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Robo Advisors vs Financial Advisors: The Sh*t Just Got Real

robo advisors vs financial advisors

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Remember those sci-fi robot uprising movies in which humankind is stripped of its superiority over other species. Some say that such scripts are nothing but a portrayal of vivid imagination of robot enthusiasts. Some argue that the future belongs to Robots.

Is AI taking over the World?

It’s no great secret that Artificial Intelligence is the word on the streets. Many articles professing the A.I will soak up millions of jobs in the years to come are doing rounds on the internet. This postulate has given rise to many debates and Robo Advisors vs Financial Advisors is certainly one of those.

Robo Advisors vs Financial Advisors: The Sh*t Just Got Real

In today’s digitalized world, many fully automated online investment platforms are evolving. They work on computer algorithms and have set templates with various built-in permutations and combinations.

Read more: Best Budget Apps and Personal Finance Tools for 2019

More and more people are shifting to these Robo advisors but the question remains – Have they totally replaced a human mind? Or are there times when Robo advisors cannot see the investors through?

EBC has got your back

Well, EBC has got you covered. Our experts have delved into the nitty-gritty’s of Robo advisors vs. financial advisors debate. Before you weigh your options on the balance of your investment portfolios, let us first understand what Robo advisors actually are:-

Robo advisors are online computer algorithms that help in building and managing a client’s investment portfolio. Investment is partly science and Robo advisors are designed to master the methodical side of the investment.

With thousands of embedded permutations and combinations of various diversified portfolios, Robo advisors are likely to see you through with Passive Investing.

Why I’m A Huge Fan Of Robo Advisors

Robo advisors are more feasible on the cost front as well. They usually charge from 0.25% to 0.90% of the amount managed. Moreover, you don’t even have to maintain a minimum balance, many advisors will let you open an account with $0.

However, Robo advisors fall short on adaptability to external factors of the market, which is required for estate planning and managing more complex investment portfolios.

In all, Robo advisors are good for beginners who seek to benefit from market returns as a whole. This is achievable by keeping a highly diversified portfolio. Here are the two best Robo Advisors accessible to investors today:-


Betterment is arguably the most popular Robo advisor in the market today. It has two plans Better Digital and Betterment Premium. Betterment Digital is for the beginners and charges 0.25% of the assets handled. Moreover, this plan lets you open an account with zero balance.

One can also chat with certified financial planner through messaging functionality which is built in the app.

Betterment Premium is a top-notch plan which allows investors to obtain and maintain a highly diversified portfolio. It helps to invest in exchange-traded funds that run through 12 categories of risk tolerance for investments which span over various time horizons.

Betterment Premium Can See You Through Major Life Events

Betterment Premium also offers financial planning packages which help you prepare for major life events such as retirement planning and relocating to a new city etc.

It is for more seasoned investors and not for amateurs and likewise, it is necessary to have $10000 in your account to take the Betterment Premium service.

Investors who are looking for tax-efficient ways can use betterment premium. It has the option of donating to charities in a way that helps evade taxes and thus shred off some burden from the investors.

Tax loss harvesting is done on daily basis. There is an option of building a well thought out tax-sync portfolio to tether below the upper slab.

Want to ace through investing as a beginner? Visit Betterment Now!

Swell Investing

A standout amongst all robo advisors, Swell Investing is a platform for investors who want to turn planet earth into a greener planet. Swell invests in green tech, clean water, zero waste, renewable energy, disease eradication, and healthy living companies.

Thematic Portfolios have taken the market by storm

The thematic portfolios of Swell Investing have been proved to be in line with the broader market over the years. However, versatility or diversification might come off as a challenge to some because Swell investing invests only in stocks.

More seasoned investors tend to incline towards a broad range of assets but unless its thematic portfolios are proving to be lucrative, customization should not be a matter of concern.

The best part about swell investing is that it has no complicated fee structure/hidden fees. It charges a flat out 0.75% of the assets handled, that’s it.

Want to invest in the idea of greener earth? Visit Swell Investing right away!

Personal Financial Advisors

Personal Financial Advisors are market experts who offer advisory services to investors. These advisors are qualified in the field financial markets or have proven experience in helping people make money out of investments.

When Robo Advisors can’t save the day

Financial advisors can be hired on a continuity basis or on a contract basis, whatever the investor deems fit. Personal financial advisors have got a reputation for helping people in estate planning and handling assets worth millions. This is where robo advisors fall short in the tussle between Robo advisors vs. financial advisors.

Moreover, Personal finance advertisers are farsighted. They keep on making changes in the portfolio based on critical scrutiny of the external factors which directly or indirectly affect the market.

At the end of the day, Humans are the superior species 

This is where the human mind leads the way. No artificial intelligence is smart enough to surpass the prudence, rationality, and adaptability of the human mind.

This is why investors are increasingly choosing hybrid model; where they are partly relying on robo advisors whilst having the privilege of consulting professionals who specialize in the field of financial markets.

Robo Advisors vs Financial Advisors Demystified

Back to square one, which one should you choose? The answer is It Depends. Here we have summed up a few situations and suggested the right choice for you should you confront any of the below-stated situations:-

Situations Best Choice Amid The Situation
Passive Investing Robo Advisor
Small funds Robo Advisor
Benefitting from whole market gains Robo Advisor
Mixed Portfolio Robo Advisor (Betterment in particular)
Seasoned investors looking for estate planning Financial Advisor
When your financial situation is too complex Financial Advisor
Want to brace yourself for the coming major life event Financial Advisor
Tax loss harvesting

Robo Advisor

I hope that this critique of Robo Advisors vs Financial Advisors debate would have got you enough clarity on what fits best for you, right? Go forth and start investing today to secure your financial future.


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