What Interactive Advisors does

Interactive Advisors, operating legally as Covestor Ltd, is a SEC-registered robo-advisory platform and a wholly owned subsidiary of Interactive Brokers Group (NASDAQ: IBKR). The company runs a self-service digital platform through which US-resident retail investors (plus passive onboarding from Switzerland and India) can open brokerage accounts, complete a risk questionnaire, and select from approximately 60 portfolios spanning personalized Asset Allocation (low-cost ETF multi-asset portfolios), Smart Beta, SRI/ESG themes, and FTSE Russell index-tracking strategies. Underlying technology centers on rules-based engines — a risk scoring system (1–5), an asset allocation engine that maps risk profile to ETF mix, quarterly tax-loss harvesting that swaps ETFs for correlated alternatives, and trade replication that mirrors portfolio manager trades into client accounts — with fractional share trading enabling diversification at the $100 minimum.

Revenue is generated through annual asset management fees of 0.10% to 0.75%, of which Interactive Advisors retains 0.25% and passes the remainder to underlying portfolio managers; there are no trading commissions. The platform also operates a Portfolio Manager Marketplace that lets third-party Registered Investment Advisors and registered hedge fund managers reach retail and accredited investors, and offers an upgrade path to a self-directed Interactive Brokers account. The company is regulated under the Investment Advisers Act of 1940, holds assets via Interactive Brokers LLC (SIPC member), and is headquartered in Boston with a UK office in London under a CTO/UK Managing Director.

Name

Interactive Advisors

Legal name

Covestor Ltd

Website

https://interactiveadvisors.com

Company type

Private

Founded year

2008

Operating status

Operating

Headcount range

11–50 employees

Short description

Interactive Advisors is a SEC-registered robo-advisory platform and wholly owned subsidiary of Interactive Brokers Group, offering US retail investors roughly 60 ETF-based portfolios — including personalized asset allocation, smart beta, SRI/ESG, and FTSE Russell index-tracking strategies — with fees from 0.10% to 0.75% annually.

Ownership category

akta.pro rank

Headquarters

HQ city

Boston

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Software

Cost components

Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Asset Management Fees: Interactive Advisors charges asset management fees ranging from 0.10% to 0.75% per year on client investments. The company retains 0.25% of the management fee and passes the remainder to portfolio managers.

Pricing tiers

Go-to-market motion2 records

Distribution channels1 record

Marketing channels5 records

Core offering

Interactive Advisors operates an SEC-registered robo-advisory platform that offers approximately 60 curated investment portfolios, including personalized Asset Allocation portfolios constructed from risk profiling, Smart Beta portfolios, Socially Responsible Investing (SRI/ESG) portfolios, and FTSE Russell Index Tracking portfolios. Clients open accounts online with a $100 minimum, the platform executes trades via Interactive Brokers LLC brokerage infrastructure, and the firm charges annual asset management fees of 0.10% to 0.75%.

Product overview

Interactive Advisors is a robo-advisory platform operating as an investment advisor registered with the SEC. The platform offers a diverse range of investment portfolios including: personalized Asset Allocation portfolios (the core offering, created based on client risk profiles and invested in low-cost ETFs), Self-directed trading capabilities for independent investors, Smart Beta portfolios managed by the Chief Investment Officer, SRI (Socially Responsible Investing) ESG-focused portfolios covering environmental, social, and governance themes, and FTSE Russell Index Tracking portfolios built on licensing agreements with FTSE International Limited and Russell. The platform also provides supporting tools including a Goal Tracker for monitoring investment goals, Risk Profile scoring for suitable portfolio matching, Performance Metrics for analyzing portfolio history, Tax-Loss Harvesting for algorithmic tax optimization in taxable accounts, and an ESG Focus Feature for adjusting ESG exposure in Asset Allocation portfolios. Additionally, Interactive Advisors operates a Portfolio Manager Marketplace connecting investors with third-party Registered Investment Advisors and hedge fund managers.

Differentiator

Problem solved

Functional benefit

Products and services

• Asset Allocation Portfolios Personalized diversified multi-asset portfolios created based on a client's responses to a risk questionnaire, dialed up or down for risk across different asset classes and invested in low-cost ETFs. Supports an ESG Focus slider (0%-100%), fractional shares, and quarterly tax-loss harvesting in taxable accounts. Designed for individual US retail investors seeking automated professional portfolio management.
• Self-Directed Trading A brokerage account upgrade option that allows Interactive Advisors clients to trade stocks, options, futures, bonds, and ETFs independently through Interactive Brokers LLC. Targeted at individual investors who want hands-on trading alongside or instead of the managed portfolio experience.
• Smart Beta Portfolios A range of portfolios managed by Interactive Advisors' Chief Investment Officer and Investment Management team using smart beta investment strategies, investing in a large number of stocks with periodic rebalancing. Offered to individual investors seeking factor-based equity exposure.
• SRI (Socially Responsible Investing) Portfolios Portfolios that invest in companies based on ESG (Environmental, Social, and Governance) criteria across 13+ responsible themes. Designed for individual investors who want to align their investments with personal values and exclude undesirable practices or industries.
• FTSE Russell Index Tracking Portfolios Portfolios designed to follow predefined rules to track specified baskets of underlying investments corresponding to FTSE Russell reference indices. A passive investing option offered to individual investors who want core index exposure.

