A Robo-advisor is a class of financial advisors that provide financial advice and investment management online with moderate to minimal human intervention. They provide digital financial advice based on mathematical rules or algorithms.
No, Bob doesn’t handle any funds. When your bank account is linked, it is connected to your brokerage account with Tradier, our broker-dealer. Bob, as the Robo-Advisor, uses the funds to execute buying stocks, but does not have the ability to withdraw or deposit money in your linked account.
Yes, your funds are secured by Tradier’s insurance as the broker-dealer. Tradier is insured by SPIC (Securities Investor Protection Corporation). SIPC provides limited coverage to investors on their brokerage accounts if their brokerage firm is unable to pay debts. It protects against the loss of cash and securities – such as stocks and bonds – held by a customer, like you, at a financially-troubled SIPC-member brokerage firm. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash.
Brokers need personal information to comply with tax laws, anti-money laundering regulations, anti-terrorist financing requirements, record-keeping procedures, and determining suitable investments.
