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Our December 2024 Picks: Best Robo-Advisors for Beginners

Review Updated
Matt Frankel, CFP®
Author: Matt Frankel, CFP®
Matt Frankel, CFP®
Matt Frankel, CFP®
Writer, Analyst

Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for Motley Fool Money and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column for the Motley Fool ("Ask a Fool") that is syndicated in USA Today, and his work with Motley Fool Money has also been syndicated to MSN and Yahoo! Finance. He has been regularly featured on Fox Business and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.

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Ashley Maready
Fact Checked: Ashley Maready
Ashley Maready
Ashley Maready
Writer and Editor

Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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It wasn't that long ago that there were only a couple ways to build a diverse investment portfolio. You could hire a financial advisor, or you could do the research and choose investments yourself. But these aren't practical or desirable options for everyone.

Fortunately, the automated investing industry has exploded, and there are some excellent robo-advisor services available that can put your investing on autopilot. With the stock market reaching record highs in 2024 already, now could be a great time to start, so read on for our favorite beginner-friendly robo-advisors.

  • Our team of experts assessed 45+ trading platforms
  • We evaluate all brokerage accounts across the same 4 key criteria: user experience, cost efficiency, product variety, and support and security
  • Our brokerage ratings are never influenced by our advertising partners
  • We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased

There are a lot of options to compare. It can be overwhelming! If you're looking for a place to start, here are some robo-advisors our experts recommend for beginners and why they like them:

Our 5 Best Robo-Advisors for Beginners for December 2024

Broker/Advisor Best For Commissions Learn More
SoFi Robo Investing Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Best For:

Diversified investing and banking needs

 Commission:

0.25% annual advisory fee³
Learn More for SoFi Robo Investing

On SoFi's Secure Website.

M1 Finance Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Mobile investing

 Commission:

No commission, trading, or management fees for self-directed accounts. Platform fee of $3 monthly.
Learn More for M1 Finance

On M1 Finance's Secure Website.

Wealthfront Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Diverse account types

 Commission:

$0 per trade, management fee 0.25%
Read Review
Betterment Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Simple-to-use platform

 Commission:

$0 per trade, management fee of $4 per month or 0.25% per year
Read Review
Vanguard Digital Advisor® Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

No-frills index investing

 Commission:

0.20% to 0.25% fee
Learn More for Vanguard Digital Advisor®

On Vanguard Digital Advisor®'s Secure Website.

M1 is not a robo-advisor and only offers self-directed brokerage services.

How do I choose a robo-advisor for beginners?

The bottom line is that while we feel our list above represents the best robo-advisors for beginners, the best choice for you depends on the features that matter the most to you. Just to name a few, here are some of the things to look for:

SoFi Robo Investing
Learn More for SoFi Robo Investing

On SoFi's Secure Website.

Compare the best robo-advisors for beginners

Ratings Methodology
SoFi Robo Investing

SoFi Robo Investing

Learn More

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Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

SoFi Automated Investing has no management fee and offers free access to Certified Financial Planners. It automatically rebalances portfolios and has no minimum investment, and the app is very easy to use. With a suite of banking and lending products, SoFi is ideal for people who want to keep their finances in one place.

Fees:

0.25% annual advisory fee³

Account Minimum:

$50

Learn More for SoFi Robo Investing

On SoFi's Secure Website.

M1 Finance

M1 Finance

Learn More

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Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

M1 Finance offers features similar to that of a robo-advisor. It integrates with the company's checking accounts and offers customers a line of credit backed by their investments. M1 has no management fees and even offers a linked debit card with reimbursed ATM fees.

Fees:

No commission, trading, or management fees for self-directed accounts. Platform fee of $3 monthly.

Account Minimum:

$100 for individual account, $500 for retirement account

Learn More for M1 Finance

On M1 Finance's Secure Website.

M1 is not a robo-advisor and only offers self-directed brokerage services.

Wealthfront

Wealthfront

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Wealthfront has a $500 account minimum, but it has a lot of features that make it a good fit for beginners. Its management fee is on the lower end of the spectrum, especially for robo-advisors that offer tax-loss harvesting to all customers.

Fees:

$0 per trade, management fee 0.25%

Account Minimum:

$500

Read Review
Betterment

Betterment

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Betterment has a reasonable management fee and no minimum investment requirement. It offers a no-fee checking account and interest-bearing cash management account, plus tax-loss harvesting for accounts of all sizes. It also has the highest rated mobile app we've seen.

Fees:

$0 per trade, management fee of $4 per month or 0.25% per year

Account Minimum:

$0

Read Review
Vanguard Digital Advisor®

Vanguard Digital Advisor®

Learn More

Double arrow

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
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Bottom Line

With a low fee structure, this to-the-point platform is a great option for investors with at least $100 to start.

Fees:

0.20% to 0.25% fee

Account Minimum:

$100

Learn More for Vanguard Digital Advisor®

On Vanguard Digital Advisor®'s Secure Website.

Editor's Note: TD Ameritrade is transitioning to Charles Schwab

TD Ameritrade has been acquired by Charles Schwab, and the company expects all accounts to be transitioned by the end of 2024. We've removed TD Ameritrade from our best-of lists to align with this development. Here at Motley Fool Money, you can trust that we're constantly evaluating our top broker picks to bring you current recommendations.

