How Much Does a Robo-Advisor Cost? Fees Explained (2026)

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"How much does a robo-advisor cost?" sounds like it should have a one-number answer. It mostly does — but the full picture includes the advisory fee, the underlying funds' expenses, and a few costs that hide in the fine print. This guide breaks down every layer so you can compute the true all-in cost of any platform.

The Short Answer

Most robo-advisors charge an advisory fee of 0.15%–0.50% per year, calculated as a percentage of the assets they manage. On a $25,000 portfolio at 0.25%, that is about $62.50 per year.

For comparison, a traditional human financial advisor typically charges around 1% per year — roughly $250 annually on that same $25,000, or four times the robo-advisor's fee. That gap is the robo-advisor industry's entire reason for existing.

Some platforms go further: Schwab Intelligent Portfolios charges no advisory fee at all, Fidelity Go is $0 for balances under $25,000, and SoFi Automated Investing charges no advisory fee with no minimum. At the other end, premium tiers with human advisor access (like Betterment Premium at 0.65%) cost more.

The Two Layers of Cost

Almost every robo-advisor portfolio has two distinct costs. Investors often consider only the first, but a common approach is to add both for a true comparison.

1. The advisory (management) fee. This is what the robo-advisor charges you for building and managing the portfolio — the 0.15%–0.50% figure above. It is usually deducted automatically from your account, often monthly or quarterly.

2. The fund expense ratios. Your money is invested in ETFs or mutual funds, and those funds charge their own operating expenses — typically 0.05%–0.20% per year for the index funds robos favor. This cost is reflected in fund performance rather than billed as a separate line item, which is why it is easy to overlook.

All-in example (illustrative): a 0.25% advisory fee plus a 0.08% average fund expense ratio gives a total cost of roughly 0.33% per year — about $82.50 annually on a $25,000 portfolio. That is still roughly a third of a typical human advisor's fee before fund expenses.

Fee Comparison Across Popular Platforms

Platform	Advisory fee	Minimum
SoFi Automated Investing	$0 (no advisory fee)	$0
Schwab Intelligent Portfolios	$0 (no advisory fee)	$5,000
Fidelity Go	$0 under $25k; 0.35% above	$0
Wealthfront	0.25%	$500
Betterment Digital	0.25%	$0
Betterment Premium	0.65% (human advisors)	$100,000
Vanguard Digital Advisor	~0.20%	$100
Acorns	Flat monthly subscription	$0

Fund expense ratios apply on top of these figures at every platform. Note that Vanguard's figure is approximate and net of certain offsets — check current disclosures before deciding.

Fees change, so treat any table as a snapshot: confirm the current fee schedule on the provider's site before opening an account.

The Hidden Costs to Watch

Cash drag. Some no-advisory-fee platforms hold a portion of your portfolio in cash — sometimes 6%–10% or more. Cash earns little over the long run, so a large cash allocation is an indirect cost: the money is not working for you. A "free" platform with heavy cash holdings can cost more in forgone returns than a 0.25% fee elsewhere. Always check the cash allocation.

Flat-fee subscriptions on small balances. A $3–$6 monthly subscription is trivial on $50,000 but punishing on $500 — $72/year on a $500 balance is effectively over 14%. Flat fees favor larger balances; percentage fees scale fairly.

Premium tier upsells. Human-advisor tiers cost meaningfully more (0.65% at Betterment Premium, for example). They can be worth it for complex planning needs, but make sure you actually use the advice before paying for it.

Transfer and account fees. Most robos do not charge to open or close accounts, but transferring securities out (an ACATS transfer) can carry a fee at some firms, and paper statements or wire transfers sometimes cost extra. These are minor but worth a glance at the fee schedule.

Tax costs of switching. Moving a taxable account between providers can trigger capital gains if positions must be liquidated. In-kind transfers avoid this, but not every holding transfers cleanly. This is a switching cost, not an ongoing fee — still worth knowing.

What the Fee Buys You

It is worth remembering what the 0.25%-ish fee actually purchases: automatic rebalancing, dividend reinvestment, diversified ETF portfolios, goal tracking, tax documents — and at some platforms, daily tax-loss harvesting that can offset the fee for taxable-account investors in higher brackets. Whether that bundle is worth it depends on what you would do otherwise: a disciplined DIY investor replicating the portfolio pays only fund expenses, while someone who would otherwise leave cash uninvested or trade emotionally gets enormous value from the automation.

How to Lower What You Pay

You have more leverage over costs than the fee schedules suggest. Match the pricing model to your balance: percentage-based fees are fair at any size, while flat subscriptions punish small accounts — a $5/month plan is reasonable at $50,000 and brutal at $500. Use free tiers while you qualify: Fidelity Go's $0-under-$25,000 pricing means many people starting out pay nothing for years. Keep taxable and retirement accounts straight: paying for advanced tax-loss harvesting only makes sense if you actually hold significant taxable assets; IRA-only investors can choose on price and features alone. Avoid the premium upsell until you need it: human-advisor tiers are valuable for complex planning, but paying 0.65% for advice you never use is pure waste. And check the cash allocation at any "free" platform — forgone returns on idle cash are a cost too, even when no fee appears on your statement.

Frequently Asked Questions

Are there really free robo-advisors? Yes, with asterisks. Schwab Intelligent Portfolios and SoFi Automated Investing charge no advisory fee, and Fidelity Go is $0 under $25,000. You still pay underlying fund expenses everywhere, and "free" platforms may hold more cash — check the cash allocation.

Is 0.25% a good fee for a robo-advisor? It is the industry's standard rate and generally considered fair for automated management with rebalancing and tax features. Anything under 0.50% is competitive; above that, you should be getting human advice or specialized features.

Do robo-advisor fees come out of my returns? Effectively, yes. The advisory fee is deducted from your account (reducing your balance), and fund expenses are reflected in lower fund performance. When evaluating performance, always think in net-of-fee terms.

Can fees change after I sign up? Yes — providers can and do adjust pricing. You will typically receive notice, and you are free to move your account. Comparing the current fee schedule before signing up (and periodically after) is a sensible habit.

How do robo-advisor fees compare to target-date funds? Target-date mutual funds often charge 0.10%–0.70% all-in with no separate advisory fee, making them comparable to or cheaper than robos for retirement accounts. Robos add taxable-account features like tax-loss harvesting and multi-goal management that a single fund cannot.

The Bottom Line

A robo-advisor typically costs 0.15%–0.50% per year plus small fund expenses — dramatically less than the ~1% a human advisor charges, with genuinely free options at the low end. The number to compute is the all-in cost: advisory fee plus fund expenses plus any cash drag. Do that math for two or three finalists, confirm the current fee schedule, and you will know exactly what you are paying — which is more than most investors can say about their finances generally.