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Betterment

Betterment

Automated investing and cash management with optional access to human financial advisors.

softwarePersonal Financerobo-advisorautomated-investingretirement-accounts
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Our Verdict

Best for

Investors who want a low-maintenance automated portfolio with a clear upgrade path to human advisors.

Skip if

You want full control over individual security selection or a zero-fee investing account.

What is Betterment?

Betterment is a registered investment adviser offering automated, goal-based investing in diversified ETF portfolios, alongside self-directed stock and ETF trading and cash management accounts. Its Digital plan builds and rebalances a portfolio automatically and applies tax-efficient strategies like tax-loss harvesting, while its Premium plan adds ongoing access to a team of licensed financial advisors for accounts with at least $100,000. Betterment also offers Cash Reserve, a high-yield cash account, and a checking account with no foreign transaction or ATM fees, both covered by expanded FDIC insurance through partner banks. The company also supports traditional, Roth, and SEP IRAs, Solo 401(k)s, and limited cryptocurrency exposure through ETFs, and is a member of FINRA and SIPC.

SpecificationsAI-estimated

deploymentCloud/SaaS
open source❌ No
api available❌ No
support optionsHelp center, in-app chat, phone support, advisor access on Premium
key integrationsBank linking (ACH), partner banks for cash accounts

Key Features of Betterment

Digital plan automatically builds, diversifies, and rebalances an ETF portfolio based on a user's goals and risk tolerance.
Tax-loss harvesting is applied automatically on taxable accounts to help offset gains elsewhere.
Premium plan adds unlimited access to a team of CFP-credentialed financial advisors for accounts over $100,000.
Self-directed investing lets users trade individual stocks and ETFs with no Betterment commissions.
Traditional, Roth, and SEP IRAs plus Solo 401(k)s are supported for retirement savings.
Cash Reserve and checking accounts offer competitive APY with expanded FDIC insurance through partner banks.
Crypto exposure is available through Bitcoin and Ethereum ETFs rather than direct coin custody.

Use Cases for Betterment

1

Hands-off retirement investing

Users open an IRA and let Betterment automatically build and rebalance a diversified portfolio toward retirement.

2

Tax-efficient taxable investing

Investors use a taxable Betterment account to benefit from automatic tax-loss harvesting.

3

Getting advisor guidance at scale

Investors with $100k+ upgrade to Premium for ongoing access to licensed financial advisors.

4

Parking emergency savings

Users hold cash in Betterment's Cash Reserve account for a competitive APY with expanded FDIC coverage.

Pros & Cons of Betterment

Pros

  • Low-cost automated investing with tax-loss harvesting built in on taxable accounts
  • Clear path to human advisor access for larger balances without switching providers
  • Combines investing, retirement, and cash management under one account
  • FDIC-insured cash accounts with above-average coverage limits through partner bank network

Cons

  • Premium advisor tier requires a $100,000 minimum, out of reach for many smaller investors
  • Flat monthly fee for small balances can be a relatively high percentage cost until the balance grows
  • Limited to Betterment's model portfolios and fund selection compared to a fully self-directed brokerage

Frequently Asked Questions

How much does Betterment cost?

The Digital plan charges a flat monthly fee for smaller balances or 0.25% annually once a balance or deposit threshold is met; Premium charges 0.65% annually with a $100,000 minimum.

Is Betterment a real financial advisor?

Yes, Betterment operates as a registered investment adviser and its Premium plan gives access to licensed human financial advisors.

Can I trade individual stocks with Betterment?

Yes, through its Self-Directed Investing option with no Betterment trading commissions.

Is my money insured with Betterment?

Brokerage accounts are covered by SIPC up to $500,000, and cash accounts carry FDIC insurance through partner banks.

Pricing Overview

View full pricing →
Paid (Subscription)

Digital

$5/month or 0.25% annually

Premium

0.65% annually

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About the Product

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Platforms
WebiOSAndroid
Target AudienceInvestors who want automated portfolios with an option to add human advisor access

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robo-advisorautomated-investingretirement-accountscash-managementtax-loss-harvesting

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