We ranked the top robo-advisors for 2024 (2024)

Fortune Recommends^TM has reviewed nearly two dozen robo-advisors to help you find the best option for your money. Our picks offer a great combination of low annual fees, low minimum deposits, great investing features and superior customer support.

The best robo-advisors of June 2024

Read our full methodology here.

Why we picked it

With a low minimum investment threshold, tailored tax-loss harvesting, and 10 global asset classes, there’s a lot to like about Wealthfront. One feature that sets this robo apart is its socially responsible investing (SRI) portfolio, which chooses investments that are equitable, sustainable, and diverse. The SRI option aims to deliver the kind of long-term investment performance that you’d expect from the standard portfolio. Users always have the option to change up the individual funds held in their portfolio at any time.

Why we picked it

Schwab Intelligent Portfolios charges no annual advisory fee, but potential customers should understand why. The platform has a significant cash allocation requirement, which may reduce your long-term returns—plus, there’s a high minimum balance requirement of $5,000 to open a basic account.

In exchange for these limitations, you get free portfolio management that benefits from excellent diversification, constructed from an extensive menu of 51 exchange-traded funds (ETFs), three investment strategies, and six risk profiles. As your risk tolerance or goals change, so can your investment portfolio. You can choose from trust accounts, custodial accounts, brokerage accounts, and individual retirement accounts (IRAs).

Why we picked it

Whether you’re investing for day-to-day spending or long-term retirement planning, Betterment has a portfolio option to satisfy your needs. As with Wealthfront, it offers socially responsible investing options, and it doesn’t charge any commissions. The fee you pay is either $4 per month or 0.25% annually, and you can set up recurring deposits to automate your investing further. When your recurring minimum is $250 per month, you will move to the 0.25% annual fee bracket automatically.

Why we picked it

It’s no secret that women not only live longer, but also get paid less and, therefore, have less available for retirement. Recognizing this need, Ellevest doesn’t take a gender-neutral approach to investing. Instead, it tailors its investing strategies with these unique challenges in mind. It doesn’t ask what your risk is; it determines the acceptable level of risk based on your specific goals and circ*mstances, all while upholding its fiduciary responsibility.

Why we picked it

With an E*TRADE Core Portfolio, you’re getting an expertly managed set of ETF investments tailored to your risk tolerance, liquidity requirements, goals, and time frame. Your initial investment is just $500, and it comes with a support team, your choice of SRI or smart beta ETFs to further customize your investment portfolio. Should you need any assistance, support is available 24/7.

Why we picked it

SoFi Automated Investing makes it easy to get started with investing, and charges no annual advisory fees. This robo offers both qualified and nonqualified accounts, such as Roth, traditional, simplified employee pension (SEP) IRAs, and brokerage accounts, all without paying commissions or fees you’d normally find with a robo-advisor.

Why we picked it

With a robo-advising account through Ally, you can get started with as little as $100. Its portfolios are managed and monitored daily by humans and not machines. There are two portfolios you can put your money in, a cash-enhanced or market-focused portfolio. The first has no advisory fee, the other has a 0.30% annual advisory fee. You won’t pay any fees for rebalancing your account, and its mobile app lets you see all of your Ally accounts, banking and investments included.

Why we picked it

Wells Fargo is a household name known for its traditional banking products. Through its robo-advising platform, you can combine the ease of automation with a trusted financial institution’s expertise and resources. Investors can choose from one of two investment styles: globally diversified or sustainably focused portfolios. After completing an investment profile, its automated tools will determine your risk tolerance before suggesting an investment portfolio designed to meet your needs.

Why we picked it

Fidelity Pro lets investors get started with robo-advising for as little as $10. During the sign-up process, you can see how your specific risk tolerance changes the recommended strategy as you increase or decrease your risk. Best of all, you pay no advisory fees if your account balance is below $25,000. If it’s above that, your fee is 0.35% and you get unlimited one-on-one coaching calls.

Why we picked it

When you sign up for an account with SigFig, you’re getting your first $10,000 managed for free, and it only takes minutes to set up. After that, your advisory fee is a reasonable 0.25%, which is aligned with or better than all other robo-advisors on this list. Your account will be held with either Schwab or Fidelity but managed by SigFig, and you can even sync other accounts so SigFig can suggest adjustments there, too.

What is a robo-advisor?

Robo-advisors are platforms that offer automated investing and wealth management services based on the use of mathematical algorithms. Customers provide some initial information about their financial goals, risk tolerance, and personal background and the robo-advisor identifies suitable assets and creates a portfolio. Many robo-advisors also automatically rebalance portfolios and provide tax-loss harvesting.

These online portfolio management services first emerged on the scene back in 2010 and over the years the field has grown to include more than 100 robo-advisor platforms across 15 countries, according to a report from Deloitte.

