Investing in 2025 looks very different from a decade ago. With advances in artificial intelligence, automation, and low-cost investing platforms, more people are turning to robo advisors to manage their portfolios. These digital platforms use algorithms and automated rebalancing to create and maintain diversified portfolios, often at a fraction of the cost of traditional financial advisors.
The appeal is clear: robo advisors offer convenience, affordability, and accessibility. They make investing simple for beginners who may not know where to start, and they provide advanced tax tools and retirement planning features for experienced investors who want efficiency without the high fees of human advisors.
But with dozens of robo advisors available in 2025, how do you know which one is right for you? Some focus on low fees, others on customization, and a few offer hybrid models that blend automation with access to human financial planners. Choosing the best platform depends on your goals, risk tolerance, and how hands-on you want to be with your money.
This guide will break down the 8 best robo advisors for 2025, highlight their strengths and weaknesses, and help you decide which one fits your investment strategy.
Table of Contents
What to Look for in a Robo Advisor
Before choosing a robo advisor, it’s important to understand the factors that separate the best platforms from the rest:
Management Fees
- Most robo advisors charge between 0.15% and 0.40% of assets under management (AUM) each year.
- Some platforms, like Schwab Intelligent Portfolios and SoFi Automated Investing, charge no advisory fee.
- Even small differences in fees can significantly affect long-term returns.
Account Minimums
- Minimum investments vary from $0 (SoFi, Fidelity Go) to $5,000+ (Vanguard, Schwab).
- Beginners may prefer platforms with lower barriers to entry.
Investment Strategies
- Most robo advisors build portfolios using ETFs and index funds.
- Features like tax-loss harvesting, socially responsible investing (ESG), and goal-based portfolios are important for customization.
Technology & AI Tools
- Automation ensures regular rebalancing to maintain your target risk level.
- Advanced platforms offer retirement calculators, cash management, and personalized financial insights powered by AI.
Customer Support
- Some robo advisors are purely digital, while others provide hybrid models that include access to certified financial planners.
- Consider whether you want occasional human guidance or prefer a fully automated approach.
Reputation & Regulation
- Ensure the robo advisor is registered with the SEC and covered by SIPC insurance (up to $500,000 for securities, $250,000 for cash).
- Established financial institutions (Fidelity, Vanguard, Schwab) provide added trust.
Quick Comparison Table: Best Robo Advisors for 2025
| Robo Advisor | Fees (Annual AUM) | Account Minimum | Best For | Standout Feature |
|---|---|---|---|---|
| Betterment | 0.25% – 0.40% | $0 | Overall best option | Goal-based investing + advanced tax tools |
| Wealthfront | 0.25% | $500 | Automation & planning | AI-driven financial planning with Path |
| Vanguard Digital Advisor | 0.15% | $3,000 | Low-cost indexing | Ultra-low fees + trusted Vanguard funds |
| Schwab Intelligent Portfolios | $0 | $5,000 | No-fee investing | Zero advisory fee, broad ETF selection |
| Fidelity Go | $0 – $5/month | $0 | Beginners | Low-cost tiers + Fidelity brand trust |
| M1 Finance | $0 (with optional $3–$10/month for premium) | $100 | Customization | “Pie” investing model for semi-DIY investors |
| SoFi Automated Investing | $0 | $0 | Free management | Access to SoFi perks + human advisors |
| Personal Capital (Empower) | 0.49%–0.89% | $100,000 | Hybrid wealth management | Combines robo features with CFP advisors |
The 8 Best Robo Advisors for 2025
1. Betterment – Best Overall Robo Advisor
Overview
Betterment was launched in 2021 and was one of the first robo advisors and remains one of the most popular today. It strikes the right balance between affordability, technology, and financial planning, making it a top choice for both beginners and experienced investors.
Key Features
- Fees: 0.25% for Digital plan; 0.40% for Premium with human advisor access.
- No account minimum for Digital plan.
- Goal-based investing: retirement, emergency fund, major purchases.
- Automated rebalancing and tax-loss harvesting.
- Optional access to certified financial planners.
Best For
Investors who want a well-rounded robo advisor with strong tax tools and goal-based portfolios.
Downsides
- Premium plan requires $100,000 minimum balance.
- Slightly higher fee than ultra-low-cost competitors like Vanguard.
2. Wealthfront – Best for Automation and Planning
Overview
Wealthfront has earned a reputation for being one of the most tech-driven robo advisors, with a heavy focus on automation and AI-powered financial planning. Its signature tool, Path, offers personalized retirement, home buying, and college planning insights.
Key Features
- Fees: 0.25% flat annual fee.
- Minimum investment: $500.
- Automated portfolio of low-cost ETFs.
- Tax-loss harvesting available on all accounts.
- Cash management features: high-yield savings, checking.
