Robo advisors: are they going to fail you?

If you are a finances aficionado, then you’ve probably heard not once about “Robo-Advisors”. But just as many other terms in this industry, hearing about them it is not simply enough to understand them. That’s why we’ve come out with this short article to put you up to speed on one of the latest trending topics in the financial word.

What are Robo-Advisors?


Robo-advisors refer to digital systems that offer automated, algorithm-driven financial planning to customers, with a minimum of human interaction. A robo advisor platform usually collects data from clients about their financial situation in order to elaborate an assessment and offer advice or take actions on their behalf to improve their situation.

Benefits of using Robo Advisors

Less pricey


As robo-advisors are typically online platforms, the cost of their services are much lower than those offered by traditional advisors. Human labor is drastically reduced, mainly for monitoring, optimization and maintenance of the system.

A robo-advisor would charge between 0.2 percent to 0.5 percent of a client’s account balance per year, compared to a 1 percent to 2 percent charged by traditional financial planners.

Accessibility


Due to the fact that robo-advisors are online platforms, clients can access to them 24/7, without waiting for a call, make an appointment or writing an email. Instant advice at a moment notice.

Less for more


Plus, robo-advisors have much lower capital requirements than traditional ones. To start investing with a robo-advisor, an initial deposit of $5,000 would be just fine. On the contrary, human advisors will not take clients who are ready to invest less than $100,000.


Source link   Presented by Fort Financial Services

Is gold the best safe-haven asset?

From the thousand articles you read this week about the market, gold has been mentioned over and over again as a safe-haven asset. And yes, despite...

Bitcoin: a real investment?

The fact that you made a couple of bucks buying and selling Bitcoin doesn't make it a true investment. At least not for Warren Buffett, one of the world...

Habits that reduce your Forex risks

There are plenty of blogs out there. Some good, some not. And there are thousands of publications talking about risk management. While many...


A word on treasury yields

The yield of the benchmark 10-year Treasury note reached 3 percent in the previous session, a level not seen since January 2014. Gary Pollack, head of fixed-income...

Trading synthetic currency pairs

A synthetic cross currency pair refers to an artificial combination of currencies usually not available in the market. If you are taking your first steps in the Forex market...

Easy ways to avoid scammers in Forex

The Forex market is not a scam. In fact, it is an amazing place to make money. Unfortunately, dirty scammers (which operate not only in the Forex market...


Start paying attention to position size

When it comes to risk management, everything counts. And defining the right size for your position plays a key role in the equation. Intuitively...

Trading journal: should you keep one?

There are so many Forex blogs out there. Sometimes I think too many actually. But some of them are pretty useful (like ours, of course) and a common...

How to 'trade the news' in forex?

I am sure you've heard of it. The term 'trade the news' refers to those guys who would rather read newspapers all day instead of sitting...

  


Share it on:   or