Your Robo-Adviser May Have a Conflict of Interest
Robo-advisers offer the promise of impartial speculation advice, but the newest ones may not be totally immune from Wall Street’s lanes. Wealth management forces at large-scale U.S. banks including Morgan Stanley and Bank of America Corp . have raced to develop so-called robo-adviser business. The makes, which were pioneered by online upstarts Wealthfront Inc . and Betterment LLC, help algorithms to pick speculations tailor-make to a customer’s desire for risk. They cut out a lot of the costs of working with flesh-and-blood monetary advisers, and, it would seem, some of their biases.