Asked by Anonymous
Here is a blog post by seedly comparing roboadvisor and financial advisor!
Typically, roboadvisors are known to be cheaper due to the low management fees (many 0.50% or less) and low account minimums. This is great for millennials or people on tight budgets who cannot ordinarilty afford to invest.
Explicit costs, most probably. Even if both platforms use the same underlying instruments, robos would charge lower AUA fees especially for bigger portfolios.
However, implicit cost, maybe not. Human advisors can add value by coaching you to stay invested and giving suggestions to top up your investments during a bear market, while robos won't really stop you if you panic and exit your positions.
Sometimes the latter can be a bigger reason for your overall portfolio gains.