Peterffy is a genius. He was among the first to use computers to determine the value of stocks, and subsequently execute trades without the need of a human.
It’s hard to grasp now, when 88% of all U.S. adults own a cell phone and 46% of all American adults use smartphones, but Peterffy was way ahead of his time. He actually created a robot to execute trades after learning that regulation required all trades by typed on a keyboard.
His innovation created real social value. Automating trading reduced the cost, saving people money on commissions. It’s reminiscent of what we’re trying to do at Betterment with automation and ease of use.
It’s a nostalgic story too, about an entrepreneurial immigrant from Hungary, finding fame and fortune in the US.
I found it interesting to learn that even Peterffy thinks that we’ve reached a point of absurdity in high speed trading. He believes that the ongoing “arms race” to shave milliseconds off of trades offers no social value and makes the market less stable.
It’s a bit like the technology conundrum we’ve discussed before.
How Account Security Works at Betterment
Here are some of the ways we are keeping you and your data safe.
How Betterment Works During Volatile Markets
It can be difficult to ride out a market downturn when you can see it affecting your investment portfolio. We have automated features in place to address volatile markets when they occur.
Is Betterment Worth It? Estimating the Added Value of a Robo-Advisor
Based on our estimation, using Betterment’s retirement recommendations could earn you 38.8% more after-tax money in retirement compared to investing on your own.
Explore your first goal
This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.
Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.
If you want to invest and build wealth over time, then this is the goal for you. This is an excellent goal type for unknown future needs or money you plan to pass to future generations.