10 best robo-advisors for beginners

Here are the 10 best robo-advisors for beginners.

For beginners, the world of investing can seem intimidating. A robo-advisor is the perfect solution, acting as a user-friendly, low-cost digital platform that builds and manages a diversified investment portfolio for you.

At ShockTrail, we believe that everyone should have access to smart, simple investing tools. This guide breaks down the best robo-advisors specifically designed to help beginners start building wealth with confidence.

Why a Robo-Advisor is the Perfect Start for New Investors

Robo-advisors eliminate the two biggest barriers for new investors: complexity and high costs. Instead of you having to research and pick individual stocks, the platform asks you a few simple questions about your financial goals and risk tolerance.

It then uses sophisticated algorithms to build you a globally diversified portfolio using low-cost Exchange-Traded Funds (ETFs). It automatically handles complex tasks like rebalancing and dividend reinvesting, all for a fraction of the cost of a traditional human financial advisor. It’s the easiest, most accessible way to put your money to work.

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Real-World Scenarios: How Beginners Can Succeed with a Robo-Advisor

Scenario 1: The Recent Graduate Starting a Roth IRA

• The Investor: Emily, 22, who just started her first job and wants to begin saving for retirement.
• The Goal: To open a Roth IRA and start investing small, consistent amounts each month.
• The Solution: Emily signs up for Fidelity Go®. She is drawn to the $0 advisory fee for balances under $25,000 and the fact that there is no minimum investment to get started. She answers a few questions, and Fidelity Go creates a portfolio for her. She sets up a recurring deposit of $100 per month. The platform automatically invests the money for her, making retirement saving a simple, set-it-and-forget-it habit.

Scenario 2: The Cautious Investor Saving for a Medium-Term Goal

• The Investor: David, who has been saving in cash but is worried about inflation.
• The Goal: To invest for a down payment on a house he plans to buy in 5-7 years, wanting a better return than a savings account without taking on too much stock market risk.
• The Solution: David chooses Betterment. He likes their goal-based approach and the ability to set a specific target for his “Down Payment” fund. Betterment recommends a conservative portfolio with a higher allocation to bonds than a long-term retirement goal. He also appreciates the option to talk with a human financial planner for a one-time fee if he has questions, giving him an extra layer of confidence.

Scenario 3: The Socially Conscious Millennial

• The Investor: Chloe, who wants her investments to align with her personal values.
• The Goal: To build a portfolio that focuses on companies with strong environmental, social, and governance (ESG) practices.
• The Solution: Chloe opens an account with Wealthfront. She is impressed with their extensive customization options, including a Socially Responsible Investing (SRI) portfolio. Wealthfront allows her to easily invest in a diversified portfolio that screens for factors like sustainability and diversity. The platform’s digital financial planning tools, which you can learn about on sites like Investopedia, also help her visualize how her investments will grow over time.

Comparative Breakdown of Top Robo-Advisors for Beginners

The 10 Best Robo-Advisors for Beginners in 2025

1. Fidelity Go®: The best choice for getting started with small amounts, thanks to its $0 minimum investment and no advisory fees on balances under $25,000.
2. Betterment: A pioneer in the robo-advisor space, Betterment excels at helping you set and track specific financial goals with tailored portfolios.
3. Wealthfront: A top competitor with powerful, free digital financial planning tools and excellent portfolio customization options, including SRI and crypto trusts.
4. Charles Schwab Intelligent Portfolios®: A fantastic option for those who want a robo-advisor with no advisory fees, backed by a major brokerage firm. Requires a higher minimum investment.
5. Vanguard Digital Advisor®: Perfect for investors who want to use Vanguard’s famous low-cost ETFs. It offers a very low, all-in cost for automated investment management.
6. SoFi Automated Investing: A great choice for beginners because it has a $0 minimum investment, no advisory fees, and offers access to certified financial planners at no extra cost.
7. Acorns: The ultimate app for micro-investing. Acorns automatically rounds up your purchases to the nearest dollar and invests the spare change, making it effortless to start.
8. Stash: A platform that helps beginners learn to invest by offering a mix of automated portfolios and the ability to buy fractional shares of individual stocks and ETFs.
9. Ally Invest Managed Portfolios: A solid, low-cost option from a leading online bank (Ally Bank). It’s a great choice if you already bank with Ally and want to keep your accounts in one place.
10. Ellevest: A robo-advisor built by women, for women. Ellevest uses a gender-aware algorithm that factors in women’s longer lifespans and different salary curves in its financial planning.

Frequently Asked Questions (FAQ)

Is my money safe with a robo-advisor?

Yes. Your investments are protected by SIPC insurance, which covers your securities up to $500,000 in the event the brokerage firm fails. This does not protect against normal market losses.

What is the minimum amount I need to start investing?

It can be as low as $0 or $1. Robo-advisors like Fidelity Go, SoFi, and Acorns are specifically designed to let you start with whatever amount you’re comfortable with.

How does a robo-advisor choose my investments?

It uses a Nobel Prize-winning investment philosophy called Modern Portfolio Theory. It builds a diversified portfolio using low-cost ETFs across various asset classes (like US stocks, international stocks, and bonds) based on your specific risk tolerance.

What are the fees?

There are two main fees: the management fee (or advisory fee), which you pay to the robo-advisor (typically 0.25% – 0.35% per year), and the expense ratios of the ETFs in your portfolio (typically very low, around 0.05% – 0.10%).

Can a robo-advisor help me with retirement?

Absolutely. Robo-advisors are an excellent, low-cost way to invest for retirement. They offer all the standard retirement accounts, including Traditional IRAs, Roth IRAs, and SEP IRAs.

Can I lose money with a robo-advisor?

Yes. All investing involves risk. The value of your portfolio will fluctuate with the stock and bond markets. However, robo-advisors use diversification to help manage that risk over the long term.

What is “rebalancing”?

Rebalancing is the process of buying or selling assets in your portfolio to maintain your original desired asset allocation. For example, if stocks have a great year, the robo-advisor will automatically sell some stocks and buy some bonds to get your portfolio back to its target mix. At ShockTrail, we know this automated feature is a huge benefit for beginners.

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