Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Roboadvisor Websites Crash, Lock Out Traders From Their Accounts

Courtesy of ZeroHedge. View original post here.

As the Dow plunged 1,600 points during intraday trading Monday, millions of investors rushed to check on their portfolios to survey the damage from one of the worst selloffs since the financial crisis.

But customers of roboadviser firms Betterment and WealthFront were furious to find that both companies’ servers crashed during today’s stock-market route, locking thousands of customers out of their portfolios.

As Bankinnovation pointed out, Betterment and other roboadvisers automate most of their functions, which is why they’re so much cheaper than hiring a traditional, human financial advisers. But the downside to this is that these services, which have soared in popularity over the past five years, don’t have much experience with market routes like what happened today.

The glitches could set the industry’s progress back – a welcome relief for their human rivals, per Bloomberg.

One Betterment customer complained that the company was costing him money…

@Betterment You’re costing your customers money right now. pic.twitter.com/8rf0oLPe8p

— Joel Craig (@joel_craig) February 5, 2018

…while WealthFront promised to fix the problem ASAP…

@Wealthfront perhaps unrelated, but not a great look pic.twitter.com/AxMaPYUGdy

— Joseph Nelson (@josephofiowa) February 5, 2018

…Other customers threatened to take their business elsewhere…

@Betterment Still can’t login. This is the second time I’ve wanted to buy at a discount and you’ve prevented that. I’m taking my business elsewhere.

— Stillman Brown (@stillman_brown) February 5, 2018

Wealthfront acknowledged in a statement that its clients lost access to their accounts for “a short period of time today” and said it’s working to make sure “clients don’t experience this again.” Betterment has yet to issue a statement. According to Bloomberg, back  during the Brexit fallout in 2016, Betterment told users that it had implemented a “short delay in trading” to protect its users from a “potentially erratic market.” No such statement was issued by the company in this case.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!