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5 Things to Know before your Build your Own Robo Advisor

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A Comprehensive Guide to Building Your Own Robo-Advisor

Introduction: Robo-advisors have revolutionized the world of financial planning and wealth management. These innovative platforms use algorithms and machine learning to automatically manage investment portfolios, offering a cost-effective and convenient alternative to traditional human financial advisors. If you’re considering building your own robo-advisor, it’s essential to understand the various factors involved. In this guide, we’ll discuss the key aspects of creating a successful robo-advisor platform, from the technology and features to the advantages and potential challenges. InvestGlass includes risk metrics and ESG screening to respect clients and strategy suitability and appropriateness.

Understanding Robo-Advisors and Their Importance in Financial Planning:

Robo-advisors are digital platforms that use algorithms to manage and create investment portfolios for clients. They’ve gained popularity in recent years due to their lower fees compared to traditional financial advisors and their ability to provide access to investment management tools and financial planning tools that were once only available to wealthy investors. By automating the investment process, robo-advisors offer a more efficient and affordable alternative to traditional financial advisors, making them a valuable addition to the financial planning landscape.

Features of a Robo-Advisor Platform:

To build your own robo-advisor, you’ll need to implement a variety of features that cater to the needs of your clients. These may include:

Portfolio management: Robo-advisors should offer automated portfolio construction and management based on clients’ investment goals, risk appetite, and preferences. This might involve the use of exchange-traded funds, mutual funds, or other investment vehicles.

Financial planning tools: These tools can help clients set financial goals, plan for retirement, or manage their personal finances. Examples include goal planning, retirement accounts, and net worth tracking.

Tax loss harvesting: This feature can help clients minimize their tax liabilities by strategically selling investments that have lost value to offset gains in other assets.

Diversified portfolio options: A robust robo-advisor platform should offer a variety of portfolio options to cater to different client preferences, including socially responsible investing, private equity, and more.

Human financial advisor integration: Some clients may still desire the personal touch of a human advisor other will agree on using artificial intelligence. Providing the option to connect with a human financial advisor can help bridge the gap between automated and traditional advisory services.

Mobile experience: A user-friendly mobile app can enhance the overall client experience, allowing them to monitor their investments and access financial planning tools on the go.

The Role of Human Financial Advisors in a Robo-Advisor Platform:

While robo-advisors offer many advantages, they don’t necessarily replace the need for human financial advisors. Instead, they can complement the services provided by human advisors, who can focus on offering personalized advice, addressing complex financial situations, and building long-term client relationships. By integrating human advisors into your robo-advisor platform, you can cater to clients who prefer a hybrid approach to financial planning.

Benefits and Drawbacks of Building Your Own Robo-Advisor:

When considering whether to build your own robo-advisor, it’s essential to weigh the potential benefits and drawbacks:


Lower fees: Robo-advisors typically charge lower fees compared to traditional financial advisors, making them more attractive to cost-conscious investors.

Broader access: Automated platforms can serve a wider range of clients, including those with lower account minimums or less investable assets.

24/7 accessibility: Clients can access their investment portfolios and financial planning tools at any time, providing a more convenient experience.


Initial investment: Building a robo-advisor platform requires significant upfront costs for technology, infrastructure, and regulatory compliance.


In conclusion, building your own robo-advisor is an ambitious and potentially rewarding endeavor that can help revolutionize financial planning and wealth management for your clients. However, navigating the complexities of technology, feature integration, and compliance with various banking regulatory landscapes can be challenging. This is where InvestGlass comes in.

As an experienced and trusted partner in the fintech industry, InvestGlass can help you build a custom robo-advisor platform tailored to your specific needs and requirements. Our team of experts will guide you through every step of the process, ensuring that your platform is compliant with banking regulations, optimized for user experience, and equipped with the latest investment management tools and financial planning features.

By partnering with InvestGlass, you can harness the power of robo-advisory to provide a more efficient, cost-effective, and accessible solution for your clients’ financial needs, while also staying competitive in the ever-evolving world of finance. With our expertise and support, you can successfully build a robo-advisor that stands out in the market and positions your business for long-term growth and success.

Build your Robo Advisor