Best Robo Advisors In Hong Kong: Syfe, Stashaway, Welab Gowealth, Sofi Hong Kong Comparison

What is a Robo-Advisor? Hong Kong Robo-Advisor Review for Beginners (2022 Updated)

 Robo advisors, it sounds like we’re having the Terminator T-600 grow our bank. (We’re not there yet!) Put the joke aside, we’re living in an era where inflation climbed to 8.3% last year and burnt the purchasing power of our money. To avoid so, investing is the only way out. But if you’re too busy to learn about investing, Robo-advisors are here to help, perfect for those who don’t want the investing hassle.

Here we have prepared a robo advisors all-in-one guide for you, showing you how robo advisors work, whether they are suitable for you, and a comparison of Hong Kong’s major robo advisors.


Table of Contents: Robo Advisors


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What Is A Robo-Advisor? Why Choose Them?

Robo-advisors are the digital heroes of wealth management, providing financial advice with the help of well-tested algorithms instead of human judgement. They offer personalized investment strategies, just like human advisors, but without the hassle of human bias.

Most robo advisors offer a diverse investment portfolio covering global ETFs, equities, and commodities. If you’re looking for an effortless way to grow your portfolio in the long run, robo advisors are the perfect solution for you.

How Does Robo-Advisor Work?

Your personal A.I. advisor will kickstart your investment journey by asking about your goals, capital, investment timeline, and risk tolerance. Based on your responses, it will craft a unique investment plan just for you. If you’re happy with the recommendations, you can start investing in a few simple clicks.

How to start with robo advisor?

  1. Sign up on an online platform.
  2. Input your goals and risk appetite.
  3. Based on this information and some algorithms.
  4. Robo advisor will recommend an investment portfolio for you.
  5. Transfer money and start investing.

And the best part? Your A.I. advisor is always on the job, tirelessly working 24/7 to help you grow your portfolio. You can also check in on your investments at any time or fine-tune your strategy as needed.

an infographic to show how robo advisors work.


Are Robo-Advisors Regulated In Hong Kong? Are They Safe?

In July 2019, the Securities and Future Commissions (SFCs) of Hong Kong issued a complete regulation on robo advisors in the capital markets. If you’re considering investing with a robo advisor in Hong Kong, it’s important to note that they must be publicly registered on the SFC’s public register and hold licences for Dealing in Securities (Type 1), Advising on Securities (Type 4), and Asset Management (Type 9).

To ensure your investment is protected, it’s recommended that you check whether the robo advisor you’re considering is registered and regulated before committing any funds.


Advantages and Disadvantages of Robo-Advisors

Pros of Robo Advisors

You may wonder what the goods of robo advisors are; we have done the homework for you-the goods and here are the good reasons you should try robo advisors.

1. Time-Saving With Automated Investing Executions

Robo-advisors are the epitome of simplicity. They can save you precious time by taking care of research, stock monitoring, and paperwork. With their automated algorithm, they can execute trades and rebalance portfolios based on market trends without any input from you. It’s like having a tireless, 24/7 financial assistant that always has your best interests in mind.

2. Personalized Investment Strategy

Robo-advisors offer personalization to suit your investment needs, taking into consideration your investment target, period, risk tolerance, monthly deposit, and withdrawal amount. They can help you form a unique and rewarding investment portfolio that fits your preferences.

3. Low Entrance Barrier

You don’t have to be rolling in the dough to use robo advisors. In fact, some Hong Kong-based robo-advisors, such as Syfe, allow you to set up an account with a minimum deposit of HK$10,000 without any minimum investment requirement. So don’t let the idea of robo advisors being only for millionaires scare you away!

4. Low Management Fee

Robo-advisors and traditional financial advisors have one thing in common: they charge a percentage of the total as a management fee. However, robo advisors are the more affordable option, with fees ranging from 0.5% to 0.8%, while traditional financial advisors charge 1% to 1.5%. So, if you want to save on fees while still receiving professional financial advice, robo advisors are the way to go.

5. Easy Exit

With robo advisors, you have the freedom to invest on your own terms. Need to liquidate your investments? No problem! Unlike traditional investment funds or savings deposits, some robo advisors have no lock-up periods or extra fees for withdrawing your funds

6. Risk Diversified Strategy

Successful investing requires risk diversification, and robo advisors have mastered the art of diversification. Instead of putting all your eggs in one basket by investing in a few select equities, robo advisors create a diverse portfolio by combining assets from international ETFs, equities, and commodities.

Cons of Robo Advisors

Even the most advanced financial tools have their limitations, and robo advisors are no exception. Here are some of the areas where robo advisors fall short.

1. Not Fully Customizable Settings

Robo-advisors are a blessing for beginners in investing, as they offer a set of investment rules based on algorithms. However, experienced investors who have already mastered the art of investing may find these pre-set rules limiting. Since robo advisors are programmed to follow written parameters, they cannot be customized to suit individual preferences. In short, if you’re a seasoned investor looking to tailor-make your investment rules, robo advisors may not be the best bet for you.

