Hiring a stockbroker can be too expensive, depending on their years of experience and credibility. But what if I tell you that you can have an advisor without spending tons of money? And what if I tell you that I talk about this robot, Robo-advisor?
A Robo-advisor is a digital platform that will help you in your investing and trading plants. It is an algorithm-driven technology that will provide financial planning services with or without human supervision.
Here are the benefits of using Robo-advisors that you should know:
Hiring a financial advisor or a stockbroker for your trading business can be too expensive. Online or digital platforms can minimize the fraction of your cost while they offer the same services. Robo-advisors usual annual charges are roughly 0.2% to 0.5% of your total account balance.
A human financial planner’s typical charges can range from 1% to 2% or more if you have commission-based accounts.
Robo-Advisors are Accessible
When you have a human financial advisor, you need to put their schedules into consideration. So, you probably need to set a schedule to have a one-on-one session with them. On the other hand, the robot-advisors are available 24/7, as long as you have an internet connection.
Less Capital to Register for an Account
The typical or minimum assets for registering an account to get started in trading is at least hundreds of thousands of dollars. Remember that the standard baseline is $5,000. When you choose the Betterment Robo-advisor, you don’t need to pay for the minimum capital at all. But you are free to choose any Robo-advisor that fits your needs and preferences.
Most human advisors do not accept clients with less than $100,000 in investable assets. Of course, they are looking for a client with a high-net-worth and a variety of wealth management services.
Robo-Advisors are Efficient
When you hire a financial advisor or a broker, you need to meet up in a private or semi-private area where you can talk about the trade, your needs, trading preferences, and fill-out documents. On the other hand, the robot-advisors lets you perform everything you need to do by clicking on your phone’s or buttons in your home.
However, there are disadvantages when using a Robo-advisor. So, before taking it as one of your go-to financial advisors, you still have to consider the pros and cons.
Also check out https://www.roshi.sg/online-stock-trading-platforms/