Here’s the 2025 snapshot: most robo-advisors still charge about 0.20%–0.35% annually, automate rebalancing and often tax-loss harvesting, and keep assets at SIPC-member brokerages with FDIC-insured cash sweeps; Surmount differs by letting you assemble and automate rules-based “personal ETFs” with transparent, usage-based pricing instead of a traditional AUM fee (NerdWallet 2025; FINRA 2025; SIPC 2025).

What is a robo-advisor?

(Image Credits: investopedia.com)

A robo-advisor is a digital investment service that builds and manages a diversified portfolio for you—typically via ETFs—using automated rebalancing, goal-based planning, and, at higher tiers, tax-loss harvesting. Leading platforms operate as SEC-registered investment advisers and custody client assets at SIPC-member brokerages (SEC 2024; FINRA 2025; NerdWallet 2025).

Why people choose them

• Low management fees vs. traditional advice

• Hands-off automation (rebalancing, drift control)

• Tax tools such as automated tax-loss harvesting on taxable accounts (availability varies) (Morningstar 2025; NerdWallet 2025)

Trends to know in 2025

• Fees remain low and tiered: The mainstream still clusters near ~0.25%—for example, Wealthfront at 0.25%. Some services use flat subscriptions or balance-based tiers (e.g., Fidelity Go: 0% under $25k, 0.35% ≥$25k) (NerdWallet 2025; Fidelity 2025).

• Cash management matters: Robo portfolios often keep a cash allocation and/or sweep idle cash to bank programs; yields and sweep mechanics are now a visible differentiator (e.g., Schwab Intelligent Portfolios’ sweep program) (Schwab 2025).

• Tax-loss harvesting is widespread: Tax-loss harvesting continues to be a differentiator, with some firms publishing net benefit estimates relative to fees (Morningstar 2025; NerdWallet 2025).

• Industry consolidation and B2B pivots: Smaller standalone robos are consolidating or shifting to advisor-tech; SigFig rebranded to Tandems with an enterprise focus (Financial Planning 2025).

• Global diversification helped 2025 performance: More international exposure aided several robo portfolios amid macro dispersion this year (Morningstar 2025).

2025 fee comparison

Important Note: Fees are separate from underlying fund expense ratios, which typically add ~0.05%–0.25% annually across many robo portfolios (Morningstar 2025).

Safety & regulation (what your protections actually are)

• Regulatory status: Most robos (or their affiliates) are SEC-registered investment advisers, owing you a fiduciary duty under the Advisers Act. The SEC has issued guidance specific to robo-advisors on disclosure and suitability (SEC 2024).

• SIPC coverage for brokerage assets: If a SIPC-member broker fails and customer assets are missing, SIPC insures up to $500,000 per customer per firm, including $250,000 for cash (SIPC 2025).

• FDIC insurance for bank sweeps/cash programs: Cash swept to partner banks is FDIC-insured up to $250,000 per depositor, per bank, per ownership category (FDIC 2025).

• What’s not covered: Market declines, bad advice claims, or non-deposit investments at banks are not FDIC-insured; SIPC doesn’t cover investment losses (FDIC 2025; SIPC 2025).

Where Surmount fits

Surmount is built for investors who want institutional-style, rules-based strategies—think of them like personal ETFs you configure (or copy) and automate, with transparent pricing rather than a traditional percentage-of-assets advisory fee. You can combine asset classes, set rebalancing rules, and run long-term, testable strategies instead of chasing one-off stock picks. Surmount accounts are carried by a SIPC-member broker, and cash sweep programs are FDIC-insured through partner banks (Surmount 2025).

Why someone might pick Surmount over a classic robo

• Want more control over strategy design without writing code

• Prefer transparent, usage-based pricing vs. AUM fees

• Need to package multiple strategies inside one account (your “personal ETF” approach)

FAQs

1) Are robo-advisors safe if the company goes out of business?
If the broker-dealer custodian is a SIPC member, your securities are protected up to $500,000 (including $250,000 for cash) if assets go missing due to the firm’s failure. Cash swept to banks is FDIC-insured per standard limits (SIPC 2025; FDIC 2025).

2) Which robo-advisor is cheapest in 2025?
Nominal advisory fees are clustered around 0.20%–0.25%, with outliers such as $0 advisory (Schwab Intelligent Portfolios) or tiered pricing (Fidelity Go: 0% under $25k, 0.35% above). Always add the underlying fund expense ratios to compare true all-in cost (NerdWallet 2025; Fidelity 2025).

3) Do all robos offer tax-loss harvesting?
No. Many do (e.g., Wealthfront), but some budget or entry-level offerings lack TLH; check the feature list—SoFi’s robo notably omits TLH in standard accounts as of 2025 (Morningstar 2025).