Investopedia’s list of the best 澳洲幸运5官方开奖结果体彩网:robo-advisors is based on in-depth research and robust data across 21 companies that offer digital investment services. We reviewed each company’s account services, investment optionওs, customizable portfolio management features, cash management tools, fees, and much more. This guide explains the categories and criteria we used to evaluate each company’s offerings and our scoring process for determining the best robo-advisors.
Our editors and researchers independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Our advertising partnerships are not a factor in how we evaluate products, though they may🔯 affect the order of products you see listed in our articles.
How We Research Robo-Advisors
Through a combination of subject matter expertise, consumer survey and company survey data, and industry research, we developed a quantitative model that scores each co🌼mpany based on nine major categories and 59 criteria that are crucial in evaluating🦄 the advisors’ offerings and usability.
To collect the data, we sent a digital survey with 64 questions to each of the 21 companies we included in our rubric. Additionally, our team of researchers verified the survey responses and collected any missing data points through online research and conversations with each company directly♕. The data collection process spanned from Jan. 8༒, to Feb. 9, 2024.
In 2023, our research team conducted a survey of 205 U.S. adults aged 18 to 72 who are current clients of one of 18 robo-advisors that are part of our rubric. Participants in this 澳洲幸运5官方开奖结果体彩网:2023 survey opted-in to an online, self-administered questionnaire from a market research vendor. Survey data collection took place between Aug. 30, and Sept. 15, 2023, with 11 video interviews conducted with volunteer respondents from Sept. 7, to Sept. 17, 2023. Multiple quality checks, including screeners, attention gauges, comprehension evaluations, and logic metrics, among others, were used to ensur🔯e only the highest quality responses were included.
This 2023 survey was used to inform our weighting and scoring process for our 2024 best robo-advisor awards to best serve readers’ needs. We adjusted the weights for goal planning, fees, portfolio contents, portfolio management, and user experience because our survey told us that those factors matter more and less to readers looking for a robo-advisor.Investors are likely to use robo-advisor platforms to invest for goals like large purchases—houses, vehicles, and travel—more than retirement. The majority of investors who use these platforms are in their 20s and 30s, and consider themselves to have intermediate-to-advanced computer skills. Fee-based financial planning tools and services is the most searched topic by robo-advisor users.
Robo-Advisor Evaluation Categories
Based on a combination of subject matter expertise and the results of our 2023 Robo-Advisor Consumer Survey, we developed the fo𒐪llowing category weights:
These categories were then broken down into 59 weighted criteria, resulting in 1,239 data points that make up our scoring rubric.
Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of the top robo-advisors.
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Data Collection and Scoring
- Data points are scored on a 0.00 - 1.00 scale
- Binary criteria = [0,1]
- Scaled criteria (e.g., 5-point) = [0.00, 0.25, 0.50, 0.75, 1.00]
- Continuous criteria, minimum value in the database was re-scaled to 0.00 and maximum value was re-scaled to 1.00
Goal Planning
Investors have diverse sets of goals and timelines that extend well beyond simply saving for retirement. That's why having access to tools that help you build the capital needed to make large purchases is also a top considerations when choosing a robo-advisor.
This entire section accounts for 21% of the total w🐎eighted scꦦore in our evaluation.
To evaluate goal planning, we looked to sꦅee if the following tools and featur🤡es were available to clients:
Retirement Planning Tools
We score this on a binary scale, awarding 1 point to companies offering retirement planning tools, and 0 points to those that lacked these tools.✨🦄
Planning Tools for Large Purchases
We score this on a binary scale. If the robo-advisor offers planning tools for large purchases, a score of 1 w🍬as given. For companies lacking these too💎ls, a score of 0 was given.
Other Goal Tools
For this criteria, we scaled the responses (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies with the largest selection of goal-planning tools outside of re♔tirement and large purchases the highest scores. Conversely, companies with more limited goal-plan𓆏ning tools received the lowest scores.
