Wealthfront vs. Betterment: Which Broker Is Right for You?
Review
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Wealthfront and Betterment are two of the most popular online brokers. Wealthfront may be a good choice if you like being more actively involved in your investments, and Betterment could be a better option for those who prefer to let technology do the heavy lifting.
Here's a high-level overview of the Wealthfront vs. Betterment matchup, with plenty of details on how each brokerage platform could work for you.
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| Rating |
Rating
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 |
Rating
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 |
| Commissions |
Commissions |
Commissions |
| Account Minimum |
Account Minimum |
Account Minimum |
| Learn More |
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Betterment offers diversified, affordable portfolios of exchange-traded funds (ETFs), making it a good choice for investors who don't want to spend time researching and selecting individual stocks.
You can get started investing with Betterment with just $10, and take advantage of its automated rebalancing offering as long as you keep at least $50 in your accounts. Betterment automatically monitors investments, rebalances portfolios, and reinvests dividends. It's a handy set-and-forget investment service for busy investors (or people who just don't want to manage their investment portfolio at that granular level).
Investors who want to choose individual stocks or pick from more than 45 pre-built collections can take advantage of Wealthfront's commission-free stock investing service. Wealthfront offers over 1,500 stocks selected by its research team. You can get started trading commission-free stocks and fractional shares with just $1.
Wealthfront also offers automated index investing, with an expert-built portfolio of affordable index funds from up to 17 global asset classes. Its automated index investing is based on your personal risk tolerance, and is ideal for people who want software that takes care of trading and rebalancing.
Customers appreciate Betterment's simplicity, and a user interface that's easy to grasp. Reviewers like that they don't have to research and choose their own stocks and can select from Betterment's pre-built portfolios. Some customers complain about fees and issues with customer service, but these don't seem to be major obstacles for many investors.
Wealthfront has a lot of positive feedback online, with reviewers praising the security of the platform. Customers enjoy its high-yield cash account and the simplicity of its mobile app. However, some reviewers have reported getting locked out of their accounts and trouble with customer support.
| Wealthfront | Betterment | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | N/A | N/A |
| Crypto commissions | Crypto trusts charge expense ratios of 0.120%-0.220% | 1% annual fee |
| Mutual fund commissions | N/A | N/A |
| Account transfer fee | $0 | $75 |
| Account maintenance fee | None, but there is an annual advisory fee of 0.25% of all assets in automated investing accounts, charged monthly | None, but there is a 0.25% annual fee or $4 monthly membership for investing accounts |
Wealthfront and Betterment are both on our list of best robo-advisors. Both platforms offer low-cost automated investing, with no commissions or trading fees.
Betterment serves as an automatic financial advisor that helps manage your money. The company makes it easy for you to invest your money in diversified, low-cost portfolios of ETFs built by investment experts, all for a reasonable fee of $4 per month. If you set up $250 or more in recurring monthly deposits, or your household assets with Betterment reach $20,000, you'll move up to a fee of 0.25% per year.
This investment approach makes Betterment a great choice for hands-off investors who don't want to pick stocks. Betterment also provides automatic rebalancing of your ETF portfolios based on your investment goals and time horizon. As a Betterment customer, you can set it and forget it. Let Betterment's platform and the power of the global economy do the work for you.
Wealthfront's Automated Investing Account charges a 0.25% annual management fee, similar to Betterment, and it's charged monthly. You get automatic investing with personalized portfolios based on your risk tolerance and tax level. And if you use Wealthfront's Stock Investing Account to choose your own stocks and build your own portfolio, you won't pay any commissions or trading fees.
If you prefer to be more hands-on in building your portfolio, choosing investments, and making trades, Wealthfront could be a better choice than Betterment.
READ MORE: Best ETF Brokers
| Wealthfront | Betterment | |
|---|---|---|
| Stocks and ETFs | Yes | Yes (not individual stocks) |
| Fractional shares | Yes | No |
| Options | No | No |
| Mutual funds | No | No |
| CDs | No | No |
| Bonds | Yes (not individual bonds) | Yes (not individual bonds) |
| Futures | No | No |
| Crypto | Yes | Yes |
| Currencies | No | No |
Wealthfront and Betterment both offer low-cost, automated investing with personalized portfolios built by experts. But there are a few big differences in how you can invest.
