Investing no longer means you need to be wealthy and knowledgeable about finances. Those past few years have given you low-cost investing for the masses. The Robo-Advisor helps people with the easiest way to invest in the market, and without a traditional financial advisor, you can spend less. Because algorithms manage your portfolio, you can save. If you want to grow your money without high fees, these low-cost robo-advisors should be at the top of your list.
1. Betterment
Betterment is the most popular robo advisor, with an affordable investment method and a user-friendly interface. It is valid for new and seasoned investors with no minimum balance requirement. Coming in with the second-best fee at 0.25% of your account balance every year, Betterment offers personalized portfolios formed around your goals. Betterment also provides financial planning tools and access to live human, financial advisors at a higher service tier for investors seeking more services.
2. Wealthfront
Besides Wealthfront, another low-cost class of robo advisors is another top pick. Wealthfront is affordable and accessible for a 0.25% management fee and a $500 minimum investment. It offers a wide range of features, including automated rebalancing and tax loss harvesting, and it helps you manage your taxes while growing your investment. If you're interested in building wealth with minor charges, Wealthfront is a strong contender.
3. SoFi Automated Investing
If you're trying to get started with low-cost investing without paying any management fees, SoFi Automated Investing is for you. SoFi does not charge any fees for its robo-advisory service, which makes it a unique avenue for investors to take if they are looking to get away with paying no fees. Included with SoFi, you also receive access to financial advisors who provide personalized support at no extra cost. SoFi doesn't offer all the bells and whistles some of the more expensive competitors do, but the fact that SoFi is fee-free will appeal to the budget-conscious investor.
4. Schwab Intelligent Portfolios
Robo adviser Schwab Intelligent Portfolios has no management fee and a minimum investment of just $5,000. While it needs a higher minimum deposit than some other robo advisers, Schwab compensates by providing a far more comprehensive choice of investment options and access to Schwab's famed research tools. Rebalancing is automatic, so if Schwab Intelligent Portfolios are your thing, it's a pretty solid way to do low-cost investing while sticking with a trusted name.
5. Vanguard Digital Advisor
Vanguard is a household name in low-cost investing, and its robo-advisor service, Vanguard Digital Advisor, delivers the goods. One of the cheapest robo-advisors on the market, it charges only a 0.15% management fee. If you prefer to refrain from administering your portfolio, Vanguard is an excellent choice because its low-cost index funds are linked automatically to your portfolio. Vanguard Digital Advisor charges too much at a minimum investment of $3,000. Still, with low fees and high-quality funds, it is a force to be reckoned with for serious investors.
Conclusion
Thanks to robo-advisors, the cost of low-cost investing has never been lower. Many options are available to help you choose between Betterment, Wealthfront, SoFi Automated Investing, Schwab Intelligent Portfolios, and Vanguard Digital Advisor, with different features and fees tailored to meet your investment styles and financial goals. If you pick your robo-advisor right, you'll get as many returns as possible at the lowest cost. If you're new to investing or an old pro, robo-advising offers low-cost investing to grow your wealth without blowing your budget.
