- TD Ameritrade announced it is making its robo advisor service more accessible by dropping the minimum account balance to $500
TD Ameritrade announced it is making its robo advisor service more accessible by dropping its minimum account balance to $500. However, recurring deposits are still required.
Previously, the minimum investment requirement for Ameritrade’s Essential Portfolios was $5,000.
“We’re always looking for ways to break down investing barriers and empower our clients by helping them take control of their financial lives,” said TD Ameritrade’s president of retail Peter deSilva in an emailed statement to Financial-Planning.com. “We believe that every investor should have access to a professionally managed portfolio, regardless of their wealth or income level, and lowering the minimum for Essential Portfolios is a natural step in that direction.”
The management fee for Essential Portfolios is at 0.3%. Clients will still have to set up recurring deposits that continue until the balance reaches $5,000. But by reducing the minimum balance, it enables more consumers to take advantage of the service and makes TD Ameritrade more competitive against services like Wealthfront and Betterment.
Vanguard also runs a robot service called Personal Advisor Services. However, this account requires a minimum account balance of $50,000. And Charles Schwab’s robo service — which is called Intelligent Portfolios — has a $5,000 minimum balance. Plus Fidelity has a robo service called Fidelity Go without a minimum account balance.
TD Ameritrade director of investment products and guidance Keith Denerstein told Financial-Planning.com that investors who recognize that the earlier they are able to start building a diversified investment portfolio, the better they are positioned to take control of their financial lives.
