Thanks to opening, funding, and spending over 100 hours testing accounts with eight different robo-advisors
, we know our robos inside and out. For this review, we will compare Ally Invest Advisors vs Wealthfront to see which robo-advisor is better.
When it comes to financial advice and selecting an automated advisor, the total annual cost charged is significant. Most sites just look at the annual account management charge assessed. For an accurate comparison, however, you also have to take into consideration the annual management fees (expense ratios) charged by the ETF holdings themselves. We included both. Wealthfront received a rating of 4.50 stars over Ally Invest Advisors's 4.00 stars.
Features are also important to compare when selecting a robo-advisor. Some robos do a much better job than others with technology. Wealthfront offers tax-loss harvesting while Ally Invest Advisors does not. To make sure you ready for retirement and will have enough money saved, running a calculator is required. Wealthfront offers an advanced retirement calculator while Ally Invest Advisors does not. Setting financial goals and tracking them is also a feature customers desire. Both Ally Invest Advisors and Wealthfront offer goal tracking. Finally, syncing data from your other financial accounts (brokers, banks, etc) can open the door to deeper analysis of fees, holdings, and retirement planning. Wealthfront offers external accounts analysis while Ally Invest Advisors does not.
Lastly, some customers want access to customer service via web friendly methods such as live chat as a compliment to the standard phone and email options. Ally Invest Advisors makes live chat support available to clients, while Wealthfront does not.
Overall, Wealthfront boasts 4.00 stars versus Ally Invest Advisors's 3.50 stars. And, as far as individual category awards go, Wealthfront was rated Best in Class - Cost in 2017, while Ally Invest Advisors was rated none of these.