15 Nov 2019
New to investing, sorry if this question doesn't make sense.
With the maturity of many robo-advisors today, it is true that low-costs has become one of the main winning reasons for choosing a robo-advisor over a financial advisor! However, robo-advisors are widely varied and have different methods of operating. From my experience, I think that many robo-advisors require you to fill in a risk-profiling questionnaire before they categorise you into a few risk profile categories. From there, you are able to choose from a (or a few, like 3) portfolios, with the risk and returns defined on the website interface. However, there are also an increasing availability of platforms that give you greater customisability and Kristal is one of them. In addition to a recommended portflio, you are able to access a variety of ETFs and stocks. For an account under $50,000, there is also no management fees imposed on the account.
Robo-advisor's don't really have much of a track record, nor are they necessarily cheaper than ETFs.
There's also limited exposure, since robos have really only developed in the US.
Nor is cost everything - a 3 year old can make decisions based on cost. There are still many advantages that come with fund managers or brokers that robos can't provide.
It's not exactly lower at robos. Robos help you invest in etfs so you're paying for both the robos m...
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