You don’t need a Wall Street suit to invest.
And you definitely don’t need to be rich.
If you’re trying to save for the future — maybe for a house, an emergency fund, or just some peace of mind — robo-advisors are one of the simplest ways to get started.
You don’t need to pick stocks. You don’t need to check the market every day. You don’t even need to know what an ETF is.
Robo-advisors take care of the investing for you.
Let’s look at what they are, how they work, and which ones actually make sense in 2025.
What’s a Robo-Advisor?
A robo-advisor is an automated investment service that builds and manages a portfolio for you, based on your goals and risk level.
You answer a few questions. They invest your money into a mix of stocks and bonds. Everything is handled behind the scenes.
Think of it like a digital financial assistant.
You don’t have to decide when to buy or sell. You don’t have to stress about market crashes. And you don’t need a ton of money to start.
Why Passive Investors Like Robo-Advisors
Passive investing means putting your money in the market and leaving it alone.
No chasing trends. No day trading. No second-guessing.
Robo-advisors are built for this.
Here’s why they work well for passive investors — especially beginners:
- Low-cost portfolios using index funds and ETFs
- Automatic rebalancing to keep your investments on track
- Tax-loss harvesting (some platforms) to lower your tax bill
- Set-it-and-forget-it style – no active management needed
If you’ve got more stress than time and more bills than savings, this kind of hands-off approach helps you stay consistent — even if you’re starting small.
Who Are Robo-Advisors For?
Robo-advisors are a solid choice if:
- You’re new to investing
- You don’t want to pick your own stocks
- You want to automate your savings
- You’re not sure how to build a portfolio
- You want low fees and low effort
They’re especially good for people who’ve felt like investing is out of reach. You don’t need $10,000. Some platforms let you start with $5 or less.
And if you’ve ever felt too overwhelmed to start? Robo-advisors make the process simple.
Top Robo-Advisors in 2025 (Free and Paid Options)
Not all robo-advisors are created equal.
Here’s a breakdown of the best options this year — what they offer, who they’re best for, and why they’re worth a look.
1. Betterment – Best Overall for Beginners
Betterment is one of the most beginner-friendly robo-advisors with strong performance, helpful features, and no minimum to start.
- Minimum investment: $0
- Fees: 0.25% annually (0.40% for premium advice)
- Features: Automatic rebalancing, tax-loss harvesting, goal tracking, retirement tools
- Why it stands out: Super simple interface, clear goals-based investing
It’s easy to open an account, answer a few questions, and get a balanced portfolio tailored to your risk level. You can set goals — like “build emergency fund” or “save for retirement” — and Betterment helps you stay on track.
If you want simple and steady, Betterment is hard to beat.
2. Wealthfront – Best for Automated Features
Wealthfront goes a bit deeper than Betterment, with smart features and a strong focus on automation.
- Minimum investment: $500
- Fees: 0.25% annually
- Features: Tax-loss harvesting, automatic rebalancing, financial planning tools, cash account
- Why it stands out: Planning tools for buying a home, college savings, retirement
Wealthfront builds a globally diversified portfolio using low-cost ETFs. It even adjusts your investments based on major life goals, like saving for a house or retiring early.
If you like data and want a smarter system behind your investing, this one’s for you.
3. SoFi Automated Investing – Best Free Option
SoFi offers automated investing with no management fees, making it perfect for low-income beginners.
- Minimum investment: $1
- Fees: 0%
- Features: Rebalancing, goal planning, free financial advisor access
- Why it stands out: No cost, no catch — great for starting small
You won’t get all the bells and whistles, but for basic, low-stress investing, SoFi makes it almost too easy to get started. It even includes access to real human advisors at no extra cost.
If you’re working with a small budget, this gives you a lot without costing a cent.
4. M1 Finance – Best for Custom Portfolios
M1 Finance blends automation with flexibility, letting you build your own portfolio or choose from expert-built ones.
