Welcome to our 2023 Robo Advisor comparison guide!
Robo advisors are gaining popularity each year, not just for beginners or small investors, but for experienced and high-net-worth ones too. They provide impressive returns on investments and can be a great alternative to expensive human advisors.
We’ve analyzed, and compared the best robo advisors available in the US, so you don’t have to wade through all the options. Our guide covers the most popular and best services for most US-based investors.
So, let’s get started and find the perfect robo-advisor for you!
Overall, we’d say that any robo advisor with a minimum deposit of $500 or less would be considered good for smaller, beginner investors. While many services tout a minimum of $0 or $1, you aren’t really going to see any returns on a deposit that low. Those tiny limits are there to either entice investors to sign up, or simply to test out the service before investing a larger amount.
What we call ‘medium-sized’ investors should look into Vanguard Digital Advisor or Schwab since they have a $3,000 and $5,000 minimum, respectively.
Zack’s Advantage sits at a relatively high $25,000, while Vanguard Personal Advisor is for bigger investors with more than $50,000 to invest. Empower requires a $100,000 minimum deposit for the Wealth Management service but has many free financial tools for any account size that are very much worth utilizing.
Pricing & Fees Comparison
Fees – the all-mighty decider. Of course, each robo advisor’s annual fees play a huge role in an investor’s decision to invest money with them. After all, that is one of the biggest benefits of robo advisors compared to human financial advisors – drastically reduced fees.
Ally Invest Robo Portfolios
0.25% – 0.50%*
E-Trade Core Portfolios
0.25% – 0.50%
Empower (formerly Personal Capital)
0.49% – 0.89%
FutureAdvisor by BlackRock
0.08% – 0.75%
Schwab Intelligent Portfolios
SoFi Automated Investing
Vanguard Digital Advisor
Vanguard Personal Advisor
Wells Fargo Intuitive Investor
Keep in mind that just because a fee is higher doesn’t mean you shouldn’t consider the service. Some robo advisors offer extra features for their fees or have a different investment strategy you might align better with. Having said that, it doesn’t mean you should invest with them either. Make sure you choose the best robo advisor for your needs. This comparison only serves as a reference.
Based on our Robo Advisor fees comparison, it is easy to see that management fees will vary wildly depending on the service and investment amount.
In general, you can get reduced fees for both lower investment amounts (using our links), while some robo advisors lower their fees over a certain investment amount, in addition to offering advanced features and options.
If you’re dipping your toes into robo advisor water, so to speak, you can get several free services up to about $25,000, or you can go with M1 Finance or Schwab, which never cost anything at any amount. Personal Capital’s excellent Financial Tools are also entirely free.
M1 Finance: Always free
Schwab Intelligent Portfolios: Always free
Wealthfront: Free under $5,000 (with our link)
Personal Capital: Financial tools & dashboard is free
Whether you prefer automated investing or active trading, it’s important to compare the account features of the robo advisors you’re considering investing in. Here is our comparison of the various account features that robo advisors have to offer: