Best Robo Advisors in Singapore (2023)

What are robo-advisors?

Robo-advisors are digital advisory investment platforms. An underlying algorithm automates your investments and the management of your portfolio. As little human intervention is involved, you can expect cheaper management fees.

To better understand these new-age investment platforms, you can read this guide.

How do robo-advisors work?

Robo-advisors curate a portfolio based on your financial goals, investment horizon and risk appetite. This is determined by the inputs you share during your account creation. Portfolios offered by robo-advisors are typically made up of investment types such as Exchange Traded Funds (ETFs) and mutual funds that invest in a variety of asset classes.

The robo-advisor’s algorithm will invest your money through the selected portfolio and automatically rebalance it whenever it strays from the asset allocation, or when you deposit or withdraw funds from the portfolio.

Pros and cons of investing using robo-advisors

Pros:

• Low cost
• Low minimum investment amount required
• Gain access to global markets and diversified portfolios that suit your risk appetite
• No lock-in fee or period

Cons:

• Some robo-advisors require a minimum investment amount that can range from S$3,000 to S$10,000
• Enjoy even lower costs only when you invest large sums
• Not 100% personalised

Which are the best robo-advisors in Singapore?

The best robo-advisor depends on your personal investment preference. Are you looking for the platform with the lowest fees, or are you looking for a robo-advisor with a unique product to complement your portfolio?

To help you with your decision, you can check out this article on the best robo-advisors in Singapore.

What are the robo-advisory fees like?

Robo-advisors are known for their low fees. You can expect to pay a management or advisory fee to the robo-advisor for managing your portfolio. Charged as a percentage of your portfolio size, management fees can range from 0.2% to 0.88% per annum depending on your investment type and total investment amount. This fee covers components such as rebalancing costs, transaction fees, account creation and custody fees.

Besides the management fee, there are also additional fees involved, such as the total expense ratio and currency conversion fees.