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Robo-advisor

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Robo-advisor

Robo-advisor
Definition

A robo-advisor is an online platform that gives you automated investments advice. First, you need to add your inputs, like risk appetite or your investment. Based on these inputs, the robo-advisor recommends an investment portfolio. This portfolios are actively managed, which means the robo-advisor changes the elements of the portfolio.

Everything is automated, so after signing up you don't have to do anything, just transferring in your savings. With robo-advisors you get convenience but less control on your portfolio. It also cheaper than a mutual fund investing since everything is automated, thus cost-effective.

The biggest robo-advisor in the US are Betterment, Wealthfront, and Vanguard. In the UK and Europe, ETFmatic, Nutmeg, and Scalable Capital are the leading ones.

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Gergely Korpos

Gergely Korpos

Co-founder, CPO

Author of this article

Gergely's aim is to bring more clarity into personal investing. He has 10 years of experience in financial markets with GE Money, KPMG and MOL. He concluded thousands of trades as a commodity trader and financial portfolio manager

Everything you find on Brokerchooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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