Why robo-advisors may be the future of trading?
Robo-advisors have become popular among traders due to their efficient management solutions that cost less than what financial advisors may charge.
So far, robo-advisors have handled about billions’ worth of assets, which might reach over a trillion in the near term.
The industry’s growth in less than ten years has led several to believe they could be the future of trading. But many traditional investors remain skeptical about that.
Let’s get something clear. Robo-advisors are no R2D2 or T-800. They’re algorithms. So more like the Matrix.
Anyways, robo-advisors are designed to automate people’s investing. Enter details about your profit target and risk tolerance on your PC, and they will build and manage a tailored portfolio for you.
That’s the basic design. Today, some robo-advisors can create investment and saving recommendations based on your short- and long-term goals.
While it’s no doubt robo-advisors are a game-changer, don’t forget to consider your financial situation and other critical factors when deciding whether you should use one.
Robo-advisors are a good choice, especially if you’re a beginner and starting small. They’re cost-efficient and can free up some of your time so you can focus on other important things in your life.
Plus, several robo platforms are expanding their services today. Letting their clients use a robo-advisor and still have consultations with a human advisor. So you can either go pure digital or the best of both worlds.
Robo-advisors have the potential to change trading and are continuously evolving. While they’re currently focused on automating the investment process, there’s still much in store.