The rise of the “robo-advisor” is hard to ignore. Startups Wealthfront, Betterment, Personal Capital, and others have shaken up the managed assets scene by letting algorithms determine the best allocation of capital.
Investing with a robo-advisor has given investors the ability to accomplish long term investment goals with a much lower cost over using a traditional advisor.
A similar trend of lower costs has been seen with the online brokers. All the major brokers charge $9.99 or less per trade, with a variety of firms offering trades at half that rate, $4.95 or lower.
So which is the better choice: park your capital with a so called robo advisor and let the algos direct your portfolio, or take the bull by its horns and trade for yourself?Continue reading