi acts as a fiduciary, and none of its advisors earn commissions, so you can trust that it always has your best interests in mind. Speaking of advisors, you can speak with SoFi’s credentialed advisors by phone, chat, or email if you have questions.
Currently, SoFi only offers individual investment accounts for one person and joint accounts that two people can hold. Its tax-advantaged retirement accounts include traditional IRAs, Roth IRAs, and Simplified Employee Pensions (SEP-IRA). If you have a 401(k) from a previous employer, you can also roll that over into an IRA with SoFi. You should also be aware that, unlike many competitors, SoFi does not offer tax-loss harvesting.
Visit SoFi
Or read Joywallet's review of SoFi.
Best for cost transparency: Wealthfront
Pros & cons
Pros
- Goal focused assistance.
- Offers a full picture of your financial position.
- Tax-loss harvesting.
- Ideal for multiple goals.
Cons
- Portfolios below $100,000 are not customizable.
- Does not offer fractional shares.
- No online chat option.
Cost: 0.25% of assets each year
Wealthfront makes it simple to review your options and see how much investing with them could cost you. This company focuses on passive investment strategies to keep costs and taxes low while managing risk.
Wealthfront has a $500 minimum requirement for investment accounts and just $1 for cash management accounts. Its advisory fee is only 0.25% of assets each year, and you can use a tool on its website to calculate how much your monthly fee would be depending on the account balance you intend to have.
Like many competitors, Wealthfront uses strategic trading to lower your tax obligation, leaving you more money to invest. Every investment account is eligible for tax-loss harvesting; after your account grows to $100,000, you’ll be eligible for more enhanced strategies.
Wealthfront’s investment account types include retirement accounts, 529 college savings, and trust accounts. If you’re interested in short-term savings, Wealthfront also recommends using their high-interest cash account.
Visit Wealthfront
Or read Joywallet's review of Wealthfront.
Best for free portfolio review: Wealthsimple
Pros & cons
Pros
- Easy to use.
- Robust educational resources.
- No minimum investment requirement.
Cons
- Limited portfolio options.
- High management fee compared to commissions.
Cost: 0.40% to 0.50% of assets annually
Wealthsimple Invest is Wealthsimple’s investment product that works for you on autopilot. You can start with as little as $0 with a Basic account, which includes a personalized portfolio, expert financial advice, auto-rebalancing, auto-deposits, and dividend reinvestment. There is a 0.5% management fee for a Basic account. If you deposit $100,000 or more, you’ll be eligible for a reduced wealth management fee, tax-loss harvesting, and other benefits.
Wealthsimple focuses on building a portfolio of low-fee funds to help you meet your financial goals at your chosen risk tolerance. An interesting feature of their website is that they include an interactive graph showing investment strategies for various amounts of risk.
As a fiduciary, you can trust Wealthsimple to review your portfolio for free. This is a great option if considering alternative strategies for an already existing portfolio. Wealthsimple can help you set meaningful goals and offer suggestions to improve your portfolio during this review.
As a beginner, you can also benefit from Wealthsimple. It can help you choose the right accounts based on your needs, whether you need a retirement, savings, joint account, or all of the above. If you want to transfer your accounts to Wealthsimple, it can also cover the administrative transfer fees on accounts with more than $15,000.
Visit Wealthsimple
Or read Joywallet's review of Wealthsimple.
- In under 3 minutes, start investing spare change, saving for retirement, earning more, spending smarter, and more.
- Make your first successful Recurring Investment (min $5) - get your $20 bonus within 10 days of following month
- Over 13M All-Time Customers
- Over $22B Invested
Traditional advisors vs robo advisor
The major difference between a traditional advisor and a robo advisor is how they invest. The traditional advisor will understand your risk and goals before making investment decisions while a robo advisor will use advanced technology and formulas to make investment for you. In a traditional brokerage, you will be incharge of everything from how to invest, where to invest and when to rebalance your portfolio whereas a robo advisor will do all the heavy lifting and automatically rebalance your portfolio.
Why you should use a robo advisor
Robo advisors are a great option if you’re just investing. The low costs associated with robo-advisors mean you’ll have more money to spend on your investments than using it to pay for your advisors.
Using a robo-advisor can also save you time and stress. Most robo-advisor accounts are easily managed online or through a mobile app. They can help you create a diversified portfolio and give you hands-on portfolio management using the planning tools. They can also conduct portfolio rebalancing if you want the full hands-off approach. You can check your account anytime on the go, rather than setting up an appointment with a human financial advisor. (Some can also connect you to a certified financial planner if you are ready to up your game.)
- In under 3 minutes, start investing spare change, saving for retirement, earning more, spending smarter, and more.
- Make your first successful Recurring Investment (min $5) - get your $20 bonus within 10 days of following month
- Over 13M All-Time Customers
- Over $22B Invested
FAQs
Is it safe to use a robo advisor?
Generally speaking, yes it is. Most robo advisors have information on their website about how they keep your money and information safe.
What should my financial goals be?
Most people like to use goal-based investing. Think about what’s important to you. Do you want to save for retirement? Or perhaps buy a house or make another large purchase? These are financial goals to consider when planning or choosing your investment strategy.
How often will the robo advisor rebalance my portfolio?
This varies from one robo advisor to another. While some rebalance your portfolio daily, there are others which make monthly or quarterly adjustments. A portfolio rebalancing is only required when the asset allocation is not aligned with your financial goals. This is when the robo advisor makes adjustments to keep your investments aligned with your goals.
The bottom line
Investing can be a stressful and confusing topic. I spent quite a few years avoiding it. Fortunately, there’s a much more approachable way to begin investing these days: robo advisors.
Using a robo advisor can be a great option whether you’re a beginner or a more seasoned investor. You can go the route of Acorns and save your spare change if that’s where your comfort level is, or you can fully invest in individual stocks and mutual funds. You can also seek out top robo advisors offering hybrid options so you can speak with a human advisor.
Undeniably, robo-advisors are much more cost-effective than going the traditional route. If you’re interested in investing, there’s sure to be a robo advisor that’s right for you.
Joy Wallet is an independent publisher and comparison service, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.
Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
We value your privacy. We work with trusted partners to provide relevant advertising based on information about your use of Joy Wallet’s and third-party websites and applications. This includes, but is not limited to, sharing information about your web browsing activities with Meta (Facebook) and Google. All of the web browsing information that is shared is anonymized. To learn more, click on our Privacy Policy link.
Images appearing across JoyWallet are courtesy of shutterstock.com.
Writer
Ashley Hart is a lead copywriter and digital marketing expert covering finance, law, real estate, music, entertainment, health and wellness.
Share this article
