The Top 10 Robo Advisors in the US

Wealth management is defined as an investment advisory discipline that brings together a number of financial services. The services include financial planning and portfolio management. The wealth managers are financial advisers for long term investors in matters to do with investment and tax efficiency.

Technology solutions are rapidly changing the wealth management market. Today’s clients are better informed and better equipped to obtain digital advice on the market’s competitive landscape. The consumer technology has made it possible for seamless access to market information. The emergence of mobile technology with cloud-based services has given clients more investment options to choose from. The tablet market, for instance, surpassed the 265 million mark in 2014 and this has changed the behavior and preferences of a modern day consumer. Clients can now plan, research and execute transactions as well as manage their accounts using their tablets.

The Top 10 Robo Advisors in the US

Robo-advisor can be defined as an automated digital portfolio management service. Robo-advisor companies use computer algorithms to manage their client’s investments. Compared to the services of a traditional financial advisor, the robo advisor services are relatively cheaper. The top 10 robo advisors in the US are:

1. Betterment

The Betterment robo advisor was founded in August 2008. The total assets under their management is $5,101,000,000. It offers one of the easy to use investment platform that allows their customers to create their own investment strategies. With a management fee of between 0.15 to 0.35 percent per year, it is one of the most popular option for investors. In fact, it is one of the best robo advisors in the US not only because of their low commissions, but also the technology they offer to their clients. For instance, you can synchronize all your investment accounts within the Betterment’s framework.

2. Wealthfront

Wealth front robo advisor was founded in 2008. The company has a total of $4,020,000,000 assets under its management. They are serious about the future of their client’s investment and this is reflected in the variety of professionals they employ. They have mathematicians, economists, data scientists, authors and professors in their team. Their portfolio selections range from natural resources to domestic stocks, emerging markets and municipal bonds. You also have the freedom to adjust your

portfolio to fit within your risk tolerance. The required minimum account balance is $500 with the annual management fee ranging between 0 to 0.25 percent.

3. Personal Capital

Personal Capital robo advisor was founded in July 2009. They have a total asset value of $3,100,000,000 under their management. It is one of the best on the market with its hybrid platform combining both robo and human, financial advisory services. The financial advisers will give you the necessary guidance in budgeting, developing a savings plan, buying or selling a home and a retirement plan. It is therefore, both an investment and an advisory platform. You require a minimum of $25,000 on your account to enjoy their annual management fee of between 0.59 to 0.89 percent.

4. FutureAdvisor

FutureAdvisor robo advisor was established in 2010. The current assets under their management amount to $808,000,000. It combines objective advice, tax efficiency, diversification and low fee index funds for their clients to create a successful long-term portfolio. Their services vary from account balancing to tax evaluation and multiple account balancing. The minimum account balance required is $10,000 with a management fee of 0.5 percent. The cumulative returns posted as per July 2016 stands at 23.2 percent.

5. Vanguard Personal Advisor

It is one of the earliest robo advisors having been established in 1975 as Vanguard. It has a simple five-step process for ensuring your investment works for you. The first step is to set goals based on your personal financial details. The second step is to create a plan with the help of a financial adviser. The third step is to put the plan into place. You can choose to be involved or choose to monitor it with a hands-off approach. The fourth step is to track your progress and follow closely the performance of your plan. The last step is to rebalance your portfolio and revise your plan as necessity demands.


6. TradeKing Advisors

TradeKing robo advisor was founded in December 2015. It has one of the best online trading platform offering a spectrum of services to their clients. Their advisory service is one of the best in the industry. With their low prices and advanced trading technology, you are guaranteed the most affordable trading options for your stocks and funds. Their advisory services will enable you to customize your goals depending on factors such as age and duration. They also specialize in automated, low-cost index funds and diversified portfolio. The minimum account balance is $5,000 with a management fee of 0.5 percent.


7. Schwab Intelligent Portfolios

Schwab Intelligent Portfolios was established in April 1973 as Charles Schwab. The minimum account balance is $5,000 with a zero percent management fee. They can assist you to invest in retirement plans, vocational savings and long-term wealth creation. You can also get a sustainable income stream by

setting target withdrawal amounts for a specific period. Their cutting-edge technology will monitor and rebalance your investments to keep you on track.


8. Acorns

Acorns robo advisor was founded in February 2012. They can help you automatically invest all your spare change. Their mobile platform is a great tool for managing your portfolio as well as enjoying commission-free investments. With Acorns, you can automatically make daily, weekly or monthly investments. They also rebalance your portfolio so as to ensure you are still on track. You can pay as little as $1 to start your investments. People with accounts over $5,000 enjoy an annual management fee of 0.25 percent.


9. SigFig

SigFig robo advisor was established in 2007. It helps you to build an intelligent, diversified and tax-efficient portfolio at a relatively cheaper cost compared to that of the traditional advisers. The required minimum account balance is $2,000 with the management fee varying between 0 and 0.25 percent.


10. Asset Builder


The Asset Builder robo advisor was established in 2006 and currently has a total of $600 million assets under their management. With a minimum account balance of $50,000, you can enjoy an annual management fee of between 0.25 to 0.45 percent. It is an online portfolio platform with up to 8 portfolios to choose from.