Is a robo-advisor the investment tool for you?

What is a Robo-advisor?

In 2019, the $4.51 billion value of the global robo advisory market was stunning. With the growth the market is projecting, it’s estimated to reach $41.07 billion by 2027.

Robo-advisors are digital platforms using automation and algorithms without much human interaction. As a result, they make investing online easier. Additionally, these innovative tools can help ensure your investments align with your goals. These platforms are ideal for investors who are just starting out and have less money to invest.

Robo-advisors have inherent benefits which include:

  • Lower management fees
  • User-friendly platforms
  • Lower investment minimums

How Robo-advisors Work

A robo-advisor must "get to know you," so it begins with a questionnaire. The personality survey lets the algorithm weigh in on your risk appetite. Additionally, it allows you to set goals and a timeline.

Investing with the VirtualWealth® robo-advisor through Innovation Wealth can help you achieve your financial goals with easy-to-use automated investments. The platform will pair you with a portfolio that matches your preferences and needs. The program continuously monitors the portfolio and looks for opportunities to buy or sell investments. It will also automatically rebalance to keep your portfolio growing without excessive risk.

Advantages of Robo-advisors

Robo-advisors can make investing simpler and mapping out the goal of your investments can be more straightforward as you are automatically matched with a readymade portfolio based on your preferences.

These financial tools tend to carry lower minimums, as a result investors can begin with less capital. As an investing solution, robo-advisors automatically rebalance your portfolio which helps to protect you from instability.

These platforms have a suite of investment tools. Occasionally they may provide access to live human advisors, however customer support is usually minimal. Mobile-first users also enjoy the availability of the platform.

Financial Advisors vs. Robo-advisor

A clear difference between robo-advisors and professional financial advisors is the interaction process. With an online app you have access to the robo-advisor platform to establish your investment portfolio, it has minimal in-person interaction, and relies on your investment personality to make investment choices.

As a robo-advisor refines its selection of investments, the ease of use improves. Investors enjoy that they can create parameters for investing and not mull over them continually. Not having to pick up the phone or visit a professional financial advisor in-person can be a key benefit of a robo-advisor for some investors.

Human touch is also an important factor when it comes to investing for your future. Phone calls with a team of financial advisors can give you an edge, or simply make you feel more at ease. Of course, Innovation Wealth provides access to personalized financial advice through Credential Securities or Credential Asset Management Inc. where clients benefit from a personal relationship with an advisor who understands your unique needs, and manages your portfolio to help you achieve your goals.

Financial Education and the Human Element

You may desire advanced options or require more involvement with your investment management if your assets are significant or if you have specific goals. If so, there is great value in working with a traditional financial advisor. Creating a comprehensive financial plan or establishing estate plans/solutions are examples beyond the scope of robo-advisors. A holistic wealth plan certainly requires a personal experience.

Financial advisors are professionals you hire to help manage aspects of your financial life — from investing to estate planning and more. You'll generally meet your advisor in person, by phone or by video conference to create and go over your financial plan. Because an advisor also serves in part as a financial educator, coach, and planner in many ways, the human element is invaluable.

There are benefits to both options, robo-advisor or personalized advice. Many investors like to set their objectives without being glued to their portfolios. Others are looking for the ongoing advice of professionals who can help navigate their investments and ensure all aspects of their financial wellbeing are considered. The financial advisor assesses your goals, both short and long term, and develops a tailored approach.

The Innovation Wealth Advantage

Choosing the best tactics can help ensure your investments fit your goals. Professional human advisors have a role that many find valuable. Advice via phone, video or in-person appointments bring a host of knowledge and confidence to investors and having a two-way dialogue is essential.

How you want to invest comes down to whichever way works best for you. Innovation Wealth can help you work through the best solution for you, as well as help guide you along your investment journey. We offer access to Robo Advisor investing with VirtualWealth®, a self-directed online brokerage with Qtrade Direct Investing™,or personalized service and advice with our team. Contact one of our Wealth Management professionals to help you get started.

Contact Us

Source: Pramod, Borasi. “Robo Advisory Market Outlook – 2027.” Robo Advisory Market Size, Shareand Analysis | Forecast - 2027 (

VirtualWealth is a trade name of Credential Qtrade Securities Inc., Member of the Canadian Investor Protection Fund. Mutual funds and related financial planning services are offered through Credential Asset Management Inc. Online brokerage services are offered through Qtrade Direct Investing. Mutual funds, other securities and securities related financial planning services are offered through Credential Securities. Qtrade Direct Investing and Credential Securities are divisions of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc. Qtrade and Qtrade Direct Investing are trade names and trademarks of Aviso Wealth. The information contained in this report was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This report is provided as a general source of information and should not be considered personal investment advice or a solicitation to buy or sell any mutual funds and other securities.

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