Robo Advisor Trading

Robo advisor platforms are on the rise as investors strive for the best returns. Promising minimal fees and slick mobile apps, online robo-advisor services offer a hands-off approach to portfolio management. But what are the pros and cons? Find out as we guide you through the key definitions, services, costs and more. We’ll also consider how to test the investing performance of those companies topping the latest list of reviews.

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What Is A Robo Advisor?

Robo advisory platforms use intelligent software to provide automated investment management services, meaning minimal human supervision.

Sometimes also known as ‘digital advice platforms’ and ‘automated investment management’, all are born from the trend towards utilising fintech (financial technology), to automate investment decisions, thereby reducing costs.

How Does A Robo Advisor Platform Work?

Users fill out an online questionnaire providing information on their current financial situation, including target returns and risk appetite. With that data, algorithms then automatically invest in suitable markets, from stocks and forex to real estate and cryptocurrency.


The standard features most of the largest providers offer are:

Robo Advisor Or Alert Services

1000PipBuilder offer forex signals via subscription. Independently verified results highlight potential, and ongoing support from experienced traders means there is more on offer than just signals.
1000PipClimber provides a 100% rule-based forex signal service. Entry, Stop Loss and Take Profit levels are calculated via an advanced algorithm. Comprehensive after sales support puts the service in front of most others.
Access the Binary Destroyer 7.0 system and learn to develop some of the most powerful skills needed to succeed in trading. go beyond offering raw signals. They also provide strategies, powerful tools and professional mentors. The educational element of the service sets it apart from pure signal providers.
Toggle AI provides actionable insights on 35,000 assets spanning multiple classes, industries and geographies.
8topuz is a forex trading algorithm that uses deep neural network machine learning algorithms to execute large numbers of high-frequency trades automatically on the behalf of its users.
CoinMarketCap is a top cryptocurrency data and portfolio tracker, with information on over 11,000 cryptos and premium API services for strategy testing.
Chart Viper is a subscription service for the renowned Autochartist signals and analysis software, available for integration with MetaTrader and Thinkorswim trading platforms.
CoinGecko is a crypto charting and data provider, with a wealth of useful tools, features, educational content and information on over 9,000 coins.
Autochartist is a technical analysis tool that assists with trade set up and patterns, as well as providing signals, market reports and other useful features.
BuySide Global is a popular indicator service compatible with the NinjaTrader 8 platform. Clients can also purchase automated trading systems and membership to community chatrooms.
What2Trade is a free signals provider for forex, cryptocurrency, futures and US stock markets with daily published articles and a strong social media presence.
Trade Ideas is a sophisticated signals and stock scanner service for active day traders.
Forex Signal Factory offers free trading signals to investors looking to speculate on the FX market.

Disclaimer – the service providers listed here are not endorsed, or guaranteed, by to be fit for any purpose. Any use of third-party service providers is at the user’s personal risk. We may receive financial compensation from providers listed here.


Robo advisor fees are low. The market even includes Charles Schwab and Axos, among the industry’s largest, whose services appear free. So how do robo advisors make money?

Robo Advice Vs Human Advice

Human advisors offer a personal touch and sometimes decades of experience in goal-based investing across global markets. However, look at the average robo advisor performance in 2024 vs the historical annual returns from using only human advisors, and it’s clear technology is helping close the gap.

Fortunately, many advisory platforms across the U.S.A, Europe, UK and beyond, also offer a hybrid business model. This means human advisors are on hand to answer questions. Setups vary from access to a dedicated financial advisor to a pool of rotating support.

Note the trade-off if you opt for a hybrid model are higher minimum investments and an increase in management rates.

Robo Advisor Vs DIY

If you’ve spent decades learning individual stocks and markets without the help of robo advisors, why change now? The truth is many will continue to see healthy average returns on DIY platforms, such as Robinhood.

But for entry-level investors, digital advisors allow you to break into the market, requiring an average minimum account investment of just $500. They’ll also help prevent rash decision making in the event of a market downturn.

There are also some investors using Python code to build their own bespokse software, blending the digital advisor theory with the DIY mentality. Of course, there’s no guaranteeing the highest rate of returns with this approach.

Overall, the choice of using a robo advisor or to DIY will depend on individual preference.