Portfolio Management
The quality and availability of portfolio management features is critical when choosing a robo-advisor. It’s essential to know how portfolios are managed and the features available to clients to monitor their portfolios. This entire section accounts for 17% of the total weighted score 𒉰in our evaluation.
To evaluate portfolio man💖agement, we looked at the following🥂 features:
Automatic Rebalancing
We scored this item on a continuous scale of 0.00 to 1.00, as opposed to a binary scale.ꦑ Companies that provide daily portfolio monitoring and rebalancing based on portfolio drift from predefined thresholds received the highest score, while companies that rebalance with less frequency received a lower score.
Tax-Loss Harvesting
We score this on a binary scale, giving robo-advisors that provide true tax-loss harvesting features a score of⛦ 1, while companies that lack this feature o🐓r only provide tax mitigation strategies received a score of 0.
Frequency of Tax-Loss Harvesting
For this criteria, we scaled the responses (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies with the greatest frequency of tax-loss harvesting activity the highest scores. Conversely, companies w🎶ith more limited tax-loss harvesting activity received the lowest scores.
Real-Time Reporting on Progress Towards Goals
We scored this on a binary scale, awarding 1 point to companies that provide real-time reporting on progress toward goals, and 0 points to companies that lack this feature.
Consideration of Synced External Accounts
We score this on a binary scale. Companies got a score of 1 if they consider synced external accounts when performing critical functions like portfolio analysis or taxable transactions. Companies that lack this feature received a score of 0.
Account Types
We scored this item on a continuous scale of 0.00 to 1.00, as opposed to a binary scale of 1 or 0. Companies with the largest selection of supported account types received a higher score and companies with the smallest selection received a lower score.
Portfolio Contents
The asset management industry is always evolving and new investment vehicles that improve tax efficiency, provide access to new asset classes, and add🏅ress socially sensitive concerns are constantly being introduced. The best robo-advisors quickly incorporate these features and maintain a wide range of non-proprietary investment types that help lower the barrier to entry, suppress fees, and broaden allocation options.
This entire section accounts for 17% of the total weighted score in our e🔜vaꦡluation.
To evaluate portfolio contents, we looked to see if the following asset classes were available to clients:ꦡ
Socially Responsible Investi🅺ng (SRI) or Env♈ironment, Social, and Governance (ESG) Options
Robo-advisors that provide SRI or ESG investments were given a binary scor🐷e of 1, while a 0 was given 🌟if these options are not available.
Non-Proprietary ETFs or Mutual Funds
We scored this item on a continuous scale of 0.00 to 1ꦅ.00. Companies with the largest selection of non-proprietary ETFs or mutual funds received a high score and companies with the smallest selection received a low score.
International Stocks and Bonds
For th🧔is item, we scaled the responses (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies with the largest selection of international stocks and bonds the highest scores. Conversely, companies with limited international stock and bond offerings received the lowest scores.
Fractional Shares
We score this on a binary scale. Robo-advisors that offer fractiဣonal share investing were given a score of 1, while a lack of this offering resulted in a score of 0.
Dividends on Fractional Shares
༺W꧟e scored this on a binary scale. Companies that offer customers the ability to collect dividends on fractional shares received a score of 1, while a score of 0 was given to companies lacking this offering.
Hedging Strategies
We scored this on🎉 a binary scale. Companies that employ hedging strategies were given 1 point, and companies that do not use these strategies got 💯0 points.
Fees
Because many of these digital wealth management plဣatforms invest client assets in prepackaged portfolios and involve minimal human supervision, they are able to charge lower fees than traditional financial advisors. But there are also a number of robo-advisors that provide more customized products and access to licensed representatܫives, which may result in higher fees.
This entire section accounts for 15% of 🌊the total weighted score in our evaluation🐽.
When analyz🔯ing th💞e costs associated with using a robo-advisor’s platform and services, we looked at the following criteria:
Fees and Commissions Charged for🍸 Trading Individual Stocks
We score this on a binary scale. If the ability to trade individual stocks was offered for no fee, a score of ✃1 was given. Companies that either lacked stock trading capabilities or charged a fee for offering this feature received a score of 0.
