Swissquote Group adds crypto currencies and real estate to its Robo-Advisor

Alongside shares, fixed-income instruments and commodities, Swissquote’s clients are now able to invest in crypto and real estate. e-Forex spoke with Jan De Schepper, Chief Sales and Marketing Officer at the firm to learn more

October, 2019

Jan De Schepper
Jan De Schepper

What is a Robo-Advisory?

A Robo-Advisor is an automated investment manager that is able to build a tailor-made portfolio, monitors it 24 hours a day, 7 days a week and continually optimises it to maintain a desired risk level. Swissquote’s Robo-Advisor offers not only ETFs but a multi-asset universe, including equities, bonds, commodities, crypto currencies and real estate.

What are the key benefits of Swissquote’s Robo Advisory?

These can be summarised as follows:

  • Availability – Robo-Advisory services are available 24/7, providing clients with around the clock monitoring of their portfolio and automatic rebalancing whenever  necessary.
  • Ease of use – the Robo-Advisory service is simple and straightforward to operate. Customers just  define their risk profile and  - if they have - their  allocation preferences. The Robo-Advisor then buildsthe optimal portfolio.
  • Security – safeguarding our customer’s data is crucial. Our secure online platform and rigorous account protocols ensure that our clients information is safe at all times.
  • Rationality – decisions taken by our Robo-Advisor are based on rationality and algorithms rather than influenced by emotional judgments.
  • Cost-effectiveness – using our Robo-Advisory service to optimize the portfolio performance can help to deliver efficiencies in both transaction and management fees.
  • Transparency – No matter at what time and wherever in the world – our customers always have access to their portfolio position.
  • Flexibility – As a user you can   select your own investment preferences and adapt your choices whenever you want.
  • Support – we have a dedicated support team, that is always ready to help whenever there is a need for it. 

Why are the balanced portfolios built by the Robo-Advisor ideal for investors who are interested in cryptocurrencies and what requirements have to be fulfilled in order to add them as an investment class?

The balanced portfolios built by the Robo-Advisor are ideal for investors who are interested in crypto currencies but do not want to put all their eggs in the same basket. 

Certain requirements, such as a specific minimum risk level or minimum portfolio value, have to be fulfilled in order to add crypto currencies as an investment class.  

The minimum risk level has to be greater than 5/10. Below that the algorithm would prevent investment in crypto currencies as there are higher risks involved. 

Crypto currencies as an additional asset class are suitable for investors who want to invest in digital currencies but do not want to rely on crypto currencies alone. 

What products are included in your new real estate category and how much flexibility do traders have in choosing how to invest in them?

The new category real estate incorporates ETF’s and mutual funds focused on real estate, either directly or via listed companies active in the sector. Investors can even choose their preferred geographic area.