Submitted by nsscadmin on
A robo-adviser is a specific class of financial adviser that delivers financial advice or portfolio management online with very little human input. A robo-adviser develops its financial advice through algorithms. Using these algorithms, a robo-adviser manages a client’s portfolio based on their income, risk tolerance, financial goals and desired returns.
The number of robo-advisers in Canada has steadily increased since the first one was launched in 2008. Due to the lack of human management a robo-adviser typically has smaller fees and commissions than a traditional human adviser. In-turn they lack any human interaction and hands-on service that a traditional adviser can provide.
Despite running off algorithms and lacking human control robo-advisers still need to be registered. If you’re thinking about using a robo-adviser be sure to check their registration and study all the positives and negatives to make sure they’re a fit for you.
