To help investors better adapt to various market conditions and craft a diversified investment portfolio, TD Ameritrade will provide a low-cost robo-advisory service that offers intuitive and easy-to-use investment advice.
“Today’s investors want more choices for investment advice. Some want that guidance to come from a human, partnered with digital platform, while others might prefer an all-human or all-digital approach. Our job is to deliver solutions that are easy-to-use, effective and allow our clients to grow with us as their needs evolve,” Tom Bradley, president of retail distribution at TD Ameritrade, said in a note.
By incorporating the many technological enhancements, people are able to gain access to streamlined financial advice for self-directed investors.
The new TD Ameritrade Essential Portfolios is an automated, low-cost advisory service for digital-first investors. There will be five portfolios, all designed by Morningstar, to provide investors with a diversified strategy based on low-cost exchange traded funds from Vanguard or BlackRock’s iShares. The minimum investment is $5,000 to open an Essential Portfolios account with a 0.30% fee per year.
The low minimum investments in the robo-advisor program may be a good way for starting investors to begin saving today as many human advisors require large minimum balances. The robo-advisory is seen as an easy step for investors to gain more in-depth financial advise without having to hire a financial advisor, allowing users to access their accounts from anywhere with a smartphone or personal device.