E-Trade is a known trusted discount online broker, but it also offers something else for individuals who donâ€™t want to manage their investments. Core Portfolios, E-Tradeâ€™s version of a robo-advisor, allows you to answer a few simple questions about your investment goals and risk tolerance, and then uses your answers to custom-design a portfolio thatâ€™s right for you.
In this E-Trade Core Portfolios review, youâ€™ll see how users can benefit from the helpful customer service and intuitive mobile and online apps E-Trade provides, but also have an appropriate mix of assets selected for them. While fees are a bit above what many competitors charge for robo-advising services, E-Tradeâ€™s easy-to-use interface makes Core Portfolios a great choice if you want a hands-off approach to investing.
The field of robo-advising is getting crowded, with established discount brokerages like E-Trade now offering alternatives to companies like Wealthfront and Betterment, which provide robo-advising only.
Itâ€™s not surprising robo-advising is a popular investing tool. Itâ€™s an ideal solution for investors seeking a hands-off approach to diversification and looking for help managing money â€” but who donâ€™t want to pay significant fees.
While E-Trade is a little costlier than competitors, Core Portfolios may be a good choice if you donâ€™t mind paying a premium for stellar customer service, a simple process for building your portfolio, low-cost investment options, and excellent mobile and online tools to invest and manage your money.
|Amount minimum to open account|
|Account fees (annual, transfer, inactivity)||
Pay no advisory fee for one year.
|Tax loss harvesting|
|Tax loss harvesting detail||A tax sensitive investment strategy that uses municipal bond ETFs, which may help to reduce taxes on account interest and dividends.|
|Offers fractional shares|
|Ease of use|
|Mobile app||iOS, Android|
|Customer support||Phone, 24/7 live support, Chat, Email, 30 branch locations|
E-Trade Core Portfolios has some important advantages that make this robo-advisor worth considering. Benefits include:
No E-Trade Core Portfolios review would be complete without discussing the potential disadvantages, including the following:
E-Trade has been operating as a discount broker for many years and is well-respected. Itâ€™s a FINRA member, which means that itâ€™s met licensure and regulatory requirements. It also is both FDIC-insured and a member of SIPC, which means cash in your accounts is protected â€” up to a certain dollar value â€” in case E-Trade faces financial trouble.
But when you invest with E-Trade, your money is put into ETFs that could perform well or could perform poorly. Your investments may decline in value, and thereâ€™s always a risk to investing in the market. E-Trade tries to match your investment portfolio with your risk profile â€” if youâ€™re more risk-averse, your money will go toward safer investments. But there is always a danger youâ€™ll lose money when you invest.
You should carefully research investment options to find out if youâ€™re comfortable with E-Tradeâ€™s robo-advisor service managing your money.
Investing in Core Portfolios gives you access to E-Tradeâ€™s extensive infrastructure, including local branches and renowned web and mobile apps. Although the minimum balance requirement and management fees are higher than competitors, great customer service and the easy process used to assess your investment risk makes E-Trade Core Portfolios a great choice for investors looking for hands-off solutions.
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