facebookWhat's the difference between Robo-Advisors and CopyTrading? - Seedly

Anonymous

06 Mar 2020

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General Investing

What's the difference between Robo-Advisors and CopyTrading?

What's the difference between the 2? Copytrading sites like Etoro have lesser fees compared to Robos, so why should I choose Robos instead? Considering they're both passive investments, what's the difference? Which is better and what are their pros and cons?

Discussion (1)

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Andy Sim

06 Mar 2020

HR Professional at a Financial Institution

Hi Anon, fees are just a small part of comparison.

I feel that copytrading is already risky in that you have to find the right person from so many people, and sometimes in order to attract more copytraders to follow them, they may execute riskier trades to make their profile attractive, so that they can earn more commission when they have more followers. They would not have your best interest in mind.

Whereas for roboadvisers, there's no such conflict of interest. They are just focused on getting the returns which clients will immediately see and this is customisable based on your risk profile.

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