Robo-advisors use algorithms to build and manage portfolios automatically, often at a fraction of the cost of traditional advice.

They can help with everything from simple long-term investing to tax optimization and retirement planning, without requiring constant hands-on attention

Robo‑advisors typically charge much lower fees than traditional financial advisors and provide automated portfolio management, including rebalancing and diversification, making them an attractive option for many long‑term investors — Investing on robo‑advisors.

Because each platform targets slightly different needs, choosing the right one depends on balance size, desired features and how much human help is needed.

Wealthfront Highlights

Wealthfront earns top marks as a well-rounded choice for long-term investors who want strong automation and robust planning tools. Its “Path” tool uses linked financial accounts and assumptions about income, housing and education costs to project progress toward goals like college savings, buying a home or retirement.

A $500 minimum opens an account, and the annual advisory fee is 0.25% of assets managed. Portfolios mainly use low-cost exchange-traded funds spanning U.S. stocks, international stocks, bonds and real estate, with automatic daily tax-loss harvesting in taxable accounts.

Wealthfront also supports self-directed trading in individual stocks and ETFs, including fractional shares, so investors can combine automated portfolios with their own ideas.

Betterment Strengths

Betterment focuses on ease of use and goal-based buckets, making it especially friendly for beginners. Opening an account starts with simple questions about time horizon and comfort with risk, then the platform suggests a stock/bond mix for each goal, such as retirement, a big purchase or a safety net.

There is no minimum balance to open, but bank transfers generally start at $10. Fees are either a flat $4 per month on small balances, or 0.25% annually for investors who maintain at least $20,000 or set up recurring deposits.

Those who want more guidance can upgrade to a premium tier, which adds access to credentialed financial planners for an extra fee and requires a higher balance.

SoFi Invest

SoFi’s automated investing is aimed at newer investors who like having everything—banking, loans, active trading and a robo-advisor—under one roof. Automated portfolios require a $50 minimum and charge 0.25% per year. SoFi offers five model portfolios ranging from conservative to aggressive.

A short questionnaire helps match investors to the closest fit. Portfolios are rebalanced automatically to keep allocations in line.

Unlike some competitors, SoFi’s robo-advisor does not currently use tax-loss harvesting, which may matter for larger taxable accounts. However, access to human advisors and integrated financial tools can be attractive for people already using SoFi for other services.

Fidelity Go

Fidelity Go combines automated portfolios with the reputation and infrastructure of a major brokerage firm. It supports individual and joint taxable accounts plus several types of IRAs, making it suitable for retirement-focused investors.

There is no minimum to open an account. Management is free for balances under $25,000, and a 0.35% annual advisory fee applies above that threshold. In return, investors with higher balances gain access to one-on-one coaching from financial professionals.

Portfolios primarily use Fidelity Flex mutual funds, which have no underlying expense ratios, helping keep overall costs competitive despite the advisory fee.

M1 Finance

M1 Finance is a strong fit for investors who like automation but still want to design their own portfolios. Instead of prebuilt funds only, M1 allows selection of individual stocks and ETFs organized in visual “pies.” Each slice represents a target percentage of the portfolio.

Once targets are set, deposits are invested automatically to keep the pie aligned, and rebalancing occurs when new money is added or when chosen manually. There are no management fees, but there are some service fees, including charges for prolonged account inactivity.

Trades are executed during limited daily windows, with an extra afternoon window available to premium subscribers. This structure makes M1 best suited for long-term investors rather than frequent traders.

Acorns Basics

Acorns is designed for people who struggle to save and want an easy entry into investing. After connecting debit or credit cards, everyday purchases are rounded up to the next dollar, and the spare change is invested automatically.

Acorns offers several ETF-based portfolios from conservative to aggressive. Investors can also set recurring transfers from bank accounts to grow investments more quickly.

Instead of a percentage-based advisory fee, Acorns charges flat monthly subscription levels starting at a few dollars. This can be appealing for larger balances but relatively expensive for very small accounts, where fixed fees take a bigger bite.

Empower Approach

Empower (formerly Personal Capital) combines sophisticated digital tools with dedicated human advisors, focusing on higher-net-worth households. Its free dashboard offers budgeting, net worth tracking and retirement projections even before choosing paid management.

Advisory accounts start at $100,000, with management fees beginning at 0.89% of assets and decreasing for larger balances. In exchange, clients receive tailored portfolios, tax-loss harvesting, asset location strategies and ongoing contact with an advisory team.

For investors who want holistic planning plus automation, and who meet the high minimums, Empower can function as an all-in-one wealth management solution.

Other Options

Several other robo-advisors may suit specific needs. Some low-cost providers attach automated management to existing brokerage accounts, while others emphasize niche features such as socially responsible portfolios, retirement-plan management or deep integration with online banking.

These platforms may have higher minimums, lack tax-loss harvesting or charge different types of advisory fees. Yet they can still be useful when their strengths line up with a particular goal or existing account structure.

How They Work

Most robo-advisors begin with a questionnaire to gauge risk tolerance, goals and time frame. Based on those answers, the algorithm selects a mix of assets—often index funds and ETFs—that fits the profile.

The platform then monitors positions, reinvests dividends, and rebalances when allocations drift too far from targets. Some services scan for tax-loss harvesting opportunities in taxable accounts, selling certain holdings at a loss and replacing them with similar investments to offset gains.

Choosing One

Selecting a robo-advisor starts with clarifying priorities. Important questions include:

How much is available to invest now and regularly?

Is access to a human planner important?

Are tax features such as tax-loss harvesting essential?

Are low fees or a flat subscription model more appealing?

Comparing minimums, advisory charges, supported account types and available features helps narrow the list. For many investors, a simple, low-cost platform with automatic rebalancing and solid educational resources is more than enough.

Conclusion

Robo-advisors can remove much of the stress and guesswork from investing, especially for those who prefer a structured, rules-based approach. The right choice depends on balance size, complexity of goals and desired level of human involvement. With so many capable options available, the key step is not perfection, but getting started.

Which mix of automation, advice and cost makes the most sense for current goals?