Most people would prefer to leave the gritty details of investing to the professionals. If you’re this kind of hands-off investor, choosing a robo-advisor could be a great choice for your investing dollars. Robos use automation and software to invest your money in a well-diversified portfolio, and they charge very low annual fees.
Fortune RecommendsTM has reviewed nearly two dozen robo-advisors to help you find the best option for your money. Our picks offer a great combination of low annual fees, low minimum deposits, great investing features and superior customer support.
The best robo-advisors of December 2024
Company | Annual advisory fee | Minimum investment amount | Live advisors available? | See details |
---|---|---|---|---|
Wealthfront | 0.25% | $500 | Yes | Learn more |
Schwab Intelligent Portfolios | N/A | $5,000 | Yes | Learn more |
Betterment | $4 per month or 0.25% | N/A | Yes (for a fee) | Learn more |
Ellevest | 0.25% | N/A | Yes (for a fee) | Learn more |
E*TRADE Core | 0.30% | $500 | Yes (for a fee) | Learn more |
SoFi | N/A | $1 | Yes | Learn more |
Ally Invest Managed Portfolio | 0% to 0.30% | $100 | Yes (for a fee) | Learn more |
Wells Fargo Intuitive Investor | 0.35% | $500 | Yes (for a fee) | Learn more |
Fidelity Go | 0% to 0.35% | $10 | Yes (for a fee) | Learn more |
SigFig | 0% to 0.25% | $2,000 | Yes | Learn more |
10 best robo-advisors of December 2024 | ||||
---|---|---|---|---|
Wealthfront | Learn more | |||
Annual advisory fee | 0.25% | |||
Minimum investment amount | $500 | |||
Live advisors available? | Yes | |||
Schwab Intelligent Portfolios | Learn more | |||
Annual advisory fee | N/A | |||
Minimum investment amount | $5,000 | |||
Live advisors available? | Yes | |||
Betterment | Learn more | |||
Annual advisory fee | $4 per month or 0.25% | |||
Minimum investment amount | N/A | |||
Live advisors available? | Yes (for a fee) | |||
Ellevest | Learn more | |||
Annual advisory fee | 0.25% | |||
Minimum investment amount | N/A | |||
Live advisors available? | Yes (for a fee) | |||
E*TRADE Core | Learn more | |||
Annual advisory fee | 0.30% | |||
Minimum investment amount | $500 | |||
Live advisors available? | Yes (for a fee) | |||
SoFi | Learn more | |||
Annual advisory fee | N/A | |||
Minimum investment amount | $1 | |||
Live advisors available? | Yes | |||
Ally Invest Managed Portfolio | Learn more | |||
Annual advisory fee | 0% to 0.30% | |||
Minimum investment amount | $100 | |||
Live advisors available? | Yes (for a fee) | |||
Wells Fargo Intuitive Investor | Learn more | |||
Annual advisory fee | 0.35% | |||
Minimum investment amount | $500 | |||
Live advisors available? | Yes (for a fee) | |||
Fidelity Go | Learn more | |||
Annual advisory fee | 0% to 0.35% | |||
Minimum investment amount | $10 | |||
Live advisors available? | Yes (for a fee) | |||
SigFig | Learn more | |||
Annual advisory fee | 0% to 0.25% | |||
Minimum investment amount | $2,000 | |||
Live advisors available? | Yes |
Read our full methodology here.
Wealthfront
Great for: socially responsible investing.
Annual advisory fee: | 0.25% |
Minimum investment amount: | $500 |
Live advisors available? | Yes |
Pros
- Offers a socially responsible investing portfolio
- Tailored tax-loss harvesting strategy potentially reduces tax liabilities for most accounts
- Customers may opt to invest in crypto assets
Cons
- Does not offer custodial accounts
- United States citizens living abroad cannot have a Wealthfront account
- Not the best choice for users who need a lot of handholding
Customer support | Monday through Friday via phone and email |
Knowledge base | Yes |
Mobile app | Yes, both iOS and Android |
Why we picked it
With a low minimum investment threshold, tailored tax-loss harvesting, and 10 global asset classes, there’s a lot to like about Wealthfront. One feature that sets this robo apart is its socially responsible investing (SRI) portfolio, which chooses investments that are equitable, sustainable, and diverse. The SRI option aims to deliver the kind of long-term investment performance that you’d expect from the standard portfolio. Users always have the option to change up the individual funds held in their portfolio at any time.
Schwab Intelligent Portfolios
Great for: automated investing with no advisory fees.
