What it Takes for a Robo Advisor to Become Profitable (according to HSBC)

A HSBC report stated that robo advisors in the US need to manage between $11.3 billion and $21.5 billion in order to operate a break even business; the report assumed a management fee of .25%; the only two robo advisors who have reached this scale are Betterment and Wealthfront; many other robos in the US manage less than $2 billion, a list that includes Acorns, Stash and SigFig; the report estimates the revenue per employee at Betterment is $154,000 and $151,000 at Wealthfront; they contrast this with the costs per employee at Charles Schwab and Blackrack which are $157,000 and $290,000 respectively. Source

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