Best Robo-Advisors

Started in 2010, Betterment is a robo-advisor that has over $32 billion in assets under management and over 775,000 customers. Investors can choose from custom-built portfolios with investments in ETFs or cryptocurrencies. New and advanced investors alike can technically start a robo-advisor account with as little as $10, though a $50 minimum is required for rebalancing. A $100 initial investment is required for crypto portfolios.

For those who want to grow their portfolio while still staying true to their values, Betterment allows you to invest in companies that make social responsibility, such as lower carbon emissions or ethical labor, a priority. You will not be able to invest in individual stocks or mutual funds through Betterment.

Fees vary based on the account you have and how much you have invested. The base price for the digital plan is $4 per month. This account automatically switches to a 0.25% AUM fee when you set up regular deposits of $250 or more or when your Betterment account balances reach $20,000. Crypto investing accounts are charged a monthly digital management fee of 1%. Crypto accounts also come with up to a 0.15% fee per trade.

Betterment is a fiduciary company, meaning it has to act in your best interest and disclose any conflict of interest. Betterment Securities is a member of the Securities Investor Protection Corporation (SIPC), which protects members’ investments up to $500,000.

Robo-advisor accounts come with automated rebalancing and advanced tax-saving tools, such as tax-loss harvesting. For those that want additional guidance, Betterment will give you unlimited financial advice from a certified financial planner (CFP) with its premium account. The cost is an additional 0.15% AUM fee.

Some of Betterment's highlights include:

• Minimal fees for accounts under $20,000
• Automatic tax-loss harvesting

Some of the downsides of using Betterment are:

• High cryptocurrency fees
• No individual stocks or mutual funds

Many report that the Betterment platform is easy to use and a simple way to get started in investing. Several reviewers saw significant growth in their investments, with one reporting that they used their investment profits to purchase a car. One California reviewer said: “I opened a regular taxable investment account with them in May 2020 when the market was already on its way out of the COVID hole. By January 2021 they earned me 28% of the sum of my deposits.”

The number one complaint is customer service. Reviewers felt that customer service reps were rude and unhelpful, or that they took a long time to resolve issues. Others complained that it was hard to get someone to answer their questions.

Fidelity has been around since 1946. It offers a beginner-friendly robo-advisor account, Fidelity Go.

Fidelity Go comes with two different levels: one version for account balances under $25,000 and another for account balances over $25,000. For accounts under the $25,000 threshold, there are no management fees or account minimums. You will still need to have at least $10 in your account if you want to start investing, though.

For accounts over $25,000, the advisory fee is 0.35% per year. At this level, you will also have access to human advisors through unlimited 30-minute telephone coaching calls. This gives you more of a hybrid robo-advisor experience.

Fidelity’s robo-advisor account does not offer tax-loss harvesting, which is a strategy used to reduce taxable capital gains on investments. Many robo-advisors offer automatic tax-loss harvesting, so there is a possibility of big tax implications with this account.

Soon, a separate platform called Fidelity Crypto will be available in select states, allowing investors to trade bitcoin and ethereum. You won’t be able to stake your cryptocurrency, though. Fidelity also does not offer trading in futures.

Some of Fidelity’s highlights include:

• No management fees for accounts under $25,000
• Hybrid robo-advisor option

Some of the downsides of using Fidelity are:

• Limited to investing in Fidelity Flex mutual funds
• No tax-loss harvesting

Many recommend Fidelity Go because of how easy it was to set up and how the platform made smart recommendations based on the investor’s age and goals. Another favorite perk of Fidelity is its selection of mutual funds available for investing. One customer in Idaho said: “When you leave a company, you can transfer your 401(k) to Fidelity free of charge and for the last year or so, trades are free also. Great website, and you can get a daily email with results of stocks you want to watch.”

Many customers agreed that Fidelity made them wait too long on the phone for customer service. One reviewer described their customer service experience as “exasperating.” Others complained that their accounts were frozen or blocked unnecessarily.

Charles Schwab has been a household name since 1971 and manages over $7 trillion in client assets and 33.8 million brokerage accounts. It offers two levels of its robo-advisor account, Schwab Intelligent Portfolios.

With a starting minimum of $5,000, the robo-advisor account will automatically build and rebalance a diversified portfolio for you based on the goals, investment amount, timeline and risk tolerance you input. For this account, you will pay no advisory fees or commissions. Plus, you will have access to 51 ETFs selected and monitored by Schwab experts. Automatic tax-loss harvesting is available for account balances over $50,000.

