Which markets are good for making money using robo-advisor trading?

[Benjamin Schmitz]

[Steve Walters]

Robo-advisor trading uses an algorithm based digital platform to create automated trading plans that require no human interaction, or very little interaction in some cases. Asking which markets are good for making money with robo-advisors is actually looking at their advantages in the wrong light. The truth is you can make money using robo-advisor trading in any market. That’s a significant part of the reason why robo-advisors have seen such a huge increase in their popularity over the past decade. Investors appreciate the automation offered by robo-advisors, but they also value the fact that a robo-advisor can give you a fully diversified portfolio that accesses many different markets. Robo-advisors also give everyday investors access to services once reserved solely for high net worth individuals, such as advice from certified financial planners,and tax-loss harvesting. When you decide to use a robo-advisor you will be asked a series of questions to determine your risk profile, your current assets and investing goals, your investment experience and time horizon, and several other questions. By using the answers the robo-advisor can create a unique investment plan tailored to your needs. That means the robo-advisor may suggest you invest in a number of different markets to provide diversification and to maximize your profits while minimizing your risk. The primary reason for using a robo-advisor is not necessarily for maximizing profits. It is also ideal for minimizing your time commitment towards investing and simplifying the entire investment process through the use of technology. Robo-advisors can provide a portfolio that is risk-managed, with low fees and tax advantages. Many people find this to be superior to doing their own research and manually investing, even if the returns might be slightly less. You’ll find that the ideal robo-advisor will be different from one investor to another, and is entirely dependent on each individuals’ financial situation, investing goals and needs. You will find several common features among the best robo-advisors:

• Low fees;
• Low initial investment;
• A diverse selection of markets and assets;
• Comprehensive portfolio management.

 

Choosing a Robo-Advisor

The first step to take if you’re thinking of using a robo-advisor is to get more information by doing your own research. Check into various services, ask questions and learn what features are on offer. One thing to consider closely is if you want a platform that is completely automated and free of human interaction, or if you’d prefer a product that combines a robo-advisor with a human advisor. You will almost certainly pay more for the combination, but some people find access to a human advisor is worth the cost, and it helps them improve their investing success. If you want to invest in the markets that make the most money with robo-advisors you’ll also want to see which assets are offered by the services you’re considering. Some robo-advisors focus exclusively on one asset class, such as stocks or forex, but others will offer access to a range of assets and markets. Don’t forget to find out about fees too. Even the best robo-advisor can degrade your performance if it charges excessive fees. We also recommend looking into the background of the robo-advisor to ensure there haven’t been any complaints filed against them with the Better Business Bureau (BBB) or the Financial Industry Regulatory Authority (FINRA). FINRA makes this especially easy with their BrokerCheck online tool. You can make money in any market using a robo-advisor if it’s the right robo-advisor and the right timing for the market.

[Melinda]

Hello Benjamin,

Robo-advisors are intelligent financial programs that create and maintain your investment portfolio. You’re required to fill a form highlighting your risk tolerance and financial requirements. 
Needless to say, robo-advisors will make you money in all market types. The popularity of these platforms can be attributed to their minimal costs. First off, they charge less than financial advisors.
 Likewise, they don’t demand high starting balances. Not forgetting the numerous financial instruments available to users. 
Apart from index funds, robo-advisors allow otherwise high-cost assets like real estate and labor savings. They’re also accessible via phone and web applications. Although the systems are automated, humans are involved in programming the software’s decisions and answering client queries. 
Check the robo-advisor’s background to ensure no complaints have been raised against them with regulatory bodies. Since they’re also prone to market risks, some investments may fail.
 

Edited June 12, 2020 by Melinda

[britany weel]

Robo-advising has been in great demand lately, and we all understand why. 1. It's cheap. 2. It doesn't require significant investments. 3. Easy to manage. 4. Is accepted by many markets.  It goes without saying, that Robo-advising has proven to be very efficient and has more advantages than disadvantages. The main disadvantage is that fewer employees are required, yet the net worth targets go up. After implementing it in our company, I can firmly say that it has changed many things into the right direction.

Edited May 14, 2021 by britany weel