Searching for the right stocks to supercharge your investing strategy can feel overwhelming. There are about 2,300 companies listed on the New York Stock Exchange. Thankfully, robo-advisors can sift through them for you and identify which ones fit your goals using sophisticated algorithms.
“If you are new to investing, a robo-advisor can be a good way to start,” said Chad Gammon, CFP, founder of Iowa-based Custom Fit Financial. “A robo-advisor offers automated portfolio management at a fairly low cost and requires a minimal amount of effort.”
You have plenty of options to choose from. Here are our top picks.
- Cost: $4 per month or 0.25% annually
- Minimum investment: $10
- Additional perks: Premium tier offers personal access to a team of CFPs. It costs 0.65% and requires a $100,000 minimum balance.
Betterment was one of the first robo-advisors and its mobile app gets high ratings on the Apple Store and Google Play. The company’s curated portfolio options include low-risk assets like all-cash, high-risk assets like crypto ETFs, and Climate Impact and Social Impact portfolios.
Betterment is similar to Wealthfront (covered below), which is also worth a look. But Betterment's current bonus opportunity gives it the edge. Through April 30, 2025, new investors can score up to $1,000 with qualifying deposits.
- Cost: 0.25% annual fee
- Minimum investment: $500
- Additional perks: A high-yield account for cash, plus additional products like an automated bond ladder and an individual stock-picking program
Wealthfront and Betterment are quite similar, and while both appear on this list, we recommend Wealthfront if you want easier, free access to human assistance. The company says its product specialists -- which include CFAs, CFPs and CPAs -- regularly answer the phone in less than 10 seconds and respond to emails within one business day.
There are loads of ways to customize your portfolio across 17 asset classes. And if you ever want to take a more active role in managing your portfolio, Wealthfront has a separate product for individual stocks, which includes pre-built collections of companies in certain industries and helpful research to guide your own picks.
- Cost: No advisory fees or commissions
- Minimum investment: $5,000
- Additional perks: Schwab Intelligent Premium comes with access to a CFP but it’s not cheap. You’ll pay a one-time $300 planning fee and a $30/month advisory fee.
Schwab Intelligent Portfolio charges no fees or commissions. You’ll need to make a higher minimum investment -- $5,000 – but the company offers more than 50 ETFs and 24/7 live chat customer service. Tax-loss harvesting is available if you have at least $50,000.
Your money won’t be fully committed to investments. Based on your risk profile, Schwab will put a portion of your money into an FDIC-insured account. But that could be a benefit if you're looking to add more security to your portfolio.
- Cost: 0.25%
- Minimum investment: $50
- Additional perks: Access to free virtual financial planner
While most robo-advisors have a fairly standard mix of investment opportunities, SoFi recently added a range of alternative offerings typically available only for private banking (think wealthy) clients.
For example, SoFi’s offerings include the ARK Venture Fund, which has holdings of private companies like Discord, OpenAI and SpaceX. The robo-advisor is built in partnership with investment titan BlackRock. Another big perk: You can meet with a financial planner virtually at no extra charge.
- Cost: Nothing for balances of less than $25,000; 0.35% for higher balances
- Minimum investment: $10
- Additional perks: Unlimited coaching once your balance is greater than $25,000
Fidelity Go is a solid option for beginners because it charges no fees for balances less than $25,000. Once your balance crosses that threshold, you’ll pay a 0.35% advisory fee but you’ll get coaching via unlimited 30-minute phone calls with a Fidelity advisor. It’s a great way to dip your toes into the investing world without handing over any extra money.
- Cost: 0.24%
- Minimum investment: $1,000
- Additional options: Offers self-directed investing and access to a personal financial advisor
In the past few years, some of the biggest names in banking -- like JPMorgan Chase and Goldman Sachs -- have ditched their robo-investing options, leaving customers to deal with self-directed investing tools or find a new tool. U.S. Bank, however, still offers one.
You’ll need to be a U.S. Bank customer to use it, which makes it a good pick if you want to keep all your money -- checking, savings and investments -- under one roof.
