Algo-trading or algorithmic trading is the usage of computers programmed to follow a certain set of instructions in order to place a trade for generating profit faster and more frequently, which is usually impossible for a human trader. There is a set of certain rules, which depend on price, timing, quantity, etc. Algo-trading offers not only profit opportunities for traders, but also systematizes trading and makes markets more liquid. It excludes the impact of human emotions on trading. Algo-trading allows traders avoid high risk investments because of the lack of their trading experience and get higher investment income without specific knowledge in the trading field.
• All the trades are performed at the best prices possible
• High chances of performance thanks to instant and accurate order placement.
• Correct timing of trades which allows avoiding efficient price changes.
• Low transaction costs.
• Automated checks on market conditions at a time.
• Low risks of manual errors when placing the trades.
• Backtesting opportunity.
• Absence of trading mistakes based on human emotions and psychological factors.
• High frequency trading allowing capitalizing when placing a large number of orders at the highest speeds in multiple markets.
• Low risk investments.
Robo-adviser is a digital platform providing automated, driven by algorithm financial planning services without or little human supervision. As a rule, it collects information from its clients on their future goals and financial situation via a survey online. After that, it uses the collected data for offering advice and investing client assets automatically.
The biggest benefit of Robo-Advisor is that it is a very good alternative to traditional ones thanks to its low cost. Online platforms offer the same services at low fees by overcoming human labor.
Low cost is not the only benefit of a robo-adviser. Such advisers are also more accessible, 24/7. As long as you have Internet connection, you can access it.
Moreover, you don’t need to have a large capital to get started; many of the robo-advisors do not have an account minimum unlike traditional trading methods, which have about $5.000 standard baseline.
Robo-advisors are efficient and that’s another big advantage of them. Users do not have to call or meet an investment advisor in person, fill in the papers, and simply wait. With robo-advisors it’s possible to do everything with one or few clicks not even leaving the comfort of your home.
Robo-advisers are of the same legal status, as human advisers or traditional broker dealers. Anyone can use a robo-adviser.
Once robo-advisers appeared, they have broken the barriers between the consumers and provided users with an option of low risk investments. Investing for beginners is easier thanks to robo-advisers, while they are perfect for those who have little or no experience in trading or even for those professional traders who simply have no time for being present online constantly.
Automated services allow traders exclude their emotions in the process of trading, which are often harmful and, thus, get much more profit and minimize losses.