We found 11 online brokers that are appropriate for Trading Robo Advisor.
This is an era of robo trading. Most successful traders are trading with the support of software programs based on algorithms that automate much of the manual work. Hence, the search for some of the best robot advisors is on the rise.
The financial market is flooded with a plethora of best robot advisors which are typically put to work on collecting information from clients— knowing their future goals, offering related advice, and thereafter, investing automatically.
The best robo advisors are always easy to set up and offer robust goal planning, charge low fees, come equipped with advanced security features, and have good portfolio management features.
Before we try to understand robo advisor brokers let us first discuss the term robo advisor, roboadvisor or robo advisors. Robo advisors are software or digital platforms that make no use of human supervision and provide financial services and actions that are based on an algorithm and artificial intelligence automatically.
Robo advisor software collects information like future goals and financial situations from clients through things like online surveys and historical market data to compile and offer advice or financial actions like trading.
Some of the best robo advisor brokers in the industry offer simple account setup, portfolio management, goal planning, security features, comprehensive education, low fees and account services.
The first robo advisor was launched in 2008.
The robo advisor software became popular in 2010, just after the 2008 recession.
However, automated robo advisors were in use much before 2008. The first robo advisors where supervised by human wealth managers as the platform was new and very expensive.
The focus of such a specialized program was to balance the assets once again within the target-date funds. Prior to this, only institutions used to implement automated portfolio allocation software.
The advent of robo advisors has changed the trading narrative completely. Today, the software programs are able to handle more sophisticated tasks of traders including retirement planning, investment selection, and tax-loss harvesting.
Clients then usually employed robo advisor brokers or advisors (now the so-called robo advisor brokers).
The primary focus initially was to re-balance assets through a basic online user interface and manage buy-and-hold investments.
Today, the advanced version of robo advisor technology is highly optimized and most robo advisor brokers offer it for tactical strategies, Hallal investing and optimizing portfolios.
Most of the best robo advisors utilize the theory of modern portfolios to build a passive portfolio for clients, and thereafter monitor these to ensure optimal asset class is maintained at all times, even after the market moves.
Every individual security or asset class in algorithm trading is given a target weight along with a corresponding tolerance range. The entire portfolio is rebalanced if the weight of one holding moves outside the range. Earlier such rebalancing was time consuming and was not so perfect. It used to generate fees while robo rebalancing cost virtually nothing.
Automated trading requires comparatively low fees. It is somewhere between 0.2% and 0.5%. The rates of traditional advisors are 1% or 2%. Therefore, to trade with automation requires less capital.
Most robo advisor brokers charge as low as 0.2% of total account balance of a client and it is an annual fee.
Traditional advisors are less accessible than robo advisors, which are available 24/7. Moreover, robo advisors are more efficient than traditional advisors.
This is one of the main advantages of robo advisor technology is its low cost compared to the traditional one that was used before 2008.
Clients can easily get access to robo advisor software throughout the day and night, subject to an Internet connection.
Less asset and capital is needed to start trading. Some robo advisor brokers like the ones mentioned further down this guide in fact charge nothing for opening an account.
The robo advisor is highly efficient. No paperwork is required unlike traditional advisors. With some robo advisors just the click of buttons is required.
Some of the robo advisors could be ill-equipped for extraordinary situations and unexpected crises. This is the reason why many successful traders prefer a combination of automation and human guidance.
A finding by the Financial Planning Association reveals that nearly half of the participating traders preferred robots when the market was extremely volatile.
Moreover, robots operate on assumptions and believe that the client has a clear understanding and goals during financial circumstances. Although, this may differ in some cases.
Robo advisors limit options for an individual investor. Buying individual bonds or stocks into the client's account is not allowed.
There is a general belief that automated robo advisors may not work efficiently and perfectly when unexpected market crisis occur. There are many robo advisors platforms and every year more are released.
With respect to legal status, robo advisors are equivalent to human advisors. The automation platforms are also registered with the Securities and Exchange Commission in the United States. They are regulated as traditional brokers.
