In the last few months, several prominent investment firms such as JPMorgan Chase, TD Ameritrade and Vanguard, have lowered the minimum amount needed to open an account using their robo-advisors. Where you previously needed from $2,500 to $250,000, you can now open an investment account with as little as $500.
Inviting you to open an account with a low minimum balance is made more attractive when coupled with robo-advisors. By offering robo-advised accounts, these firms are finding ways to make investing more accessible.
Do you even know what a Robo Advisor does?
According to an article on The Balance website, “Robo advisors are software products that can help you manage your investments without the need to consult a financial advisor or self-manage your portfolio.”
A quick search at Investopedia tells us “Robo-advisors… are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. A typical robo-advisor collects information from clients about their financial situation and future goals through an online survey and then uses the data to offer advice and automatically invest client assets.”
Robo Advisor vs iFlip Algorithmic Intelligence (A.I.)
Although robo-advisors involve software products, iFlip uses the best algorithmic trading software in its daily analysis of your stock positions. This is better than robo-advisors, which typically use a rebalancing strategy to keep returns stable in their investments.
The robo-advisor automatic rebalancing is not usually performed daily, but at an interval set by you. It can be weekly, monthly, quarterly, annually or even set for several years.
What is Rebalancing and Why Does Robo-Advisors Do it?
When your account becomes unbalanced from your initial designations, the robo-advisor software automatically buys and sells stocks in your portfolio. For example, let’s say you invest $200, which is divided equally into Portfolios A and B. $100 in each portfolio. After one month, Portfolio A has grown to $150. Portfolio B has remained at $100. Robo advisor automatically rebalances your account by selling $25 in Portfolio A and buying $25 of Portfolio B. This “balances” your account, returning both Portfolios to contain 50% of your investments. Now Portfolios A and B each contain $125. Read the complete article Robo Advisor vs iFlip Algorithmic Intelligence.
Does Rebalancing Preserve, Protect, and Grow Wealth?
iFlip doesn’t think so. They know when you invest, you want to achieve the best results possible. The key to good returns is to invest in what is successful and to manage the risk for higher returns.
Robo advisors can’t do this with their automation. iFlip is currently the only software in the world giving you the ability to use A.I. to protect and grow your wealth. This fact makes all the difference between iFlip and robo-advisors. iFlip’s algorithmic trading software has the power to manage the risk on your investments.
Best Mobile Trading App
Manage your risk, protect, and grow your wealth on a mobile trading app? You bet! iFlip is incorporating their best automated trading software into their mobile trading app. Scheduled for release on December 11, 2019, you’ll soon be able to trade stocks using algorithmic trading software conveniently on your phone. And the app is open to the public! Learn more and sign up at iFlip.
Using the best algorithmic trading software from iFlip to protect and grow your wealth as well as to manage your risk puts you ahead of anyone using robo-advisors. When you compare the differences, you see the advantages of using iFlip’s A.I. investing instead of robo-advisors.