Best of
13 Best Robo-Advisors of February 2020
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Our picks for
Overall
on Wealthfront's website
Wealthfront
Fees
management fee
Account Minimum
Promotion
amount of assets managed for free
on Wealthfront's website
on Betterment's website
Betterment
Fees
management fee
Account Minimum
Promotion
of free management with a qualifying deposit
on Betterment's website
on Ellevest's website
Ellevest
Fees
management fee
Account Minimum
Promotion
cash bonus with qualifying deposit
on Ellevest's website
on SoFi Wealth's website
SoFi Automated Investing
Fees
management fee
Account Minimum
Promotion
career counseling plus loan discounts with qualifying deposit
on SoFi Wealth's website
on Ally Invest's website
Ally Invest Managed Portfolios
Fees
with Cash-Enhanced Managed Portfolio; 0.3% otherwise
Account Minimum
Promotion
on Ally Invest's website
Our pick for
401(k) management
While Blooom is slightly different than the other robo-advisors on this list, they deserve a mention because they offer a unique and useful product. Blooom offers advice and guidance on investing in 401(k)s - a rare service among robo-advisors.
on Blooom's website
Blooom
Fees
per year
Account Minimum
Promotion
with code COOODE15
on Blooom's website
Want to compare more options? Here are our other top picks:
Summary of Best Robo-Advisors of February 2020
| Broker | Commissions | Promotion | Account Minimum | Learn More |
|---|---|---|---|---|
Wealthfront on Wealthfront's website | 0.25% management fee | $5,000 amount of assets managed for free | $500 | on Wealthfront's website |
Betterment on Betterment's website | 0.25% management fee | Up to 1 year of free management with a qualifying deposit | $0 | on Betterment's website |
Ellevest on Ellevest's website | 0.25% management fee | Up to $750 cash bonus with qualifying deposit | $0 | on Ellevest's website |
 TD Ameritrade Essential Portfolios | 0.30% management fee | None no promotion available at this time | $5,000 | Read review |
SoFi Automated Investing on SoFi Wealth's website | 0% management fee | Free career counseling plus loan discounts with qualifying deposit | $0 | on SoFi Wealth's website |
 E*TRADE Core Portfolios on E*TRADE's website | 0.30% management fee | $100 to $2,500 cash credit with a qualifying deposit or transfer | $500 | on E*TRADE's website |
Ally Invest Managed Portfolios on Ally Invest's website | 0.0% with Cash-Enhanced Managed Portfolio; 0.3% otherwise | None | $100 | on Ally Invest's website |
 Fidelity Go | 0.35% management fee | None No promotion available at this time | $0 | Read review |
 Wealthsimple | 0.40% - 0.50% management fee | $10,000 amount of assets managed for free for one year | $0 | Read review |
 Schwab Intelligent Portfolios® | 0% management fee | None no promotion currently offered | $5,000 | Read review |
 SigFig | 0.25% management fee | First $10,000 managed free | $2,000 | Read review |
 Axos Invest | 0% management fee | None no promotion available at this time | $0 | Read review |
Blooom on Blooom's website | $120 per year | $15 off with code COOODE15 | $0 | on Blooom's website |
Last updated on February 11, 2020
Methodology
To recap our selections...
NerdWallet's Best Robo-Advisors of February 2020
- Wealthfront: Best for Overall
- Betterment: Best for Overall
- Ellevest: Best for Overall
- TD Ameritrade Essential Portfolios: Best for Overall
- SoFi Automated Investing: Best for Overall
- E*TRADE Core Portfolios: Best for Overall
- Ally Invest Managed Portfolios: Best for Overall
- Fidelity Go: Best for Overall
- Wealthsimple: Best for Overall
- Schwab Intelligent Portfolios®: Best for Overall
- SigFig: Best for Overall
- Axos Invest: Best for Overall
- Blooom: Best for 401(k) management
Frequently asked questions
Robo-advisors automate investment management by using computer algorithms to build you a portfolio and manage your assets based on your goals and your tolerance for risk. Since portfolio management is handled by software rather than a human financial advisor, robo-advisors charge lower fees, which can translate to higher long-term returns for investors.
Robo-advisors use advanced software to handle many of the tasks that used to require expensive experts to manage. Services range from automatic rebalancing to tax optimization, and require little to no human interaction. A robo-advisor might be a good fit if you prefer to be largely hands-off with your investments and you don’t have the kind of complex financial situation that requires a direct relationship with a human financial advisor.
That said, many providers offer access to human advisors available for questions related to account management or long-term investment planning — though these services may cost more.
Here’s what you should consider:
- Management fees. This is what you’ll pay annually to have an account at a robo-advisor.
- Expense ratios. These are like management fees, only they’re paid not to the robo-advisor, but to the investments the robo-advisor uses. Mutual funds, index funds and exchange-traded funds all charge this annual fee to cover the costs of running the fund.
- Account types. Investment accounts fall into two general categories: Retirement accounts, such as IRAs and 401(k)s, that offer tax advantages while adhering to certain rules; and taxable accounts, where there are no specific tax advantages but also no limits on contributions or distributions.
- Investments. Most robo-advisors use low-cost index funds and ETFs.
- Rebalancing. Portfolios are fluid, and market fluctuations can cause the mix of investments you hold to get out of sync with your goals. Rebalancing brings that allocation back to its original mix.
- Access to human advisors. Many robo-advisors have merged computer-driven portfolio management with access to human financial advisors. Some services offer a dedicated advisor to individual clients; others offer only email or online chat with a team of advisors.
