A roboadvisor (roboadviser) is an online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners. This reduces costs and emotional errors whilst trading investment and retirement accounts on auto-pilot.
Why spend all your spare time trading stocks? Hours of trading may be unsuitable and you may have to stay up long hours trading to achieve the desired result. Our computer algorithms never sleep and trade on your behalf without the interference of human emotion. This helps eliminate human trading errors and emotional trading mistakes and allows you to concentrate on your business or leisure time.
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index.
Choosing where to invest your money is a difficult decision and will depend on many factors, including your overall investment objectives, risk profile and the amount of time you have to invest.
It's therefore best to seek the advice of a qualified financial adviser who can help define your personal situation and identify the appropriate asset allocation. But, if you do not have an adviser or cannot afford one, our automated system will select the strategy for you based on your risk profile.
Annual returns will depend on your risk profile and tolerance to risk.
Click here to find out your risk tolerance and GET YOUR FREE RISK SCORE.
Our investment team is led by experts qualified in the field of financial advice and investment management. We add that expertise to a growing staff of software engineers, programmers, data scientists and specialists with skills in quantitative finance, software development & algorithmic trading. Our lead architects have an average experience of 15 years in their fields of expertise.
Our head developer has a Master's Degree in Physics with experience in the fields of computer programming, machine learning and algorithmic trading having built over 400 automated trading systems.
Our investment strategies are selected after a rigorous testing process. We start by looking at the macro outlook for the year ahead and then select the appropriate ETFs. We usually have a "hedge" in place via US treasuries or government bonds for safety in case equities don't perform as well as expected.
Normally, when "risk on" assets such as equity ETFs or stock market instruments start to fall, investors seek safety in "risk off" assets such as bonds or treasuries.
We then use momentum strategies to optimise the return to risk for any portfolio and carry out Monte Carlo simulations on "out of sample" data. In other words, we run hundreds of different possible outcomes depending on different scenarios.
The algorithm then chooses the exact percentages to hold of each ETF for the following month, but the overall strategy is always overlooked by human asset managers for an extra layer of security & protection as the world can change quickly.
As time goes on, we may adjust strategies if we feel a new ETF or overlooked ETF will provide better returns to risk. This will be periodically and you will be updated via the FREE APP and via email.
You can read more here concerning our investment strategies.
You can open an account with ANY broker or online brokerage in ANY COUNTRY.
Also, you can open ANY type of account. Here is a list of account types:
Please email us if you need help with tips on the best account structure type. If you need financial advice & tax planning strategy, we can put you in touch with a suitable regulated adviser in your country.
Any national who is 18 years of age or over may receive the ETF stock trading signals. You can see the pricing here.
You can open a brokerage account with ANY broker or ANY online brokerage account worldwide, however, we recommend opening an Interactive Brokers account or transferring your account to Interactive Brokers PRO account.
Click here to find out, why move my account to Interactive Brokers?
Interactive Brokers has offices around the world, you can see a list of the available accepted countries here.
There is no minimum investment amount. Only the amount required by your current broker.
However, we recommend an account minimum of $10,000 to invest in a diversified portfolio of low cost index funds (ETF's), to rebalance your investment portfolio once per month and expect a holding period of at least five years.
Really, investing in stocks / ETFs should be for the long run, i.e. to see you to retirement age.
People are now living longer, but medical care and old age care is getting more expensive, so we feel that people are not budgeting enough for later years.
Average life expectancy depends on many factors such as where you live, but in general, if you make it to age 65, life expectancy is 22 years or reaching 87 years of age. That means your pension pot needs to last 22 years in retirement.
So, you can take roughly 2/3rd of your current annual income, multiply that by 22 and that is approximatley the amount you need to save for retirement. However, this takes no medical expenses, interest rates, inflation or care home expenses into account, so the real figure needed will be much higher.
Your assets are held at your local brokerage account.
This is FULL FINANCIAL FREEDOM. You have TOTAL CONTROL over your money & assets.
Stock trading signals are then sent to the FREE app and to your email inbox for reminders.
We recommend setting up an account with Interactive Brokers Pro.
Click here to find out more about how to open an account or why you should move your account open to Interactive Brokers.
You can use TheMoneyPouch's recommended ETF strategies from ANY broker account including your current account.
However, if you transfer over, you may have several advantages such as:
You can learn more by clicking here.