Annual advisory fee: | $0 |
Minimum investment amount: | $5,000 |
Live advisors available? | Yes, for an additional fee |
Pros
- Offers custodial accounts
- U.S. expatriate-friendly
- 24/7 live U.S.-based support
Cons
- Tax-loss harvesting only available for portfolio balances above $50,000
- Some account types have high investment minimums
- The cash allocation in some portfolios may be higher than investors prefer
Customer support | Phone and email 24/7 |
Knowledge base | Yes |
Mobile app | Yes, both iOS and Android |
Why we picked it
Schwab Intelligent Portfolios charges no annual advisory fee, but potential customers should understand why. The platform has a significant cash allocation requirement, which may reduce your long-term returns—plus, there’s a high minimum balance requirement of $5,000 to open a basic account.
In exchange for these limitations, you get free portfolio management that benefits from excellent diversification, constructed from an extensive menu of 51 exchange-traded funds (ETFs), three investment strategies, and six risk profiles. As your risk tolerance or goals change, so can your investment portfolio. You can choose from trust accounts, custodial accounts, brokerage accounts, and individual retirement accounts (IRAs).
Betterment
Great for: recurring investments.
Annual advisory fee: | $4 per month or 0.25% |
Minimum investment amount: | None |
Live advisors available? | Yes, for an additional fee |
Pros
- Offers socially responsible investing options
- Expert-built, diversified portfolios simplify investment choices
- Comprehensive financial solutions addresses needs from daily spending to retirement planning
Cons
- U.S. citizens living abroad cannot invest in a Betterment account
- Does not offer custodial accounts
Customer support | Monday through Friday via phone and email |
Knowledge base | Yes |
Mobile app | Yes, both iOS and Android |
Why we picked it
Whether you’re investing for day-to-day spending or long-term retirement planning, Betterment has a portfolio option to satisfy your needs. As with Wealthfront, it offers socially responsible investing options, and it doesn’t charge any commissions. The fee you pay is either $4 per month or 0.25% annually, and you can set up recurring deposits to automate your investing further. When your recurring minimum is $250 per month, you will move to the 0.25% annual fee bracket automatically.
Ellevest
Great for: women.
Annual advisory fee: | 0.25% |
Minimum investment amount: | None |
Live advisors available? | Yes, for an additional fee |
Pros
- 100% of its financial advisors are women
- Each of its financial planners are Certified Financial Planners (CFPs)
- 84% of its leadership is female
Cons
- Inflates its community numbers by including the co-founder’s LinkedIn and Instagram followers
- Does not offer custodial accounts
Customer support | 24/7 live chat, phone, and email |
Knowledge base | Yes |
Mobile app | Yes, both iOS and Android |
Why we picked it
It’s no secret that women not only live longer, but also get paid less and, therefore, have less available for retirement. Recognizing this need, Ellevest doesn’t take a gender-neutral approach to investing. Instead, it tailors its investing strategies with these unique challenges in mind. It doesn’t ask what your risk is; it determines the acceptable level of risk based on your specific goals and circumstances, all while upholding its fiduciary responsibility.
E*TRADE Core
Great for: 24/7 customer support.
Annual advisory fee: | 0.30% |
Minimum investment amount: | $500 |
Live advisors available? | Yes, for an additional fee |
Pros
- Offers custodial accounts
- Expert-built portfolios aimed at achieving optimal returns for given risk levels
- Offers some customization including socially responsible/ investments (SRIs)
Cons
- Services don’t fully cater to unique financial needs or complex investment scenarios
- Account minimums from $500 to $5 million, depending on the type you choose
- Doesn’t offer email support
Customer support | 24/7 via phone only |
Knowledge base | Yes |
Mobile app | Yes, both iOS and Android |
Why we picked it
With an E*TRADE Core Portfolio, you’re getting an expertly managed set of ETF investments tailored to your risk tolerance, liquidity requirements, goals, and time frame. Your initial investment is just $500, and it comes with a support team, your choice of SRI or smart beta ETFs to further customize your investment portfolio. Should you need any assistance, support is available 24/7.
SoFi Automated Investing
Great for: those who want an easy-to-use interface
Annual advisory fee: | 0% |
Minimum investment amount: | $1 |
Live advisors available? | Yes |
Pros
- Offers a full suite of personal finance products
- Its digital platform is easy to use and provides perks
- Attractive rates on a variety of deposit products
Cons
- SoFi Member Rate discounts vary by product
- SoFi was censured recently, fined $500,000 and ordered to pay almost $200,000 by Financial Industry Regulatory Authority (FINRA) for misleading securities lending practices
Customer support | Monday through Friday via phone |
Knowledge base | Yes |
Mobile app | Yes, both iOS and Android |
Why we picked it
SoFi Automated Investing makes it easy to get started with investing, and charges no annual advisory fees. This robo offers both qualified and nonqualified accounts, such as Roth, traditional, simplified employee pension (SEP) IRAs, and brokerage accounts, all without paying commissions or fees you’d normally find with a robo-advisor.
