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Whether you're just beginning to invest or you're already investing and don't need a lot of help from a human, two options to consider are Betterment and Stash. Both platforms are known for their robo-advisory services and their top-rated mobile apps. However, there are a few key differences between Betterment vs. Stash that you should be aware of before you let either one manage your money.
Keep reading to learn about the differences between Betterment vs. Stash. We'll explain the fees, account minimums, investment choices, types of accounts each platform offers, and how its mobile and desktop versions compare.
Both Betterment and Stash make Motley Fool Money's list of top robo-advisors due to their low fees and easy-to-use platforms. However, Betterment's fee structure is a bit more friendly to customers who aren't starting with a large balance.
Betterment charges a base monthly fee of $4. Once your balance hits $20,000, you'll be switched over to a 0.25% annual fee instead of the monthly fee. You can also lock in the 0.25% annual fee and avoid the monthly charge if you set up monthly recurring transfers of at least $250.
Securing the 0.25% annual fee through monthly deposits will save you money if you're investing a relatively small amount. Suppose you have a $1,000 investment. A $4 monthly fee adds up to annual investment costs of nearly 5%, which can seriously eat away at your returns. With the 0.25% fee, you'd only pay $2.50 a year on a $1,000 balance.
Stash charges a monthly subscription fee. The Stash Growth plan costs $3 per month and gives you access to basic investing, including individual stocks and ETFs, managed portfolios, retirement accounts, and banking. If you upgrade to the $9 plan, you get more advanced research features, up to two Kids Portfolios®, and the ability to earn in stock through the Stock-Back® card.
Again, a monthly investment fee can substantially reduce your earnings. Think carefully before signing up for the $9 Stash+ plan if you're starting with a small balance. However, on larger balances, the $3 monthly subscription fee for a Stash Growth plan could be quite cheap.
Both Betterment and Stash have low minimum upfront deposits, making them good for beginning investors. You'll need $10 to get started with Betterment, though no minimum balance is required. Stash requires just $4 to get started: $3 for the monthly subscription fee, plus $1 for your investment account.
Users who want advice from a human can get access to Betterment's team of Certified Financial Planners™ for an extra 0.15% management fee (0.40% total). But this feature requires a balance of at least $100,000, which may be out of reach for many investors. Stash doesn't offer the opportunity to work with a human financial advisor.
Betterment | Stash | |
---|---|---|
Stock & ETF commissions | N/A | $0 |
Options commissions | N/A | N/A |
Crypto commissions | 1% plus trading commissions | 0.8% for Stash+ and 1.0% for Stash Growth |
Mutual fund commissions | N/A | N/A |
Account transfer fee | $75 for outbound transfer | $75 for Automated Customer Account Transfers |
Account maintenance fee | 0.25% annual fee or $4 monthly membership | $3 to $9 per month |
Betterment is designed for hands-off, passive investors and isn't a good fit for those who want to actively manage their portfolios. Unlike the top stock trading platforms, Betterment doesn't let you invest in individual stocks, bonds, and exchange-traded funds (ETFs).
Instead, you'll pick from around a dozen portfolios based on your goals and preferences. The Core Portfolio is the default for retirement savers, but you can also select other options. You can also choose from portfolios focused on themes like tech companies, socially responsible investing, or fixed income, as well as three managed crypto portfolios.
Though Stash offers robo-advisory services, it also has options for DIY investors, with over 3,000 stock offerings, including fractional shares. It also offers nearly 100 individual ETFs, which is somewhat limited compared to other platforms, but still more than you get with Betterment. Stash also lets you invest in individual cryptocurrencies, whereas Betterment only offers crypto access through its managed portfolios.
Note that both platforms cater to new investors. If you want a top options broker or access to other advanced trading strategies, you'll need to look elsewhere.