Yes, we encourage transfers from other brokerage accounts. Incoming transfers to INTERACTIVE BROKERS are free of charge. Please ask us for the forms.
We are able to transfer an outside brokerage account in its entirety. No need to sell your securities (in most cases). Please contact us for options.
For retirement accounts which are transferable, assets can be transferred and ETF signals will be in the app and sent to your email for trading.
Please contact us to get the process started.
No, you do not need to sell any of your securities.
You can use our strategies with any idle cash you have sitting in your account or you can sell some of your liquid securities and use that cash to trade the strategies.
You can also switch your account over to Interactive Brokers. We recommend this route, as we can give you a LIVE FEED of your current holdings which can be easily viewed in an app.
We make use of a margin account for our adventurous strategies. This delivers the best investment returns commensurate with risk depending on your individual risk profile. We do not use margin accounts for the cautious/conservative or balanced strategies.
We recommend setting up an Interactive Brokers' Reg T Portfolio Margin Account for best results as they have the lowest margin rates available and also pay you interest on your idle cash.
The conservative & balanced strategies are not leveraged. You do not need a margin account to trade the conservative or balances ETF investment strategies.
The adventurous strategies employs “soft leverage”. Each account is leveraged at between 100% and 130%, dependent on market situation. So, for example, if you invest $100,000, you would trade with $130,000 or 1.3 x your initial capital. This ensures higher profits at a tolerable level of risk. That's why it's called "soft leverage". Please note that your capital is at risk. Please click the following links to read more about margin accounts and leverage.
You can read more about margin accounts and leverage here.
As we have now moved to an ETF signals trading service, we now accept U.S. residents. All U.S. clients must comply with U.S. SEC regulations and fill out U.S. tax forms. This includes important disclosures to clients about our fees, business model, anti-money laundering, anti-terrorist financing and cybersecurity, which we take very seriously. On this site, under "Investment Strategies," you can find:
N.B. The Money Pouch is not a financial adviser and does not provide financial advice.
An investment adviser’s fiduciary duty includes an obligation to act in the best interests of its clients and to provide only suitable investment advice. Consistent with these obligations, an investment adviser must make a reasonable determination that the investment advice provided is suitable for the client based on the client’s financial situation and investment objectives.
You can read more about the SEC's guidance for roboadvisors here. You can also read the SEC's investor bulletin for roboadvisors. Which is a useful guide if you are not familiar with roboadvisors and their function.
You can choose ANY broker or online brokerage account from ANY country from around the world.
We recommend Interactive Brokers PRO (IBKR) because they pay you interest on any idle cash and offer the lowest margin rate costs. They also have multiple currency options and have one of the best trade execution order systems. They also have bank level encrytped security and have offices all around the world.
We only provide LIVE feeds for your investment holdings portfolio if you hold an Interactive Brokers account (IBKR).
However, you can choose from ANY of the brokers below or ANY other brokerage you are using. You can also transfer your account over to Interactive Brokers, usually at zero cost.
The questionnaire will help you to understand your attitude to investment risk, but it is important to understand that there are limitations.
The risk questionnaire is provided to enable an approximation to your risk tolerance. Please see the limits above, particularly with regards to your stage of life. You may increase or decrease your risk tolerance level as you see fit, otherwise the Money Pouch roboadviser will auto-select a risk category for you based on your answers to the questionnaire.
Your risk score will be calculated automatically. It may be useful to come back and revisit your risk score at the end of each year or as your financial circumstances or life circumstances change, e.g. long standing illness, divorce, loss of job, promotion, inheritance windfall, etc.
The Money Pouch will automatically select a strategy based on your answers to the risk questionnaire. You do not necessarily need to select the same risk level as indicated by the risk questionnaire if, for example, other factors such as your capacity for loss indicate that another category is more appropriate for you, please contact our team. Additionally, the questionnaire is designed to assess your overall investment risk tolerance. You may decide to take more or less investment risk for a particular investment.
Understanding your attitude to investment risk is an important factor in making a decision about investments.
The questionnaire has been designed to measure investment risk tolerance, which is your emotional response to changes in the value of your investments.
Your attitude to investment risk is just one factor you should take into account, so it is essential to have a discussion with our team to consider, amongst other things, your actual ability to withstand changes in the value of your investments (capacity for loss), your financial goals and risks other than investment risk.
The risk questionnaire is not suitable if you are unwilling to take any investment risk. You should contact your local bank and consider a cash only investment if you think that you fall into this category.
