AUTOMATED PLATFORM HELPS EVERYDAY USERS INVEST LIKE THE PROS

Last updated: June 19, 2025, 20:53 | Written by: Naval Ravikant

Investing can feel like navigating a complex maze, especially for beginners. Investing in real estate has traditionally been seen as a complex avenue reserved for the financially savvy or those with substantial capital. However, platforms like Fundrise have democratized this space, allowing everyday individuals to invest with relatively smaller amounts.Terms like ""portfolio diversification,"" ""asset allocation,"" and ""tax-loss harvesting"" can sound intimidating, and the fear of making the wrong move often paralyzes potential investors. Automated Platform Helps Everyday Users Invest like the ProsBut what if you could leverage the expertise of seasoned financial professionals without paying exorbitant fees or spending hours glued to market charts? When traders like John Henry used rule-based methods in the 2025s, they became more well-known. Automated trading models were available for purchase by the middle of the 2025s, and technological developments increased their usability for retail investors.Enter the world of robo-advisors – automated investment platforms that are revolutionizing the way everyday individuals approach wealth building.These platforms, powered by sophisticated algorithms, provide a convenient, cost-effective, and surprisingly personalized way to invest like the pros. The platform is designed to help new investors get started on their investment journey using spare change from their everyday purchases. Acorns works by linking users debit/ credit cards and rounding up every purchase to the nearest dollar and automatically investing the difference in multiple exchange-traded funds (ETFs).Forget the guesswork and emotional trading; robo-advisors offer a data-driven approach, managing your money based on your individual risk tolerance, financial goals, and time horizon. We break down the best automatic investing apps of 2025 that make it easy to create set it and forget investment portfolios at low costs.In this article, we'll break down how these automated platforms work, explore some of the best options available in 2025, and help you determine if a robo-advisor is the right choice for you to invest like a professional.

Understanding Automated Investment Platforms (Robo-Advisors)

At their core, robo-advisors are automated investment platforms that use computer algorithms to manage your money. With tiered account levels, including Basic (free), Plus ( 1), Pro ( 2. 99), and Ultra ( 4.99), and an average annual investment fee of 0.48%, Plum successfully melds budgeting tools with AI-enhanced investing, making it a compelling choice for both savings enthusiasts and investment aficionados in the UK.Instead of relying on a human financial advisor, these platforms use data and pre-programmed rules to build and manage your investment portfolio. Everyday users can now profit from automated digital asset trading funds made by trading professionals, thanks to crypto startup Mudrex's new platform.The process typically begins with a questionnaire designed to assess your risk tolerance, investment goals (e.g., retirement, buying a house, funding education), and the time horizon for achieving those goals. Robo-advisors are a convenient and cost-effective option to save and invest your money. These automated investment services use algorithms that employ advanced portfolio management strategies developed by experts.This information is then used to create a personalized investment strategy.

How Robo-Advisors Work

Here’s a simplified breakdown of how a typical robo-advisor functions:

Risk Assessment: You complete a questionnaire to determine your risk tolerance. See full list on youngandtheinvested.comAre you a conservative investor who prioritizes capital preservation, or are you willing to take on more risk for potentially higher returns?
Portfolio Construction: Based on your risk profile, the robo-advisor builds a diversified portfolio typically consisting of exchange-traded funds (ETFs).ETFs are baskets of stocks or bonds that offer instant diversification at a low cost.
Automated Rebalancing: Over time, the asset allocation of your portfolio may drift away from its target due to market fluctuations.Robo-advisors automatically rebalance your portfolio to maintain your desired asset allocation.
Tax-Loss Harvesting: Some robo-advisors offer tax-loss harvesting, a strategy that involves selling losing investments to offset capital gains and reduce your tax liability.

Top Robo-Advisors of 2025: A Comparative Analysis

The robo-advisor landscape is constantly evolving, with new platforms emerging and existing ones adding new features and services.To help you navigate this landscape, here's a look at some of the top robo-advisors of 2025, highlighting their key features and benefits.Remember to conduct your own research and consider your individual needs before making a decision.

Wealthfront: Often cited as the ""best overall"" robo-advisor, Wealthfront offers a comprehensive suite of investment and money management tools.They stand out with their low fees and low minimum investment requirements, making them accessible to a wide range of investors.
Fidelity Go: Earning the crown as a top choice in many reviews, Fidelity Go offers a streamlined and user-friendly experience, backed by the trusted name of Fidelity Investments.
SoFi Invest: SoFi Invest provides a versatile platform for both hands-off and active investing. Choosing the best robo-advisor means comparing fees, investment options and financial planning tools. We've analyzed the top robo-advisors to help you find the best for you.While not solely focused on robo-advising, their automated portfolios offer a convenient way to invest for those who prefer a hands-off approach.
Acorns: Acorns is designed for new investors, using spare change from everyday purchases to build an investment portfolio.Its “round-up” feature makes investing accessible and almost effortless.
Plum: Primarily available in the UK, Plum combines budgeting tools with AI-enhanced investing. To find the top robo-advisors of 2025, we tested 18 automated investing programs. Our research narrowed it down to eight top picks. Fidelity Go took the crown as our top choice, with ETRADE CoreWith tiered account levels and a competitive average annual investment fee, Plum caters to both savings enthusiasts and investment aficionados.

