Robo-advisors have become popular in Portugal as a convenient and cost-effective investment solution. These automated platforms use advanced algorithms and user-friendly interfaces to empower investors to manage their portfolios and achieve their financial goals. However, with a wide array of Robo-advisors available, it can be challenging to determine which one is the best fit for your needs. That's where Robo-Advisor Finder comes in.
To help you make an informed decision, we've compiled a list of the top Robo-advisors in Portugal for 2023. We considered key factors like fees, investment options, customer service, and user experience when making our picks.
Here’s a quick list of the top Robo-advisors in Portugal:
💰 Number of strategies: A wide range of pies available on the platform
Trading 212 AutoInvest & Pies is a commission-free investment solution offered by Trading 212, a leading fintech company that aims to make financial markets accessible to everyone. It is authorized and regulated by reputable financial authorities, including the Financial Conduct Authority (FCA) and the Bulgarian Financial Supervision Commission (FSC). They have over 2 million funded accounts and £3.5 billion in assets under management.
Trading 212 is not a “normal” robo-advisor, like the other ones mentioned here. It differs, since it is the user who has to create the initial portfolio (and choose which instruments to add), while the other Robo-advisors will create a portfolio for you based on your goals and risk aversion.
One of the standout features of Trading 212 is its AutoInvest & Pies functionality, which lets you create customized portfolios called "Pies" that consist of a selection of stocks and ETFs. You have the flexibility to choose your desired securities and set target weights for each holding within your Pie with the ability to hold up to 50 securities within each pie.
Trading 212 also offers a social community aspect, where users can access a Pie Library, interact with other investors, and even copy Pies created by other community members. With the Auto-invest feature, you can deposit funds and then automatically invest them into your Pie. Moreover, if the investments in your Pie deviate from their target allocations, you can rebalance the Pie at any time by selecting the ‘Rebalance’ option.
Opening an account with Trading 212 is accessible to all, as the platform requires a minimum balance of just €1. Additionally, Trading 212 offers a demo account option, allowing users to practice and familiarize themselves with the platform before committing real funds.
While Trading 212 AutoInvest & Pies does not charge any fees for auto-investing or creating Pies, it's important to note that a 0.15% foreign exchange fee is applicable for buying assets in a currency different from the account's base currency. Nevertheless, the absence of commission fees for investing and the low entry requirement make Trading 212 an attractive choice for individuals seeking a cost-effective and user-friendly investment platform.
OpenBank is a digital bank that provides a user-friendly investment experience for individuals seeking automated investment solutions. It aims to offer a convenient and modern way to invest, providing optimal freedom for depositing and withdrawing funds. OpenBank is backed by Santander, a reliable parent company, and offers online tools that provide insights into your investment portfolios and your progress towards reaching your financial goals.
To start investing with OpenBank, you need a free checking account and a minimum investment of €500. You begin by answering questions about your investment goals and financial situation to determine your risk tolerance and investor profile, which can range from low risk to high risk.
OpenBank offers 5 different strategies and collaborates with BlackRock, an international asset manager, to automatically select Exchange Traded Funds (ETFs) that align with your investor profile. The entire investment process can be carried out online through the OpenBank website or mobile app, allowing you to track your investments and view graphical representations of your progress towards specific investment goals. OpenBank prioritizes investing in funds that consider environmental, social, and governance (ESG) criteria.
The annual fees for investing through OpenBank ranges between 0.42% and 1.03%, depending on the amount invested. There are no fees for withdrawals or closing an account, and you can invest in a variety of investment strategies with the same risk profile.
Banco Best, also known as Best Bank, is a financial institution founded in 2001. They offer various banking and wealth management services, including the Robo-advisor - MorgenFund portfolio management service, which is exclusively distributed by Banco Best in Portugal. This service is provided in partnership with MorgenFund GmbH, a company based in Luxembourg, offering a fully automated and digital discretionary portfolio management service.
The platform suggests one of the 19 possible portfolio solutions based on your individual characteristics and investment objectives. These portfolios consist of ETFs and mutual funds carefully selected by the DWS asset management team, a leading global asset management company managing over €660 billion with over 60 years of experience in asset management. The selection of ETFs and mutual funds is not limited to DWS's own solutions but also includes the best investments from among the best global managers.
While much of the process, including the investor profile questionnaire, portfolio suitability, and portfolio allocations, is automated, investment decisions and portfolio reallocation are made by industry experts and executed through automated processes. Moreover, DWS publishes the "CIO View" quarterly, which serves as the basis for investment decisions.
The minimum balance to start investing with Best Bank is €50 per month, and their management fee is 1.20%, including VAT. The fee is charged annually and paid quarterly.
A Spanish Robo-advisor that accepts clients from Portugal and offers a wide range of automatically managed portfolios. They focus on simplicity, transparency, and low costs and provide an innovative way of investing, helping investors achieve their financial objectives.
Key offerings include socially responsible investment options and customization capabilities. Portfolios are available in EUR and USD across 11 risk profiles, incorporating features like global diversification, tax-loss harvesting, and automatic rebalancing. Additionally, InbestMe's mobile app enables convenient portfolio monitoring.
Currently, four ETF strategies are available: Standard, SRI, Dynamic, and Value. The onboarding process is easy and fast, with the ability to open an account online with a minimum investment requirement of €5,000, which also varies based on the strategy. InbestMe also stands out for its cost efficiency, charging between 0.13% and 0.41% per year, depending on the assets under management (AUM).
Larger portfolios over €100,000 can access a personal financial advisor offering a higher degree of customization, allowing for tailored investment plans based on your specific preferences and objectives.
Our InbestMe review provides further analysis of their offerings and features.
In conclusion, Robo-advisors have become a popular option for investors seeking hassle-free and automated investment solutions. As the number of Robo-advisors in Portugal continues to grow, selecting the right one can be challenging.
In this article, we have provided a list of Portugal’s best Robo-advisors to help investors narrow down their choices. However, it's important to note that there are many other companies worth considering. We encourage you to review our comprehensive list of Robo-advisors in Portugal for further options.
When evaluating Robo-advisors, we recommend visiting their websites to learn about their investment strategies and approaches. Additionally, comparing the fees charged, features, and customer experience are essential steps in the selection process.
A reminder that the above should not be construed as investment advice and should be considered information only. Investors should do their own research and due diligence about the services and opportunities best suited for their risk, returns, and impact strategy.
Wishing you successful and informed investments!
What is the best Robo-advisor in Portugal?
The best Robo-advisor in Portugal can vary depending on your individual preferences, investment goals, and risk tolerance. However, here is a list of Robo-advisors that we think are among the best for Portuguese investors:
Best Bank: Best Portuguese solution for low minimum balance
inbestMe: Best international Robo-advisor with low fees
Can I customize my investment portfolio with a Robo-advisor?
The degree of customization may vary between Robo-advisors. Typically, you can select from a range of pre-constructed portfolios based on your risk tolerance, investment goals, and preferences. In addition, some Robo-advisors may offer the option to adjust portfolio allocations based on specific investment preferences or restrictions, or they might suggest personalized strategies.
How much money do I need to invest in a Robo-advisor?
Most Robo-advisors have a very low minimum balance requirement to start investing (you can find Robo-advisors that allow you to start investing starting at €1).
Do Robo-advisors beat the market?
No, most Robo-advisors invest in ETFs and work on matching the performance of a particular market benchmark. So, they tend to closely replicate the market's performance rather than beat it.