The Securities and Exchange Commission (SEC) has released an investor bulletin for investors to understand the fundamentals of robo-advisor investing, or the practice of using automated investment platforms.
Robo-advisor investing has risen in popularity, especially among d-i-y and at-home investors due to the relatively low cost compared to traditional investing and expedited nature of deals.
With this rise in popularity, however, risks are bound to follow. Automated trading platforms may be vulnerable to hacking and computer fraud.