Clara's best robo advisors.

Find the right robo advisors for your business on Clara.

SigFigby Sig Fig

SigFig is a robo-advisor offering automated investing with no management fees on your first $10,000 and a minimum account balance of $2,000. Customers will be charged a 0.25% fee on funds over $10,000 but will have access to an investment advisor. The curated portfolio mix is selected from 27 ETFs spanning 9 asset classes. Free tax-loss harvesting, account rebalancing, and portfolio management and goal tracking tools are available.

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Donutby Donut

Donut is more an automated savings app than a robo advisor it takes money directly from your account (an amount you nominate) and invests on your behalf with a 4% yield

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Unifimoney Investby Unifimoney

Mobile app integrating high interest checking account, credit card and Robo investment platform designed for young high earners.

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Clara's guides

Guide to robo advisors.

What are robo advisors?

Robo-advisors are investing services or apps that make financial investments or advice more automated based on rules and algorithms (basically looking at market data and trying to predict outcomes.) Robo-advisors rely on minimal human intervention for their trading advice or trades in other words they offer automatic investing.

Robo-advisors often automate and optimize passive indexing strategies based on risk tolerance and time frames and financial goals. 

How do robo advisors work?

A typical robo-advisor works by having a user sign up and fill out a questionnaire, which usually includes age, assets and other investments, financial goals and then creates a profile based on this. As a user you can indicate your risk appetite, your investment time frame and your goals and it will create a balanced portfolio which you don't need to manage or have any involvement in, essentially it is an automatic investing machine.

Robo advisors typically use a passive index investing strategy, which is proven to be one of the least risky with the best returns for the average investor. This strategy involves minimal selling and buying and buys into indexes like the S&P 500 and holding for the long term.

What is the vanguard brokerage account?

The Vanguard Brokerage account is one of the best rated digital trading platforms on the market, although this platform is not a robo advisor they offer a Vanguard robo advisor called the 'Vanguard Digital Broker'. You can sign up for as low as $3000 and they charge 0.15% annually.

You can check out the Vanguard robo advisor here.


Betterment vs Vanguard

Betterment fees are 0.25% and require no minimum account deposit for its basic digital offering that offers automatic investing. Whereas Vanguard fees are 0.15% for Vanguard Digital Advisors (Vanguard's robo advisor.) 

Both companies give access to real life human financial advisors. For a Vanguard personal advisor there is a 0.30% fee and requires $50,000 invested. Betterment charges 0.40% and requires $100,000 for phone and email access and access to financial advisors.

Both offerings are great, Vanguard is a little better if you intend on doing some of your own trading as well, whereas Betterment has great tools and features that help with goal-oriented investors who are happy to set up automatic investing and let the investments do there thing. If you need access to a human advisor then Vanguard's minimum deposit is less and their fees cheaper.

Investments

When it comes to the actual investments Vanguard outshines Betterment for a few reasons, Betterment offers 12 ETFs that are from Vanguard, but Vanguard users can also self manage parts of their account choosing from commission free ETFs and no transaction fee mutual funds. Vanguard also gives access to stocks, bonds and options so longer term if your interest in markets increases Vanguard gives many more options to invest more freely.

Features

One of the key features is a regular portfolio rebalancing, which can be a massive pain in the ass when it comes to declaring taxes, but it can also increase your after tax profits. Vanguard's Personal Advisor only rebalances on a quarterly or annual basis but doesn't do it automatically. Vanguard's robo advisor Vanguard Digital Advisors does do some automatic rebalancing but it's not quite as extensive as Betterment's approach. 

Betterment automatically rebalances using an algorithm as requested and searches for daily tax loss harvesting opportunities. If you have a premium account then the companies financial advisors are also monitoring for these opportunities
Betterment takes the cake here given the daily rebalancing and tax loss harvesting.

Betterment vs Vanguard Final thoughts?

If you're an investor looking for a digital-human blend, Vanguard Personal Advisor Services offers more flexibility than Betterment, it's cheaper, more personalised and has a lower minimum deposit.

Check out how all the robo advisors compare on our extensive robo advisor comparison list.

Wealthfront vs Vanguard

Wealthfront's fees are 0.25% and require $500 minimum account deposit for its basic digital offering that offers automatic investing. Whereas Vanguard fees are 0.15% for Vanguard Digital Advisors (Vanguard's robo advisor.)

Only Vanguard give access to real life human financial advisors. For a Vanguard personal advisor there is a 0.30% fee and requires $50,000 invested.


Tax and rebalancing strategy

Wealthfront offers daily tax harvesting and automatic rebalancing on accounts versus Vanguards quarterly or annual rebalancing and personalized client by client tax harvesting.

Investments

Wealthfront offers ETFs from 11 asset classes and individual stocks held in larger accounts.

Whereas Vangaurd Portfolios are created by advisors on an individual basis. Core holdings are Vanguard index funds. ETFs and active funds can also be included

Wealthfront vs Vanguard Final thoughts?

If you're an investor looking for a digital-human blend, Vanguard Personal Advisor Services offers more flexibility than Wealthfront. However Wealthfront has great free financial-planning tools and the ability to link outside accounts.

Check out how all the robo advisors compare on our extensive robo advisor comparison list.

What is future advisor?

Future Advisor a robo advisor offered by Blackrock with a $5000 minimum investment. They offer access to advisors if need be and charge 0.5% in fees (which is quite high.) They also offer tax harvesting and tax efficient asset location plus automatic rebalancing.

Compare the entire list of robo advisors here.


Betterment vs Wealthfront

Betterment fees are 0.25% and require no minimum account deposit for its basic digital offering that offers automatic investing. Wealthfront's fees are 0.25% and require $500 minimum account deposit for its basic digital offering that offers automatic investing.

Only Betterment give access to real life human financial advisors.

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