Ally Invest Managed Portfolios
Great for: combining banking and investing services.
Annual advisory fee: | 0 to 0.30% |
Minimum investment amount: | $100 |
Live advisors available? | Yes, for an additional fee |
Pros
- Offers custodial accounts
- User-friendly online platform and mobile app
- Offers SRI options
Cons
- U.S. citizens living abroad cannot open an account
- Requires $100,000 in your account for Personal Advice
Customer support | Call Monday through Friday, chat and email 24/7 |
Knowledge base | Yes |
Mobile app | Yes, both iOS and Android |
Why we picked it
With a robo-advising account through Ally, you can get started with as little as $100. Its portfolios are managed and monitored daily by humans and not machines. There are two portfolios you can put your money in, a cash-enhanced or market-focused portfolio. The first has no advisory fee, the other has a 0.30% annual advisory fee. You won’t pay any fees for rebalancing your account, and its mobile app lets you see all of your Ally accounts, banking and investments included.
Wells Fargo Intuitive Investor
Great for: integrating traditional banking with robo-advising.
Annual advisory fee: | 0.35% |
Minimum investment amount: | $500 |
Live advisors available? | Yes, for an additional fee |
Pros
- Goal tracking features help clients monitor financial progress
- Automated technology simplifies the investment process
- Offers a full suite of personal finance products
Cons
- As the third-largest bank in the U.S., it’s not easy to get personalized service
- Its website isn’t as tech-forward as some of its competition
- Limited support hours
Customer support | Monday through Friday via phone |
Knowledge base | Yes |
Mobile app | No |
Why we picked it
Wells Fargo is a household name known for its traditional banking products. Through its robo-advising platform, you can combine the ease of automation with a trusted financial institution’s expertise and resources. Investors can choose from one of two investment styles: globally diversified or sustainably focused portfolios. After completing an investment profile, its automated tools will determine your risk tolerance before suggesting an investment portfolio designed to meet your needs.
Fidelity Go
Great for: beginners
Annual advisory fee: | 0 to 0.35% |
Minimum investment amount: | $10 |
Live advisors available? | Yes |
Pros
- Advanced trading platforms and tools for both novice and experienced investors
- Competitive fee structure in many of its services
- Provides access to in-depth research and market analysis
Cons
- Branch locations are not in every state
- Doesn’t offer futures
- Its app and website sometimes have connectivity issues
Customer support | Via phone 24/7 and live chat Monday through Friday |
Knowledge base | Yes |
Mobile app | Yes, both iOS and Android |
Why we picked it
Fidelity Pro lets investors get started with robo-advising for as little as $10. During the sign-up process, you can see how your specific risk tolerance changes the recommended strategy as you increase or decrease your risk. Best of all, you pay no advisory fees if your account balance is below $25,000. If it’s above that, your fee is 0.35% and you get unlimited one-on-one coaching calls.
SigFig
Great for: low-cost portfolio management.
Annual advisory fee: | 0% to 0.25% |
Minimum investment amount: | $2,000 |
Live advisors available? | Yes |
Pros
- Analyzes synced accounts and suggests portfolio adjustments
- Manages your first $10,000 for free
- Charges no commissions, trading, or transaction fees
Cons
- Your money is held at Fidelity or Schwab
- Its minimum investment amount is higher than most of its competition
- Offers only ETF-based investments
Customer support | 24/7 via phone and email |
Knowledge base | Yes |
Mobile app | Yes, both iOS and Android |
Why we picked it
When you sign up for an account with SigFig, you’re getting your first $10,000 managed for free, and it only takes minutes to set up. After that, your advisory fee is a reasonable 0.25%, which is aligned with or better than all other robo-advisors on this list. Your account will be held with either Schwab or Fidelity but managed by SigFig, and you can even sync other accounts so SigFig can suggest adjustments there, too.
What is a robo-advisor?
Robo-advisors are platforms that offer automated investing and wealth management services based on the use of mathematical algorithms. Customers provide some initial information about their financial goals, risk tolerance, and personal background and the robo-advisor identifies suitable assets and creates a portfolio. Many robo-advisors also automatically rebalance portfolios and provide tax-loss harvesting.
These online portfolio management services first emerged on the scene back in 2010 and over the years the field has grown to include more than 100 robo-advisor platforms across 15 countries, according to a report from Deloitte.
How does a robo-advisor work?
