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Roboadvisor Websites Crash, Lock Out Traders From Their Accounts

Roboadvisor Websites Crash, Lock Out Traders From Their Accounts

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.

Continued: https://www.zerohedge.com/news/2018-02-05/roboadvisors-wealthfront-and-betterment-locked-thousands-out-their-portfolios