Why Choose a Robo Advisor Over an Online Trading Platform

Today’s technological advancements have given ordinary folks the confidence to invest on stocks and securities in order to grow whatever little money they’ve saved.

Digital investing for most millennials means using the trading platforms of investment brokers. On the other hand, the Gen Xers and lately even the Baby Boomers, who are admittedly less savvy when it comes to digital technology, prefer to entrust their savings to digital investment managers who offer investing services via an online platform called robo-advisor.

The younger generation of investors prefer the online trading technology of online brokerages because they are more comfortable managing and controlling their investing and trading activities. The older generation of investors, on the other hand, prefer letting digital wealth managers do the investing on their behalf but based on their risk tolerance as investors.

Yet not many are confused when deciding between online trading platforms and robo advisors. The wealthier ones though just stick to traditional human wealth managers who contend that robo advisors, lack empathy and sophistication in analyzing investing options.

What is a Robo-Advisor and What Makes it Different from an Online Trading Platform

First off, a robo-advisor is a web-based digital technology that allows simple folks with minimal amounts to connect with a wealth manager — for the latter to make sound investing decisions on their behalf. Robo-advisors offer algorithm-driven financial planning and investing services based on the individual’s personal finance, goals and risk-tolerance of clients.

Although robo-advisors furnish financial advice, they automatically invest the assets (cash, stocks, securities, etc.) of their clients. In doing so, they furnish their clients with online tools to use in monitoring where and how their assets are being invested. Generally, robo-advisors invest only in traditional investment products, like stocks, bonds, mutual funds or exchange traded funds (ETFs).

Online trading platforms on the other hand, are digital platforms provided by financial market intermediaries who act not as investment managers, but as brokers. The users of the broker’s trading platform make Investing decisions and take trading positions by following and analyzing trading signals, and other critical market data furnished by the broker-cum-platform provider.

Another main difference of online trading platforms is that they also offer trading opportunities for financial derivatives like contracts for differences (CFDs) on EFTs, precocious commodities, foreign currencies and even cryptocurrencies.

The Advantages of Using Robo Advisors

The advantage of using robo-advisors is that it eliminates the need for investors to do the analyzing, similar to the financial services provided by the traditional human wealth managers, but at lower costs.

Generally, robo advisors charge annual fees based on the total account balance of customers, usually between 0.2% and 0.5%. As opposed to traditional wealth managers, who in the first place, require large amounts of investment money, charge fixed fees as well as collect commissions from the profits gained by their clients.

Why Choose True Potential Investor and Its Robo-Advisor

True Potential Investor has been part of the automated financial services industry since the early adoption of digital investing platforms known today as robo-advisors. If one is to ask “is True Potential any good?, the following awards received by this digital investment manager, since its founding in 2007, will provide the answer.

  • 2011 Best Use of Technology by an Advisor Award from the Money Marketing Awards
  • Best Support Service Award and Best Use of Technology from Money Marketing Awards for 6 consecutive years;
  • 2015 Best for Innovation and Best for User Experience from the Direct Platform Awards
  • 2017 and 2018 Best Platform Provider AUM Under £25 Billion Award from the Schroder Platform Awards
  • 2017 European Business of the Year Award
  • 2017 Business Partnership Award from The Guardian
  • 2018 European Public Vote Award from the European Business Awards, and
  • 2018 Best Platform for Innovation Award from the Platform Awards

Securing Continuous Growth for Your Business

Your success in buying houses in https://www.thepropertybuyingcompany.co.uk/landers/cash-house-buyers or starting a business comes down to how much knowledge you have of the market and how much of it you can actually put into use. If it is about business, then you are probably aware by now that there are literally hundreds of decisions that you have to make on a daily basis. Each decision is crucial for it can make or break the growth and success of your business.

Guided Decisions

In order to make sure that you are making the most sensible decision for your business, it is highly recommended to work with a coach or mentor. This is literally the smartest move that you could ever make. Without a doubt, there are more expenses that have to be dealt with and not to mention, the time you have to commit to be mentored by someone.

However, you should know that without proper guidance, there is a limit on how fast your business grows and to how much you can make improvements. Ultimately, it is going to cost you more in the long run than having to make sacrifices today.

Why is it a Good Idea to Hire a Mentor?

As you decide to work with someone who has been exposed in the industry you are in or has unique knowledge that you could tap on, it lets you avoid committing mistakes. At the same time, they can give you inputs that will allow you to steer clear of challenges that can hamper the growth of your business.

An experienced business coach can provide a different point of view with your situation and use their personal experience and expertise on showing you the right path. This can be anything from solving a problem, moving forward with your business or even optimizing an existing process.

To whom Coaches are Good for?

A lot of entrepreneurs think that business mentors or coachers are only ideal among those who are struggling and have not seen results. But it is actually the contrary. Even successful businesses and entrepreneurs who have generated millions or even billions of fortune are still using business coaches. This is to ensure that they’re still at the best of the competition and leading the pack.

So for any business and entrepreneur out there thinking whether to hire a business coach or not, this may just be the sign that you are looking for.