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Computerized investing vs. Investment diamonds

  • What is computerized investing?
  • Robots get help from humans again
  • Personal contact remains important with investment diamonds
 

Betterment, one of the world’s leading specialists in computerized investing, opts for financial advice from humans again. Over the past decades, computerized investment systems were on the rise. American providers of such automated systems had 74 billion euros under their management at the end of 2016. By 2020, this is expected to rise to 470 billion euros. This explains why banks in recent months referred to robot advisors to illustrate what the digital revolution for their sector means.

What is computerized investing?

Computerized investing uses programs which define how and when a stock exchange order needs to be carried out according to an algorithm. This means, computers place orders autonomously based on calculation rules and preset instructions. How this process exactly works, is often a mystery for the outside world. Suppliers keep this information for themselves. Taller orders are distributed into smaller orders based on a set of instructions.

The client indicates which strategy he intends to follow (buy, sell…), what the size of the order is, within what time it must be executed and which other conditions it needs to fulfill before it can be executed. Based on this, the software makes an analysis and looks for the best prices on various exchanges. Because of the calculative power of such programs and the networks they run, orders can be divided into smaller orders and be executed much faster than when humans would do this.

Robots get human assistance

Robot advisors mainly grow because they can work much cheaper than traditional players. While traditional players often use human counselors and offices, everything runs automatically with new players. Customers fill out an online form, which assists the robot to select the best suiting investment. This way, their money will be managed most effectively.

The American pioneer Betterment - one of the largest robot advisors – will be employing people again. Betterment will offer two new formulas whereby customers who want to invest more than $ 100,000 can rely on real financial advisors.

That personal contact remains important in investment diamonds. BAUNAT DIAMONDS provides various investment options. With each option, we offer a customized service package, tailored to your specific needs.

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