Why Robo Advisors Might Be Bad For You?

There was a time when you had to walk to a brokerage firm to make a deposit and place your trade orders. Today the internet has made it possible to sit at home and buy or sell assets conveniently even from a smartphone. But too much technology might not be good after all. Getting too dependent on technology or tools like Infinity App would make it even more difficult to frame a trading strategy. Also if you are looking for a genuine Infinity App review you are likely to come across various false claims or fake reviews which turn out to be misleading. Bot traders, as well as the recently popular robot advisors, were initially designed to act as assisting tools for investors. But the number of scams sometimes outweigh the number of such tools that actually work. And with the ones that do work there is no assurance that they are free from errors. Human traders or human advisors take into account the changing conditions in the market and also gauge the market sentiments before taking any decision. In most cases, a thorough background study and emotional intelligence would be as crucial as logical conclusions. Bot traders and bot advisors rely merely on the logic which is a flawed model for anyone who wishes to make consistent profits. So if you really want a stable portfolio which makes your money grow, keep robot advisors as your last resort.

Numbers do not paint a clear picture of your goals

Robo advisors work by coming up with recommendations based on the financial data provided by the customers. You can only define your financial goals and commitments in figures. Sometimes the superficial data gathering process might result in incomplete investment planning.

Lack of a human touch

At present even the most sophisticated bots with machine learning capabilities and natural language processing algorithms do not impart empathy in the bots. Most investors still prefer sitting and talking with a human advisor explaining their situation to get the best suggestions for investments. The human advisor interaction can be a two-way communication where the advisor can keep taking feedback from the client and improving the strategy to ensure that the underlying goals are met.

Technical glitches are prone to occur with bots. To meet the increasing demand that the market is seeing there are now plenty of bot advisors being released and not all of them are technically sound.