Robo-advisor fees generally range from 0.25% to 0.50% of your investment portfolio annually. These automated investment platforms are known for their cost-effectiveness compared to traditional financial advisory services.
Robo-Advisor Fees vs. Traditional Advisors
One of the significant advantages of using a robo-advisor is the lower fee structure. Traditional wealth managers typically charge higher fees for their services, which often include personalized human advice and more complex financial planning.
Here's a comparison of typical annual fee ranges:
| Service Type | Typical Annual Fee Range (of portfolio) |
|---|---|
| Robo-Advisor | 0.25% – 0.50% |
| Traditional Advisor | 0.5% – 1.5% |
This difference in fees can lead to substantial savings over time, allowing more of your investment to grow. Robo-advisors like Automated Investor, mentioned in the context of these fees, exemplify this lower-cost approach, providing automated portfolio management and rebalancing at a fraction of the cost of a human advisor.
