Today, we can safely say that robo advisors, automated investing services, have established their place in the investment management landscape. Over the years, these services have evolved into offering clients human financial advisors, among other solutions. With so many interesting automated companies around, it can be difficult to figure out which one is the best for you. Here are a few important points you must consider to narrow down your options.

Check the fees

Many robo advisors usually charge a percentage of your invested assets as an annual management fee. For most, this fee ranges from 0.25% to 0.50%. If the annual fee is 0.5%, you will be charged $50 if your account balance is $10,000.

Know what the service is offering

Fees shouldn’t be the main factor while choosing the best automated investing service. You must have a look at what these robo advisors are offering apart from essential services. Some robo advisors’ services can significantly boost the returns on your investments, making up for any fee that you’ll be paying annually.

Decide if you need a human advisor

When looking for a robo advisor, you have options that range from automated investing services that can fully manage your investment to hybrids, where you can get advice from a human financial advisor. If you think you would need a human advisor, then only look for some companies where you can get a dedicated financial advisor or a rotating cast of advisors that changes whenever you call. Of course, a personal financial advisor is more expensive.

Investment options

The success of an automated investing service is attributed to the type of asset class the service is heavily invested in. Most robo advisors invest your money only in exchange-traded funds (ETF). But if you want to diversify your portfolio, look for a robo advisor that can offer more customization.

Minimum account balance

If you’re getting in the game and do not want to go all-in, consider a robo advisor with either no minimum balance criteria or low balance criteria. You may come across services that demand a minimum balance as much as $100,000 to get started. Typically, if an advisor is offering service like a personalized finance advisor, the minimum balance is higher.

Account types

There are several account types that investors can choose from, including taxable accounts, IRAs, or a 401(k) plan. Ensure that the robo advisor you opt for has the account type you want.