- Advanced planning with AI-powered Path tool.
Best For
Investors who want automation paired with advanced planning and financial goal tracking.
Downsides
- No access to human financial advisors.
- Higher minimum ($500) than competitors like Betterment or SoFi.
3. Vanguard Digital Advisor – Best for Low-Cost Indexing
Overview
Vanguard Digital Advisor is ideal for investors who want rock-bottom fees and access to Vanguard’s world-renowned index funds. With an annual advisory fee of just 0.15%, it’s one of the cheapest robo advisors available in 2025.
Key Features
- Fees: 0.15% annual fee plus expense ratios of Vanguard ETFs (typically very low).
- Minimum investment: $3,000.
- Portfolios built from Vanguard’s low-cost ETFs.
- Goal-based planning for retirement and wealth building.
- Automatic rebalancing and progress tracking.
Best For
Cost-conscious investors who want low fees and access to Vanguard funds for long-term, passive investing.
Downsides
- Higher account minimum ($3,000).
- Fewer customization options compared to M1 Finance or Betterment.
4. Schwab Intelligent Portfolios – Best for No Management Fee
Overview
Charles Schwab’s robo advisor, Intelligent Portfolios, is unique because it charges no advisory fee. Instead, Schwab earns revenue from the ETFs it uses and the cash allocation in portfolios. This makes it one of the most cost-effective choices for hands-off investors, though its relatively high minimum balance may limit accessibility.
Key Features
- Fees: $0 advisory fee (investors still pay ETF expense ratios).
- Minimum investment: $5,000.
- Automated rebalancing with diversified portfolios of Schwab and third-party ETFs.
- Premium version available ($30/month + $300 setup) for human advisor access.
- Strong retirement planning tools integrated with Schwab’s brokerage services.
Best For
Investors who want zero advisory fees and trust the Schwab brand for long-term investing.
Downsides
- $5,000 minimum balance is higher than most robo advisors.
- Mandatory cash allocation (around 6%–10%) can drag on returns in low-interest environments.
5. Fidelity Go – Best for Beginners
Overview
Fidelity Go is Fidelity’s robo advisor solution, designed for simplicity and accessibility. It offers a straightforward fee structure and no account minimum, making it perfect for beginner investors who want a trusted name without complexity.
Key Features
- Fees: $0 for accounts under $25,000; $3/month for accounts $25,000–$49,999; 0.35% annually for $50,000+.
- Minimum investment: $0.
- Portfolios built from Fidelity Flex mutual funds (no fund expense ratios).
- Automatic rebalancing and goal-based investing.
- Backed by Fidelity’s reputation and resources.
Best For
Beginners who want a low-cost, no-fuss robo advisor from a trusted institution.
Downsides
- Limited customization compared to Betterment or M1 Finance.
- Flat $3/month fee can be costly for very small balances.
6. M1 Finance – Best for Customization
Overview
M1 Finance combines the automation of robo advisors with the customization of DIY investing. Its signature feature is the “Pie” investing model, where investors can build their own portfolio of stocks and ETFs or choose from prebuilt ones, while the platform handles rebalancing automatically.
Key Features
- Fees: $0 for standard investing; optional M1 Plus membership ($3–$10/month) adds perks.
- Minimum investment: $100.
- Customizable portfolios (“Pies”) with fractional shares.
- Automated rebalancing with every deposit.
- Access to additional features like borrowing and cash management.
Best For
Investors who want control over portfolio construction but still value automation for rebalancing and contributions.
Downsides
- No tax-loss harvesting.
- Limited customer service compared to full-service robo advisors.
7. SoFi Automated Investing – Best for Free Management
Overview
SoFi has built a strong reputation as an all-in-one financial platform, offering banking, loans, investing, and financial education. Its robo advisor, SoFi Automated Investing, charges no advisory fee, making it a great choice for cost-conscious investors who want access to a wide suite of financial services.
Key Features
- Fees: $0 advisory fee (fund expense ratios still apply).
- Minimum investment: $0.
- Automated portfolios with ETFs across multiple asset classes.
- Access to live financial planners at no additional cost.
- Integration with SoFi’s ecosystem: loans, banking, insurance, and member perks.
Best For
New investors who want free management and access to additional financial services in one ecosystem.
Downsides
- Less sophisticated tax tools compared to Betterment or Wealthfront.
- Smaller fund selection than Vanguard or Schwab.
8. Personal Capital (Empower) – Best Hybrid Robo Advisor
Overview
Formerly known as Personal Capital, Empower blends robo advisor automation with human financial planning. It’s designed for high-net-worth clients who want professional wealth management with tech-driven efficiency.
Key Features
- Fees: 0.49%–0.89% depending on assets under management.
- Minimum investment: $100,000.
- Combines robo advisor services with access to certified financial planners.