Cost Per Month for an Account With $5,000
We used a scaled criteria model (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies that levy the lowest fees on accounts with a $5,000 ꧋balaꦏnce the highest scores. We gave companies that charge the most the lowest scores.
Cost Per Month for an Account With $25,000
We used sc𝓀aled criteria (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies that levy the lowest fees on accounts with a $25,000 balance the highest scores. We gave companies that charge the most the lowest scores.
Cost Per Month for an Account With $100,000
We used scaled criteria (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies that levy the lowest fe🃏es on accounts with a $100,000 balance the highest scores. We gave companies that charge the most the low🃏est scores.
Termination Fees
For this criteria, w෴e score on a binary scale and companies that did not charge a termination fee were given 1🌃 point, while companies charging termination fees received 0.
Average Underlying Fee for ETFs
We used a scaled criteria model (0.00, 0.25, 0.50, 0.75, 1.00) and gave the highest scores to companies with the lowest average underlying fee for ETFs. Conversely, companies with 𝕴the highest average underlying fee were given the lowest scores.
Account Services
In an industry as competitive as the robo-advisor industry, the best platforms must offer robust cash management tools and give access to convenient banking services🐲 in order to keep customers happy.
This entire section accounts for 10% of the total weighted scorܫe in our eva🍸luation.
Our account services category measures the quantity and quality of the followi🌞ng ke🐽y services that each platform offers:
Combininಌg Self-Driven Trading and Robo-Advisor Services
A binary score of 1 was given to companies that provide self-driven trading ser𒈔vices at the stand-alone digital 🔯advisor level, while a 0 was given to those companies without this capability.
Placing Trades for Individual Stocks
💫Companies that allow users to 🍎place trades in stocks at the stand-alone digital advisor level were awarded a binary score of 1, while a 0 was given to those companies without this offering.
Number of Individual Stocks Available to Trade
We scored this item on a continuous scale of 0.00 to 1.00. Companies that offer access to trading in the largest number🐎 of stocks received the highest scores, while companies with smaller stock offerings received lower scores.
Placing Trades for Specific Mutual Funds
Companies that offer their users the ability to place trades for specific mutual funds received a binary ﷺscore of 1 and companies lacking this offering were given a score of 0.
Placing Trades for Fixed Income
Companies that offered their users the ability to p𒁃lace trades for fixed income directly, not through ETFs or mutual funds, received a binary score of 1, while a lack of this capability demanded a score of 0.
Placing Trades for REITs
Robo-advisors that allowed their customers to place trades for REITs at the stand-alon🌱e digitaꦚl level directly, not through ETFs or mutual funds, received a binary score of 1, while companies without this offering received a score of 0.
Placing Trades for Other Asset Classes
Companies that allowed 𓄧users to place trades for any other asset classes, such as crypto or forex, received a binary score of 1, and companies w𓆏ithout this capability were given a 0.
Automatic Sweeps
Here, we scaled the responses (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies with the most automatic sweep ꦇoptions the highest scores. We gave the lowest scores to companies with the fewest options.
Interest Paid on Cash Balances
The amount of interest paid on cash balances waꦅs scored on a continuous scale of 0.00 to 1.00. Companies offering the highest APY on uninvested cash received the highest scores, while companies that offer low or no interest received the lowest scores. Since APYs are variable, we are constantl🐟y monitoring how rate changes may impact the winners in our lists.
Integration With Banking or Brokerage Accounts
Companies that offered integration with banking or brokerage accounts for easy account transfers received a binary score🧸 of 1, while a lack of this capability resulted in a score of 0.
Portfolio Margin Availability
Robo-advisors that make portfolio margin availab🦹le were given a binary score of 1, while digital advisors without this item received a score of 0.
