Where to Invest — Brokerages, Robo-Advisors, and Index Funds Compared

Three layers, three places a fee can sit

A self-directed brokerage is the account you trade in yourself, usually with no advisory fee. A robo-advisor sits on top of that and charges a yearly advisory fee to build and rebalance a portfolio for you. An index fund is the low-cost product both of them tend to hold. Comparing them fairly means looking at each fee at the layer it is charged — account minimum, advisory fee, trading commission, and fund expense ratio — which is how the table on this page is organized. The figures are documented, publicly-quoted reference points as of mid-2026, illustrative and not a ranking; every row links to the platform official pricing page to verify.

Project the difference

The gap between a 0.03 percent index fund and a 0.25 percent advisory fee looks trivial on day one and compounds over decades. The page includes a compound-growth projector so you can model it on numbers you choose. For the cash layer rather than the invested layer, see the best savings rates comparison, use the free After-Tax Yield Calculator, and read the redundancy-first money framework for how the invested layer fits alongside cash and on-ramp functions.

Frequently asked

What is the difference between a brokerage, a robo-advisor, and an index fund?

A self-directed brokerage is an account where you choose and place your own trades, usually with no advisory fee. A robo-advisor builds and rebalances a portfolio of funds for you automatically and charges an advisory fee, often around 0.25 percent a year, for doing so. An index fund is the underlying product many of both hold — a single fund that tracks a market index at a low expense ratio. The table above shows all three side by side so you can see which layer each fee sits at. This is educational only and not financial advice.

Which fees actually matter when comparing where to invest?

Three costs compound over time: the account minimum determines whether you can start at all, the advisory fee is charged yearly on your whole balance by managed and robo products, and the fund expense ratio is charged inside every fund you hold. A self-directed brokerage holding a 0.03 percent index fund and a robo-advisor charging 0.25 percent on top of similar funds can look identical on day one and diverge meaningfully over decades. Use the projector on this page to model the difference on numbers you choose.

Are these fees and minimums live?

No. The figures in the table are documented, publicly-quoted reference points as of mid-2026, held in a small static table so the page is stable and citable. They are illustrative, not live quotes, and providers change them regularly. Every row links to the platform official pricing page — confirm the current number there before acting.

Does a lower fee mean a platform is better for me?

Not on its own. Fees are one input; account minimums, the funds available, tax features, service, and how a platform fits alongside the rest of your setup all matter, and the right weighting is personal. This page does not rank platforms for suitability or tell you which to pick. It shows the documented numbers so you can compare them yourself. We are not financial advisors.

Does Obsidian Metrics recommend one of these platforms?

No. This is a free educational comparison. It displays publicly-quoted fees, minimums, and expense ratios and lets you model growth on amounts you choose. It does not recommend any platform or rank them for suitability. We are not financial advisors.