Choosing the Right Robo-Advisor: Key Considerations

Selecting the best robo-advisor for your needs requires careful consideration of several factors:

Fees: Robo-advisor fees are typically lower than those charged by traditional financial advisors, but they can still vary. The best investment apps rankings are determined by the Moneywise editorial team and are based on factors and features that everyday users care about most. We adhere to strict standards of editorial integrity to help you make decisions with confidence.Look for platforms with transparent fee structures and compare the all-in cost of investing.
Minimum Investment: Some robo-advisors require a minimum investment to get started, while others have no minimum.Consider your current financial situation and choose a platform that aligns with your budget.
Investment Options: While most robo-advisors primarily invest in ETFs, the specific ETFs they offer can vary. The Acorns investment account itself is an automated platform that uses pre-built portfolios of exchange-traded funds to keep investors exposed to stocks and bonds ideal for younger, less experienced investors, as well as people who just want to keep things simple. Learn more or sign up today.Look for a platform that provides access to a diversified range of asset classes.
Financial Planning Tools: Some robo-advisors offer additional financial planning tools, such as retirement calculators, goal-setting features, and access to human advisors. If you d like an automated investing service and investment advisor to manage your money on your behalf, robo-advisors present a remarkably good investment. They manage your money without emotion, and some even offer added financial planning tools to enable your secure financial future.Determine whether these features are important to you.
User Experience: A user-friendly platform can make investing more enjoyable and less intimidating.Look for a robo-advisor with a clean interface, intuitive navigation, and helpful educational resources.

The Advantages of Using an Automated Investment Platform

Robo-advisors offer a number of compelling advantages over traditional investment approaches.Here are some of the key benefits:

Lower Fees: Robo-advisors typically charge lower fees than human financial advisors, making investing more accessible to a wider range of individuals.
Accessibility and Convenience: Robo-advisors are available 24/7, allowing you to manage your investments from anywhere with an internet connection.
Diversification: Robo-advisors automatically build diversified portfolios, reducing your overall investment risk.
Emotional Detachment: Robo-advisors use algorithms to make investment decisions, eliminating the emotional biases that can lead to poor investment choices.
Automated Rebalancing: Robo-advisors automatically rebalance your portfolio to maintain your desired asset allocation.
Tax-Loss Harvesting: Some robo-advisors offer tax-loss harvesting, a strategy that can help you reduce your tax liability.

Potential Drawbacks of Automated Investing

While robo-advisors offer numerous benefits, it's important to be aware of their potential limitations:

Lack of Personalization: While robo-advisors can tailor portfolios based on your risk profile, they may not be able to provide the same level of personalized advice as a human financial advisor.
Limited Investment Options: Most robo-advisors primarily invest in ETFs, which may not be suitable for all investors.
No Human Interaction: If you prefer to have a direct relationship with a financial advisor, a robo-advisor may not be the right choice for you.
Market Volatility: Like all investments, robo-advisor portfolios are subject to market volatility. Explore the best robo-advisors of May 2025. Compare passive-investing strategies, fees, and user experiences to find the best robo-advisor for you.There is no guarantee of returns, and you could lose money.

Beyond Stocks and Bonds: Alternative Automated Investment Platforms

While most robo-advisors focus on traditional asset classes like stocks and bonds, some platforms are expanding into alternative investments, making them more accessible to everyday investors. While SoFi Invest may not be as focused solely on robo-advising as Wealthfront, it provides an intuitive platform for a wide range of investment needs, including hands-off investing through automated portfolios and active investing through self-directed trading. Key Features of SoFi InvestHere are a few examples:

Fundrise: Fundrise allows individuals to invest in real estate with relatively small amounts of capital, democratizing access to this traditionally complex asset class.
Mudrex: Mudrex provides access to automated digital asset trading funds created by trading professionals, allowing everyday users to profit from expert-managed crypto portfolios.

Automated Trading Strategies: Learning from the Pros

The concept of automated investing isn't new.For years, professional traders have used rule-based strategies and algorithms to execute trades. However, the platform doesn t offer services like automated rebalancing or tax-loss harvesting, which might be a drawback for anyone looking for more hands-off investing. For users who prefer active management, Robinhood s scheduled deposits and basic portfolio tracking tools can help maintain consistent investing habits. That said, if youThe rise of robo-advisors has simply made these strategies more accessible to the average investor.

