Wealth management and investing can be extremely difficult for many people to tackle, and doing it on their own may lead to many mistakes.

ALSO READ: Investing In Gold For Beginners

That’s why people hire help; they use financial advisors to look after their investments and to get advice when it’s needed. More and more people are using robo advisors as a tool to help monitor their investments.

They are available across the world, with the top robo advisors in Canada among the most respected. They’re ideal for investments in North America. The brands Wealthsimple and Nest Wealth are among the best.

But are they worth using?

The Pros

For the most part, you might find robo advisors are well worth using as a service and can be a great alternative to financial advisors for a number of reasons…

They take emotion out of the equation: One of the biggest causes of human error when it comes to investing is emotions. Emotions can influence the brain significantly and affect decisions. Whereas robo advisors will offer advice based upon facts and statistics.

They cost less than human advisors : If you’re an investor and need investing assistance, robo advisors are certainly cheaper than real-life advisors. Robo advisors generally cost about half the price of human advisors. Furthermore,  if you experience issues with your robo-advisors, human tech support is always available.

They auto rebalance: Robo advisors have the ability to rebalance your portfolio automatically in order to address your goals. This can be done every few months. Some investments soar and others may decrease. A robo advisor will address these issues.

Robo advisors help you pick investments that suit your needs: Robo advisors collect data via your investment history and through questionnaires in order to recommend investments that suit your agenda. Investments will be offered to you based upon your preferred cost, industry, and risk levels.

The Cons

There aren’t many cons, however there are a few things you may not like about the robo advisors.

They aren’t 100% personalized: You can’t get a truly 100% personalized portfolio from robo advisors. On the other hand, human advisors can personalize your investment needs. Your short term and long term investing needs can change very often, and a human advisor can adapt easier to those changes and can personalize your portfolio based on those changes.

They can’t educate you: If you want to learn about investing from your advisor, you’re much more likely to learn from speaking to a human advisor than a machine.

You can’t connect face-to-face: Of course, one of the major drawbacks for many is the lack of face-to-face connection. Many people may feel much more comfortable discussing financial matters with a human. If you have difficulty expressing yourself, robo advisors may not be the right type of advisor for you. For people who want to avoid human interaction, a robo-advisor may be perfect for you.



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