Automated Investing – Do You Trust AI?

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What is Robo-Investing?

Robo-investing is an investing method that uses algorithms and software to make investment decisions for you. This means that once you’ve set up your account and told the software your investment goals, the robo-investor will automatically buy and sell stocks on your behalf. But everyone’s alogorithm is different and the model is only as good as the data it uses.

There are a number of advantages to using a robo-investor. First, it takes the emotion out of investing. This can be a good thing, as it’s been shown that emotions can lead to bad investment decisions. Second, it’s a very efficient way to invest, as the robo-investor will quickly and automatically execute trades for you. Finally, it’s a very cost-effective way to invest, as most robo-investors charge much lower fees than traditional human financial advisors.

There are a number of different robo-investors available, but two of the most popular are Acorn and Robinhood.

Acorn is a robo-investor that offers a number of different investment plans. For example, you can choose to invest in a specific stock portfolio, or you can choose to have Acorn automatically invest your spare change from everyday purchases into a diversified portfolio of stocks and ETFs. Acorn also offers a number of different IRA plans, so you can save for retirement with a robo-investor.

Robinhood is a robo-investor that offers commission-free stock and ETF trading. This means that you can buy and sell stocks and ETFs without having to pay any fees. Robinhood also offers a number of different investment plans, including a traditional brokerage account, an IRA, and a Robinhood Gold account that allows you to trade on margin.

So, if you’re looking for a hands-off way to invest, a robo-investor may be right for you. And, with a number of different robo-investors to choose from, you’re sure to find one that fits your needs.