Quantifiable outcome

• Tax-loss harvesting can potentially add 0.3% to 0.9% in excess return annually

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

Five partnerships are on record, tiered core.

• FTSE RussellcoreTechnology or IntegrationInteractive Advisors offers FTSE Russell Index Tracking Portfolios designed to follow predefined rules to track specified baskets of underlying investments corresponding to reference indices. Portfolios are constructed and managed based on data provided pursuant to licensing agreements with FTSE International Limited and the Frank Russell Company.
• State Street Global AdvisorscoreTechnology or IntegrationInteractive Advisors offers portfolios built on data provided by State Street Global Advisors. State Street licenses model portfolio data enabling Interactive Advisors to build and periodically rebalance these portfolios.
• WisdomTreecoreTechnology or IntegrationInteractive Advisors offers portfolios built on data provided by WisdomTree. WisdomTree is an Exchange Traded Product sponsor providing data for certain portfolio offerings.
• Global XcoreTechnology or IntegrationInteractive Advisors offers portfolios built on data provided by Global X, an ETF provider specializing in thematic and sector-based investments.
• Interactive Brokers LLCcoreImplementation/ SI/ Consulting PartnerAll trades for Interactive Advisors clients are executed by Interactive Brokers LLC, a member of SIPC. Interactive Brokers LLC also provides the underlying brokerage account infrastructure. Assets are protected up to $500,000 in value including $250,000 in cash awaiting reinvestment.

Scale indicators3 records

Expansion highlights5 records

Direct peers

• Ellevest: Digital wealth platform originally focused on women investors, offering automated portfolios, goals-based planning, and financial coaching. Comparable in retail robo-advisory and SRI/ESG offerings to Interactive Advisors.
• Betterment: One of the largest independent robo-advisors in the US, offering automated portfolio management, tax-loss harvesting, goal-based planning, and cash management. Directly comparable to Interactive Advisors on automated, low-cost portfolio construction for retail investors.
• Wealthfront: Leading US robo-advisor with automated ETF portfolios, tax-loss harvesting, and direct indexing. Closely comparable in product, target customer, and automated wealth management model to Interactive Advisors.
• M1 Finance: US fintech offering automated portfolio management with self-directed customization, fractional shares, and integrated banking. Direct overlap with Interactive Advisors on automated retail investing, fractional share trading, and hybrid self-directed/managed model.
• SoFi Automated Investing: SoFi's robo-advisor offering diversified ETF portfolios with no management fees for SoFi members, integrated with banking and lending. Comparable D2C automated investing with similar target customer as Interactive Advisors, but with a broader fintech ecosystem.
• Personal Capital (now Empower Personal Dashboard): Hybrid robo-advisor and human advisor service with a strong emphasis on financial planning tools. Comparable to Interactive Advisors on automated portfolio management and tools-driven retail experience, with a higher-touch advisor overlay.

Broad incumbents

• Schwab Intelligent Portfolios: Charles Schwab's automated investing service offering diversified ETF portfolios with no advisory fees and 24/7 support. Competes head-on with Interactive Advisors in the same retail D2C category, but with the scale of a major incumbent brokerage.
• Vanguard Digital Advisor: Vanguard's hybrid robo-advisor combining automated portfolios with periodic advisor access at low fees. Comparable in low-cost passive investment philosophy and retail D2C distribution, but with Vanguard's brand and AUM scale behind it.
• Fidelity Go: Fidelity's automated managed-account product with goal-based portfolios and a low-fee structure. Overlaps with Interactive Advisors on automated retail wealth management, embedded within one of the largest US brokerages.

Emerging players

• SigFig: Digital wealth management platform offering automated portfolios and advisor tools, with B2B partnerships to large banks and brokerages. Comparable automated investing core, with a different go-to-market mix of D2C and institutional channels.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/ia_updates
• YouTubeyoutube.com/c/InteractiveAdvisors
• Facebookfacebook.com/interactiveadvisors
• LinkedInlinkedin.com/company/interactiveadvisors

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Interactive Advisors