Robo-Advisors vs. Self Directed: Deciding Which Is Right for You

In recent years, investing and managing investments is easier than ever, thanks to new digital options. These tools have also put investing within the reach of those who might not have considered it before. Large and small investors now have a variety of choices like:

• connecting with advisors via the internet 
• hands-on/do-it-yourself digital trading 
• automated services that do the investing for you 

Let’s take a closer look at some digital choices.

Digital Options for Investing and Managing Portfolios

Online Accounts

Many brokerage houses will allow you to open an account online, and you may not need a lot of money to start. Most often, these services come with access to a broker or financial planner. Keep in mind that many do charge fees or have account balance minimums. 

Automated Investment Platforms

Also called robo-advisors, an automated investment platform invests for you, using mathematical algorithms based on your preferences. This type of service works well for beginning investors or those who have a modest amount of money to invest. It’s also a good way for new investors to learn about the market and gain experience.

Investment Platforms

Self-directed investors prefer to have direct control over their investments. In other words, they like watching market trends and prefer to choose for themselves which securities they’ll buy and sell. Although some online accounts come with advice from full-service brokers, you can find less expensive options that will just process orders.

If digital investing interests you, the type you choose should be based on your goals, finances, experience and how much time you have to devote to your investments. 

Looking for a Simple Way to Get Started?

Navy Federal Investment Services Digital Investor is a powerful digital investing tool that offers 2 investing options, self-directed and automated investing, for beginning or modest investors. Both options feature same-day trading, and you can start with as little as $1.

• Automated Investing helps those interested in having technology choose a portfolio by matching market conditions to your goals, finances and risk tolerance. It even automatically rebalances your portfolio, as the market changes. Just provide information about your goals, finance and risk tolerance, then relax while Digital Investor does the work for you.
• Self-Directed Investing is the perfect match for those who like to be more hands-on in managing their portfolios. Choose from prebuilt security bundles or pick your own from over 1,000 carefully pre-selected investment options.