/2022RoboAwardsHeroImage-2aad2398909c4a5d9878c0651d3efd6d.jpg "Investopedia 2022 Best Robo-Advisors Awards 1")
The previous two years have been a interval of intense competitors and consolidation within the robo-advisor enviornment. It’s additionally been a time of growth as clients ask extra from their digital recommendation platforms, and the suppliers proceed to introduce new options and merchandise within the spirit of buyer retention and progress.
Most of the largest robo-advisors, equivalent to Wealthfront and BlackRock, have been acquired by bigger wealth managers to scale their current platforms or assist their purchaser develop.
Others, like Betterment and Interactive Advisors, have remained impartial and scaled their choices.
“Go Massive or Go Dwelling” has been the mantra for this business over the previous few years, however now robo-advisors are beginning to play by Burger King’s guidelines by telling their clients to, “Have it your manner,” because it pertains to portfolio enhancements and customization. These digital recommendation platforms know clients need extra choices with regards to their portfolios, higher tax-loss harvesting efficiencies, and extra merchandise to centralize their monetary lives. It’s no shock that some robo-advisors have moved into banking, lending, 401(okay) plans, and different companies provided by conventional banks and asset managers.
On the finish of the day, the most effective robo-advisors are people who reply to their clients’ rising wants whereas persevering with to enhance the core choices which have made them profitable to this point: Automated investing, accountable steering, nice know-how and glorious customer support. Our 2022 Greatest Robo-Advisors Award honorees replicate people who made their platforms higher in ways in which actually matter to buyers right now.
Greatest General: Wealthfront
For these in search of an elite automated monetary answer, Wealthfront is our high decide. It boasts a complete suite of funding administration merchandise, strong goal-setting and planning instruments, and each day tax-loss harvesting to assist customers extra simply attain their monetary objectives. General, the platform’s high-quality digital options and aggressive charges makes Wealthfront one of many strongest robo-advisors obtainable.
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On Wednesday, January 26, 2022, Wealthfront introduced that it has agreed to be acquired by one of many premier manufacturers in wealth administration, UBS, in a transaction valued at $1.4 billion. David Fortunato, Wealthfront’s Chief Govt Officer, has since reassured present and potential clients that there shall be no change to the platform expertise, accounts, or price of service.
Greatest for Learners: Betterment
Betterment is greatest for newbies due to its extremely user-friendly expertise and no minimal deposit requirement. The platform seamlessly integrates training assets to assist inform consumer technique, and the easy registration and funding processes make it simple for buyers of all expertise ranges to get began. It additionally continues to develop its choices past conventional investing and tax-loss harvesting.
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Greatest for Low Prices: M1 Finance
M1 Finance doesn’t cost charges for buying and selling or account administration, which makes it our low-cost winner. This robo-advisor is well-suited for particular person buyers seeking to put their {dollars} towards extra investments slightly than upkeep. Regardless of its low prices, M1 affords a wide range of portfolio customization choices and funding automobiles to select from, providing you with extra management over your portfolio.
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Greatest for Cell: E*TRADE Core Portfolios
The E*TRADE Core Portfolio app is slick and affords entry to all of the portfolio administration options proper by your smartphone, which makes it the most effective robo-advisor for many who need portfolio administration proper at their fingertips at any time. The E*TRADE cell app is designed to showcase fewer questionnaires, timeline and objective setting prompts to maintain deal with the investments. Signal-up is simple, too.
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Greatest for Objective Planning: Wealthfront
Wealthfront can also be our winner for Greatest for Objective Planning due to quite a few goal-setting choices, free digital planning instruments, and progress trackers which might be simply tailored to satisfy your particular person monetary wants. The Path and Self-Driving Cash instrument specifically helps customers consider the tradeoffs of a number of objectives and routinely fund these objectives with further money for a low price of 0.25%.
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Greatest for Portfolio Building: Interactive Advisors
With greater than 50 portfolio methods to select from, Interactive Advisors wins our greatest portfolio building award. This robo-advisor affords a wide selection of funding automobiles, together with fractional shares, shares, ETFs, REITS, and mutual funds, which suggests it’s well-suited for buyers who use a number of portfolio methods.
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Greatest for Portfolio Administration: Private Capital
Private Capital takes the highest spot for greatest portfolio administration due to its elevated tax options and a hybrid strategy to robo-portfolio administration for top net-worth buyers. Most notably, the platform considers completely different account statuses when shifting property and making withdrawals alongside extra conventional tax-loss harvesting. Human advisors are additionally obtainable to supply steering on Private Capital’s many portfolio customization choices.
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Greatest for Money Administration: Betterment
Betterment can also be our winner for greatest robo-advisor for money administration due to the mixing of its examine account and money reserve merchandise. The Betterment Checking and Money Reserve accounts are FDIC-insured and provides buyers transaction choices much like what they’d get at a extra conventional financial institution. The sleek integration makes Betterment an excellent possibility for these seeking to handle their cash extra holistically, past their funding portfolio.
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Greatest for Schooling: Merrill Guided Investing
The thousands and thousands of recent merchants who lately entered the market can profit drastically from the deep library of movies, articles, instruments, and objective setting assets that Merril Guided Investing affords. This robo-advisor’s academic catalog might be tailor-made to your expertise and investing objectives, too, so it is nice for anybody who desires to study extra. Whether or not you’re planning for retirement, saving for a home, or excited by a brand new portfolio technique, this platform may give you a lift.
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Greatest for Sustainable Investing: Interactive Advisors
Whereas extra buyers are searching for extra ESG and sustainable investing choices, Interactive Advisors offers buyers methods to construct and simply handle a portfolio that’s aligned with their values. Sustainable funds, pre-built portfolios, and screening instruments assist customers make investments by a socially acutely aware lens and put this robo-advisor a step above the quickly rising aggressive area.
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Greatest for Subtle Traders: M1 Finance
Along with low prices, there are greater than 80 completely different pre-built portfolios to select from on M1 Finance together with numerous customization choices. This robo-advisor is a first-class possibility for stylish buyers who need a lot of portfolio management and adaptability, that are must-haves for seasoned buyers.
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Why We Do It
Discovering the best robo-advisor to realize your monetary objectives is tougher than ever given the abundance of merchandise obtainable right now. To make it simpler, we evaluated over 20 robo-advisors to find out which offer the most effective options and experiences for buyers in 2022. What we have created is a complete set of critiques and rankings that can permit any investor to seek out the best robo-advisor for them.
To seek out out extra about how we picked our high robo-advisors, learn our full methodology.