Best Robo-Advisors in 2024Compared: Which is Best For You?

Why wait to meet with your financial advisor who may charge you a costly fee for their hour of time, when you can actually invest with expert advice for free (not to mention much quicker). That’s why modern investment companies have used technology to create algorithmic-driven investment platforms so that anyone can invest with a customized investing portfolio. These are called Robo Advisors. Which is the best Robo-advisor to use? What should you look for when picking a Robo-advisor? You’ll find the answers to these questions in our guide to the best Robo-advisors outlined below.

What Is a Robo Advisor?

After answering these questions you’ll be able to determine which Robo-advisor will best meet your needs.

M1 Finance is built around the idea of being able to invest in the stock market automatically and for free. What sets M1 Finance apart from the rest is the ability to invest in individual “pies”, or a group of stocks you’ve preselected and allocated a percent of your portfolio to each stock. You can create your own pie or invest using expert pies made by financial professionals. Furthermore, once you meet an account balance of $10,000, M1 Finance allows you to take out a loan of up to 35% of your account balance without any credit check.

You also have the option to open an M1 Spend account, which is a basic checking account. You can get a higher interest-bearing checking account with M1 Spend if you pay a $125 fee per year. Want to learn more about M1 Finance? Here’s our M1 Finance review.

Who is M1 Finance best suited for?

M1 Finance works best for any investor wishing to have access to the funds they invest in, while also having a “set it and forget it” approach. They are also best for those wishing to pay zero account fees. If you want to be referred to M1 Finance, you may use our M1 Finance referral link and read this M1 Finance referral article for the step-by-step referral guide.

Betterment’s founder created the platform to make managing your money as easy and convenient as possible. Their platform builds you a customized investment portfolio and plan based on your money goals and objectives. You also get direct access to meet with a financial advisor or ask basic questions as they arise via chat, phone, or email. Should you want a detailed planning meeting, you can pay a fee to meet with one of their trusted advisors.

They offer two plans, a Digital plan, and a Premium plan. The Digital plan allows you all the free benefits such as a customized portfolio, ask questions to financial advisors, portfolio rebalancing, and great customer service. The Premium plan gives you added benefits such as unlimited access to CFP (certified financial planner) professionals for additional advice.

Who is Betterment best suited for?

Betterment is a great option for individuals who wish to have the convenience of a financial advisor as needed, while still getting a customized investment portfolio built based on their investment objectives. Want to learn more about Betterment? Here’s our Betterment review.

Ellevest is unique in that it caters to women who wish to invest in the stock market. Their platform promotes that investing is primarily filled with male financial experts, so Ellevest was created to provide advice to females from primarily female financial experts. Thus, their motto is “Built by women, for women.”

Who is Ellevest best suited for?

Ellevest is best suited for female investors seeking advice from female financial experts. Can males join Ellevest? Absolutely! However, Ellevest considers the lower average incomes for women and longer lifespan when putting together a financial plan. Want to learn more about Ellevest? Here’s our Ellevest review.

Wealthfront is perhaps the closest competitor to Betterment, and as a result, it caters to a very similar audience. Due to the higher minimum balance, Wealthfront is a better option for those who already have a chunk of money available to invest, and those that want a truly digital financial advisor as needed.

SoFi originally started out as a lending company issuing all types of loans. Recently, they have launched their new investing platform that seeks to make investing easy for anyone at a fair price. They offer both customized portfolio options as well as allow you to invest in individual stocks should you choose to do so. Furthermore, they also allow you to purchase stocks based on dollar amounts, rather than share counts. This is called fractional shares investing.

Who is SoFi best suited for?

SoFi is a perfect option for anyone who wants a wealth of products at their fingertips, and that includes financial services outside of just investing. Those who wish to invest but have little money can also begin with SoFi for as little as $1. Furthermore, if you’re already a customer of SoFi through their lending platform, you get free access to their investing platform regardless of your account balance. Want to learn more about SoFi? Here’s our SoFi review.

Blooom (yes, they spell their name with three “O’s”) is perhaps one of the most unique investing platforms that put its focus on helping you manage your 401k’s and IRA’s. In their own words “We are founded on the belief that professional retirement help should be smart, simple, and available to all Americans.” They will do all the research for you and help you invest in the most cost-effective funds that align with your investment objectives.

Who is Blooom best suited for?

Blooom is a fantastic option for anyone who has an employer sponsored 401k, or an IRA account. Many 401k accounts have limited funds you can invest in and Blooom will make it easier to make the right investment decision. If this sounds like you, then Blooom is the way to go!

If you want to earn extra money, check out referral programs like M1 Finance referral, Tastyworks referral, and Webull referral if you want to give investing a try.