TD Ameritrade Holding Corp., Betterment and Wealthfront Corp. are among robo-advisers attracting new clients as younger investors see a buying opportunity amid the market upheaval.
Since the market downturn began, TD Ameritrade has seen new-account openings for its automated investing platform jump 150% from the same period a year ago, according to an emailed statement. Wealthfront said investment account signups are about 68% higher since stocks declined, and Betterment’s first-quarter increase is 25% from a year ago.
Automated accounts are generally cheaper because they use computer algorithms rather than human money managers. They’ve been especially attractive to younger investors, who have time to grow their savings before retirement. Wealthfront said its average customer age is 32. Betterment’s is 37.
“Because so many people are talking about the market, more people are thinking about it,” said Betterment Chief Executive Jon Stein. “Our customers do have a longer time horizon than, say, the average investor -- most are investing for retirement, which is a long time from now -- 20 to 30 years.”
Charles Schwab Corp. also saw increases over the first quarter of 2019. March was one of the San Francisco-based firm’s strongest months for account growth, spokeswoman Marianne Ahlmann said.
The boost in accounts has helped compensate for withdrawals by clients who need cash as much of the economy is locked down by the coronavirus pandemic. At Social Finance Inc., liquidations at about double the normal rate have been more than offset by increases in new accounts, according to Gene Kim, a product communications manager.
AI is no replacement for trusted financial advisors, but it can meaningfully enhance their capabilities as well as the systems they rely on.
Prudential's Jordan Toma is no "Finfluencer," but he is a registered financial advisor with four million social media followers and a message of overcoming personal struggles that's reached kids in 150 school across the US.
GReminders is deepening its integration partnership with a national wealth firm, while Advisor CRM touts a free new meeting tool for RIAs.
The Texas-based former advisor reportedly bilked clients out of millions of dollars, keeping them in the dark with doctored statements and a fake email domain.
The $3.3 trillion tax and spending cut package narrowly got through the upper house, with JD Vance casting the deciding vote to overrule three GOP holdouts.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