Betterment | Stash | |
---|---|---|
Stocks and ETFs | Yes (through managed portfolios) | Yes |
Fractional shares | No | Yes |
Options | No | No |
Mutual funds | No | No |
CDs | No | No |
Bonds | Yes (through managed portfolios) | Yes (through ETFs) |
Futures | No | No |
Crypto | Yes (through managed portfolios) | Yes |
Currencies | No | No |
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
Broker | Best For | Commissions | Learn More |
---|---|---|---|
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Easy fractional investing in stocks and bonds. | $0 commissions, 1%-2% crypto markups |
Learn More for Public
On Public's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Long-Term Investors, Stocks and Options Traders | Commission-free; other fees apply |
Learn More for E*TRADE
On E*TRADE's Secure Website. |
Betterment and Stash offer similar types of accounts, including taxable brokerage accounts and individual retirement accounts (IRAs). Both offer traditional and Roth IRAs, but Betterment has a few more retirement account options, like SEP IRAs, which are designed for self-employed people and small business owners.
Neither platform is a bank, but both partner with FDIC-insured banks to offer banking services. While the Betterment Cash Reserve account earns an APY similar to the best high-yield savings accounts, Stash's deposit account doesn't pay interest.
Both accounts give you debit card access, as well. Betterment's debit card lets you earn cash back on your spending. Stash's Stock-Back® card is available to customers with both plan tiers, but you'll need the $9 monthly Stash+ plan to earn 1% stock on card purchases.
Betterment | Stash | |
---|---|---|
Taxable brokerage | Yes | Yes |
Joint tenant | Yes | No |
Margin | No | No |
Robo-advisor | Yes | Yes |
Traditional IRA | Yes | Yes |
Roth IRA | Yes | Yes |
Other IRA | SEP IRA, inherited IRA, rollover IRA | N/A |
Custodial | No | Yes, with Stash+ |
Checking | Yes | Yes |
Savings | Yes | Yes |
Credit card | Yes | Yes |
Betterment's mobile app gets 4.7 stars in the App Store and 4.6 stars in the Google Play store. The app makes it fairly easy to deposit, transfer, and withdraw funds. You can also link outside accounts and monitor their performance and your net worth using the dashboard on the app or the desktop platform.
The Stash app gets an average rating of 4.7 stars on the App Store and 3.7 stars on the Google Play store. Stash's mobile app offers banking features similar to what you get with the Betterment app. Though Stash doesn't have a lot of personalized investment tools, one nice feature is the diversification analysis tool, which gives you a snapshot of how diversified your portfolio is, as well as ways to improve it.
Betterment and Stash are both solid options for beginning investors and those who want to invest using a robo-advisor. Each is good for people who want to invest and bank under the same umbrella. However, neither platform is a good pick for investors who want advanced trading strategies.
Stash is a better option for those who want to pick their own stocks and ETFs, as Betterment only allows you to invest through its managed portfolios. Betterment is more appropriate if you prefer a hands-off approach to your investing.
Betterment's fee structure is slightly better for those getting started with a small amount, provided that you can make recurring monthly deposits to lock in the 0.25% annual fee instead of the monthly fee. Stash's monthly subscription fee could add up to more than what you'd pay with Betterment, particularly if you upgrade to Stash's higher-priced plan. However, for investors who have larger balances, Stash's $3 monthly subscription fee could be a bargain.
Stash has an easy-to-understand fee structure as well as a low barrier to entry to start investing. It has tools that are great for beginners and even comes with a debit card.
None
$0
On Stash's Secure Website.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
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Stash disclosure
Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. Investing involves risk and investments may lose value. Paid client testimonial. Not representative of all clients and not a guarantee. View important disclosures.
Stash has full authority to manage a Smart Portfolio, a discretionary managed account. Diversification and asset allocation do not guarantee a profit, nor do they eliminate the risk of loss of principal. Stash does not guarantee any level of performance or that any client will avoid losses in their account
Ancillary fees charged by Stash and/or its custodian are not included in the subscription fee.
