How to Choose the Right Robo-Advisor in 2026
By Itai Varochik | Updated February 19, 2026 | 3 min read
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Frequently Asked Questions
What is a robo-advisor and how does it differ from a traditional financial advisor?
A robo-advisor is an automated, algorithm-driven platform that provides financial planning services with little to no human intervention. Unlike traditional financial advisors who offer personalized, human-led advice, robo-advisors typically manage investments based on pre-set algorithms, offering a more cost-effective and accessible option for many investors.
How do I choose the best robo-advisor for my investment goals in 2026?
Choosing the best robo-advisor involves considering your investment goals, risk tolerance, and the fees charged. Look for platforms that align with your financial objectives, whether that's long-term growth, retirement planning, or specific ethical investing options. Compare features like portfolio customization, rebalancing strategies, and access to human advisors.
What are the typical fees associated with using a robo-advisor like Betterment or Wealthfront?
Robo-advisor fees are generally lower than those of traditional advisors, often ranging from a small percentage of assets under management (AUM) annually. Platforms like Betterment and Wealthfront typically charge an advisory fee that can vary based on your account balance and the services provided. It's important to review their specific fee structures before committing.
Are robo-advisors suitable for beginners with limited investment knowledge?
Yes, robo-advisors are often an excellent choice for beginners due to their user-friendly interfaces and automated processes. They simplify investing by handling portfolio creation, rebalancing, and diversification, making it easier for new investors to get started without needing extensive financial knowledge. Many platforms also offer educational resources.
What are some key features to look for in a robo-advisor besides low fees?
Beyond low fees, essential features to consider include portfolio diversification options, automatic rebalancing, tax-loss harvesting capabilities, and access to human financial advisors for more complex questions. Some platforms also offer socially responsible investing (SRI) options or goal-based planning tools to help you stay on track.
Can I customize my investment portfolio with a robo-advisor, or are they all pre-set?
While many robo-advisors start with pre-set portfolios based on your risk profile, some offer varying degrees of customization. Platforms may allow you to select specific ETFs, adjust asset allocations, or incorporate socially responsible investing themes. The level of customization available will depend on the specific robo-advisor you choose.
How do robo-advisors like Fidelity Go or Schwab Intelligent Portfolios handle market volatility?
Robo-advisors such as Fidelity Go and Schwab Intelligent Portfolios are designed to manage market volatility through diversified portfolios and automatic rebalancing. They aim to keep your asset allocation consistent with your risk tolerance, selling high and buying low to maintain your target percentages. This automated approach helps mitigate emotional decision-making during market swings.
What are the minimum investment requirements for popular robo-advisors?
Minimum investment requirements for robo-advisors vary significantly. Some platforms, like certain tiers of Betterment or Wealthfront, may have no minimum to get started, while others might require initial deposits of a few hundred or even a few thousand dollars. It's crucial to check the specific minimums for each robo-advisor you are considering.