Table of Contents
What Is A Robo Advisor?
First, we thought we’d iron out precisely what a robo-advisor is and what is its function. A robo-advisor combines the skills of a human and a computer algorithm to help you find the right investments for you. Robo advisors can offer various skills and services, and so you must choose the right one for you. A robo-advisor is not for everyone as it can depend on the kinds of investments and risks that you want to make. If you aren’t ready to take a hands-off approach to invest, then you might want to consider avoiding a robo-advisor platform. Otherwise, this might be the perfect solution for you. For the record, you can always adjust the level of influence that the AI has on your investments. You can start with little intervention and gradually raise the robot’s influence one you get the hang of how the system functions.
Are Robo Advisors Different In Canada Vs. the United States?
Robo advisors have been around for many years, and they have helped a lot of people out with the investment portfolios. For those unfamiliar with robo-advisors, the idea of this might seem a bit strange; however, it can be very beneficial and can work quite well. Although the same robo-advisory services aren’t always available in every country, Robo advisors in North America are becoming ever increasingly more popular. They are expected to grow at an astonishing rate over the next few years. While one service might be best for Canadian citizens, another might be better for those based in the USA. In this article, we are going to discuss what robo-advisors are and how they differ between these two locations.
Robo Advisors in Canada
If you live in Canada, then your main choice of robo-advisor might have you considering Wealthsimple vs Questrade. Of course, while these are the more popular services in Canada, there are other options for you to choose from. You need to evaluate the various services and fees that they offer and determine which is best for you. When it comes to the entire package, we would suggest that Wealthsimple has the best on offer. For those interested in competitive fees then it might be better to go for Questwealth Portfolios. Of course, there are many more options to choose from include Justwealth, which offers a larger investment variety and Nest Wealth, which is perfect for mature investors. If you want an expert-assembled variety, then ModernAdvisor is worth your while. All these robo-advisors in Canada are great, and they are options that you should consider when you are looking for the right one for you. Of course, we would advise that you do plenty of research on each and make sure that you know what you are signing up for before making any investment.
USA Robo Investors
Do you live in the USA? You might have already heard of some of the popular robo-advisors that exist. But are these the same as what is offered in Canada? The truth is that some robo investor platforms are not available to Canadian citizens just yet although there is a potential for this to change in the future. When it comes to some of the big American robo-advisor companies like Wealthfront or Betterment, Canadian citizens are not able to make use of these services. This is because of certain regulations that are set up in Canada, which mean that everything would be much more of a hassle. Of course, many companies have made an effort and do offer robo advisory services to those in Canada, but this service will vary.
What To Look For In A Robo Advisor
If you are thinking about choosing a robo-advisor for your investments, you should make sure to look out for some things. The first thing on our list is fees as this is something which is going to affect the amount of cash that you earn. The more you invest, the lower the fee so this is something to consider. Most of the robo investors should state their fees upfront, so have a look at this. When choosing a robo-advisor, you should also have a look at the features. Do they offer in-depth calculators? What about goal setting or budgeting tools? Some services offer these features so it might be worth your while looking out for them when you are choosing a robo investor for your portfolio. They might be key in helping you balance your budgeting both for investments and in your wider monetary plans.
As you can see, robo investors are becoming very popular, and they are expected to gain even more popularity as the technology evolves along with AI. If you live in Canada, then you might have to go for some different options than would someone living in the USA. Of course, the Canadian options are still great. Many features that you will love are still the same; only the regulation is different. Make sure to consider using a robo investor in the future if you are new to investing and need a bit of a helping hand. These are often much more beneficial to have a financial advisor, and they will help you get more for your money.