13 June 2017 – Today BETTER FINANCE will release its research report on Robo-Investing at the Seminar on Financial Guidance. Financial Guidance, as opposed to Advice, is a fee-based, rather than commission-based, model. This model should ensure a better alignment with client interests. As such Robo-Investing providers may actually be rather well placed to provide financial guidance and carry it into the future, since we found them to be mostly fee-based.
Robo- and Cyborg-Investing is still an emerging trend, but one that is growing and evolving rapidly. BETTER FINANCE believes that it can lead to significant benefits for EU citizens as savers and individual investors, and therefore to the real EU economy as a whole, in bad need of a more direct and stronger link between savings and the real assets they are invested in. Already now, the sector is providing significantly lower and more transparent fees, based – as mentioned – on a fee-based business model.
More importantly perhaps, Robo-Investing is creating better value for money by combining low overall pricing with the use of low cost index funds which, on average, have over-performed a majority of active funds over the mid- and long-term.
Read the full press release here.