Best Robo-Advisors for July 2024

Investing in the stock market is a powerful strategy for building wealth, but it requires substantial financial literacy and commitment. For those who wish to invest without dedicating extensive time and effort to financial decisions, robo-advisors offer an excellent solution. These automated platforms manage investments using algorithms and data-driven strategies, making investing accessible and efficient.

However, it’s important to remember that robo-advisors are not immune to market risks and fluctuations. Here, we outline the best robo-advisors for July 2024, based on extensive research of 21 digital wealth management platforms evaluated across 59 criteria, including cost, account services, goal planning tools, and more.

1. Wealthfront

Best Overall, Best for Goal Planning, Best for Portfolio Construction, Best for Portfolio Management

Wealthfront stands out as the best overall robo-advisor due to its comprehensive suite of features:

• Customization Options: Wealthfront offers extensive customization, allowing investors to tailor their portfolios to match personal goals and risk tolerance.
• Fee-Free Stock Investing: This feature makes it more affordable for users to invest without worrying about additional costs eating into their returns.
• Low-Interest Rate Borrowing: Wealthfront clients can borrow at low interest rates, providing flexibility for managing finances.
• Dynamic Tax-Loss Harvesting: This feature optimizes tax efficiency by automatically offsetting gains with losses, reducing tax liabilities.

2. Betterment

Best for Beginners, Best for Cash Management, Best for Tax-Loss Harvesting, Best for Crypto Portfolio Selection

Betterment excels in several areas, making it ideal for various investor needs:

• User-Friendly for Beginners: Intuitive design and educational resources help novice investors get started.
• Effective Cash Management: Betterment offers integrated cash management services to streamline financial planning.
• Tax-Loss Harvesting: Like Wealthfront, Betterment provides tax-loss harvesting to improve after-tax returns.
• Crypto Portfolio Selection: Investors interested in cryptocurrency can benefit from Betterment’s crypto portfolio options.

3. SoFi Automated Investing

Best for Low Costs

SoFi Automated Investing is perfect for cost-conscious investors:

• Low Fees: SoFi offers one of the lowest cost structures in the industry, maximizing investment returns.
• Comprehensive Services: Despite the low fees, SoFi provides a wide range of investment and financial planning tools.

4. M1 Finance

Best for Sophisticated Investors

M1 Finance caters to more experienced investors seeking advanced features:

• Sophisticated Tools: Offers extensive customization and advanced investment strategies.
• Flexible Portfolio Management: Investors can create highly personalized portfolios.

5. Acorns

Best for Those Who Struggle to Save

Acorns makes saving and investing effortless:

• Micro-Investing: Acorns rounds up everyday purchases and invests the spare change, making it easy to start investing.
• Automatic Savings Features: Helps users build savings habits effortlessly.

6. Ellevest

Best for Women Investors

Ellevest focuses on financial strategies tailored for women:

• Gender-Specific Advice: Provides personalized investment advice to help women achieve their financial goals.
• Impact Investing: Allows investors to support causes they care about while growing their wealth.

7. E*TRADE Core Portfolios

Best for Mobile

E*TRADE Core Portfolios is ideal for investors who prefer managing their investments on the go:

• Mobile-Friendly Platform: Offers a robust mobile app for convenient portfolio management.
• Comprehensive Features: Provides a full range of investment options and tools.

8. Merrill Guided Investing

Best for Education

Merrill Guided Investing is suited for those who want to learn while they invest:

• Educational Resources: Offers extensive educational materials to help investors understand the market and make informed decisions.
• Guided Investing: Combines automated investing with professional guidance.

Conclusion

Choosing the right robo-advisor depends on your individual needs, whether it’s cost efficiency, educational resources, or advanced investment tools.

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Note: The opinions and analyses expressed are for informational purposes only. Investing involves risks, and it’s important to conduct thorough research and consider your financial situation before making investment decisions.