What’s a robo-advisor?

Robo-advisors represent the latest evolution of financial advice services and reflect the larger trend towards financial technology.

By using software algorithms to assess investor risk profiles, online advisors can offer advice about which investments to hold. Such services have flourished in Canada, following similar trends in Britain and the United States.

Online advisors typically charge anywhere from 35 to 60 basis points to manage assets, depending on the size. For example, Wealthsimple’s fees are 0.35 per cent on any amount over $1 million.

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