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.
Short sellers previously said the company was under investigation, though Roblox denied allegations.
The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.
National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.
Recent data support a measured pace by the Federal Reserve for the year ahead.
Financial advisors are still adding alternatives despite the surge in publicly traded stock prices
From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.
Blue Vault features expert strategies to harness for maximum client advantage.