Which platform is identified as a Robo-Advisor in the investment services category?

Which platform is identified as a Robo-Advisor in the investment services category?

• A. Betterment
• B. E*TRADE
• C. Robinhood
• D. TradeStation

Answer: (A)

Robo-advisors automate investment management using algorithms to build and manage a diversified portfolio, handle rebalancing, and often offer tax optimization with minimal human guidance. Betterment is identified as a robo-advisor in the investment services category because it was built around automated portfolio construction and ongoing management, delivering investment advice and portfolio adjustments without relying on a human advisor. The other platforms are primarily traditional brokers or trading apps focused on self-directed trading or active trading tools, not on automated, algorithm-driven portfolio management.

Robo-advisors automate investment management using algorithms to build and manage a diversified portfolio, handle rebalancing, and often offer tax optimization with minimal human guidance. Betterment is identified as a robo-advisor in the investment services category because it was built around automated portfolio construction and ongoing management, delivering investment advice and portfolio adjustments without relying on a human advisor. The other platforms are primarily traditional brokers or trading apps focused on self-directed trading or active trading tools, not on automated, algorithm-driven portfolio management.