There are only two ways to make money successfully from the stock market: either become a stock market guru or pay a hefty fee to consultants to get the best advice. But most of the beginner investors don’t want to pay ridiculously high fees to consultants. What’s the solution? Robo Advisors. Robo Advisors use complex computer algorithms to advise you about the stock market. According to a survey most of the major hedge funds have minimum asset requirements of $500,000. Stock advisors cost a lot of money. On the other hand, making a Robo Advisor your investment advisor is the best way to start trading successfully without losing money.
According to a latest survey by Capital One Investing, over 56% famous American investors think that using a Robo Advisor to invest in stocks is useful. Over 69% of the investors who were surveyed prefer using online Robo Advisor services which use human and computer intelligence as a combination.
Robo Advisors should be your gateway to successful trading. Financial services research firm Cerulli Associates estimates in a survey that Robo Advisors are managing about $60 billion in assets worldwide, as of the end of 2016. The firm predicts that the total worth of assets managed by Robo Advisors will reach $385 billion by 2021
Some investors are skeptical of giving the reins of your portfolio completely in the control of a computer. If you don’t want to give up the control completely but still want to use the excellent power of computer algorithms for investment, I’d suggest using a hybrid service that uses human and computer inputs for finding the best stocks to invest in. Some examples of such types of Robo Advisors are Vanguard Personal Advisor Services and Charles Schwab Intelligent Advisory.
Keeping in view the success and future growth prospects of Robo Advisors, we saw a massive influx of Robo Advisors in the market, including Betterment, Wealthfront E-Trade by E-Trade Adaptive Portfolio, Fidelity Go, TD Ameritrade Essential Portfolios and TAnalyzer Robo Advisor.
The utility of Robo Advisors is undisputed, but you should be wary of the fact that several untested Robo Advisors are currently being promoted. Always trust tested and authentic Robo Advisors to avoid losses.