Robo Advisor Vs S&P 500

Growth charts may show robo advisors are on the rise, but can they beat the market? The usual benchmark for this is the S&P 500. Performance in previous years and 2024 shows most robo advisors are not beating the market. Now that isn’t to say a robo advisor is either are good or bad. Automated platforms simply aren’t designed to beat the market. Instead, they aim to automatically invest in line with your investment goals and risk appetite.

Is A Robo Advisor Suitable For You?

Opening a robo advisor account is a sensible option for:

Automated trading accounts are less suitable for:

Finding The Best Robo Advisor

The best robo advisors deliver a seamless sign-up process with straightforward portfolio management and comparison tools. Accounts at the best firms will have also leveraged the latest technology to deliver strong security features and responsive customer service.

We’ve already run through typical rates, but it’s worth getting quotes and being wary of any robo advisor offering zero fees. Once you have all that information, a simple cost comparison chart on Excel can help you make a final decision.

Among the top 10 names currently topping the roboadvisor rankings are mostly from the US, such as Vanguard, Charles Schwab, Betterment, Wealthfront, TD Ameritrade, eTrade and Ally. Outside of the US market, Fidelity and Nutmeg are popular in the UK.

In Canada, Wealthsimple and Questrade are emerging as icons. Some of these big robo advisors now boast valuations of over $500 million.

Open source (API) startups and robo advisory white-label platforms are also emerging in Australia, Malaysia, Hong Kong, Germany, Luxembourg, Indonesia, India, Singapore, Ireland, and the UAE.

We’re seeing a trend of traditional brokerages with strong track records, such as Interactive Brokers, entering the market too. This is all good news for prospective users as companies will become increasingly competitive.

Pros And Cons


There are several benefits to automated investment software:


Limitations to consider before joining a robo advisor:

Other Considerations

Expense Ratios

Despite the significant growth rate of robo advisors, it’s still early days in their history. As a result, it’s difficult to accurately report on their performance. Returns could well stem from short term market trends or the weight of asset class allocation.

With that said, expense ratios can be a helpful way to consider the investment propositions on offer.

Expense ratios are the fees flowing to the investment fund firms, index funds, mutual funds, plus the ETFs in a portfolio. The fee will be removed before returns are shared between investors.

Expense ratios should be under 0.2%. So when looking at options, use a calculator to measure the total cost of management fees plus expense ratios.


Most robo advisors worldwide are considered ‘human advisors’ in the eyes of the law. In the USA, for example, their official title is ‘Registered Investment Advisor’ (RIA).

Therefore, they must sign up with the US SEC before launching services online. Their status also means they are considered a fiduciary, subject to the same laws and regulations as standard broker-dealers.

It’s worth checking the legal status of an online platform in your country before you sign-up, also keeping abreast of the latest news for any changes.


In many countries, portfolios are considered securities for investing rather than bank deposits. This raises the question of insurance. Fortunately, at most firms managed assets will be insured.

Wealthfront, for example, one of the largest providers, is insured by the Securities Investor Protection Corporation (SPIC).


Before you sign up for a robo advisory website, explore the educational resources available. Some providers offer online books, PDFs, newsletters, podcasts, and videos that detail everything from the latest market trends to investment planning templates.

You can also find outlooks on green and socially responsible investment strategies, including Environmental, Social and Governance (ESG) products.

For further guidance on educational tools, see here.

Are Robo Advisors Right For Day Traders?

Promising lower fees and minimum investments than traditional advisors, digital platforms could be a sensible choice for novice investors and those short on time.

But despite the success stories in this emerging landscape, clients seeking customised, hands-on solutions may prefer a dedicated human financial advisor.

Overall, users looking for the best returns will need to carefully consider how a robo advisor fits into their overarching investment strategy.


What's a robo advisor?

Robo advisors are a new form of financial advisor that use data and algorithms to make automatic investment decisions based on the user’s preferences.

How do robo advisors differ?

The main ways robo advisors differ are: investment options, management fees, minimum account investments, and access to supplementary human advice.

How much starting capital do I need to open an account?

One of the main benefits of a robo advisor is that minimum account requirements can be as little as zero.The minimum average account size is $500. Note some providers will demand upwards of $10,000.

Do I need to be a technology expert to use a robo advisor?

No. Robo advisors have easy-to-use dashboards ensuring clients can quickly open an account and start trading.

Are robo advisors risk-free?

Using a robo advisor does not eliminate the risks associated with trading. Ensure you think carefully about your risk tolerance when you open an account.