How does a robo-advisor work?

Robo-advisors use a questionnaire to help determine the best portfolio construction for your account. The platform asks a series of questions that can include your:

• Age
• Income
• Investing goals, like buying a home or saving for retirement
• Time horizon, or how long until you need the money
• Risk tolerance, or how much you’re willing to lose to reach your goals

The platform then translates all of this information into a portfolio recommendation. You generally have the option to accept their recommendation or make adjustments.

Once you decide on the portfolio, the platform will then build your portfolio using a limited selection of investments. Common investments Robo-advisors use include ETFs and mutual funds. Some platforms may also use individual stocks.

Once you make your first investment, the robo-advisor then monitors your portfolio and rebalances as necessary. It also splits each additional investment you make up into the right-sized slices to maintain your target asset allocation. You can then monitor your account performance through your account.

How much does a robo-advisor cost?

There are multiple factors that contribute to the total cost of your chosen service provider, and what you end up paying will vary depending on the services they offer. Some of the key elements to weigh in your decision-making include:

How to choose the best robo-advisor

With plenty of robo-advisors to choose from, it’s highly likely you’ll find one that matches your goals and finances. But how do you vet those choices to find the one that comes out on top?

• First, have a look at investment minimums. Knowing how much you have to invest can help you quickly rule out providers that aren’t a fit.
• Then, review the fees. Some fees to look for are annual management fees, account closure fees, and costs to speak with a human financial advisor.
• Next, look at available investments. Look for whether the robo-advisor uses ETFs, mutual funds, or other investments to build your diversified portfolio. You might have a preference, and available options can vary by platform.
• Consider available investing strategies. If you’re looking for socially-responsible investment options or more advanced strategies like tax-loss harvesting and direct indexing, there are robos out there to meet your needs.
• Finally, check for additional benefits. Some Robo-advisors offer additional financial planning tools and account types, like cash accounts with debit card access. These perks can help you with other financial goals and potentially help you consolidate your investing and banking relationships.

How do I open a robo-advisor account?

Opening a robo-advisor account is simple. It typically involves completing an online questionnaire where you provide information about yourself, your financial goals, and your risk tolerance. Once you complete the questionnaire, your next step is to make your first deposit. From there, the Robo-advisor does the rest.

Before opening an account, be sure to fully review your preferred robo-advisor’s fees, available account types, and investment minimums. For instance, if you want to use a robo-advisor to help save for retirement, make sure they offer the type of IRA you need.

Alternatives to robo-advisors

While setting-it-and-forgetting-it, robo-advising works for some people, other investors prefer a more hands-on approach. Alternative options include:

• Online brokerages: With these, you can buy and sell stocks, ETFs, and other securities directly.
• IRAs: Both traditional and Roth IRAs offer investors retirement savings with tax advantages.
• Cryptocurrency: Cryptocurrency is a digital asset, and exchanges allow you to buy, sell, and hold these assets.
• Certificates of deposit (CDs): CDs offer investors an opportunity to earn interest on their deposits by keeping their money in a savings account for a specific term length.
• High-yield savings accounts: Often held at digital banks, these high-yield savings accounts usually offer a much higher rate than a traditional savings account. They’re ideal for an emergency fund.

Are Robo-advisors safe?

The same authorities that regulate online brokerage accounts and other investments regulate robo-advisors. While these companies use technology to provide advice and account management, they still have to appease the regulators.

This means filing required documents like a Form ADV annually, which tells the public about how they run their business. They can also have complaints filed against them by consumers through the Securities and Exchange Commission. They’re definitely not above the law.

Investing online also presents potential cybersecurity dangers. Both your account or the robo-advisor itself could suffer a security breach. You can protect your login information using a password manager. Robo-advisors protect their customers and themselves using top-notch encryption technology and additional security measures.

Can you lose money with a robo-advisor?

As with any type of investing, there are risks involved. Just like any other investment account, it’s possible to lose money with the ups and downs of the market. When investing through a robo-advisor, it’s important to be honest during the intake questionnaire. How you respond on that questionnaire tells the robo-advisor how to build your portfolio.

It’s important to keep losses in context. If you start investing in your 20s for retirement in your 60s, your portfolio will experience different market cycles. If you have losses, your portfolio typically has decades to recover.

However, if you’re in your mid-50s and retiring in less than 10 years, you may not have time to recoup losses. In this case, you might want to adjust your portfolio to one that’s more conservative to protect against bigger market swings.

Our methodology

To identify our top picks for the best robo-advisors, Fortune RecommendsTM compared 20 different robo-advisor platforms. We ranked each account based on five categories: overall features, onboarding procedures, financial planning tools, customer support, and pricing.

All of the accounts on our list are available to anyone in the U.S., so you can sign up for any offering regardless of where you are located.