DIY Investing: The Pros and Cons of Building Your Own Portfolio
Leonardo Mazza
28.02.2025
DIY Investing: The Pros and Cons of Building Your Own Portfolio
Today, thanks to technology and innovation, anyone can build their own investment portfolio. Banks like Revolut have low-cost investment options today, and for years, platforms such as Degiro have been providing retail investors with easily accessible online brokerage services. The tools have democratized investing, enabling people to take responsibility for their financial futures without traditional intermediaries. However, with this empowerment comes a crucial decision: should you opt for a human-based approach or embrace the growing trend of robo-advisors and DIY platforms?
DIY Investment Platforms: Accessible and Affordable
With these platforms, you can directly buy and sell stocks, ETFs, and other assets, often with minimal fees.
| Pros | Cons |
| Low cost
These platforms typically charge lower fees than traditional brokers |
Steep learning curve
Without prior knowledge, navigating the investment world can be daunting. Mistakes, such as over-trading or poor diversification, can erode returns. |
| Convenience & Accessibility
You can trade at your fingertips, anytime and anywhere |
Emotional decision making
individuals are prone to emotional reactions, such as panic selling during market downturns. |
| Sense of “control”
You decide which assets to buy and when to trade. |
Lack of personalization
Automated platforms offer limited personalized advice tailored to your financial goals and risk tolerance. |
The Human Touch: Experienced Professionals and Active Management
For investors seeking expert guidance, human financial advisors or professional stockbrokers remain a compelling option. These professionals bring a wealth of experience and provide active management of your portfolio, ensuring decisions are informed by both data and market insight.
| Pros | Cons |
| Tailored Advice
Human advisors take the time to understand your specific financial goals, risk tolerance, and life circumstances, providing customized investment strategies. |
Higher costs
The relatively higher cost is due to the enhanced service provided. |
| Emotional guidance
Experienced professionals help mitigate impulsive decisions, such as panic selling during market turbulence or overconfidence during bullish periods. |
Limited Accessibility
Working with an advisor often requires a minimum portfolio size, potentially excluding smaller investors. |
| Market & planning insights
Unlike robo-advisors, human professionals can address broader financial needs, including estate planning, tax optimization, and retirement strategies. |
Account set up process
Due to the regulatory requirements and the personalized approach, it may take longer to set up an account. |
For investors seeking a truly tailored and expert approach, working with experienced professionals like Cantor Fitzgerald offers distinct advantages that go beyond the capabilities of robo-advisors.
First and foremost, advisors from Cantor Fitzgerald boast an in-depth knowledge base from many years of experience in dealing with complex and volatile markets. This expertise empowers them to develop highly customized investment plans, ensuring that your portfolio is focused on your individual financial goals, risk tolerance, and long-term focus. Unlike algorithms, which rely solely on data inputs, human advisors can account for nuanced factors such as changing market conditions, regulatory shifts, or even personal circumstances that may impact your financial needs.
In addition, Cantor Fitzgerald brings emotional guidance that technology simply can’t provide. During periods of market decline, we can help you avoid expensive mistakes-such as panic selling-by offering a steady hand and clear rationale for long-term strategies. Our proactive approach ensures that your portfolio adapts to evolving market trends, optimizing returns while managing risk.
For those who value a comprehensive, hands-on approach to wealth management, partnering with a firm like Cantor Fitzgerald can make a meaningful difference in achieving financial success.
Leonardo Mazza, Head of Cross Asset Strategy & Fund Manager
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