Spreading money between robo trading services

Asked by: Sophia Jackson

Can I use two robo-advisors?

You can have 2 or more robo advisors since most don’t cost a fortune, and there’s no significant financial threat. Also, you may want to deal in different portfolios, indexes, funds, themed investments, stock types, or bonds, with different robo advisors which is easier with multiple robo advisors.

Can you lose money with robo-advisors?

“The diversification provided by robo-advisors isn’t super powerful.” While robos provide exposure to the broad stock market, you’re at risk of losing money. This is true even with rebalancing and tax-loss harvesting.

What are 2 disadvantages of using a robo-advisor?

Drawbacks to Robo-Advisors

  • Limited Flexibility & Personalization. Robo-advisors are designed for the masses. …
  • There’s No One to Manage Your Emotions. Robo-advisors don’t have feelings, which makes them better investors in most cases. …
  • Limited Human Interaction.

Can robo-advisors beat the market?

Beat the Market

Most robo-advisors follow an index fund investing strategy. That means that they’ll closely match market performance. However, they won’t beat it.

Which Robo investor has best returns?

Robo-advisor performance

Robo-advisor 2.5-year annualized return
SoFi 4.03%
TD Ameritrade 3.62%
TIAA 4.20%
Vanguard 3.42%