Apps Like Wealthfront: Robo-advisors automate investment management by employing computer algorithms to design and manage your portfolio depending on your goals and risk tolerance. And it’s no secret that Wealthfront is one of the finest Robo-advisors automated investment applications you can trust.
However, Wealthfront isn’t the only Robo-advisor for beginners or professionals that you can rely on. There are other apps similar to Wealthfront that can help you automate and manage your investment portfolio and assets to achieve your financial goals.
This post will explain what wealthfront is, how it works, wealthfront alternatives, and provide answers to frequently asked questions. Let’s get down to business!
What Is Wealthfront?
Wealthfront, based in Palo Alto, California, is one of the major low-cost Robo-advisors for investors looking to automate their investments. That is if you want to take charge of your investment and push it to the next level while staying hands-off, wealthfront can assist you.
Since its creation, Wealthfront has developed a range of products and services that, when combined, can manage your whole financial life, making it one of the most popular solutions for anyone looking for automated financial management.
Is Wealthfront Safe?
YES, wealthfront is safe to use. All wealthfront Cash accounts are insured for $1,000,000 by the FDIC through its member banks, while wealthfront Investment accounts are insured for up to $500,000 by the SIPC. This insurance provides up to $250,000 in cash coverage.
Is Wealthfront a Managed Account?
Yes, all Wealthfront Investment Accounts are completely managed; however, the consumer has the option to modify them.
Is Wealthfront Worth It?
Wealthfront is, indeed, worthwhile. Wealthfront began as a low-cost investing platform and has now expanded to include features such as automated financial planning. In addition, when you start an investment account with Wealthfront, you may have your $5,000 managed for free.
How Does Wealthfront Work?
When you invest on Wealthfront (as little as $500), Wealthfront automatically invests your money in a variety of exchange-traded funds (ETFs), ensuring exposure to hundreds of quality firms across several asset classes.
The wealthfront ETFs provide exposure to a variety of asset classes, including US stocks, real estate, bonds, natural resources, international stocks, and so on. While all of this is going on, Wealthfront ensures that your portfolio is rebalanced automatically and continuously to preserve optimal asset allocation.
This means that if any asset becomes overpriced or undervalued throughout the asset allocation process, the wealthfront automated rebalancing tool will ensure your portfolio remains stable regardless of how much you have invested.
How Much Does Wealthfront Charge?
There are no costs associated with buying or selling your investment stock with Wealthfront. According to Wealthfront, “putting your money to work doesn’t have to be expensive,” therefore instead of charging the annual fixed fee of 1 to 3 percent as most non-Robo-advisors charge, Wealthfront charges an annual fixed fee as low as 0.25 percent.
How Much Money Can You Make With Wealthfront?
You may expect a 0.35 percent APY (the weighted APY average for all deposits) on your Wealthfront checking account, which is five times better than the industry average. It’s worth noting that all Wealthfront cash accounts are FDIC insured through the brokerage’s partner banks.
How To Withdraw From Wealthfront?
Withdrawal on Wealthfront is as simple as the rest of its operations. The withdrawal procedure is as follows:
- At the top of the dashboard, click the “Transfer Funds” button.
- Choose “Take money out.”
- Select “Withdraw the entire account balance.”
Transactions take two business days to settle, thus payments should arrive in your cash account one to two business days after transaction settlement. This process takes 3-4 business days in total, and there are no withdrawal fees.
How To Close Wealthfront Account?
To close your wealthfront cash Account, follow the below steps:
- Transfer all your funds to a linked external account. If you use your account for your bills or paycheck, be sure to move those to a different account.
- Wait for your last interest payment. This should post on the first business day of the following month. You can see your pending interest in your Cash Account dashboard.
- Withdraw your last interest payment as soon as it’s paid to stop interest from accruing
- Send Wealthfront a support message once you’ve withdrawn all your cash and let them know you want to close your Cash Account.
There are no fees associated with closing your Cash Account or canceling your Wealthfront debit card, and Wealthfront will only close the Cash Account that you request. Any other Wealthfront accounts will be kept open.
What Robo-Advisor App Is Like Wealthfront?
There are other Robo-advisor investing platforms like wealthfront out there, but only a few of them are great and trustworthy, and those few I will be seeking to throw more light on in this article. A quick list of these apps similar to wealthfront include;
- Fidelity Investments
- Personal Capital
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5 List Of Alternatives to Wealthfront
Betterment is a Robo-advisor app similar to Wealthfront that is designed to make investing simple, with a personalized experience that suits your needs whether you are a novice investor or a seasoned investor. Invest your money in the things you want most in order to live a happier life.
Betterment allows you to collect tax losses on taxable accounts. To minimise tax exposure, the platform automatically reviews your investments on a daily basis. However, it lacks direct indexing, which Wealthfront offers on taxable accounts with balances of $100,000 or more.
Betterment offers investing advice at 0.25 percent per year with no minimum balance. For balances in excess of $2 million (excluding 401(k) holdings through Betterment for Business), the Digital plan charges 0.15 percent per year, while the Premium plan charges 0.30 percent.
- Portfolio possibilities and customization are numerous.
- Fees and the low account minimum
- With fractional shares, all of your money is invested.
- Strong goal-oriented tools.
- There is no direct indexing.
- You Can’t Profit From Market Volatility.
- Customer Service Can Be quite Difficult.
Acorn is a wealthfront alternative that allows members to invest spare change in a diverse portfolio in order to develop their wealth. The company also provides retirement savings accounts, a debit card, and other basic banking services. Acorns makes money through member subscription fees.
