Our March 2025 Picks: Best Robo-Advisors for Beginners
Review
Updated
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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.
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:
| Broker/Advisor | Best For | Commissions | Learn More | |
|---|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
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
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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
= Fair = Poor |
Best For:
Diversified investing and banking needs |
Commission:
0.25% annual advisory fee³ |
Learn More for SoFi Robo Investing
On SoFi's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
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
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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
= Fair = Poor |
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. |
Rating image, 4.5 out of 5 stars.
4.5/5
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
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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
= Fair = Poor |
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. |
Rating image, 4.5 out of 5 stars.
4.5/5
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
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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
= Fair = Poor |
Best For:
Diverse account types |
Commission:
$0 per trade, management fee 0.25% |
|
Rating image, 4.5 out of 5 stars.
4.5/5
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
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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
= Fair = Poor |
Best For:
Simple-to-use platform |
Commission:
$0 per trade, management fee of $4 per month or 0.25% per year |
M1 disclaimers:
M1 is not a robo-advisor and only offers self-directed brokerage services. https://m1.com/legal/disclosures/social-terms/
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:
On SoFi's Secure Website.
SoFi Automated Investing has a reasonable management fee and offers access to Certified Financial Planners.¹ 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.
0.25% annual advisory fee³
$50
On SoFi's Secure Website.
With a low fee structure, this to-the-point platform is a great option for investors with at least $100 to start.
0.20% to 0.25% fee
$100
On Vanguard Digital Advisor®'s Secure Website.
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.
No commission, trading, or management fees for self-directed accounts. Platform fee of $3 monthly.
$100 for individual account, $500 for retirement account
On M1 Finance's Secure Website.
M1 disclaimers:
M1 is not a robo-advisor and only offers self-directed brokerage services. https://m1.com/legal/disclosures/social-terms/
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.
$0 per trade, management fee 0.25%
$500
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.
$0 per trade, management fee of $4 per month or 0.25% per year
$0
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.
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:
That's basically it. The robo-advisor will then use the money you contribute to construct an appropriate portfolio of investment funds for you.
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.
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.
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.
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.
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:
Robo-advisors will automatically adjust your portfolio based on these factors, as well as market fluctuations, over time.
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.
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
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:
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 from Morgan Stanley, E*TRADE from Morgan Stanley, 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.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
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Vanguard disclosures
Visit vanguard.com to obtain a prospectus or, if available, a summary prospectus, for Vanguard and non-Vanguard funds offered through Vanguard Brokerage Services. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.
Vanguard Digital Advisor's services are provided by Vanguard Advisers, Inc. ("VAI"), a federally registered investment advisor. VAI is a subsidiary of VGI and an affiliate of VMC. Neither VAI nor its affiliates guarantee profits or protection from losses.
Vanguard Digital Advisor is an all-digital service that targets an annual net advisory fee of 0.15% across your enrolled accounts, although your actual fee will vary depending on the specific holdings in each enrolled account. To reach this target, Vanguard Digital Advisor starts with a 0.20% annual gross advisory fee to manage Vanguard Brokerage Accounts. However, we'll credit you for the revenues that The Vanguard Group, Inc. ("VGI"), or its affiliates receive from the securities in your managed portfolio by Digital Advisor (i.e., at least that portion of the expense ratios of the Vanguard funds held in your portfolio that VGI or its affiliates receive). Your net advisory fee can also vary by enrolled account type. The combined annual cost of Vanguard Digital Advisor's annual net advisory fee plus the expense ratios charged by the Vanguard funds in your managed portfolio will be 0.20% for Vanguard Brokerage Accounts. For more information, please review "https://personal.vanguard.com/pdf/vanguard-digital-advice-brochure.pdf" Form CRS and the Vanguard Digital Advisor brochure.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds
M1 disclaimers:
M1 is not a robo-advisor and only offers self-directed brokerage services. https://m1.com/legal/disclosures/social-terms/
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Automated investing is offered through SoFi Wealth LLC, an SEC-registered investment adviser.
Betterment disclaimers
†Betterment Cash Reserve ("Cash Reserve") is offered by Betterment LLC. Clients of Betterment LLC participate in Cash Reserve through their brokerage account held at Betterment Securities. Neither Betterment LLC nor any of its affiliates is a bank. Through Cash Reserve, clients' funds are deposited into one or more banks ("Program Banks") where the funds earn a variable interest rate and are eligible for FDIC insurance. Cash Reserve provides Betterment clients with the opportunity to earn interest on cash intended to purchase securities through Betterment LLC and Betterment Securities. Cash Reserve should not be viewed as a long-term investment option.
Funds held in your brokerage accounts are not FDIC‐insured but are protected by SIPC. Funds in transit to or from Program Banks are generally not FDIC‐insured but are protected by SIPC, except when those funds are held in a sweep account following a deposit or prior to a withdrawal, at which time funds are eligible for FDIC insurance but are not protected by SIPC. See Betterment Client Agreements for further details. Funds deposited into Cash Reserve are eligible for up to $1,000,000.00 (or $2,000,000.00 for joint accounts) of FDIC insurance once the funds reach one or more Program Banks (up to $250,000 for each insurable capacity—e.g., individual or joint—at up to four Program Banks). Even if there are more than four Program Banks, clients will not necessarily have deposits allocated in a manner that will provide FDIC insurance above $1,000,000.00 (or $2,000,000.00 for joint accounts). The FDIC calculates the insurance limits based on all accounts held in the same insurable capacity at a bank, not just cash in Cash Reserve. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through Cash Reserve may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of Cash Reserve, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured. For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC. For more information see the full terms and conditions and Betterment LLC's Form ADV Part II.
**The annual percentage yield ("APY") on the deposit balances in Betterment Cash Reserve ("Cash Reserve") is 4.00% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the "Program Banks") and is current as of Feb. 6, 2023. This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.
For Cash Reserve (“CR”), Betterment LLC only receives compensation from our program banks; Betterment LLC and Betterment Securities do not charge fees on your CR balance.
