Choosing a robo-advisor

The right investmentInvestment An item of value you buy to get income or to grow in value.+ read full definition management service depends on your unique personal circumstances and financial situation.

Online investment advisers are sometimes called different names, including “robo-advisors”, “online advisers”, and “digital wealth management platforms”. Each online adviser also differs in the types of investment products and services they offer, how they use technology to provide model portfolios, and the fees that they charge.

Comparing services

Compare different services to decide whether online investment advisers can meet your investment needs, particularly if you are comfortable with online interactions but not with investing completely on your own.

If you’re interested in using an online investment adviser, here are some questions to ask:

  • Do you have secure internet access to conveniently access the service? Are you comfortable using the internet to purchase products and services?
  • Do you have complex financial needs that may require more personalized financial advice?
  • Are you comfortable with the potential fees and costs?
  • Are you comfortable with the online investment adviser having discretion to make investment decisions on your behalf without your specific and informed consent for each tradeTrade The process where one person or party buys an investment from another.+ read full definition?

Remember, you can contact the online investment advisorOnline investment advisor A business that offers professional money management services to investors over the internet. Often referred to as “robo-advisors.”+ read full definition if you have any questions.

Whether you choose to work with an online investment adviser or a traditional adviser, it’s important to answer their questions carefully and accurately, so that your financial planFinancial plan Your financial plan should cover every aspect of your finances: saving and investing, paying down debt, insurance, taxes, retirement planning and estate planning.+ read full definition is suitable for your personal circumstances and financial situation.

Regularly review your financial statementsFinancial statements Reports that sum up a company’s financial data and tell you how it is doing. The four basic statements are: the statement of financial position (balance sheet, statement of profit or loss (income statement), cash flow statement, and statement of changes in equity.+ read full definition and if your personal circumstances or financial situation changes, have a discussion with your online investment advisor to ensure these changes are reflected in your financial plan.

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