Merrill Edge is piloting a program that will allow mass affluent clients from its Merrill Guided Investing platform to consult with a human advisor, for an extra fee, AdvisorHub writes. The program, Guided Investing with Advisor, is currently being trialed with a small number of internal employees before being rolled out for a wider audience, Merrill spokeswoman Susan Atran tells the publication.
How Does This Robo-Human Hybrid Compare to Others on the Market?
Guided Investing customers currently pay 45 basis points on assets under management, according to AdvisorHub. The new Guided Investing with Advisor program will allow mass affluent clients to consult a human advisor about their time horizons, goals and risk tolerance for an additional 40 basis points, the publication writes.
As of September 30, Merrill Edge held $200 billion of assets, which is a 22% increase from the previous year, according to AdvisorHub. The assets under Merrill Edge have, in fact, been increasing faster than those under the firm’s Global Wealth Management division, which includes traditional brokers and caters to wealthier clients than those using Edge, the publication writes.
Advisors have been paid for directing less affluent investors to Edge in the past, but it is too early to know whether similar incentives will exist for the new program, according to Atran, AdvisorHub writes.
Investors with Edge can currently access an advisor for a 0.85% fee with a minimum investment of $20,000, according to the publication. Other robos have similar programs, with Betterment now offering access to an advisor for a minimum investment of $100,000 and a 0.40% fee, AdvisorHub writes. Alternately, Vanguard Investments’ Personal Advisor Services offers consultations for a 0.05% to 0.30% fee and a $50,000 minimum investment, according to its ADV brochure, AdvisorHub writes.