2. Not A Trading App

Robo-advisors may not be the perfect fit for traders who want to take the reins and make sudden trades. Unlike brokers, you can’t simply tell them to buy or sell on a whim. They operate on pre-programmed logic, so day trading with a robo advisor is out of the question.

3. More Costly Than Personal Investing

Robo-advisors may not charge as much as traditional managed funds, but they still take a cut of your returns. However, if you prefer to trade independently, you can avoid management fees altogether and only pay transaction fees. That way, you get to keep more of your hard-earned money in the long run.

4. Beware of the fees and taxes

When using robo advisors, be aware of the fees and taxes, particularly when purchasing funds in a different currency. It’s also important to consider the exchange rate.


Are Robo Advisors Suitable for You?

Okie dokie, we now know the goods and bads of robo advisors; time to go back to the basic question: are robo advisor suitable for you? Take a look of the following to get some helpful hints to help you decide if robo advisors are a good fit for your investment needs.

If You’re Investing for the Very First Time

Investing can be a daunting task, especially for beginners. But fear not! Robo-advisors are here to guide you through the world of investing. All you have to do is deposit your funds and provide your investment details, and the app will take care of the rest. It’s like having a personal investment assistant in your pocket, making investing effortless and stress-free.

If You’re Too Busy (or Lazy…)

Yeah, we all have too much to do in life. If you find that keeping up with global financial news and analyzing company financial reports isn’t quite your cup of tea, robo advisors can be your trusted partner in the world of investments, allowing you to sit back and relax while they do the heavy lifting. Think of them as your personal investment buddy, always ready to help you navigate the sometimes-daunting world of investing, and you can hire them to grow your portfolio by simply lifting a finger.

If You’re Searching For A “Cheaper” Investment Manager

Are you tired of seeing your investment manager take up to 1.5% of your portfolio each year while your portfolio continues to shrink? Well, now you have another option. Robo-advisors offer a more cost-effective alternative, taking as little as 0.5% of your portfolio.

An infographic about should you use a robo advisor.


Best Hong Kong Robo Advisors Comparison

The “Robo” trend has taken Hong Kong by storm since the launch of the first Robo-advisor platform in 2016. As of today, more and more banks and fintech companies are joining the bandwagon. Are you ready to jump on the Robo-advisor train? Here’s an overview of the major options available in Hong Kong.

Hong Kong Robo Advisors Comparison
Robo-Advisor Annual Fee* Min. Investment Min. Deposit
Syfe 0.35%-0.65% None HK$10,000
Stashaway 0.2% – 0.8% None HK$10,000 
WeLab GoWealth one-time subscription fee 

+

management fee from the fund manager

HK$100 None
SoFi Hong Kong HK$30/month US$100 HK$10,000

*Robo-advisor fees are charged according to different tiers, plus minor ETF fees that might not be reflected in the annual fee.

Syfe

Syfe is a crowd-pleaser in the world of investment, and for good reason! With portfolios that automatically rebalance and reinvest dividends at no extra cost, you can sit back, relax, and watch your wealth grow. Plus, with no minimum balance requirements or lock-in periods, you can start investing with a small amount and avoid worrying about losing a fortune. And the investment options? They’re endless! From core portfolios for long-term wealth generation to thematic ETF portfolios, including ESG, clean energy, and healthcare innovation, the possibilities are only limited by your imagination.

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Syfe  logo
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SoFi Hong Kong

Auto Invest, SoFi Hong Kong’s robo-advisor, has been in the game since 2016 and is one of the “OGs” of the industry, making it a competitive choice. For a low fee of HK$30 per month, regardless of how much you invest, you get a globally diversified portfolio of over 13,000 stocks in 35 countries. And with a minimum investment of just US$100, anyone can get in on the action. The portfolio risk is managed by 24-hour monitoring and auto-rebalancing when the market situation changes, making it a hassle-free way to invest. Plus, with a welcoming campaign, you can buy or sell stocks without paying any commission.

SoFi Hong Kong logo
US Stocks & ETFs commission
US$0
HK Stocks & ETFs commission
HK$0
Brokerage & Robo advisor
2-in-1 App

Frequently Asked Questions: Robo-Advisors

Are robo-advisors safe?

Yes, robo-advisors are safe as they are regulated by financial authorities like the Securities and Future Commissions (SFC) in Hong Kong. It’s important to choose a robo-advisor that is registered and regulated to ensure the safety of your investment.

Can robo-advisors replace human financial advisors?

While robo-advisors offer automated investment strategies based on algorithms, they may not be able to replace the personalized advice and expertise offered by a human financial advisor. However, they are a great alternative for those who want to invest without the high fees associated with traditional financial advisors.

What are the fees associated with robo-advisors?

Robo-advisors charge management fees ranging from 0.5% to 0.8%, which is much lower than the fees charged by traditional financial advisors (1% to 1.5%). Some robo-advisors may also charge additional fees for certain services, so it’s important to read the fine print before investing. 


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