Because these companies use computer algorithms — a set of rules to
choose appropriate investments based on your risk tolerance and time horizon — they can offer robo -
advisor services for a fraction of the cost of a
human financial
advisor.
Instead of being forced to
choose between paying a typically substantial fee to hire an
advisor to help manage your investments and doing it yourself, you can now receive assistance in the form of expert advice and technical assistance from a robo
advisor at a fee that is typically significantly lower than what a
human advisor would charge.