Before comparing platforms, one thing is worth saying plainly: most “AI investing” is marketing. The platforms below are robo-advisors — they use rules-based algorithms to allocate and rebalance a portfolio of index funds according to your risk profile.
That’s genuinely useful. It just isn’t artificial intelligence predicting markets, and any platform implying otherwise is overselling. What you’re actually buying is automation and discipline, which for most beginners is worth more than prediction would be.
Here’s what they cost in 2026 and how to choose.
What they actually do
You answer questions about your age, goals, timeline and risk tolerance. The platform assigns you a portfolio — typically low-cost ETFs across stocks and bonds — then handles the ongoing work:
- Rebalancing when allocations drift from target
- Reinvesting dividends automatically
- Adjusting risk as you approach your goal date
- Tax-loss harvesting on some platforms, in taxable accounts
The real benefit is behavioural. The most common way beginners lose money is selling during a downturn, and an automated system with no panic button removes that decision.
Current fees and minimums
| Platform | Annual fee | Minimum | Tax-loss harvesting |
|---|---|---|---|
| Fidelity Go | $0 under $25,000 | $10 | No |
| Schwab Intelligent Portfolios | $0 advisory | $5,000 | Over $50,000 |
| M1 Finance | $0 | Low | No |
| Vanguard Digital Advisor | ~0.15% | Higher | Yes |
| Betterment | 0.25% or ~$4/month | $0–$10 | All taxable accounts |
| Wealthfront | 0.25% | $500 | All accounts |
| SoFi | ~0.25% | ~$50 | No |
| Acorns | $3–$12/month flat | $5 | No |
Management fees sit on top of the underlying fund expense ratios, which typically add around 0.08%.
Terms change frequently — SoFi’s pricing in particular has shifted. Verify on the provider’s own page before opening an account.
The flat-fee trap on small balances
This is the most important number in the table and it’s easy to miss.
A flat monthly fee looks cheap and behaves terribly on a small balance. $3 a month on a $500 account is 7.2% a year — more than the market’s long-run average return. On $5,000 it’s 0.72%, which is merely expensive.
Percentage fees scale with your money; flat fees don’t. If you’re starting small, a percentage-based platform or a zero-fee option is almost always better, and the flat-fee apps only become reasonable once your balance is well into four figures.
Which suits which situation
Starting under $25,000? Fidelity Go charges nothing below that threshold with a $10 minimum. Hard to beat while you’re building.
Want the strongest all-round package? Betterment at 0.25% with essentially no minimum, goal-based planning and tax-loss harvesting on all taxable accounts.
Have a taxable account over $100,000? Wealthfront’s direct indexing harvests losses at individual stock level, which can more than cover the fee.
Want to pick your own holdings but automate the maintenance? M1 Finance charges no management fee and still rebalances. The trade-off is no tax-loss harvesting and limited trading windows.
Want zero advisory fee and have $5,000? Schwab Intelligent Portfolios — but note the mandatory cash allocation, which creates a drag that functions as a hidden cost.
What the fee actually buys
Worth putting in proportion. On $50,000, a 0.25% fee is $125 a year.
Is that worth paying? It depends entirely on the alternative:
Versus a human financial adviser charging around 1%, you’re saving $375 a year on that balance — and compounding the difference for decades.
Versus doing it yourself with a single broad asset-allocation ETF, you’re paying $125 for automation you could replicate in about ten minutes a year. If you’d actually do it, self-directed wins.
Versus not investing at all because the process felt overwhelming, the fee is trivial. The most expensive option is always the account you never open.
Be honest about which describes you. Our beginner’s guide to stock market investing covers the self-directed route if that’s the better fit.
The limitations worth knowing
They don’t beat the market. These platforms buy index funds. The goal is matching market returns at low cost, not outperforming — and any platform implying AI gives it an edge is making a claim it can’t support.
They don’t prevent losses. A diversified portfolio still falls when markets fall. Automation removes emotional selling; it doesn’t remove risk.
Limited handling of complexity. Business ownership, estate planning, unusual tax situations, concentrated stock positions — these need a human.
Questionnaires are crude. A five-question risk assessment can’t capture how you’ll actually feel during a 30% drawdown. Many people discover their real risk tolerance the hard way.
Cash allocations. Some zero-fee platforms hold a mandatory cash percentage, earning interest for the provider. That’s how “free” gets funded.
Before you open an account
The order matters more than the platform:
- Emergency fund in cash — three to six months of expenses, so you’re never forced to sell. See our emergency fund guide
- High-interest debt cleared — 22% on a card beats any expected return
- Employer retirement match taken in full
- Tax-advantaged accounts before taxable ones
- Then automate the contributions
Check the platform supports the account types you need — most offer taxable accounts and IRAs, but 529s, SEP IRAs and solo 401(k)s vary.
Verify any US platform is SEC-registered and SIPC-insured, which protects assets if the broker fails but not against market losses. The SEC’s Investor.gov lets you check registration and publishes guidance on evaluating advisers.
Outside the United States
United Kingdom. Nutmeg, Moneyfarm, Wealthify and similar operate in the same space, usually inside a Stocks and Shares ISA — which matters more than the platform choice, since it shelters gains and dividends entirely. See our guide to building ETF income in the UK.
Canada. Wealthsimple’s managed option runs around 0.4–0.5%, with commission-free self-directed investing alongside it — covered in our guide to investment apps for Canadian beginners.
Australia. Several robo-advisors operate, though superannuation is the default long-term vehicle and its tax treatment usually outweighs platform differences.
US platforms generally don’t accept non-US residents, so use domestic providers.
Frequently asked questions
Do AI investing platforms use real AI?
Mostly no. They use rules-based algorithms for allocation and rebalancing. That’s automation, and it’s genuinely useful — but the marketing overstates what’s happening.
Can I lose money?
Yes. These invest in markets, and markets fall. SIPC protection covers broker failure, not investment losses.
Robo-advisor or self-directed?
Self-directed is cheaper if you’ll actually maintain it. A single broad asset-allocation ETF does most of what a robo-advisor does. If you know you’d procrastinate or panic, the fee buys real value.
Can I switch platforms later?
Yes, though transfers involve paperwork and sometimes fees — SoFi charges an outgoing transfer fee, for example. Selling in a taxable account also triggers a tax event, so check before moving.
The bottom line
Under $25,000, Fidelity Go costs nothing. Above that, Betterment or Wealthfront at 0.25% are the strongest all-round options, with Wealthfront pulling ahead on large taxable accounts. M1 Finance is the pick if you want to choose holdings without doing the rebalancing.
Avoid flat monthly fees on small balances — $3 a month on $500 is 7.2% a year, which no portfolio can outrun.
And understand what you’re buying: automation and discipline, not intelligence. The platforms hold index funds, aim to match the market, and their real value is that they keep you invested through the years when you’d otherwise have sold.
Sources
- SEC Investor.gov — checking adviser registration and evaluating robo-advisory services
- SIPC — what broker protection does and doesn’t cover
- FINRA — broker-dealer records and fee comparison tools
Fees, minimums and features come from each platform’s own published pricing and change frequently. Verify current terms directly with the provider before opening an account.
Last reviewed: 15 August 2026. Platform fees and features change frequently — we review this article when they do.
General information only, not personalised investment advice. Fees, minimums and features change frequently — verify current terms with each provider. Investments can fall as well as rise. We have no affiliate relationship with any platform mentioned.
