Robo Advisors VS AI Investing. What’s the difference?

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 free! 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.

Like this article?

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest

Four Crazy Investing Stats That Will Make You Laugh

January 21, 2020

When you think about investing, it’s usually a serious topic. Here are a few things that might make you laugh, at least chuckle or maybe...

2nd Richest Man – Warren Buffett’s Advice For Building Wealth

January 8, 2020

It’s been reported that in a conversation between Jeff Bezos and Warren Buffett, Bezos said, “…Warren, your investment thesis is so simple, you’re the second...

Why you don’t need a financial advisor

December 27, 2019

A lot of us are using the information available online when we manage our money. Some have student debts that limit the amount of money...

Worst Investor Mistakes of 2019: AI solves them

December 19, 2019

No one invests to lose money, yet it happens every day. People want to invest for a variety of reasons. Many of those reasons lead...

Four Crazy Investing Stats That Will Make You Laugh

January 21, 2020

When you think about investing, it’s usually a serious topic. Here are a few things that might make you laugh, at least chuckle or maybe...

2nd Richest Man – Warren Buffett’s Advice For Building Wealth

January 8, 2020

It’s been reported that in a conversation between Jeff Bezos and Warren Buffett, Bezos said, “…Warren, your investment thesis is so simple, you’re the second...

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You were referred by

Zero-dollar ($0) commissions are available for self-directed Individual cash or margin brokerage accounts that trade U.S. listed securities via mobile devices and via web interface. To obtain the commission and fee schedule, please see our website at www.iflipinvest.com. Note that certain Flip Investor Inc. Product features listed are currently in development and will be available in the near future. System execution price, speed, response time, liquidity, market information, and account access times are affected by many factors, including market volatility, size and type of order, market conditions, system performance, and other factors. Some of the information provided show hypothetical results which may or may not represent live performance. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns.  Keep in mind that while diversification and the use of algorithms may help manage risk it does not assure a profit, or protect completely against losses, in a down market. There is always the potential of losing money when you invest in securities, or other financial products.  Investors should consider their investment objectives and risks carefully prior to investing.

Past performance is not indicative of future performance. iFlip data results assembled using various Flip algorithms applied to the equities listed on this webpage (if any). Results compiled for each equity and each algorithm assume a 10,000 initial investment beginning on Jan 1st 2005. A $0.01 / share commission applied. All iFlip price assumptions are based on the opening price of each day as found in Yahoo finance. Yearly NAV data points compiled by compounding annual returns using standard year over year accounting. S&P500 results are derived using the SPY as a proxy. The data on this webpage is not intended as a solicitation. Always seek professional advice for suitability.

Download our new FREE mobile app!