When digital platforms are involved in the process of making investments using pre-programmed trading and investing choices for their customers, this is an example of automated investing. The program uses algorithms as well as factors about the customer such as their age, what kind of risk-taker they are, their income, what investment goals they have and such, given by the user when they joined. Here we look at what some of the advantages are when using this method of investment.
Advantages for using programmed platforms
There are many new platforms for automated investments to choose from and they are not all the same. Some are completely automated, some have the option of human help, but all should have good customer service to help you if you need it. Each company will say their automated investing algorithm is the best but here are some general advantages they all offer.
- Low fees – There are many low-cost platforms to choose from, such as Charles Schwab Corp, Intelligent Portfolios or Unhedged. For customers wanting low-cost investment opportunities, this is the way to go.
- Takes the customer no time or having to research investment options – The hard work is all done for you so you can better spend your time elsewhere. You can just act as the management of the investment portfolio.
- Advanced investment research – Thanks to the cutting-edge algorithms and research automated investing uses, they can make better decisions sometimes than an uneducated layperson and so earn more in investment than the customer could on their own.
- Platforms have low minimum balances – If you are an investor with just a smaller net worth to work with, this form of investment still works for you. Some platforms even allow a zero minimum balance. Choose the package that best suits your budget.
- Different programs suit different people – There is no one platform that fits every kind of investor. As well as your budget and goals being different, where you want to invest is going to differ too. You can find one that meets your needs with a little research though. Some have very low fees, some diversify more broadly, some also have tax-loss harvesting and rebalancing services, some have a more hybrid style and some a single approach.
- An opportunity to expand the market with new clients – Some younger investors prefer automated investing as an option rather than going to a professional advisor. It is easy to access at low risk.
Conclusion
Automated investment platforms like Unhedged are growing in popularity, especially with younger investors, but amongst the general population too. There are a number of benefits to using them including low fees, low risk and not having to have a big balance to work with. Plus it is very convenient. You just need to accept that there is less flexibility in this type of investing.
Visit Unhedged!
If you are interested in checking out algorithmic investing visit Unhedged today. It is a great app that means everyone can start investing using technology to get better results.
