FutureAdvisor offers automated portfolio management for investors with accounts at Fidelity or TD Ameritrade.
FutureAdvisor; Insider
Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Bottom line: FutureAdvisor is best for existing Fidelity and TD Ameritrade users who want long term-focused, automated portfolio management for their investment accounts. One downside is that its minimum requirement and fees are on the higher side, and — besides features like portfolio rebalancing and tax-loss harvesting — it has a limited selection of services.
Overall rating
FeatureInsider rating (out of 5)Fees3.00Investment selection3.00Access3.75Ethics4.75Customer service3.75Overall score3.65
Is FutureAdvisor right for you?
FutureAdvisor is a BlackRock-owned automated investing platform that manages any existing investment accounts its clients hold at Fidelity or TD Ameritrade investment account. The advisor regularly rebalances your accounts, implements tax-minimization strategies, and monitors your portfolio throughout your investing timeline.
It mainly uses index ETFs in its portfolio allocations, and though it only accepts clients with assets held at Fidelity or TD Ameritrade, you can still use the platform if you don’t currently have an account with either brokerage. FutureAdvisor will consolidate accounts held elsewhere into Fidelity or TD Ameritrade accounts.
If you have at least $5,000 and don’t mind the 0.50% fee, FutureAdvisor could be right for you.
FutureAdvisor vs. Personal Capital
FutureAdvisor/Insider
Personal Capital
Min. Investment
$5,000
Min. Investment
$100,000
Fees
0.5%
Fees
0.49% to 0.89%
Investment choices
ETFs
Investment choices
ETFs, stocks, bonds, and private equities
FutureAdvisor
Personal Capital app
FutureAdvisor and Personal Capital both specialize in robo-advice, but FutureAdvisor is a better option for Fidelity and TD Ameritrade users who want to automate their investment assets with lower fees. While FutureAdvisor has a $5,000 account minimum requirement, Personal Capital requires $100,000.
Though Personal Capital makes the most sense for investors with higher net worths, it has a bigger selection of investment types, portfolio options, and features than FutureAdvisor.
FutureAdvisor vs. Betterment
FutureAdvisor/Insider
Betterment
Min. Investment
$5,000
Min. Investment
$0 or $100,000, depending on the account
Fees
0.5%
Fees
0.25%/year or 0.40%/year
Investment choices
Index ETFs
Investment choices
ETFs
FutureAdvisorBetterment
FutureAdvisor and Betterment also share the automated investing approach, and both offer ETFs, tax-loss harvesting, and portfolio rebalancing. But Betterment is a cheaper option all around.
With Betterment, you can start investing without running into any account minimum requirements, thanks to its digital plan. Its premium plan has a higher minimum requirement ($100,000), and it gives you unlimited access to a CFP.
Whereas you’ll pay 0.50% per year at FutureAdvisor, Betterment only charges 0.25% for its digital plan and 0.40% for its premium plan. In addition, Betterment gives you access to checking and cash reserve accounts, several portfolio options, and more.
Ways to invest with FutureAdvisor
Automated portfolio management
FutureAdvisor manages existing investment assets you hold with Fidelity or TD Ameritrade. With at least $5,000, you can take advantage of automatic features like rebalancing, portfolio monitoring, and tax-loss harvesting. These features, however, are standard among automated advisors, and you can access them through other companies for much less.
FutureAdvisor takes a simple approach when it comes to setting up your account. To select an appropriate allocation for you, it first asks questions about your financial situation (such as marital status and annual household income). You’ll then be able to choose which goals — such as retirement, major purchase, or general investing — you’d like to invest toward.
After getting information on your time horizon and preferred risk tolerance (FutureAdvisor offers five risk levels: conservative, moderately conservative, moderate, moderately aggressive, and aggressive), the robo-advisor creates an investment strategy for you.
The platform implements tax optimization strategies by mainly using the investments you already own in your brokerage account. It only invests your money into index funds when it feels it can help you meet certain portfolio goals.
Fees
Its fees aren’t great compared to other popular robo-platforms like Betterment, Ellevest, SoFi Automated Investing, and Wealthfront. FutureAdvisor charges 0.50% per year (it bills this quarterly, meaning you’ll pay 0.125% four times a year).
In addition, FutureAdvisor’s account options and portfolio types are also limited compared to similar platforms. It only offers a small list of taxable accounts and IRAs, and it doesn’t give users flexibility when it comes to adjusting their portfolios or choosing specific allocations.
You’ll get access to a wider range of portfolio options (and for lower costs) with other automated platforms. For instance, Betterment offers six portfolio types.
Account types
The platform supports a small number of accounts. These include individual and joint accounts, traditional IRAs, Roth IRAs, rollover IRAs, and 401(k) rollovers. Though FutureAdvisor only accepts TD Ameritrade or Fidelity investment accounts, you can still use the robo-advisor if you don’t currently have an investment account at either brokerage. It’ll provide the paperwork necessary to consolidate accounts you hold elsewhere at one of the two brokerages.
FutureAdvisor: Is it trustworthy?
FutureAdvisor doesn’t have a Better Business Bureau profile, but its parent company, BlackRock Inc., does. The Better Business Bureau gives BlackRock an A- rating. This rating not only reflects the bureau’s opinion of how well the company interacts with its customers, but it also considers several other factors.
These include type of business, time in business, licensing and government actions, advertising issues, and customer complaint history. The BBB cites two complaints as one of the key reasons BlackRock received its rating.
BlackRock’s profile shows that it has closed two complaints in the last 12 months. It currently has one unanswered complaint at this time.
FutureAdvisor — Frequently Asked Questions (FAQ)
What is FutureAdvisor?
FutureAdvisor is a robo-advisor that offers automated portfolio management. When it comes to retail investors, the platform only manages assets for those who hold accounts with Fidelity or TD Ameritrade.
Is a robo-advisor a good idea?
This depends on your investing preferences. If you’re a DIY-minded individual who likes complete control over the investments in your account, then automated investing platforms aren’t a good idea for you. Robo-advisors are best for hands-off investors who are okay with the idea of computer algorithms and/or financial experts creating and managing personalized portfolios on their behalf.
Can you lose money with robo-advisors?
Yes. Whether it’s an online brokerage, automated investing platform, or cryptocurrency exchange, you can lose money with any investment platform. And though robo-advisors typically offer exposure to a diversified compilation of funds (e.g., ETFs or mutual funds), these assets aren’t immune to market swings.
Related terms
ETFs: These investment funds trade like stocks and usually contain a diversified blend of stocks, bonds, and commodities. Generally, there are two different types of ETFs: index-based ETFs and actively managed ETFs. Index funds: Both mutual funds and ETFs are referred to as index funds when they track and mimic the performance of certain market indexes. For instance, an S&P 500 index fund would track and mirror the index containing the top 500 large companies in the US. Diversification: This investment strategy aims to reduce risk by allocating your money across a range of asset classes.Tax-loss harvesting: The goal with this strategy is to take securities in your portfolio that have suffered loss and replace them with higher performing assets that align with your portfolio’s target allocation. You can