2021's Best Automated Investment Platforms

The days where you had to go to a bank or use a human stockbroker to invest in the financial markets are long gone, now thanks to automated investing tools you can start investing from as little as $1, and it can all be through a few taps on your phone. 

The introduction of automated investing tools has been key in democratizing the investment management space and opening up an industry that used to be inaccessible to most people. These tools have surged in popularity in recent years, especially due to the pandemic, and they look set to manage half a trillion in assets by 2023.

With an automated investing tool, artificial intelligence and algorithms build you the perfect portfolio, based on your risk parameters and long-term goals. They are simple to use, offer dramatically lower costs than traditional investment advisors, and require little to no knowledge of the financial markets.

This article will deep dive into the top three automated investing apps to use in 2021. Let's get into it!

8topuz

8topuz is an automated wealth management software for investors and traders. Through utilising artificial intelligence, their software can trade financial instruments on your behalf. Whether you're a trader or not, 8topuz can help you grow your wealth. This investing solution is fully automated and makes an excellent choice for those looking for a hands-free investment vehicle.

Pros:

High Average Annual Returns - 8topuz produce an incredible average monthly return of 2 to 4% for their clients. Their risk-managed software has been back-tested for over ten years and has three-plus years of audited results. Following strict risk-managed principles means their software wins more trades than it loses, making it the perfect long-term investment choice.

No Win, No Fee - 8topuz only charges a fee on winning trades. If there is ever a month where you lose money (doesn't happen too often!), no fee is charged. Other robo-advisors, will always charge an expense ratio and management fee regardless of whether your investments rise or fall in value. 

A Variety of Accounts on Offer - Whether you have $500 or $100,000, 8topuz has an account to suit you. Their Lifestyle account is perfect for beginners, while their Aspire and Dynamic accounts are great for those more savvy investors.

Cons:

Only Works on Currencies - If you're looking for trading software that works on stocks or ETFs, then you're out of luck. The 8topuz software only trades on currency pairs such as EUR-USD and USD-JPY. So, for those who are seeking a diversified portfolio, don't solely rely on using 8topuz.

Betterment

If you want to invest but don't want the hassle of managing your own portfolio, then Betterment can be a good option for you. This robo-advisor invests your money in a portfolio of ETFs that best suits your risk tolerance and financial goals. However, they don't just stop there. They'll also help minimise your tax burden using tax-loss harvesting and will automatically rebalance your portfolio when it gets off balance. Betterment makes a great alternative for those who may not be able to afford a financial advisor's expertise.

Pros:

Easy Sign-Up Process - The sign-up process is extremely straightforward and only takes around five-ten minutes to finish (not many financial institutions can say that!). All you have to do is complete ten short screens, including your basic information, financial goals, and identity verification. 

No Minimum Investment - If you want to start investing but don't have a lot of money, Betterment is a great choice. With no minimum investment and no minimum balance, it means that virtually anyone can get started with Betterment.  

Low Fees - Due to technology and algorithms handling your investments, it means Betterment can charge lower fees than what you might pay a traditional financial advisor. Their Betterment Digital account only charges an annual fee of 0.25%, significantly less than the 1-2% you might pay a financial advisor. 

Cons:

Limited to ETFs - Betterment only invests in ETFs. For those who have more complex investing needs or want to invest in other asset classes, this platform may not be suitable for you. Simply put, this is not an online brokerage like Robinhood or E*TRADE, and you're investing options are very limited.

Not Suitable for Short-Term Investors - Betterment is very much a platform to help fulfil your financial goals over the long-term, such as retirement. With a slow and steady approach to building wealth, this will not be suitable for traders or short-term investors chasing quick profits.

Acorns

Acorns is a robo-advisor that automatically invests your spare change regularly into a portfolio of ETFs. It works by rounding up your purchases to the nearest dollar and investing this change once you have $5 accumulated. The robo-advisor will diversify your investments across more than 7,000 stocks and bonds, and will always automatically rebalance your portfolio to keep in its target allocation. If you understand the importance of investing, but perhaps struggle with the mental roadblocks of becoming a regular investor, then Acorns makes a great choice. 

Pros:

Low Minimum Balance - It doesn't require any upfront money to open an account, but in order to start investing in one of their pre-built portfolios, you must have a minimum balance of $5. This amount is very minimal and makes it suitable for beginner investors.

Can Set Aside Money Little and Often - Automatically investing your spare change means you can set aside a small amount of money each month, without you ever really noticing that it has left your account. Acorns have designed their platform to be as beginner-friendly as possible. 

Investments Are Picked for You - With Acorns, you won't have to worry about picking and trading stocks. Acorns will simply place the money you invest in pre-built portfolios based on the level of risk you choose. If you don't want to manually pick your investments, then using Acorns platform saves you a lot of time.

Cons:

Fees - There's a monthly fee of $1 – $3 to use their platform, which may not sound like a lot, but this could end up costing you a fair bit if you're only investing a minimal amount each month. 

You May Invest Too Little - Although round-up investments can help get you into the habit of investing, you may end up becoming complacent and not investing more than your spare change. With an app like Acorns, the average amount you'll round-up each month is only around $50. Just investing this small amount each month means you’ll most likely never save enough for long-term goals like retirement.

Finding The Right Option For You

Automated investing tools make it easy to try your hand at any type of investment, regardless of your level of experience or expertise. Having a company with leading technology manage your money all for a reasonable fee is a no-brainer. The biggest decision you must undertake is finding the best provider that suits your goals and needs. Ask yourself how much money you have, the level of work you want to do yourself, and what investment options you prefer. 

Once you select the right automated investing tool, you'll be on your way to growing your wealth and ensuring your future long-term financial security.