Fee Charged for Using Portfolio Margin
We scored this item on a continuous scale of 0.00 to 1.00. Companies that charge the lowest fees for portfolio margin received the highest scores, while companies ಌwith the highest fees received lower scores.
Process for Withdrawing Funds
When it comes to withdrawing funds, we scaled the responses (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies with the most convenient methods the highest scores. Co☂nversely, companies that added layers of complexity to this process were givಌen the lowest scores. For example, convenient methods include one-click withdrawal, which takes two days to settle, and auto monthly, quarterly, or annual withdrawals.)
Charitable Giving Options
For ൩this criteria, companies that provided charitable giving options were given a binary score of 1, and those without this capa🐎bility received a score of 0.
Discounts Available on Other Products and Service✨s
Companies that offer discounts on other products and services, like lower interest rates on loans provided by the parent company, were given a binary score of 1, while companies without these offerings received a score of 0.
User Experience
At their co🐼re, robo-advisors are digital wealth management platforms, which means human assistance is often limited during the onboarding process. Therefore, the best robo-advisors provide a smooth user journey and easy-to-use features that make investing enjoyable for less experienced investors.
Th🤪is entire section accounts for 5% of the tota♏l weighted score in our evaluation.
To evaluate each platform’s user 🌺experience, we looked at the following features:
Usability
We scored this item on a continuous scale of 0.00 to 1.00, a🍌s opposed to a binary scale. Our subject matter expert tested the usability of each platform and💫 gave companies with the best user experience a high score. Conversely, platforms that offer a weak user experience were given lower scores.
iOS App Availability
A binary score of 1 was given to companies that provide an app for iOS devices, while a lack of this app resulted in a score 🅷of 0.
Android App Availability
A binary score of 1 was given to companies that provide an app for Android devices, and a score of 0 was given for no app availability.
Security and Education
Although robo-advisors are designed so that you only need minimal involvement in the money management process be🌳yond the initial onboarding survey, the best robo-advisors provide useful prompts and other forms of educational content to help guide yಌou along your journey.
In addition, most robo-advisors offer two-factor authentica🐽tion and encrypted security measures. However, there are meaningful differences in the level of SIPC insurance available to insure your money against institution🍸al failure.
This entire section accounts for 5% of the total weighted score in our evaluati♔on.
When examining the educational and security offerings of the companies w💧e reviewed, we looked at the following criteria:
Educational Videos
If a robo-advisor offered educational videos, it received a binary score of 1. For robo-advisors without this form of educational content, a score of 0 waဣs given.
Educational Articles
If a robo-advisor provided access🉐 to educational articles, it received a binary score of 1. Any company that lacked thi💎s content received a 0.
Frequently Asked Questions (FAQs)
Companies offering accಌess to FAQs were aꦦwarded a binary score of 1, and companies lacking this information received a 0.
Website Encryption
Robo-advisors that have encrypted websites were given a binary score of 1, and companies lacking th♊is level of security received a 💮0.
Two-Factor Authentication
Companies requiring two-fact🎃or authentication were awarded a binary score of 1, while companies without this level of security received a 0.
Excess SIPC Insurance
If robo-advisors offered excess SIPC insurance, they received a binary 🧸score of 1. Any company not offering this꧒ extra level of security received a 0.
Customer Service
Some robo-advisor platforms are designed so that the growing number of users w🔯ho prefer to help themselves can do so using FAQs and features lik꧅e chatbots. However, other robo-advisors have found better ways to maintain a human element in their customer service for those clients who still need it.
This entire section acc♏ounts for 5% of the total weighted score in our evaluation.
When measuring the breadth o♏f customer service offerings ꦚeach of these digital platforms delivers, we considered the following criteria:
Online Chat for Prospective Clients
Companies that have an online chat for prospective clients received a binary score of 1, while a 0 was givꦗen to companies without this feature.
