Robo-adviser websites crashed as market slid

Wealthfront, Betterment websites went down Monday, cutting clients off from accounts

Feb 5, 2018 @ 5:47 pm

By Bloomberg News

Robo-advisers haven't had much experience with market routs. When confronted with one on Monday, they struggled.

The websites of two of the country's biggest robo-advisers — Wealthfront Inc. and Betterment — crashed as the S&P 500 Index sank 4.1%.

Complaints quickly spread across Reddit and other internet sites from people who had trouble logging onto their accounts. "Really?" wrote @jlpatel23 after he received a message from Wealthfront saying its site was down.

The glitches represent a setback for a niche of the financial market industry that has been booming of late as people have become more comfortable making investment decisions without speaking to human advisers.

Wealthfront acknowledged in a statement that its clients lost access to their accounts for "a short period of time today" and said it's working to ensure that "clients don't experience this again."

Betterment didn't immediately respond to requests for comment. Back in June 2016, during the Brexit fallout, Betterment had told users that it instituted a "short delay in trading" to protect its users from a "potentially erratic market." No such statement was issued by the company in this case.

(More: Robos with the best and worst portfolios over the last two years)

0
Comments

What do you think?

View comments

Recommended for you

Latest news & opinion

Ameriprise to pay $4.5 million to settle SEC charges that five reps stole more than $1 million from clients

Agency censures firm for not protecting clients from thieving brokers.

SEC slaps Lockwood with $200,000 fine over unseen trading costs to clients

Clients were forced to pay fees in addition to the usual wrap charges, the regulator maintains.

Gotcha! 10 lessons from brokers gone bad

These cases show why regulators nabbed reps and firms, and how to avoid their fate.

Tax-credit investigation may trip up Wells Fargo

Justice Department is investigating bank's dealings in tax credits for low-income housing, sources say.

10 biggest boomtowns in America

These metro areas are seeing the biggest influx of people, work opportunities and business growth.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print