Investment advice: Should you trust artificial intelligence? [Video]

Investors considering where to park their money have a choice: go with a traditional financial adviser or trust in an algorithm.

Touted by online brokers as well as established financial institutions, robo-advisors are platforms that automatically invest users’ money — typically in exchange-traded funds.

Old-school advisers at banks and boutique firms can offer a more customized approach shaped by in-person chats, but at a higher price.

Here are the pros and cons of both:

Robo-advisors

Algorithm-driven portfolios demand lower fees and account minimums than their human counterparts and yield results that generally rise and fall with the stock market. These factors make them especially appealing to younger Canadians with smaller savings and a drawn-out investment timeline.

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Typically, users fill out a questionnaire that assesses their financial goals, risk tolerance, income needs and expected retirement date. Then the provider — Wealthsimple and Questrade are two …