Online financial advisers are more accessible, and often cheaper, than advisers who work face-to-face. And increasingly, they’re offering more than just investment management.
In our search for the best online financial advisers, we looked for companies with easy-to-use investing platforms and experts that help with your overall financial plan or answer your most pressing questions at an affordable price point — because investing doesn’t happen in a vacuum.
Pros and cons
Wealthfront
Pros
- Low AUM fee
- Automatic rebalancing and tax-loss harvesting (no minimum balance)
- Financial planning tools that make personalized recommendations created by a team of PhDs
- Offers 529 college savings plans in addition to retirement accounts and individual taxable accounts
- Fee-free hybrid savings and checking account
Cons
- No fee discount for higher balances
- $500 account minimum
- Investment options limited to ETFs
Learn more about Wealthfront »
Betterment
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| Editor’s rating | 5 out of 5 |
| Fees | 0.25% – 0.40% AU |
| Account Minimum | $0 – $100,000 min. balance |
| Open Account | |
Pros
- Half the cost of Personal Capital for similar services
- Automatic rebalancing and tax-loss harvesting (no minimum balance)
- Complimentary, ongoing financial advice for clients with a balance above $100,000
- Access to retirement planning tools without transferring your account
- Fee-free checking and cash reserve accounts
- Betterment Advisor Network connects clients to independent CFP® professionals
- Socially responsible investing portfolio strategy available
Cons
- AUM fee increases for higher balances, although it includes free financial planning
- For balances below $100,000, one-time financial planning packages run $199 to $299
- Investment options limited to ETFs
Learn more about Betterment »
SoFi
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| Editor’s rating | 5 out of 5 |
| Fees | none |
| Account Minimum | $0 |
| Open Account | |
Pros
- No upfront costs to open and maintain an automated investing account (but fees are charged in the underlying funds you own)
- Automatic rebalancing
- No fee stock and ETF trading (includes fractional shares)
- Members get discounts on loans, career advancement tools, and free consultations with CFP® professionals
- Fee-free hybrid savings and checking account
Cons
- No tax-loss harvesting on investment accounts
- Products and services are geared toward millennials
- Automated investing accounts are managed by an algorithm only
- Investment options for automated investing are limited to ETFs
Learn more about SoFi »
Blooom
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| Editor’s rating | 4.6 out of 5 |
| Fees | $95 – $250 per year |
| Account Minimum | $0 |
| Open Account | |
Pros
- One of the few online advisers managing 401(k)s
- Free tool that will analyze your workplace plan or IRA and compare your current investments to your time horizon and risk tolerance
- Ongoing monitoring and automatic rebalancing of your accounts
- Financial advisers available via a chat box to answer questions about anything related to your finances, not just retirement
Cons
- The flat fee is higher on lower balances — e.g. the $120 per year fee for one account is equal to 1.2% on a $10,000 balance
- Only supports retirement accounts held at Schwab, Fidelity, or Vanguard
- Financial planning is not comprehensive
Learn more about Blooom »
Vanguard Personal Advisor Services
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| Editor’s rating | 4.6 out of 5 |
| Fees | 0.05% – 0.30% AUM |
| Account Minimum | $50,000 |
| Open Account | |
Pros
- Low AUM fee
- Good for clients at any life stage
- Fee discounts for higher balances
- Financial planners help you create a comprehensive financial plan before diving into investment strategy
- Help with estate planning, tax planning, and charitable giving
Cons
- $50,000 account minimum
- Narrow set of investment options (four Vanguard funds)
- No tax-loss harvesting
- Must be a Vanguard client
Learn more about Vanguard Personal Advisor Services »
We compared 15 Registered Investment Advisers (RIAs), weighing the following five categories equally.
Fees: What are the costs? Are they justified when considering the services offered?
Access: Who can use the service? Is it limited to a certain geographic location or available nationwide?
Ethics: Are the experts Certified Financial Planners and/or fiduciaries? Does the company have any disciplinary history over the past three years? What is the company’s investing philosophy?
Services: What is included for the cost? What else do you get working with this company (savings or checking accounts, budgeting tools, financial advice)?
Minimum balance: What is the minimum balance for an investment account? Is it accessible for beginners?
If you’d rather meet with an expert face-to-face, here are the best free online tools for finding one in…
Read More: The best online financial advisers in 2020