Best managed investment accounts (compared)

With so many options available to investors, finding the best managed investment accounts can sometimes feel like searching for a needle in a haystack. If you’re keen on investing but don’t want the hassle of choosing assets and monitoring everything yourself, a managed investment account can be an affordable alternative.

Gone are the days when you’d have to pay through the nose for an expertly managed portfolio. You don’t even have to sit down with a wealth manager or even pick up the phone and call; you can arrange this service right at your fingertips on your phone, tablet, or computer. 

In this article, we’ll run you through the best managed investment accounts available. We’ll explain what makes them valuable, the benefits, how they compare, and also if there are any drawbacks.

How the best managed investment accounts compare

Best managed investment accounts reviewed

eToro was founded in 2007. It’s famous not only for allowing investors to buy and sell financial instruments but also for its social (copy) trading features. Today, it’s one of the most well-known social trading brokers, with over 30 million users worldwide.

However, most people don’t know that eToro also offers a range of Smart Portfolios managed by eToro’s expert analysts, and they cost nothing to buy or sell. There are over 100 portfolios to choose from, with themes ranging from ‘utilities’ to ‘AI revolution’ – and everything in between.

We think eToro is one of the best-managed investment accounts available because it costs nothing to open and hold an account on the platform, and the fact that there are no management fees with the smart portfolios is hard to beat. The only downside is that you don’t get any guidance in picking your ready-made portfolios, and you’ll have to decide which investments you want.

Interactive Brokers was founded in 1978 and is one of the world’s largest investment brokerages. Interactive Brokers (IBKR) is listed on the NASDAQ stock exchange and has a proven history of reliability through all sorts of economic turmoil.

IBKR is a highly comprehensive brokerage platform with access to thousands of assets in global markets. We’ve selected Interactive Brokers as one of the best managed investment accounts because it offers an unparalleled selection of over 48,000 mutual funds from over 550 fund families, including Vanguard, Invesco, Schroders, and many more. 

For over 19,000 of these funds, there are no transaction costs. For the rest, the fee is 3% of the transaction or $14.95 (whichever is lower). Alongside the huge range of managed mutual funds, there’s also the option to create a model portfolio, although you might need a financial advisor to set this up. If you’d like to learn more, check out our full Interactive Brokers review.

M1 Finance is a pretty new investment platform and was founded in 2016 to shake up the portfolio management market. Although it lacks other options, we think it’s one of the best managed investment accounts available because it has extremely low fees and an excellent app.

On top of the ‘expert pies’, you can also create your own if you don’t want someone else managing your investments. Another reason M1 Finance is a top pick is that, alongside the managed investment accounts, you can keep all your finances under one roof if you want. 

It offers savings accounts, credit and checking cards, retirement accounts, cryptocurrency wallets, and even personal loans.

Wealthfront was founded in 2008 as a mutual fund analysis company but decided to pivot into asset management with an innovative tax-loss harvesting service. Today, the company offers a comprehensive service to investors and savers looking to invest in stocks, bonds, and funds. 

We selected Wealthfront as one of the best managed investment accounts because it offers a personalised robo-advisor service with a simple ongoing fee of 0.25%. The minimum deposit of $500 is slightly higher than with some other managed platforms, but it’s not unachievable for those investing long-term. 

The basic strategy behind Wealthfront’s managed investment accounts is using different types of index funds across a range of assets to help you build wealth. Along with the robo-advisor service, Wealthfront also allows you to invest in individual stocks with just $1 and zero commissions. The added option for a cash account that earns interest is great if you want to keep some funds aside as a hedge.

Betterment started in 2010 and has amassed over 800,000 customers with over $40 billion in assets under management. It offers a full suite of services, including robo-advisor investment portfolios, retirement accounts, and cash accounts (checking and saving).

In terms of its service, Betterment has a similar offering to Wealthfront. We picked Betterment as one of the best managed accounts available because it’s a great way to automate your investments while still maintaining some control.

If you don’t want to choose one of the pre-made portfolios, you have the option to customise one to your preferences. There’s no minimum deposit, and the ongoing fee of $4/month (changing to 0.25% once you hit $20,000 or set up $250/month recurring deposits) provides excellent value for such a well-rounded platform. You can even add unlimited financial guidance from a CFP when upgrading to Premium with a 0.15% add-on fee.

Bottom line

The best managed investment account for you will depend on your investing style. Knowing whether you want the lowest fees, the biggest choice of investments or the slickest interface will help determine the right brokerage. 

Although it can cost a little more for a managed investment account, the fees you’ll pay are much lower than past charges for accessing expert management from skilled advisors. Here’s a quick summary of our top picks for the best managed investment accounts available:

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