Robo-advisors use a questionnaire to help determine the best portfolio construction for your account. The platform asks a series of questions that can include your:
- Age
- Income
- Investing goals, like buying a home or saving for retirement
- Time horizon, or how long until you need the money
- Risk tolerance, or how much you’re willing to lose to reach your goals
The platform then translates all of this information into a portfolio recommendation. You generally have the option to accept their recommendation or make adjustments.
Once you decide on the portfolio, the platform will then build your portfolio using a limited selection of investments. Common investments Robo-advisors use include ETFs and mutual funds. Some platforms may also use individual stocks.
Once you make your first investment, the robo-advisor then monitors your portfolio and rebalances as necessary. It also splits each additional investment you make up into the right-sized slices to maintain your target asset allocation. You can then monitor your account performance through your account.
How much does a robo-advisor cost?
There are multiple factors that contribute to the total cost of your chosen service provider, and what you end up paying will vary depending on the services they offer. Some of the key elements to weigh in your decision-making include:
How to choose the best robo-advisor
With plenty of robo-advisors to choose from, it’s highly likely you’ll find one that matches your goals and finances. But how do you vet those choices to find the one that comes out on top?
- First, have a look at investment minimums. Knowing how much you have to invest can help you quickly rule out providers that aren’t a fit.
- Then, review the fees. Some fees to look for are annual management fees, account closure fees, and costs to speak with a human financial advisor.
- Next, look at available investments. Look for whether the robo-advisor uses ETFs, mutual funds, or other investments to build your diversified portfolio. You might have a preference, and available options can vary by platform.
- Consider available investing strategies. If you’re looking for socially-responsible investment options or more advanced strategies like tax-loss harvesting and direct indexing, there are robos out there to meet your needs.
- Finally, check for additional benefits. Some Robo-advisors offer additional financial planning tools and account types, like cash accounts with debit card access. These perks can help you with other financial goals and potentially help you consolidate your investing and banking relationships.
How do I open a robo-advisor account?
Opening a robo-advisor account is simple. It typically involves completing an online questionnaire where you provide information about yourself, your financial goals, and your risk tolerance. Once you complete the questionnaire, your next step is to make your first deposit. From there, the Robo-advisor does the rest.
Before opening an account, be sure to fully review your preferred robo-advisor’s fees, available account types, and investment minimums. For instance, if you want to use a robo-advisor to help save for retirement, make sure they offer the type of IRA you need.
Alternatives to robo-advisors
While setting-it-and-forgetting-it, robo-advising works for some people, other investors prefer a more hands-on approach. Alternative options include:
- Online brokerages: With these, you can buy and sell stocks, ETFs, and other securities directly.
- IRAs: Both traditional and Roth IRAs offer investors retirement savings with tax advantages.
- Cryptocurrency: Cryptocurrency is a digital asset, and exchanges allow you to buy, sell, and hold these assets.
- Certificates of deposit (CDs): CDs offer investors an opportunity to earn interest on their deposits by keeping their money in a savings account for a specific term length.
- High-yield savings accounts: Often held at digital banks, these high-yield savings accounts usually offer a much higher rate than a traditional savings account. They’re ideal for an emergency fund.
Are Robo-advisors safe?
The same authorities that regulate online brokerage accounts and other investments regulate robo-advisors. While these companies use technology to provide advice and account management, they still have to appease the regulators.
This means filing required documents like a Form ADV annually, which tells the public about how they run their business. They can also have complaints filed against them by consumers through the Securities and Exchange Commission. They’re definitely not above the law.
Investing online also presents potential cybersecurity dangers. Both your account or the robo-advisor itself could suffer a security breach. You can protect your login information using a password manager. Robo-advisors protect their customers and themselves using top-notch encryption technology and additional security measures.
Can you lose money with a robo-advisor?
As with any type of investing, there are risks involved. Just like any other investment account, it’s possible to lose money with the ups and downs of the market. When investing through a robo-advisor, it’s important to be honest during the intake questionnaire. How you respond on that questionnaire tells the robo-advisor how to build your portfolio.
It’s important to keep losses in context. If you start investing in your 20s for retirement in your 60s, your portfolio will experience different market cycles. If you have losses, your portfolio typically has decades to recover.
However, if you’re in your mid-50s and retiring in less than 10 years, you may not have time to recoup losses. In this case, you might want to adjust your portfolio to one that’s more conservative to protect against bigger market swings.
Our methodology
To identify our top picks for the best robo-advisors, Fortune RecommendsTM compared 20 different robo-advisor platforms. We ranked each account based on five categories: overall features, onboarding procedures, financial planning tools, customer support, and pricing.
All of the accounts on our list are available to anyone in the U.S., so you can sign up for any offering regardless of where you are located.