Best Robo Advisors of 2020

Best Overall: Betterment

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Founded in 2010, Betterment pioneered the robo advisor industry as we know it today. The robo advisor has attracted 480,000 customers and more than $22 billion in assets to the platform. It offers taxable and tax-advantaged retirement accounts among its suite of banking and investment products. Betterment allows you to start accounts with no minimum and all accounts include automatic features like rebalancing, tax-loss harvesting, and customized portfolios. 

The 0.25% management fee applies to both taxable and retirement accounts including IRA and even 401(k) plans if your employer chooses Betterment as a plan administrator. If you’re willing to pay 0.40% and have a $100,000 minimum balance, you can also get access to a human financial advisor who will help with your entire financial life, not just what you have in Betterment.

Charles Schwab: Runner-Up

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Charles Schwab is a massive brokerage founded in 1971 that holds more than $4 trillion in client funds and more than $480 billion in its own mutual funds and ETFs. In addition to traditional brokerage accounts and investment services for virtually any financial situation, Schwab offers its own robo advising product called Schwab Intelligent Portfolios.

The core Schwab Intelligent Portfolios product is free to use with no advisory fees or commissions. The only major downside is that you need at least $5,000 to get started. If you want the robo advisor experience with the added assistance of a financial planner, Schwab Intelligent Portfolios Premium charges $300 for setup and $30 per month for unlimited access to a certified financial planner (CFP) as long as you meet the $25,000 minimum balance threshold.

SoFi: Best for No Fees

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SoFi is a financial company that offers lending, banking, and investing, among other useful financial products and tools. SoFi was founded in 2011 as a student lender and has since attracted more than 1 million customers across its product portfolio with more than $45 billion in funded loans.

SoFi’s robo advisor is called “Automated Investing.” It’s a free product and has no minimum balance required. Launched in 2019, Automated Investing is a basic robo advisor that includes features like goal planning and automatic rebalancing. You can choose between taxable and IRA accounts, too.

Wealthfront: Best for Multiple Accounts

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Wealthfront traces its roots to 2008 when it began as a mutual fund analysis company. These days, it offers banking, investment, and lending. The firm’s robo advisor offers additional features as your portfolio grows.

All accounts include tax-loss harvesting and risk management for a 0.25% fee. For balances of at least $100,000, you get access to stock-level tax-loss harvesting and risk parity. For balances of $500,000 or more, you get access to Wealthfront’s Smart Beta program designed to build you your own portfolio of stocks based on five factors to optimize how your money is invested. 

SigFig: Best for Robo Advising in Your Existing Accounts

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Founded as Wikinvest in 2006, SigFig provides management of funds from TD Ameritrade, Charles Schwab, and Fidelity. SigFig requires a $2,000 minimum balance and is free to use with balances up to $10,000. Beyond $10,000, you’ll pay 0.25% (though the first $10,000 is still managed for free) and you’ll get access to a SigFig human investment advisor.

SigFig includes automatic rebalancing and tax-efficient investing strategies to, in theory, help your portfolio keep on growing. SigFig also offers a free tracking dashboard from which you can manage your retirement accounts, get investment alerts, and portfolio analysis.

Blooom: Best for Employer-Sponsored Retirement Plans

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Blooom is a unique robo advisor that doesn’t work like the others. Blooom connects to your existing 401(k) or IRA, analyzes your accounts for fees, diversification, and allocation, and then makes trades on your behalf. The entire process takes up to seven business days. This is great because you don’t have to set up any new accounts.

Unlike most other robo advisors, you still have control of the day-to-day management of your brokerage accounts; Blooom only adjusts your account about every 95 days, if necessary.

Most robo advisors can’t help you with a 401(k) plan, as those are administered by a brokerage selected by your employer. The option to connect your account and get advice within the constraints of what’s allowed in your account can be very helpful.

Blooom charges $95 per year for an “Essentials” account (personalized portfolio), $120 per year for a “Standard” account (personalized portfolio, auto-optimization, advisor access), and $250 per year for an “Unlimited” account, which includes “Standard” features and priority access to advisors. There is no account minimum required, either.

Personal Capital: Best for Hybrid Human/Robo

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Founded in 2009, Personal Capital’s investment management service is a hybrid robo/human advisor experience where you work with an advisory team or advisors to manage your investments based on your goals. Personal Capital has more than $12 billion in assets under management with more than 24,000 paid clients. Investment services start at 0.89% for clients with up to $1 million under management and decline to 0.49% for those with $10 million or more. You need $100,000 in investable assets to get started. The firm provides three tiers of service based on your balance:

1. Investment Services: $100,000 to $200,000
2. Wealth Management: $200,000.01 to $1 million
3. Private Client: More than $1 million

Each tier offers different levels of advisor access and asset oversight.

Even if you don’t use Personal Capital’s paid investment service, it’s worth checking out the free investment analysis tools. Anyone can connect their existing investment account to analyze portfolio allocations, fund fees, and other important financial details.