Schwab Intelligent Portfolios Premium is a hybrid robo-advisor account that gives you access to interactive online planning tools and unlimited one-on-one guidance from a CFP. The minimum account balance is $25,000, and there is a one-time $300 fee and a $30 per-month advisory fee after that.

Premium investors can create what-if situations with a feature called the Play Zone. This allows you to put your savings through simulated variables, such as a market dip, to see how your investments would fare.

Some of Charles Schwab’s highlights include:

• No advisory fees or commissions for regular, nonpremium robo-advisor
• Hybrid robo-advisor option with financial advisor access
• Access to 51 ETFs

Some of the downsides of using Charles Schwab are:

• High account minimum
• Minimum $50,000 account balance for tax-loss harvesting

The smart online layout and easy-to-use functionality of the platform make Schwab Intelligent Portfolios a popular pick with many customers. One  California reviewer said: “Minimal fees; Brokers walk me through the process how to buy and sell shares. They make recommendations. If I want additional assistance, they will do so for a charge. There is a system whereby I can have a computer-generated system work for me. Many choices and easy to use online.”

As with many of the companies we reviewed, customer service is a common complaint. Many reviewers said it took a long time to get a hold of someone, with one reviewer reporting it took as long as three days for a response when they messaged customer service.

Wealthfront was started by a venture capital firm co-founder and former trader. Both wanted to bring investing and financial advice to everyday people who have modest account balances. It offers complete robo-advisor accounts with account minimums as low as $500.

Wealthfront charges a 0.25% annual advisory fee, deducted monthly from your account. This is one of the only fees you can expect, since the company does not charge account opening or closing fees, transfer fees or trading and commission fees. Plus, Wealthfront says that 96% of its users reclaim this fee through the automatic tax-loss harvesting process.

With Wealthfront, you can invest in over 200 ETFs and two different cryptocurrency trusts. However, there is no direct trading with cryptocurrency. Choose from classic ETFs or socially responsible portfolios that feature companies that care about emissions and ethical labor and trade.

Wealthfront has over 500,000 clients and manages over $34 billion in assets. All customer support is available through online help FAQ or a contact form. There is no live chat or phone support available for investing help, though. If you have technical issues, there is a customer support line available during normal business hours.

Some of Wealthfront’s highlights include:

• Low account minimum
• Automatic tax-loss harvesting

Some of the downsides of using Wealthfront are:

• Limited customer support options
• No person-to-person financial advice

Many found Wealthfront easy to set up and said it was simple to start investing without paying a lot of money per month. Many also liked that they could set and forget their investing accounts and earn money without much effort. One Nevada reviewer said: “Signing up and setting up my bank info was super easy. The minimum to start an account is only $500, which is a very affordable way to begin an investment account. If you want to deposit and then be hands-off, this account is perfect.”

While many loved the automatic features of robo-advising, some did not like having a customer service support team that was so hands-off. Some customers complained it was hard to get a hold of someone and that if they did get in contact with a person, that person was very rude and unhelpful.

SoFi was established in 2011 as a student loan refinancing company, and has grown since. In addition to loans and banking products, it now offers robo-advising through its automated investing platform. Set your financial goals with SoFi’s robo-advisor, and it will provide financial guidance and portfolio management for you. SoFi will then automatically invest based on the portfolio you would like to have. If you wish to choose your own stocks, there is an active investor account available.

Open an investment account for as little as $1 with no advisory fees or commission fees. Note that ETFs come with management fees. These fees are not paid by you but can decrease your rate of return.

SoFi offers diversification to minimize the risks of investing. You can expect your investment to be spread out into different types of financial investments. Additionally, accounts will be automatically rebalanced. However, SoFi accounts do not offer automatic tax-loss harvesting.

SoFi also offers a separate, 24/7 cryptocurrency trading platform, which is available in most U.S. states. That said, it does cost a markup of 1.25%. Trade popular cryptocurrencies, including bitcoin, ethereum and litecoin, in real time. The minimum purchase for crypto is only $1, and the maximum is $100,000 per day.

Some of SoFi’s highlights include:

• No advisory or commission fees
• Low minimum investment

Some of the downsides of using SoFi are:

• No tax-loss harvesting
• Automatic investing not customizable

There are few reviews for SoFi automated investing from ConsumerAffairs readers, and none report a positive experience. However, this does not provide a comprehensive picture of users’ experiences, and others who have used the service might not have provided a review.