Wealthfront offers 239 investment categories across 17 asset classes, including stock and bond ETFs, U.S. and global stock ETFs, and emerging market ETFs. You can choose to invest in specific portfolios, such as socially responsible ETFs, commodity ETFs (like energy, precious metals, and lithium), or sector ETFs (like healthcare and real estate). Wealthfront also offers two cryptocurrency trusts.
In addition to robo-advisor portfolios, you can buy individual stocks and fractional shares on Wealthfront. You can also customize your Wealthfront portfolio with your own personal touches, even if you start out with a recommended portfolio from the Wealthfront platform.
These features make Wealthfront a better fit if you want a more hands on approach to investing.
The flip side of the coin is that Betterment is a better fit if you want to do passive investing in diversified exchange-traded funds, while letting the robo-advisor do most (or all) of the work.
Betterment customers may not buy individual stocks, bonds, or funds on its platform. If you want to use Betterment, you'll be taking advantage of Betterment's expert-built diversified ETF portfolios, and you'll need to be comfortable letting Betterment do the work. That could be an investing dream come true for anyone who's overwhelmed or intimidated by the prospect of choosing their own individual investments.
LEARN MORE: Best Options Trading Platforms
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 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
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 |
Managing your finances under one roof | $0 for stocks,¹ $0 for options contracts⁴ |
Learn More for SoFi Active Investing
On SoFi Active Investing'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 |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
| Wealthfront | Betterment | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | No |
| Robo-advisor | Yes | Yes |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| SEP IRA | Yes | Yes |
| Custodial | No | No |
| Checking | Yes -- debit card and online bill pay | Yes |
| Savings | High-yield cash account | High-yield cash account |
| Credit card | No | No |
Both Wealthfront and Betterment offer a variety of accounts for investors.
Investment accounts you can choose at Wealthfront:
Wealthfront and its bank partners also offer banking features through the high-yield Wealthfront Cash Account. The Wealthfront Cash Account currently pays 4.00% APY. Features include debit card access, online bill pay, and unlimited transfers.
Betterment is also more than just a brokerage, offering its own menu of bank accounts in addition to investment portfolios. If you wanted to move most of your everyday banking activities to Betterment, you probably could.
Investment accounts you can choose at Betterment:
Accounts you can get from Betterment's bank partners:
LEARN MORE: Best IRA Accounts
Both brokers receive similarly impressive ratings for their platforms.
The Wealthfront robo-advisor platform is available for desktop or mobile, and gets high ratings on the App Store (4.8 stars) and Google Play (4.8 stars).
Betterment's robo-advisor platform is also easy to access online via desktop or mobile app; the Betterment app gets almost-as-high ratings on the App Store (4.7 stars) and Google Play (4.7 stars).
Wealthfront stands out with its special account called the Wealthfront Automated Bond Portfolio, where you can put money you might need in the next one to three years, and potentially earn higher yield than you could get from even the best savings accounts.
Wealthfront is a better fit for people who want a wider range of investment options and the ability to do some hands-on investing, such as buying individual stocks. The Wealthfront Automated Bond Portfolio Account is an intriguing way to earn yield on short- to medium-term savings that aren't a good fit for investing in CDs or stocks.
What makes Betterment stand out from the robo-advisor crowd is that Betterment offers help from real human financial advisors. If you sign up for Betterment Premium (which requires an annual fee and minimum assets) or pay for a one-time package of services, you can meet with a CFP®. Betterment is a better choice for simple, automatic investing, and if you like Betterment's assortment of expert-built ETFs.
The low costs, tax loss harvesting, array of investing account types, and cash management options round out a packed feature set that is hard to beat.
$0 per trade, management fee 0.25%
$500
Betterment is a good fit for passive investors who want to put their investments on cruise control at a low cost. Betterment also offers a great cash management account with a high APY.
$0 per trade, management fee of $4 per month or 0.25% per year
$0
At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.
See our full methodology here: Ratings Methodology
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. Terms may apply to offers listed on this page.
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotion Disclosures
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
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.
