From the Publisher: In the (wholly fictional) account below, our crack editorial team has once again unearthed a huge potential problem – this time with trade execution by robo-advisors. Hey, it’s Friday afternoon after the Brexit vote, and we all could use a good laugh right now!
By Bill Taylor, CEO-Fintegration
In what is becoming a huge concern for what many see as the new cost effective way for investors to eliminate registered financial advisors, and have a “robo-advisor” create portfolios, a huge problem has arisen.
Several of these robo-advisor site have found themselves hacked by organized fee-based financial advisors and their shady foreign computer hackers. Rogue hacker groups in Albania, North Korea and Fargo, N.D have been cited. One investor found that his robo-advisor created account had been hacked and that his fixed income, blue chip stocks and treasury bills had been replaced with Etherum, Pets.com stock and Greek bank notes.
Another noted that her investments were now consisted entirely of short term call options on gold……with a strike price of $4500.
(Market commentary: You get what you pay for. Robo’s work for free.)