What is robot trading and how does it work?

The robots employed in automated trading use mathematical algorithms to help them select when to trade and how to take advantage of the best trading opportunities, allowing them to complete the operation without the need for human intervention. Why Robot trading is the next gen trading?

Can I use BrokerCheck to research robo-advisors?

You can use BrokerCheck to research robo-advisors in the same way that you would a human advisor. Assets managed by robo-advisors are not insured by the Federal Deposit Insurance Corporation (FDIC). That's because they are securities held for investment purposes, not bank deposits.

What is the difference between robo-advisors and discount brokers?

Now that you understand the difference between robo-advisors and discount brokers, you can decide which is right for you. While some discount brokers offer robo-advisory services, not all do. On the other hand, robo-advisors typically don’t offer traditional brokerage features.

What does a broker do?

A broker is an intermediary who helps perform financial transactions on behalf of a client. This is different than an investor or "first party" buyer, who is making moves for their own direct benefit. The term can apply to a big institution that performs these acts or to individuals who interact directly with customers one-on-one.