Reviews of the best robo-advisors for beginners

SoFi Robo Investing

Best robo-advisor for beginning investors who: Want to avoid fees without sacrificing features.

SoFi offers a financial ecosystem of deposit accounts, loan products, and investment accounts. SoFi Robo Investing is the robo-advisor platform, and has some unique features that could make it an especially strong choice for beginners.

Why beginning investors might love SoFi Robo Investing

  • No management fee: SoFi Robo Investing doesn't charge a management fee. It is one of the few robo-advisors that doesn't.
  • CFP® Access: SoFi is one of the few robo-advisors that offers access to Certified Financial Planner™ professionals, and without an additional cost.
  • Relationship discounts: SoFi Robo Investing customers may get discounts and special offers for other SoFi products, such as loans and deposit accounts.

Why beginning investors might not choose SoFi Robo Investing

  • Not great for large accounts: Other robo-advisors may have tax optimization strategies (tax-loss harvesting), which can be especially helpful for large accounts.SoFi Robo Investing doesn't offer this.
  • Some account types not available: SoFi supports individual and joint accounts, as well as traditional, Roth, and SEP IRAs. If you want a different account type, such as a custodial account for a minor, SoFi might not be a good fit.
Read our full SoFi Robo Investing review

M1 Finance

Best for beginning investors who: Want a mix of automated and active investments.

M1 Finance is an investing and banking app that combines some excellent features that are similar to robo-advisor features, as well as self-directed investing. Its automated investing tools are unique and could be especially appealing for beginners who want a little more variety or choice.

Why beginning investors might love M1 Finance

  • Pie-based portfolio: Unlike robo-advisors, M1 Finance investors lets investors choose their investments, but automates the actual process of buying stocks and maintaining allocations. It offers more than 60 model portfolios investors can choose from, or you can choose your own stocks and ETFs with desired allocations.
  • One-click rebalancing: If your investments start to deviate from your desired allocations due to market performance, you can choose to rebalance your portfolio whenever you want.

Why beginning investors might not choose M1 Finance

  • Not actually a robo-advisor: If you're looking to completely put your investing on auto-pilot, where you simply answer a few questions and the robo-advisor does the rest, M1 Finance isn't for you.
  • Low fee: M1 Finance charges a $3 monthly platform fee, but this is waived for accounts with $10,000 or more.
Read our full M1 Finance review

Wealthfront

Best robo-advisor for beginning investors who: Want a feature-rich robo-advisor with the ability to buy individual stocks.

Wealthfront is one of the largest and most feature-packed robo-advisors in the market, and can be a great fit for experienced and beginning investors alike. Unlike some rivals, Wealthfront allows investors to trade individual stocks as well as automate their portfolio. It has some excellent features that might appeal to beginners in particular, and has strong customer service.

Why beginning investors might love Wealthfront

  • Management fees: Wealthfront charges a low 0.25% management fee, which isn't the lowest in the industry. But considering the quality of the platform, it's reasonable, and is a fraction of what you would likely pay a human advisor.
  • Individual stocks: Wealthfront allows investors to trade individual stocks and even offers the ability to buy and sell fractional shares.
  • Tax optimization: Wealthfront is one of the few robo-advisors that implements tax-loss harvesting strategies on accounts of all sizes.

Why beginning investors might not choose Wealthfront

  • Minimum: Wealthfront's $500 new account minimum isn't a massive one, but can be an obstacle for beginners.
  • No human advisors: Beginners may want access to real-live financial advisors, but Wealthfront is entirely automated.
Read our full Wealthfront review

Betterment

Best robo-advisor for beginning investors who: Want to fully automate their investments.

Betterment was one of the pioneers of the robo-advisor industry, and it remains one of the best in the business, especially for beginners. It offers a reasonable investment fee, no minimum balance, and an excellent mobile app.

Why beginning investors might love Betterment

  • Management fees: Betterment offers a choice of a 0.25% annualized management fee or a flat rate of $4 per month.
  • No minimum: A lack of a minimum initial deposit can be a big deal for new investors. You can start an account with any amount, and can get started investing with as little as $10.
  • Tax optimization: Betterment is a rare example of a robo-advisor that uses tax-loss harvesting strategies on accounts of all sizes, which can save you money on your tax bill each year.

Why beginning investors might not choose Betterment

  • Only a robo-advisor: Unlike some of the other top robo-advisors for beginners, Betterment's platform doesn't allow for individual stock investing.
  • Human advisors: Betterment offers a Premium plan that includes financial advisor access, but it is only available with a minimum investment balance of $100,000 or by paying $299 or more for a financial advice package.
Read our full Betterment review

How to open a robo-advisor account for beginners?

The exact process for a beginner looking to open a robo-advisor account varies from broker to broker. But the general process is the same:

  1. Fill out an account application: This includes information about the type of account you want to open (for example, individual, retirement, or joint), and identifying information about yourself.
  2. Answer some questions: This helps the robo-advisor determine how to best invest your money. Questions tend to be about your age, investment objectives (such as saving for college or retiring with $1 million), and how much risk you're comfortable with.
  3. Make a deposit: The easiest way to do this with most robo-advisors is to link your bank account, but you may also be able to mail a check, wire money, or transfer assets from an existing investment account, such as a former employer's 401(k).

