The Best Robo Advisors Of 2023

Acorns’ basic plan allows users to round up purchases to the nearest dollar, investing their spare change into a portfolio of low-cost ETFs. Users can invest with as little as $5 at a time, allowing them to take advantage of dollar-cost averaging.

Acorns asks users for basic information — age, net worth, income, and when you need the funds. Then, they’ll use that information to create a portfolio of stocks they believe will help you reach your investment goals.

That said, Acorns does charge a monthly fee, which some competitors don’t.

Fees:

• $1 per month for just a taxable investment account
• $3 per month for a taxable investment account, retirement account, and checking account
• $5 per month for all of the above plus taxable investment accounts for children

Pros:

• No minimum balance to open an account
• Invests spare change seamlessly

Cons:

• Some competitors offer more at a lower cost
• If your balance is low, the fees likely won’t be worth it
• You’ll need an Acorns checking account to use the roundup feature

Acorns fees aren’t extreme, but they might not be worth it if you have a small balance. For example, if you invest only your spare change and end the year with $100 invested, you would’ve spent $36 on the monthly fees alone. That eats up over a third of your balance.

Unless you need the incentive to save more, opt for a different robo advisor.

Betterment offers two options: Betterment Digital (pure robo-advisor) and Betterment Premium (hybrid). Betterment Digital charges an annual management fee of 0.25%, and there is no minimum balance required.

Betterment Premium charges an annual management fee of 0.40%, and you’ll need a balance of at least $100,000. On this plan, you’d get access to unlimited, free consultations with a team of financial advisors.

Their algorithm uses information about you — like your risk tolerance and goals — to create a diversified portfolio of low-cost ETFs. The exact asset allocation of each portfolio will depend on your goals.

Fees:

• 0.25% annual management fee for Betterment Digital
• 0.40% annual management fee for Betterment Premium

Pros:

• Tax-loss harvesting is a standard feature
• No minimum balance requirement (although you’ll need $10 to start investing)
• Offers socially responsible investing (SRI) portfolios

Cons:

• Multiple portfolio options may be overwhelming to new investors
• $299 for a 45-minute financial coaching call is expensive

Betterment Digital customers get an optional, $299 45-minute coaching session with financial professionals for customers who’d like help optimizing their portfolio. Betterment Premium customers get this service for free.

M1 Finance offers over 80 pre-made investment portfolios, called Expert Pies, which are a collection of stocks and ETFs. Users can choose from a variety of strategies, like general investing, responsible investing, and retirement investing. They can also select the risk tolerance that suits them best, and M1 will handle the rest.

If you’d prefer to craft your portfolio yourself, you can choose from over 6,000 stocks and ETFs to create a custom portfolio.

Fees:

• $0 for basic account
• $125 for M1 Plus

There are no trading commissions or markups on trades.

Pros:

• Rebalances your portfolio to keep your asset allocation in alignment with your goals
• 80+ Expert Pies to choose from
• Low to no fees

Cons:

• No access to human advisors
• $100 minimum balance requirement
• $500 required to open the account

M1 offers two tier options: M1 Basic and M1 Plus. M1 Basic is free, and all trades occur once per day. M1 Plus is $125 per year, and trades occur twice per day.

Empower, formerly known as Personal Capital, offers a robo-advising platform and a host of free financial tools. Empower’s portfolios are crafted by a team of strategists and financial professionals. They’re known for their Personal Strategy model, which creates unique investment portfolios for users based on their needs and long-term goals.

The major downside of Empower is that you must have $100,000 or more in investment savings to work with them. They also have high fees of 0.89%, which is much higher than competitors.

Fees:

• 0.89% portfolio management fee for balances between $100,000 and $200,000
• 0.89% portfolio management fee for balances between $200,000 and $1 million (although once you reach this balance, you’ll get access to two financial advisors)

Fees decrease slightly once balances reach $1 million. For example, balances over $10 million will see a 0.49% fee.

Pros:

• Access to free budgeting and portfolio management tools
• Access to human financial planners

Cons:

• Requires a $100,000 minimum
• Higher-than-average management fees

Empower’s fees are steep in comparison to competitors. Unless you have a large investment balance and believe the fees are worth it for the potential financial advising, pick another option.

Charles Schwab is one of the most well-known investment account providers in the game. Their Schwab Intelligent Portfolio option is a fee-free investment management service. The account requires a balance of $5,000 to get started, and you’ll be required to hold at least 10% of your assets in cash at any given time.

The Premium option is $30 per month, plus a one-time $300 planning fee.

Fees:

• $30 for the Premium option

Pros:

• No annual management fee for the basic option
• Diversified portfolios
• 24/7 customer service

Cons:

• A decent portion of your portfolio must be held in cash, which can impact your long-term returns
• $5,000 investment minimum is higher than some competitors
• No socially responsible investment portfolio options

Schwab Intelligent Portfolios is ideal for beginners that are ready to invest and have $5,000 to do it. Its fee-free offer makes it stand out from the crowd. If you don’t have $5,000 to invest, it’s better to look at other robo-advisors with lower minimum balance requirements.

SigFig manages investments held in TD Ameritrade, Fidelity Investments, or Charles Schwab accounts. So, rather than being a platform you open an investment account with, you simply link your portfolio to SigFig, and they’ll help you manage it.

You’ll need an investment portfolio with at least $2,000 in it. While you won’t pay a management fee on the first $10,000 managed, you will pay a 0.25% fee on balances over $10,000.

Fees:

• 0.25% AUM on balances over $10,000

Pros:

• Access to human advisors
• Management fee is less than many competitors
• Optional free 15-minute consultation with SigFig advisors before sign up
• Free portfolio analysis tool

Cons:

• Higher minimum balance requirement than some competitors
• No ESG portfolio options

It may seem pointless to connect an account to SigFig when the account provider itself has its own robo-advising feature. However, in some cases, SigFig may be more cost-effective than the provider’s option. It’s best to compare fees, though before making your choice.

Vanguard offers two robo-advisor options: Vanguard Digital Advisor (a pure robo option) and Personal Advisor Services (a hybrid option). The pure robo option is the standard, hands-off investing, while the hybrid option combines the touch of a human financial advisor.

Vanguard Digital Advisor charges a 0.15% fee and has an account minimum of $3,000. Personal Advisor Services charges a 0.30% fee and has an account minimum of $50,000.

Fees:

• 0.15% fee for Vanguard Digital Advisor
• 0.30% fee for Personal Advisor Services

Pros:

• Lower fees than some competitors
• Simple investing approach
• Retirement planning tools

Cons:

• Higher account minimum than some competitors
• Basic account doesn’t include access to human advisors

While Vanguard’s offering is solid, it doesn’t have ESG or tax-loss harvesting options. If those are a top priority, it’s best to look elsewhere.

Wealthfront is one of the few robo-advisors to offer a 529 account, designed for saving for a child’s future education. They charge a 0.25% AUM and require $500 to start investing.

Fees:

• 0.25% of assets
• 0.42% to 0.46% fee for 529 college savings accounts

Pros:

• 529 investing accounts
• Low fees
• Recommendations for tax-loss harvesting
• Offers a socially responsible investing portfolio
• Free Path financial planning tool

Cons:

• $500 minimum is higher than some competitors

Wealthfront offers their free Path financial planning tool, which allows you to connect your financial accounts — like your mortgage, credit card, and bank account. Path will look at your financial situation along with your goals and create a plan to save for it.