Robo-advisors are online portfolio management services that do not require interaction between the client and the portfolio manager.
In Canada, robo-advisors (or robo-advisers) have little to do with Terminator-like killer robots. In fact, these investment services employ real-life portfolio managers to manage their clients’ money. So no robot actually buys or sells on the stock markets.
The portfolio managers who work for robo-advisors build several portfolios corresponding to different risk profiles. When opening an account with a robo-advisor, several questions are asked to determine the client’s risk profile and thus determine the most suitable portfolio.
While Canadian robo-advisors use predefined portfolio templates, robo-advisor services in the United States offer automated portfolio management.
The main advantages of using robo-advisors are that it requires no investment knowledge and they provide attractive transaction costs. You can compare robo-advisors by using Hardbacon’s comparison tool.
Synonyms: Robo-manager
Related Terms
A portfolio manager is responsible for investing their clients’ money. Also known as a wealth manager, they work for high net worth individuals and institutional clients such as mutual funds or insurance companies. Read more
The stock market encompasses all the people, companies and institutions buying and selling slices of publicly-owned companies and other securities. Read more
A portfolio is the sum of all your investments put together. For example, if you own two apartment buildings, your real estate portfolio is composed of those two buildings. Read more
About The Author: Edouard
Edouard is a financial analyst at Hardbacon. He is responsible for compiling lists of securities that our users can find in the "Explore" section of the application.
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