Robo advisors earn from a wrap fee. This is based on the assets under management (AUM), which is annually around 0.25%. Human advisors charge 1% or 2% per year. As the cost is less, the robo advisors attract more and more traders. This helps in generating more revenue.
Robo advisors also earn from cash balances, which are credited to their accounts. Even though earning through this process is low, it becomes significant if there are many users.
Robo advisors also market targeted financial products like insurance policies and credit cards. This further helps in earning money.
Usually the money earned is through a wrap fee and it is based on the AUM. The charges are very low, sometimes as low as 0.2%. Human advisors charge up to 2%.
Robo advisor brokers can also make money from the interest earned on cash balances.
Marketing some financial products such as insurance, credit cards and mortgages adds to their income.
Even though robo advisors are serving most traders and are being more sought-after compared to traditional or human advisors, it is warned that complete automation is not perfect. It is very important for a trader to be able to choose one of the best robo advisors before signing up with one blindly.
In this article, titled 'Best Robo Advisors', we discussed some of the key factors to consider while picking one of the best software programs.
To wrap up, it is important to note that robo advisors charge a low fee compared to human advisors, but the best programs can be expensive when hiring. However, these are best for rebalancing one's portfolio on a regular basis. And, the automation is available and accessible 24/7.
On top of all this, one needs to check whether the robo advisors are properly regulated under the jurisdiction of a regulatory authority. Unregulated robo advisors should be avoided. Traders who are new to the industry are suggested to read reviews of the software before hiring.
We've collected thousands of datapoints and written a guide to help you find the best Robo Advisor for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best robo advisor below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Robo Advisor trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Robo Advisor.
Compare Robo Advisor min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are robo advisor. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more robo advisor that accept robo advisor clients
Broker |
IC Markets
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XTB
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FP Markets
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Roboforex
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Pepperstone
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EasyMarkets
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XM
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FXPrimus
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Forex.com
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City Index
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OctaFX
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) | Financial Conduct Authority (FCA), Cayman Islands Monetary Authority (CIMA), Investment Industry Regulatory Organization of Canada (IIROC), National Futures Association (NFA) | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Monetary Authority of Singapore (MAS) | Financial Conduct Authority (FCA) |
Min Deposit | 200 | No minimum deposit | 100 | 1 | 200 | 100 | 5 | 100 | 100 | 25 | 5 |
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Used By | 60,000+ | 250,000+ | 10,000+ | 10,000+ | 10,000+ | 142,500+ | 70,000+ | 10,000+ | 150,000+ | 14,000+ | 30,000+ |
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Platforms | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, WebTrader, Advantage Trader Pro, TradingView, Tablet and mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, cTrader, Tablet & Mobile apps |
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Learn More |
Sign
Up with icmarkets |
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Up with xtb |
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Up with fpmarkets |
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Up with roboforex |
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Up with pepperstone |
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Up with easymarkets |
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Up with xm |
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Up with fxprimus |
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Up with forexcom |
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Up with cityindex |
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Up with octafx |
Risk Warning | Losses can exceed deposits | 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money | Your capital is at risk | Your capital is at risk | Losses can exceed deposits | 74% of retail investor accounts lose money when trading CFDs with this provider | 75% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits |
Demo |
IC Markets Demo |
XTB Demo |
FP Markets Demo |
Roboforex Demo |
Pepperstone Demo |
easyMarkets Demo |
XM Demo |
FXPrimus Demo |
Forex.com Demo |
City Index Demo |
OctaFX Demo |
Excluded Countries | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | US, IN, PK, BD, NG , ID, BE | US, JP, NZ | US, JP | BR, KR, IR, IQ, SY, JP, US | US | US, CA, IL, KR, IR, MM, CU, SD, SY | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. | BE | US, CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW | US |
You can compare Robo Advisor ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Robo Advisor for 2021 article further below. You can see it now by clicking here
We have listed top Robo advisor below.