Who should use a robo-advisor?
If you’re a hands-on investor, or feel strongly about going to a human financial planner for investment advice, robo-investing probably isn’t for you. Instead, try using a portfolio manager or selecting your portfolio investments yourself. But if you prefer the hands-off approach to a managed portfolio, a robo-advisor might be a great choice.
Gammon says that robo-advisors offer “a great starting point for beginners.” Think of them as a way to get comfortable seeing how investments can move up and down, but don’t expect to generate a wild return that beats what the average investor is generating.
“[Robo-advisors] won't outperform the market because they focus on diversification and risk management,” Gammon says. “As your financial needs grow, you can transition to human financial advice for more personalized service.”
How to choose a robo-advisor
Choosing a robo-advisor is similar to choosing any financial service. Consider what you care most about and how much you’re willing to pay for it, then compare multiple companies to see where you’ll get the best experience at the best price. Be sure to weigh the following factors.
Fees
You’re trying to make more money with a robo-advisor, so it’s smart to start your search by knowing how much you’ll have to fork over to use a service. Most robo-advisors charge fees, so compare costs before choosing one.
Also consider how much you value talking to a human being for additional coaching and advice. Many services charge a higher fee for regular access to a certified financial planner.
Usability
A robo-advisor should be easy to use. After all, the point is for it to do the work for you. Take a look at the interface and see if you can automate deposits to continue growing your principal. If you’re hoping to monitor your daily performance, look for a robo-advisor with a well-reviewed mobile app that can give you an instant look at your portfolio.
Historical performance
There’s no way to predict what your investment will do -- risk is inherent in the market -- but the past performance of any fund can indicate how the robo-advisor did compared with the broader market.
The best robo-advisors offer a chart that shows the past few years of performance. Use this as a reference point. If you had invested $10,000 five years ago with the options you’re considering, where would it have done best?
Investment types
Before choosing a robo-advisor, look at the different types of investments they offer, such as ETFs, mutual funds, index funds, bonds and cryptocurrency. If the robo-advisor doesn’t have the kinds of investments you’re looking for, it's probably not the best option for you.
Account types
If you want to use your robo-advisor to save for retirement, make sure it offers tax-advantaged retirement accounts such as traditional or Roth IRAs. Keep in mind that, depending on the type of account, you may owe penalties and taxes on any money you withdraw before you retire. Retirement accounts also come with annual contribution limits, which could affect how much you can invest each year.
If you want to use your robo-advisor to help you achieve a long-term financial goal such as homeownership, make sure it offers individual brokerage accounts that aren’t associated with tax-advantaged retirement plans. That way, you can invest as much as you want and withdraw money whenever you’re ready to use it.
Customer support
While the main benefit of a robo-advisor is having a machine handle all the work, you may still want to connect with a real person for additional assistance. Before signing up for a robo-advisor, check out its customer support options -- such as email, chat or talking to a live agent over the phone -- and make sure it offers the methods you prefer.
How to register with a robo-advisor
In most cases, it’s easy to set up an account with a robo-advisor. You’ll need to provide basic identifying information, as well as information about your investment goals, timeline and risk tolerance. Be prepared to answer questions like, “If your investment lost 20% of its value, would you sell your remaining funds or try to buy more?”
You may be asked to link a bank account and decide if you want to make automatic contributions to your investment accounts.
You may also be asked what types of investments you prefer, such as investing in large U.S. tech companies, cryptocurrency, socially responsible investing or simply matching the performance of the S&P 500.
Once your robo-advisor understands your investing goals, you’ll receive a customized portfolio to evaluate and accept. You may receive a few portfolio options to choose from based on different risk levels and projected outcomes. Keep in mind that all investment predictions are educated guesses, and your actual portfolio performance may yield higher or lower returns.
FAQ
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Methodology
To determine the best robo-advisor out there, we reviewed them based on:
- Minimum account opening balances and ongoing balances (if any)
- Number of fees and their costs
- Variety of investment accounts available
- Access to a human investment manager (for financial advice and technical support)
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
