Robo advisors make your life so much easier! There’s no end to the advantages that come with working through them.
That being said, nothing is perfect. Robo advisors do come with a few minor issues that you must be aware of. For the most part, you can avoid these issues easily, assuming you know about them beforehand.
In this article, we’ll take a quick look at each potential con of using robo advisors so that you can better weigh if the risks are worthwhile for you. Take a look!
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#1 – Difficulty of Getting Live Assistance
Since most robo advisors function almost entirely on their own, they tend not to have live human assistance at all times. Some platforms do offer live assistance at certain times, while others have very little at all.
If you feel like you will need human assistance every now and then, make sure you choose a robo advisor that comes with live assistance, should you need it. This will likely cost you a bit more than a typical robo advisor. However, it is always nice to have that reassurance.
#2 – Your Investment Options are Quite Limited
Robo advisors typically choose simple and safe trade options. If you have some experience and wish to make a complex, risky trade, a robo advisor cannot do this for you.
Robo advisors do have the option of taking slightly riskier trades if you set your portfolio options to ‘risky’. However, you still cannot choose what risky trades it takes. This makes the options somewhat dangerous to use.
The obvious way to avoid this problem is to use the robo advisor for simple trades and place some manual trades when you find good complex options with your own research.
Think You can Handle These Minor Issues?
As we mentioned earlier, these issues can be quite easily avoided with a little bit of forward thinking. If you believe that you can overcome these obstacles and make your robo advisor experience worth your while, then get started right now!
Good luck and happy trading!
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