* Stash Banking services provided by Stride Bank, N.A., Member FDIC. The Stash Stock-Back® Debit Mastercard® is issued by Stride Bank pursuant to license from Mastercard International. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. Any earned stock rewards will be held in your Stash Invest account. Investment products and services provided by Stash Investments LLC and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.
** Get fee-free transactions at any Allpoint ATM, see the app for location details, otherwise out-of-network ATM fees may apply. For a complete list of fees please see the Deposit Account Agreement for details.
*** All rewards earned through use of the Stash Stock-Back® Debit Mastercard® will be fulfilled by Stash Investments LLC and are subject to Terms and Conditions. You will bear the standard fees and expenses reflected in the pricing of the investments that you earn, plus fees for various ancillary services charged by Stash. In order to earn stock in the program, the Stash Stock-Back® Debit Mastercard must be used to make a qualifying purchase. Stock rewards that are paid to participating customers via the Stash Stock Back program, are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value. What doesn’t count: Cash withdrawals, money orders, prepaid cards, and P2P payment. If you make a qualifying purchase at a merchant that is not publicly traded or otherwise available on Stash, you will receive a stock reward in an ETF or other investment of your choice from a list of companies available on Stash. See Terms and Conditions for more details.
**** 1% Stock-Back® rewards available only on Stash+ ($9/mo) and only for client’s first $1,000 of Qualifying Purchases in each calendar month program.
***** Limitations apply; 3% Stock-Back rewards available only for qualified bonus merchants on Stash+.
Ancillary fees charged by Stash and/or its custodian are not included in the subscription fee.
Stash offers access to investment and banking accounts under each subscription plan. Each type of account is subject to different regulations and limitations. Stash Monthly Subscription Wrap Fee starts at $3/month. You’ll also bear the standard fees and expenses reflected in the pricing of ETFs, plus fees for various ancillary services charged by Stash and/or the Custodian. Please see the Advisory Agreement for details. Other fees apply to the bank account. Please see the Deposit Account Agreement.
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Betterment disclaimers
†Betterment Cash Reserve ("Cash Reserve") is offered by Betterment LLC. Clients of Betterment LLC participate in Cash Reserve through their brokerage account held at Betterment Securities. Neither Betterment LLC nor any of its affiliates is a bank. Through Cash Reserve, clients' funds are deposited into one or more banks ("Program Banks") where the funds earn a variable interest rate and are eligible for FDIC insurance. Cash Reserve provides Betterment clients with the opportunity to earn interest on cash intended to purchase securities through Betterment LLC and Betterment Securities. Cash Reserve should not be viewed as a long-term investment option.
Funds held in your brokerage accounts are not FDIC‐insured but are protected by SIPC. Funds in transit to or from Program Banks are generally not FDIC‐insured but are protected by SIPC, except when those funds are held in a sweep account following a deposit or prior to a withdrawal, at which time funds are eligible for FDIC insurance but are not protected by SIPC. See Betterment Client Agreements for further details. Funds deposited into Cash Reserve are eligible for up to $1,000,000.00 (or $2,000,000.00 for joint accounts) of FDIC insurance once the funds reach one or more Program Banks (up to $250,000 for each insurable capacity—e.g., individual or joint—at up to four Program Banks). Even if there are more than four Program Banks, clients will not necessarily have deposits allocated in a manner that will provide FDIC insurance above $1,000,000.00 (or $2,000,000.00 for joint accounts). The FDIC calculates the insurance limits based on all accounts held in the same insurable capacity at a bank, not just cash in Cash Reserve. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through Cash Reserve may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of Cash Reserve, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured. For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC. For more information see the full terms and conditions and Betterment LLC's Form ADV Part II.
**The annual percentage yield ("APY") on the deposit balances in Betterment Cash Reserve ("Cash Reserve") is 4.00% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the "Program Banks") and is current as of Feb. 6, 2023. This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.
For Cash Reserve (“CR”), Betterment LLC only receives compensation from our program banks; Betterment LLC and Betterment Securities do not charge fees on your CR balance.