Is Robo-Advisor for you?

Most people do not have a big portfolio and might find that they don’t get enough attention from a financial advisor. They also find investing, finance, business and economics intimidating and very hard to understand. Besides they are very busy and don’t have the time to manage their portfolio.

Perhaps, they can try Robo-advisor. Here is an article about it by Investorpedia. I haven’t used it myself. If someone wants to try, perhaps start with a smaller amount just to find out more how it works.  I don’t want to use it myself because I want to decide my own portfolio mix. However, some people don’t want to do that. It takes some calculations and planning. Some beginners might not know where to start at all.

I just did a quick comparison on the Robo-advisor by Wealthsimple vs. Questrade.

Wealthsimple charged 0.5% management fee for the Basic plan which is for portfolio under $100K without minimum balance. However, it didn’t say whether this includes the management fee of the ETFs or mutual funds.

Questrade charged 0.25% management fee for the basic plan under $100K with minimum balance of $1000. But the $0.25% is on top of the management fee of the ETFs which ranges between 0.17% to 0.22%. has a guide on Robo-advisor in Canada. It said that Questrade robo-advisor which is called Questwealth Portfolio is most suitable for frugal investors. 😊 No kidding.  It seems to have the lowest fees.

Most people don’t have a huge portfolio which can get the VIP or white-glove treatment. Very few people have the interest or time to study complicated investing or follow the business news regularly. Perhaps they can try Robo-advisor. 

Published by Worthfy

Financial literacy and counselling

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