Robo Advice brokers are financial investment brokerages that provide financial and investment management advice with little to none human intervention. Essentially, these types of brokerages utilize robot advisors that conduct financial research based on mathematical and algorithmic protocols. Through the robo-advisor’s analysis and calculations, they come up with the optimal investment management strategy for the client’s financial assets and allocation. Robo advisors are considered to be a breakthrough in the financial industry and are just starting to be recognized for their technology and utility. The robo-advisors can be tweaked to produce various types of investment advise based on the investors risk valuation and target prices. As well, the investor can choose between an active investment strategy or passive investment strategy for the robo-advisors to calculate.show more
People and investors are always looking for new ways to better or more easily manage their money. The newly invented and rising popular robo-advisors are catching people’s attention, and for good reason. See below the various advantages Robo Advice brokers have over traditional means of investing.
Companies can lower their fees considerably with robo-advisors managing an investors portfolio. This is because the brokerage does not need to allocate someone to the investors portfolio. Robo Advice brokers can focus more of their money and time on bringing in new investors which increases their profits and reduces the customers fees.
New investors such as millennials find the process of getting involved with investing much easier and more attractive when they can simply get involved online without any or very little human interaction. The application process is simplified for robo advice brokers and can be completed very quickly.
People like the thought of an advisor that makes decisions strictly with advanced mathematical and algorithmic techniques to maximize the investors profits, rather than putting their trust in a human advisor who they know nothing about. Investors can rest easy knowing their money is being managed by an advanced protocol that was built to maximize profits.
The process of dealing with a robo advice broker sort of puts the power in the investors hands, rather than the brokers. People like to be able to set their preferences and know that they made the choice of what parameters the robo-advisors follow.
Many of the robo advice brokers allow very low initial investments compared to human managed investment portfolios. This allows new traders to get a feel for the investment industry and learn more as their investments grow.
Robo advice brokers are proving to be the preferred method of investment management for many new investors. They have much to offer, are easy to get involved with, and are more reasonably priced. The robo advice brokerage market is expected to rise exponentially in the coming years as the technology is improved upon and more brokers begin implementing this technology into their investment management strategies.