- Minimum investment: $100 ($500 for retirement accounts)
- Fees: $0 for basic plan
- Features: Custom pies, rebalancing, automatic deposits, fractional shares
- Why it stands out: More control without giving up automation
This is best for people who want to choose some of their own investments — like adding companies or sectors they believe in — but still want everything handled day-to-day.
If you want to stay hands-off most of the time, but still have a say, M1 hits a sweet spot.
5. Schwab Intelligent Portfolios – Best for Larger Accounts
Schwab’s robo-advisor is best for people who have at least $5,000 to invest and want no advisory fees.
- Minimum investment: $5,000
- Fees: $0 advisory fee (they make money from the ETFs inside)
- Features: Rebalancing, tax-loss harvesting (for $25K+), financial planning
- Why it stands out: Trusted brand, no annual fee
It’s a solid choice if you already have savings and want to put it to work without paying annual fees. But it’s not as friendly for low-income investors just getting started.
How Do Robo-Advisors Choose Your Investments?
It’s not random.
When you sign up, they ask about your:
- Age
- Income
- Goals
- Risk tolerance (how much you can handle market ups and downs)
Then they build a portfolio — usually a mix of stock and bond ETFs — that fits your comfort level.
If you’re young and okay with risk, it’ll lean more toward stocks. If you’re closer to retirement or nervous about losses, it’ll be more conservative.
And it doesn’t stay static — robo-advisors adjust over time to keep your investments aligned with your goals.
What Does It Really Cost to Use a Robo-Advisor?
This is where it gets important.
Even small fees can cost you big over time.
Let’s say you invest $5,000 a year for 30 years:
- A robo-advisor charging 0.25% might cost you about $12,000 in fees over time.
- A traditional advisor charging 1% might cost you $45,000 or more.
That’s money you could’ve kept.
So while robo-advisors aren’t completely free, they’re still way cheaper than human advisors or actively managed funds.
Do Robo-Advisors Work in a Bad Market?
Yes — as long as you stay invested.
Markets rise and fall. That’s normal. Robo-advisors don’t panic. They rebalance your portfolio and keep you on course.
In fact, staying invested during a downturn is one of the hardest but most important things you can do.
If you’re someone who might get spooked and sell — using a robo-advisor can help protect you from yourself.
Robo-Advisors vs Doing It Yourself
You can absolutely build your own portfolio using index funds through platforms like Fidelity or Vanguard.
It’s cheaper, and some people prefer full control.
But here’s the tradeoff:
- You have to manage everything
- You need to rebalance yourself
- You have to understand asset allocation and tax strategies
If that feels overwhelming, robo-advisors are worth the 0.25% fee.
They don’t guarantee better returns, but they help you stick to your plan — and that matters more in the long run.
Tips for Using a Robo-Advisor in 2025
1. Start small if needed
Even $10 a month is better than nothing. Many platforms allow automatic deposits. Use them.
2. Set a clear goal
Retirement? Emergency fund? Buying a home? Knowing your “why” helps you stay consistent.
3. Leave it alone
Once your account is set, don’t mess with it. Let the system do its job.
4. Keep an eye on fees
Free is good. But also look at what you’re getting. A low fee might be worth it if it comes with better features.
5. Review once a year
Set a reminder. Make sure your goals still match your plan. Adjust if needed — but don’t panic when the market dips.
Final Thoughts: Automation Can Be a Lifeline
If you’re living paycheck to paycheck, investing might feel like something for “later.”
But later keeps slipping away.
Robo-advisors give you a chance to start now — even with small amounts, even with limited knowledge.
They take something complicated and make it simple. And when life already feels heavy, that kind of simplicity is powerful.
You don’t need to watch the stock market.
You don’t need to be perfect.
You just need a system that works in the background while you live your life.
In 2025, robo-advisors are that system.
No pressure. No panic. Just progress.
One automatic deposit at a time.
