Among the latest innovations in the financial industry is online investment services. Basically, these companies will remove the costly in-person relationship between financial adviser and investor by automating the process so that allow more clients with deficient assets that need to serve profitably.
Some of these services were specialized in the specific area or financial field as the opposite to bring the adviser role together. However, this online service, for the most part, eliminate the aspect of person-to-person by receiving investment advice, analysis of asset location, and so on. So, here things that you should know about online investment advisory services.
This is better not to call them robo-advisers
The term of the robo-adviser was often used to describe the services on online investment, however, it
was so interesting to find out that there are many companies were not too interested that label because ofreasons.
They said that the term of robo-adviser contains the cheapened, commoditized and mass-produced products. However, some of them do not care with that term because they had built their business around the relationship of traditional adviser. Well, how you should call them? Based on the feedback that you received most companies prefer to choose online advisory service, digital
management, digital asset manager or automated investment service. All of the concepts of trust will drive the financial advisers and many online advisers believe that they might be less trustworthy if you call them as the robo-adviser.
One similarity that you have to pay attention between the companies are using the ETF or known as exchange-traded funds and fractional shares. You should know that fractional shares were partial shareholdings, which is also similar to the way of mutual funds shares were collected. Generally, the
individual investors were only able to buy or sell the ETF share unless they participate in the program of dividend reinvestment.
The companies that invest your money to you, then there are some of them will use the programmed trading and others really have people who trading your account as well. There are many companies will
use the software programs to do the trading.
Each of them has a personal style
They have a different process for getting started and the options that make them more distinctive as well. Most of the online investment advisory services, you can start by filling up the brief questionnaire which been designed to assess your personal situation along with risk tolerance as well.