Understanding The Concept Of A Robo-Advisor
There is nothing like a robot cleaning up your entire household and if the same can be extended to financial advising, then that would mean absolute bliss. Did you know that there is a huge probability that very soon robot-advisors would replace all human financial advisors because of the precision and the authenticity of work? However, that might take some time because even today, complicated portfolios are better handled by human advisors. Till then, there is no harm in understanding the concept of a robot-advisor and finding out whether you need one or not.
What is the cost like?
You will be glad to know that robot-advisors do not cost as much as their human counterparts. You will not even have to pay an additional commission to a trading robot to buy or sell assets. You could expect a payment of 0.35-0.50% of the annual fee. So, if you have an account balance of $10,000, the payment would come close to $25-$50 each year.
What are the typical services that these trading robots offer?
If you have heard of online trading robots like the Bitcoin Code, you would know that these are specifically designed to make trading accessible to traders of all skill levels. Beginners are often intimidated by the complexity of trading and in the absence of a financial advisor; they back off or lose a lot of money. These kinds of trading robots will let you trade without any difficulty. A lot of people ask, “Is it a scam?” It is but natural to be wary of anything new that crops up in the industry but with the innumerable positive reviews around, there is no doubt that such trading bots are indeed very useful.
Here is a brief look at the services that these trading robots can offer.
- Recommending a portfolio that is diverse and is in sync with your investment goals and tolerance of risk levels.
- Regular upgrades of the portfolio and at frequent intervals.
- Use of tools for financial planning. One example could be a retirement calculator.
- Strategies to minimize risks.
Is it right for you?
This is a question that you might have to answer yourself because it entirely depends on how you want to carry out your journey of trading. If you are absolutely satisfied with your current system, then there is no need to shift to something else but if you have the slightest bit of doubt then you might want to consider hiring a robot-advisor.