Licenses Held by Advisors
For this key criteria, we scaled responses (0.00, 0.25, 0.50, 0.75, 1.00) so that companies that provide access to a🔯dvisors with the most professional licenses received the highest scores, and advisors with fewer licenses were 🎐given the lowest scores.
Telephone Customer Service Hours
The hours that customer service is made available via telephone was scaled (0.00, 0.25, 0.5🐼0, 0.75, 1.00) so that companies with the most availability were given the highest scores, and companies with limited availability were given the lowest scores.
Live Chat Customer Service Hours
The hours that customer service is made available via chat was scaled (0.00, 0.25, 0.50, 0.75, 1.00) so that companies with the most av🃏ailabilit🤪y were given the highest scores, and companies with limited availability received the lowest scores.
Email Customer Service Hours
The hours that customer service is made availabജle via email was scaled (0.00, 0.25, 0.50, 0.75, 1.00) so that companies with the most availability were given the highest scores𓄧, and companies with limited availability were given the lowest scores.
Account Setup
Many users look for ease and simplicity when setting up any account, and this is especially true when it comes to signing up for and optim🍒izing a digital investment acc🥃ount, such as with a robo-advisor.
This entire section accountﷺs🎶 for 5% of the total weighted score in our evaluation.
As we examined the account setup category, we considered the following set of critical criter🧸ia:
Online or Offline Account Setup Process
If the entire process of setting up a ro𒐪bo-aꦉdvisor account could be completed online, a binary score of 1 was awarded. Conversely, platforms where any part of the process required offline procedures received a 0.
Minimum Account Size
This item was scored on a continuous scꦜale of 0.00 to 1.00. Companies with the lowest account minimums received higher scores, while companies requiring high account minimums received lower scores.
Ability to View a Portfolio Prior to Funding
If robo-advisor companies allowed customers to see proposed portfolios prior to funding, they were awarded a binary score of 1. An꧟y compa🔴nies that did not allow this advantage received a score of 0.
Portfolio Customization Availability
For this item, we scaled the responses (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies with the greatest flexibility of portfolio customization (companies that provided the easiest and most efficient way of portfolio customization like dynamic portfolio allocation, portfolio diversification, etc.) the highest scores. Conversely, companies with limited customization methods received the lowest scores.
Portfolio Customization Options
When it comes to portfolio customization options, we scaled the responses (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies with the largest selection of portfolio customization options the highest scores (options such as ETF-only portfolios, sustainable impact portfolios, tax aware portfolios, etc.). Conversely, companies with a limited selection received the lowest scores.
Portfolios Adjustments
If the robo-advisor provides portfolios that adjust acco🍸rding to target dates and specific goals, a binary score of 1 was awarded. Conversely, the lack of this feature received a 0.
Extra Credit for Access to Human A🍸dvisors at No Extra Charge
As the robo-advisor industry has grown increasingly competitive, more and more companies are offering access to human advisors at a variety of service levels. In order to provide our readers with the information necessary to make the most informed decisions possible, our research team collecte🔥d data at the stand-alone digital advisor level, free of any pre൩mium features. We then awarded a credit to companies that allow digital-level customers to speak with a licensed investment professional, and an additional credit if that advice comes at no extra charge.
Articles That Use Our Methodology
The investment industry is always evolving, with more cutting-edge investment products and platforms constantly being made avai꧅lable. Robo-advisors are an important part of this ever-changing landscape, which is why we’ve written extensively on the subject.
The research conducted and data collected to create this m꧟ethodology have been used to compile th🧸e following list of recommendations:
- Best Robo-Advisors
- Best Robo-Advisor Cash Management Accounts
All Investopedia articles that review the robo-advisor companies that make up our list of the best, such as 澳洲幸运5官方开奖结果体彩网:Wealthfront and 澳洲幸运5官方开奖结果体彩网:Betterment, are based on the ꦇresearch, data, and grading process desc﷽ribed in this methodology, along with subjective insights from our editors and industry experts.
Meet the Investing Research & Reviews Team
Amrut Deshmukh
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Michael Sacchitello
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