By now, you likely know a thing or two about robo advisors. You are more than likely aware of what they are and how they work. That being said, there are still a few interesting facts about them that we thought you might want to know about.
This article contains a few interesting nuggets of information that you might not have heard of before. Either way, we hope you find it interesting!
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Robo Advisers are Perfect for Beginners and People with Little Spare Time
The main advantage of robo advisors is how much time they save you and how much of the work they do for you. Thanks to this, they work perfectly for both beginners and busy people!
Beginners can use them quite easily, as all they will need to do is answer some questions about their financial situation. The robo advisor will do the rest for them!
On the other hand, those of you who have some trading experience but just don’t have the time to do your own research can make good use of them as well!
Robo Advisers Do Not Actually Advise You at All!
Ironically, the robo advisor doesn’t actually give you any advice! Instead, the robo advisor does EVERYTHING for you. From the research to the actual trade, you’ll have no say at all. You could, in fact, call it a robo ‘auto-investor’ rather than a robo adviser.
That being said, having all the work taken from you doesn’t sound so bad, does it?
A Robo Adviser Isn’t Even Really a Robot!
Robo advisors are simply an algorithm, rather than a robot. A single algorithm that is tailored to your portfolio answers works to make trades for you. The process is more of a mathematical one, rather than mechanical.
So, there you have it. A robo advisor isn’t actually a robot, nor does it provide any advice. So, how did it end up being called a robo advisor? Excellent question! Let us know when you find out.
Confusing name or not, robo advisors are incredibly useful trading tools. We strongly recommend looking into one!
Good luck and happy trading!
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