TD Ameritrade has a long history of helping investors. But theyâ€™re somewhat new to the robo-advising game.
The Essential Portfolios is TD Ameritradeâ€™s robo-advisor option. It aims to attract young investors who like the idea of letting their investments grow on their own with minimal attention. The Essential Portfolios is an alternative to other robo-advisors on the market today.
Like other robo-advisors, youâ€™ll complete a questionnaire to see what kind of investor you are. The Essential Portfolios puts your cash into low-cost exchange-traded funds (ETFs). This is a quick and easy way to diversify your portfolio without much work from you.
Robo-advisors are a good option for investors who donâ€™t have the time, energy or expertise to micromanage their investments. Essential Portfolios is great for investors who prefer to invest passively.
Because itâ€™s part of TD Ameritrade, you get the easiness of a hands-off robo-advisor and the chance to talk to a financial professional, if needed. For investors who prefer the help of a human, you might choose this over another robo-advisor.
Their laundry list of account types is another big draw. Individual retirement accounts (IRAs) are a common offering. But Essential Portfolios also offers joint and guardianship accounts. This expands their reach even more.
Trade commission-free for 60 days + get up to $600
|Tax loss harvesting|
|Tax loss harvesting detail||Customers are automatically enrolled in tax loss harvesting with no additional cost. Portfolios are monitored daily for tax loss harvesting opportunities.|
|Offers fractional shares|
|Ease of use|
|Mobile app||iOS, Android|
|Customer support||Phone, 24/7 live support, Email, 360 branch locations|
All investments carry risk, even robo-advisors like the TD Ameritrade Essential Portfolios. But TD Ameritrade has been around for 40 years and is a leader in the investing space.
TD Ameritrade guarantees youâ€™ll get your money back from unauthorized activity on your account. Theyâ€™re a member of the FDIC and SIPC with more than $1.8 billion in assets under management. This should give you the peace of mind that, should anything happen, your money is safe in case of a breach.
As you compare Essential Portfolios to other robo-advisors, keep product offerings in mind. Access to lots of different account types, minimal fees and socially responsible investing are all good reasons to sign up.
But a high minimum opening investment could turn you away. Other companies offer many of the same highlights as Essential Portfolios, but with a much smaller account balance. If youâ€™re just starting your investment journey, $5,000 is a lot and might keep you from signing up.
Although, if you have the cash, it may be worthwhile. The expert help available to customers 24/7 is a big reason to use a company with some clout. For current TD Ameritrade customers, this is an easy addition to your other accounts. For those who are looking to make the switch, their lengthy history serving investors might be enough to grab your attention â€” and money.