Acorns provides a secure and legitimate investing solution. For cash balances, the app is SIPC-insured up to $500,000 and FDIC-insured up to $250,000, and it is safeguarded with 256-bit encryption. Your investments, however, are not protected from market losses.
The Acorn pricing options are divided into two categories: Personal ($3 per month) and Family ($5 per month). When it comes to round-up investing apps like Wealthfront, Acorns is up there with the best. It’s simple to use, provides a good education platform for new investors, and charges basic, upfront costs.
- Invests any spare change automatically.
- Portfolio alternatives for low-risk, low-cost investments
- Automatic savings options encourage investors to save more.
- Simple to use interface
- Select retailers will give you cash back.
- There is educational information available.
- High cost for low account balances (depending on your total balance.)
- There will be no tax-loss harvesting or access to human consultants.
- You must pay fees to use the checking account.
Robinhood, similar to Wealthfront, is a unique robo-advisor investment platform that is an ideal choice for consumers searching for a more economical option when it comes to investing. Users can buy and sell stocks for free, and you can also invest in ETFs. They are a better choice than Wealthfront for managing individuals’ equities, cryptocurrencies, and trading options.
If you want a smooth interface and to avoid trading commissions, Robinhood is the app to have. No matter what you’re trading, you’ll get to do it all without paying a commission, and it’s ideal for folks who are just getting started with investing and generating money.
One of the most important things to know about Robinhood is that it is relatively simple to use, which will benefit users who want to trade stocks on the go, making it a fantastic choice for multitaskers.
From a search bar at the top of the screen, you can go to a stock’s page and pull up charts and vital statistics. A feed that collects stories from news and investing sites is also beneficial for keeping up with what’s going on. As a result, it is one of the most often used Wealthfront alternatives.
- There is no minimum deposit required to open an account.
- There are no commissions.
- Providing IPO access.
- Options for money management.
- Invest in equities and funds, options, cryptocurrency, and gold.
- They are a better alternative for managing the stocks of people.
- There will be no mutual fund trading.
- Fees for account transfers have increased.
4. Fidelity Investments
Fidelity Investments is a huge robo-advisor investing company similar to wealthfront that supports smaller investments and provides a wide range of investment possibilities. You can invest your money in individual stocks and bonds or in a variety of mutual funds.
You’ll find everything you need to make the most of your money with Fidelity, from easy planning and advice to straightforward pricing and investment tools. They also include a Retirement Savings Calculator to help you figure out how much money you’ll need to save to retire comfortably.
You can get an investment account, a checking account, an IRA, a business retirement account such as a SEP IRA, bill paying, a savings account, a robo-advisor account, and even credit card accounts with fidelity, as well as a Retirement Savings Calculator to see how much money you’ll need to save in order to retire comfortably.
Fidelity charges its clients a flat fee that includes all fund management fees. Fidelity Go is the greatest option for low-cost investments with human monitoring because it charges a 0.35 percent advisory fee, invests in index funds, is managed by human advisors, and has no account minimum.
- Minimum investment is lower.
- Index mutual funds with no fees.
- There is 24-hour help available.
- Investing lacks diversification.
- There is no tax-loss harvesting.
5. Charles Schwab
Charles Schwab is a significant robo-advisor investment company like Wealthfront renowned for its upfront pricing and cheap charges. They provide a wide range of investing alternatives, including mutual funds, ETFs, index funds, equities, options, bonds, CDs, money market funds, and cryptocurrency.
Schwab is also ideal for mutual fund investors, with over 4,000 no-transaction-fee products, one of the industry’s greatest options. It also provides fractional shares, which means you can put all of your money into equities rather than having idle investment money sitting around.
Charles Schwab is a fantastic app for specialists, but it’s also great for beginners because of all the tools it offers. Schwab offers a wealth of information and education to help novice investors get up to speed on issues like investing and personal finance.
With schwab, you’ll also get one of the best sign-up bonuses available, with a cash bonus that begins with a $25,000 deposit. You’ll also enjoy commission-free stock and ETF trades. Not to mention that they differ from Wealthfront in that there are no management fees.
- There are no administrative fees.
- Education Resources for Investing
- sign-up bonuses with a minimum deposit of $25,000
- There are over 4,000 funds with no transaction fees.
- Minimum investment is high.
- To speak with an advisor, you must make an appointment.
6. Personal Capital
Personal Capital is one of the top banks like to Wealthfront for tracking your net worth, budget, and investments. Personal Capital’s target market is vastly different from those of other apps like Wealthfront, as it only works with individuals who can maintain a minimum account balance of $100,000.
Personal Capital provides several financial tools to help you achieve your goals, including a savings and retirement planner, investment checkup, fee analyzer, and mobile app. Furthermore, its purpose is to help you retire with confidence by assisting you in understanding the tiny changes that may effect your goals.
Personal Capital can be used for financial planning by investors with less capital because it provides a wide range of free tools such as a 401k fee analyzer, spending tracker, investment checkup, and so on.
One of the most intriguing features of Personal Capital is the availability of a net worth calculator for tracking your net worth and investment portfolio. This is a fantastic approach for folks who are just getting started with their finances to get started.
- Integrated investment management.
- Allows you to Track your net worth.
- Retirement and savings planner.
- Higher fees.
- Only electronic transfers are permitted.
Conclusion on Wealthfront Alternatives
Wealthfront is well-known as a leading robo-advisor investing firm, however there are a number of different wealthfront alternatives described in this article that may provide you with more or similar services than wealthfront has been providing you, if you have been a customer.
This is a disclaimer: the list of robo-advisor sites like wealthfront that we have included above may be the best out there, but we do not recommend any of them and will not be held liable for any future losses resulting from their use.