The Evolution of Automated Trading

The history of automated trading is rich and fascinating:

Early Adoption: In the 1980s, traders like John Henry popularized rule-based trading methods.
Retail Accessibility: By the mid-2000s, automated trading models became available for purchase by retail investors.
Technological Advancements: Technological developments have continued to increase the usability of automated trading for individual investors.

Real-World Examples of Automated Investing Success

While past performance is not indicative of future results, here are some hypothetical examples to illustrate the potential benefits of automated investing:

Scenario 1: Long-Term Retirement Savings: An individual in their late 20s starts investing $500 per month in a diversified portfolio through a robo-advisor.Over 30 years, even with modest returns, the power of compounding could result in significant wealth accumulation.
Scenario 2: Short-Term Goal Funding: A couple wants to save for a down payment on a house in five years. Wealthfront is the best overall robo-advisor. It offers investment and money management products that meet the needs of any type of investor. The platform has low fees and a low required minimumThey use a robo-advisor to invest a lump sum and make regular contributions, choosing a more conservative portfolio to minimize risk.

Addressing Common Concerns About Robo-Advisors

Many potential investors have questions and concerns about using automated investment platforms.Let's address some of the most common:

Q: Are Robo-Advisors Safe?

A: Robo-advisors are generally considered safe, as they are regulated by the same authorities that oversee traditional financial advisors.However, like all investments, there is always the risk of losing money due to market fluctuations.

Q: What Happens if the Robo-Advisor Goes Out of Business?

A: In the unlikely event that a robo-advisor goes out of business, your assets are typically held in custody by a third-party financial institution, such as a bank or brokerage firm. A: Automated investment platforms offer efficiency, lower fees, and easy access for most investors. They provide diversified portfolios tailored to your risk profile and eliminate emotional decision-making, making investing simpler and more cost-effective. Q: Are there any drawbacks to automated investing? A: Yes, automated investing can lackYour assets would be transferred to another institution, and you would retain ownership of your investments.

Q: Can I Lose Money with a Robo-Advisor?

A: Yes, like all investments, there is always the risk of losing money with a robo-advisor. A robo-advisor is an automated investment platform that relies on computer algorithms to determine the best way to invest your funds, based on your answers to a questionnaire regarding risk tolerance, financial goals, time horizon and more.Market fluctuations, economic downturns, and other factors can impact the value of your portfolio.It's important to understand the risks involved before investing.

How to Get Started with Automated Investing Today

Ready to take the plunge and start investing like the pros?Here are some practical steps to get you started:

Assess Your Financial Situation: Determine your income, expenses, debts, and assets.This will help you understand how much you can afford to invest.
Define Your Investment Goals: What are you investing for?Retirement, a down payment on a house, your children's education?Setting clear goals will help you choose the right investment strategy.
Determine Your Risk Tolerance: How comfortable are you with the possibility of losing money?A conservative investor will choose a more conservative portfolio, while a more aggressive investor may be willing to take on more risk for potentially higher returns.
Research and Compare Robo-Advisors: Use the information provided in this article, as well as your own research, to compare different robo-advisors and find the one that best meets your needs.
Open an Account: Once you've chosen a robo-advisor, open an account and fund it with your initial investment.
Monitor Your Portfolio: While robo-advisors automatically manage your investments, it's still important to monitor your portfolio regularly and make adjustments as needed.

The Future of Automated Investing

Automated investing is likely to continue to evolve in the years to come.We can expect to see:

More Sophisticated Algorithms: As technology advances, robo-advisors will likely use more sophisticated algorithms to manage portfolios and personalize investment strategies.
Expansion into New Asset Classes: Robo-advisors may expand into new asset classes, such as cryptocurrencies, private equity, and real estate.
Integration with Financial Planning Tools: Robo-advisors will likely become more integrated with other financial planning tools, providing a more holistic approach to wealth management.
Increased Personalization: Robo-advisors will likely become more personalized, offering more tailored investment advice and financial planning services.

Conclusion: Empowering Everyday Investors with Automation

Automated investment platforms have democratized access to professional-level investing, empowering everyday individuals to build wealth and achieve their financial goals.By leveraging sophisticated algorithms and automated processes, robo-advisors offer a convenient, cost-effective, and data-driven approach to investing.While not without their limitations, robo-advisors can be a valuable tool for both novice and experienced investors alike.By carefully considering your individual needs and choosing the right platform, you can harness the power of automation to invest like the pros and secure your financial future.The key takeaways are: Robo-advisors offer a low-cost entry point to diversified investing. They are emotionally detached, preventing impulsive decisions.And, they can be a great way to get started, but remember to research and choose a platform that aligns with your personal financial goals. So, take the first step towards financial empowerment today and explore the world of automated investing!