- Offers powerful free financial tools: budgeting, retirement planning, investment tracking.
- Customized portfolios including individual securities, ESG strategies, and tax optimization.
Best For
High-net-worth investors who want both technology and human guidance for comprehensive wealth management.
Downsides
- High account minimum ($100,000).
- Higher fees than typical robo advisors.
Decision Guide: Which Robo Advisor Is Right for You?
With so many robo advisors available in 2025, the right choice depends on your investment goals, account size, and how much customization you want. Here’s a breakdown:
Best Overall:
- Betterment – Balanced fees, strong goal-based planning, excellent tax tools.
Best for Automation and Planning:
- Wealthfront – AI-powered Path tool, advanced financial planning, and strong automation.
Best for Low-Cost Indexing:
- Vanguard Digital Advisor – Ultra-low fees, simple indexing approach, trusted brand.
Best for No Management Fee:
- Schwab Intelligent Portfolios – Zero advisory fee, broad ETF selection.
Best for Beginners:
- Fidelity Go – Low-cost tiers, no minimum, backed by Fidelity’s brand trust.
Best for Customization:
- M1 Finance – “Pie” investing model, fractional shares, blends DIY with automation.
Best for Free Management:
- SoFi Automated Investing – No fees, plus access to SoFi perks and planners.
Best Hybrid for High-Net-Worth Investors:
- Personal Capital (Empower) – Automation plus access to CFP professionals, advanced wealth strategies.
6. Regulation and Investor Protection in 2025
Robo advisors may be algorithm-driven, but they operate within the same financial regulations as traditional investment firms. Here are the key protections in place for investors:
SEC Registration
- All legitimate robo advisors are registered investment advisors with the U.S. Securities and Exchange Commission (SEC).
- This means they have a fiduciary duty to act in your best interests.
FINRA Oversight
- Broker-dealer operations related to robo advisors fall under the Financial Industry Regulatory Authority (FINRA), ensuring fair practices.
SIPC Protection
- Accounts are typically covered by the Securities Investor Protection Corporation (SIPC) up to $500,000 for securities and $250,000 for cash in case a firm fails.
- Note: SIPC does not protect against market losses, only broker failure.
Custody of Assets
- Most robo advisors partner with well-established custodians like Apex Clearing, Fidelity, or Vanguard, ensuring assets are held securely.
Investor Responsibility
- While robo advisors follow fiduciary standards, it’s important for investors to:
- Review portfolios periodically.
- Understand that returns are market-driven.
- Confirm that the robo advisor’s strategy matches their risk tolerance and goals.
7. FAQs
Q1. Are robo-advisors safe in 2025?
Yes. Most robo-advisors are registered with the SEC and accounts are protected by SIPC insurance, which covers up to $500,000 in securities and $250,000 in cash if a brokerage fails. However, they do not protect against market losses.
Q2. How much do robo advisors cost?
Most charge an annual management fee between 0.15% and 0.40% of assets under management (AUM). Some, like Schwab Intelligent Portfolios and SoFi Automated Investing, charge no advisory fee at all.
Q3. Can robo-advisors beat the market?
Robo-advisors generally focus on long-term, diversified investing, not beating the market. Their goal is to provide steady returns aligned with your risk tolerance, using index funds, ETFs, and tax strategies.
Q4. Do robo advisors offer retirement accounts?
Yes. Most support IRAs, Roth IRAs, and taxable accounts, while some also offer 401(k) management and rollover assistance.
Q5. What’s the difference between a robo advisor and a human advisor?
Robo advisors rely on algorithms and automation to build and rebalance portfolios at a low cost. Human advisors provide personalized, one-on-one financial advice but usually charge much higher fees (around 1% of AUM). Hybrid services like Empower combine both approaches.
8. Conclusion
Robo advisors in 2025 offer investors a powerful combination of automation, low costs, and accessibility. Whether you’re just starting out or managing a sizable portfolio, there’s a platform tailored to your needs.
- If you want a well-rounded solution, Betterment and Wealthfront remain industry leaders.
- For cost-conscious investors, Vanguard Digital Advisor, Schwab Intelligent Portfolios, and SoFi Automated Investing deliver rock-bottom fees.
- If you prefer customization, M1 Finance gives you the flexibility to build your own portfolio while automating rebalancing.
- Beginners may find Fidelity Go the easiest entry point, while high-net-worth investors seeking personalized advice should consider Empower (formerly Personal Capital).
The right robo advisor can simplify your investing journey, eliminate emotional decision-making, and keep you aligned with your long-term goals. As the technology continues to evolve, robo advisors are no longer just an alternative to human advisors — they are becoming the default way to invest for millions of people.
If you’re ready to put your money to work in 2025, now is the time to choose a robo advisor that matches your goals and start building a smarter financial future.