That's basically it. The robo-advisor will then use the money you contribute to construct an appropriate portfolio of investment funds for you.

How much do robo-advisors for beginners cost?

In exchange for their automated investing services, most robo-advisors charge a management fee. Robo-advisor fees typically range from 0% to 0.40% for the top firms. Even on the higher end, this is significantly more cost effective than the 1% average management fee charged by financial planners for advice and investment guidance.

Just like with human financial advisors, robo-advisor management fees are generally based on a percentage of assets in your portfolio and are assessed annually.

For example, a 0.25% management fee means that for every $1,000 you have in your robo-advisor account, you'll pay $2.50 per year in management expenses.

It's also important to mention that the individual investment funds your robo-advisor uses typically have their own annual management fees (known as expense ratios). These are usually quite low, but they add to the total cost of your investments. It's still usually much cheaper to use a robo-advisor -- just be aware that an advertised 0.25% management fee can be 0.30%-0.35% when including the expenses of the individual funds your money is invested in.

What investments can beginners buy with a robo-advisor?

Robo-advisors allow investors (both beginners and seasoned pros) to put their money to work in a diverse portfolio of stocks and bonds, which it usually does through exchange-traded funds, or ETFs. The exact funds vary by robo-advisor, with most choosing to offer passive, low-cost index funds. Some robo-advisors have their own proprietary ETFs that they use.

Plus, certain robo-advisors allow investors to buy individual stocks, ETFs, and/or mutual funds in their accounts. This is most common with the large, long-established brokerages, but is becoming more common among app-based robo-advisors.

How much money do you need to start investing with a robo-advisor?

This depends on the robo-advisor. Some robo-advisors have a minimum initial deposit requirement, while others will let you open an account with as little as $1. However, some of the robo-advisors without minimums have a minimum amount that needs to be in your account before your money can actually be invested, although it's usually small.

Are robo-advisors safe for beginners?

There are two different types of "safety" to consider.

First, robo-advisors are safe in the sense that your account is protected from failure of the institution or security breaches. The Security Investor Protection Corporation (SIPC), which is essentially the brokerage equivalent to the FDIC, protects investors in this way. Plus, most brokers protect investors from things like data breaches and fraudulent transactions within the accounts.

On the other hand, robo-advisor investments can be rather volatile over short periods, and it's entirely possible to lose money. While the types of ETFs used by most robo-advisors are likely to rise in value over the long term, it's a good idea to not use robo-advisors to invest money you're likely to need within the next few years.

What is a robo-advisor?

A robo-advisor, which is also referred to as an automated investing platform, aims to do essentially the same thing as a traditional financial advisor, but without any direct human involvement.

These services create an appropriate investment portfolio based on factors such as your:

  • Age
  • Investment goals, such as retirement
  • Risk tolerance

Robo-advisors will automatically adjust your portfolio based on these factors, as well as market fluctuations, over time.

Motley Fool Money's best robo advisors

You could be on the path to financial independence with just a few clicks. Our fully-vetted picks for the best robo advisors offer simple-to-use services that automate your investing needs. Learn more about our top picks by clicking below.

Best robo advisors

Our brokerage rating methodology

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology

FAQs

  • Robo-advisors allow investors to put their money to work in a diverse portfolio of stocks and bonds, which it usually does through exchange-traded funds, or ETFs. The exact funds vary by robo-advisor, with most choosing to offer passive, low-cost index funds.

  • Some robo-advisors are more user-friendly than others. As a general rule, these types of companies tend to have the easiest platforms to use:

    • Companies whose primary business is operating a robo-advisor: Such as Betterment and Wealthfront
    • Companies that are tech-focused and designed for simplicity: Such as SoFi

    By nature, all robo-advisors should be easy to use for most investors. The general idea behind robo-advisors is that they allow people who don't have the time, knowledge, or desire to choose their own investments to put their strategy on autopilot.

Brokerages we evaluated for consideration on this page: Acorns, Ally Invest, Axos Self-Directed Trading, Betterment, Cash App Investing, Charles Schwab, Delphia, Domain Money, Ellevest, Empower, eToro Brokerage, E*TRADE Core Portfolios, E*TRADE, Fidelity, Fidelity Cash Management, Fidelity Go®, Firstrade, FOREX.com, Interactive Brokers, J.P. Morgan Self-Directed Investing, M1 Finance, Magnifi, Marcus Invest, Merrill Edge® Self-Directed, Moomoo, NinjaTrader, Personal Capital, Plynk, Prosperi Academy, Public, Robinhood, Rocket Dollar, Schwab Intelligent Portfolios, SoFi Active Investing, SoFi Robo Investing, Stash, Stockpile, Tastytrade, Titan, Tornado App, TradeStation, Tradier, Vanguard, Vanguard Digital Advisor®, Wealthfront, Webull, Zacks Trade.