Features

Betterment is a robo-advisor investment service that helps people plan for their financial future. Betterment manages $3.2 billion in assets, which makes it the largest robo-advisor in the business, and is a Securities and Exchange Commission (SEC) registered investment advisor. Betterment is based in New York City and was founded in 2008. Robo-advisors provide investors with a fast and easy way to create a diversified portfolio by automatically allocating assets based on a personalized risk profile.

The high points of Betterment over other online investment services are:

  •  - Low fees: 0.15% to 0.35% 
  • $0 account minimum
  • Automatic diversification of funds
  • Auto deposits 
  • Automatic rebalancing of portfolio every time you make a deposit

 Who Is Betterment Designed For?

Betterment is a great service for all types of investors, but it is particularly suited for hands-off investors with clear goals and over $100,000 in savings who like exchange-traded funds. There is no minimum amount to open an account so anybody can become a member, but Betterment's value for money really shines when you hit the $100k mark. 

Exchange-traded funds are extremely popular among many investors because they make it easy to diversify funds and minimize management costs. 

What Services Does Betterment Offer?

Betterment provides a personalized investment strategy for every customer by determining his or her risk tolerance. Risk tolerance is determined by asking borrowers questions about their goals and reactions to hypothetical scenarios. 

Betterment helps people create and prioritize their financial goals. It can set up retirement funds, arrange traditional IRAs, and open trusts. It even helps investors save money through tax loss harvesting. Tax loss harvesting is the practice of selling securities that have experienced a loss to offset the taxes on profits and income.

Betterment also allows investors to talk to a customer support team seven days a week. Investors with over $500k can also schedule a personal consultation with a financial planning expert. 

How Much Does Betterment Cost?

Betterment charges customers an investment fee ranging from 0.15% to 0.35% depending on how much you deposit in your account. There are three tiers:

Investors with balances of: 

- $0 to $10,000 must pay an annual fee of 0.35% if they have a minimum deposit of $100 a month. Otherwise, there is a $3 a month fee.

- $10,000 to $100k a pay 25% fee.

- Over $100k get a 0.15% fee

There are no trade fees, transaction fees, or rebalancing fees, just the flat fee described above. 

How Is Betterment Better Than Other Wealth Management Services?

  • Having a flat annual fee instead of generating income from trade and transaction fees aligns Betterment's interests with those of its customers. 
  • Customers do not have to start or maintain a minimum balance, and they are never charged withdrawal fees. Betterment provides high-quality and low-cost investment services, a rare combination. 
  • Investors no longer have to be millionaires to benefit from sophisticated investment techniques, such as tax loss harvesting and personalized financial plans prepared by a professional investment advisor.

Betterment provides high-quality and low-cost investment services, a rare combination. 

New Customer Offer: Betterment is now offering a special deal to new customers.

The more you deposit in your first 45 days, the longer Betterment will waive your management fee. This Betterment promotion is only available to new customers who open a Betterment account with at least $10,000.

 
It's easy—sign up today, make a deposit, and we'll automatically waive your management fee. The amount of time you get managed free is based on the cumulative amount you deposit within 45 days of opening an account.
 
Deposits Within 45 Days
Managed Free
$10,000-$24,999
1 month
$25,000-$49,999
2 months
$50,000-$99,999
3 months
$100,000-$249-999
6 months
$250,000-$499,999
9 months
$500,000+
1 year

 

  • Independent/Registered Investment Adviser
  • Minimum Account
    $10
  • Asset Mgmt Fee
    0.35%
  • Fee Based
  • Total AUM (in millions)
    $2600
  • Software Managed
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