Wells Fargo Offers New Robo-Advising Platform

Savage Villoch Law, PLLC
27
Oct

robo-advisingBanking giant, Wells Fargo, recently rolled out a new robo-advising platform aimed at enticing first-time investors to invest through Wells Fargo-packaged investment offerings. The unveiling of the automated advisory platform marks the latest in a concerted effort by large-scale financial institutions to capitalize on tech-savvy consumers and meet the changing demands of a digital marketplace.

Robo-advising has grown as an increasingly popular platform for investors who seek more autonomy in their investment decisions as well as expedited trading.

What is Robo-advising?

We’ve talked before about using robo-advisors to facilitate trading and help investors organize portfolios, but here’s a quick recap: robo-advisor services are billed as low-cost, user-friendly systems that encourage first-time and novice investors to take a hands-on approach to growing their investment portfolio. Robo-advising allows investors to make investment decisions and transact deals via automation (meaning little to no interaction with a human advisor).

The Wells Fargo ‘Intuitive Investor’

Wells’ robo-advising plartform, dubbed ‘Intuitive Investor‘, is the 3rd automated platform offered by a major Wall Street brokerage. Bank of America and Raymond James Financial both launched their own services earlier this year.

Intuitive Investor allows first-time investors to begin with relatively low capital risk and comparatively low commissions. Opening an account requires a minimum $10,000 investment and offers advisory fees at a half of a percent annually.

Tips if you’re considering opening a robo-advising account:

While robo-advising does offer you more individual oversight and control over your investments, that also comes with an increased responsibility to practice smart, secure investing.

Automation can be great, but an increased reliance on computers for file storage and transaction comes with increased risk of cyber attack. It’s even more important for you to closely track your portfolio and transactions if you’re going to use a robo-advisor. Contact your brokerage immediately if you notice anything out of the ordinary in your account.

Depending on your investment goals, it may also be in your best interest to maintain the services of a traditional investment advisor for either part or all of your portfolio.

Investor Resources

For more info on managing your portfolio using a robo-advisor, check out the SEC’s full investor bulletin. Read more about Wells Fargo’s robo-advising platform here.