Betterment Review

Hands-off automated investors

SEC FINRA SIPC

Founded 2010 · United States · Betterment Holdings, Inc.

Why investors choose this broker

No account minimum (invest from $10)
No deposit, withdrawal, or inactivity fees
Automated tax-loss harvesting included
Broad portfolio options including socially responsible and crypto ETF

Review summary

Betterment is a US robo-advisor offering automated ETF portfolios, tax-loss harvesting, self-directed investing, and cash management with no account minimum.

Pros

No account minimum (invest from $10)
No deposit, withdrawal, or inactivity fees
Automated tax-loss harvesting included
Broad portfolio options including socially responsible and crypto ETF
Cash Reserve earns competitive APY with FDIC insurance up to $4M
Self-directed investing with no commissions
Goal-based planning tools and portfolio rebalancing included

Cons

$5/month fee is relatively high on small balances (up to ~0.6% annually on $10,000)
$75 fee to transfer an account out to another brokerage
Crypto portfolio carries a 1% annual management fee
Premium plan requires $100,000 minimum balance
No dedicated human advisor - Premium uses team-based CFP model
No direct indexing for tax optimization
No demo account for practice before investing

Company background

Betterment was founded in 2008 by Jon Stein and Eli Broverman and launched publicly at TechCrunch Disrupt in June 2010. The platform is headquartered in New York City and operates under Betterment Holdings, Inc. By 2026 it manages over $65 billion in assets across more than one million customers. Key milestones include 401(k) services for businesses (2016), the acquisition of cryptocurrency manager Makara (2022), Marcus Invest from Goldman Sachs (2024), and Ellevest's automated investing business (2025).

Betterment is one of the original and largest independent robo-advisors in the United States, offering automated ETF portfolios, self-directed brokerage, retirement accounts, cryptocurrency ETF portfolios, and cash management.

Fees and pricing

Betterment's Digital plan charges $5 per month for accounts with an eligible household balance below $24,000 and no $200+/month recurring deposit. Accounts meeting either threshold pay 0.25% per year. Progressive discounts apply above $1 million: 0.15% on the $1M-$2M portion and 0.10% above $2M. The Premium plan costs 0.65% per year with a $100,000 minimum and includes CFP professional access. Crypto ETF portfolios carry a separate 1% annual management fee.

There are no deposit fees, no withdrawal fees to a linked bank, and no inactivity fees. Outbound account transfers to another brokerage cost $75 per investing account. Self-directed investing accounts carry no management fee and no trading commissions. Underlying ETF expense ratios on the Core portfolio average 0.04%-0.17%.

Regulation and safety

Betterment LLC is an SEC-registered investment adviser. Brokerage services run through Betterment Securities and Apex Clearing Corporation, both SEC-registered broker-dealers and members of FINRA and SIPC. SIPC covers brokerage accounts up to standard limits. Cash Reserve deposits are FDIC-insured up to $4 million for individual accounts through program banks. Betterment is not a bank; checking is offered via partnership with nbkc bank.

Platform experience

Betterment is accessible through a web app plus iOS and Android apps rated 4.8 stars combined across 78,000+ reviews. Features include automated portfolio construction and rebalancing, tax-loss harvesting, goal-based planning tools, recurring deposit scheduling, flexible portfolio customization, and dark mode. The self-directed product lets users trade individual stocks and ETFs commission-free alongside their automated portfolios. Betterment does not offer a practice or demo account.

Pros and cons

Betterment's strengths include no account minimum, no deposit or withdrawal fees, automated tax-loss harvesting, a broad portfolio menu, and competitive FDIC-insured cash management. Its drawbacks include a $5 monthly fee on small balances, a $75 outbound transfer fee, a 1% annual fee on crypto portfolios, the $100,000 floor for the Premium plan, no dedicated advisor, and no demo account.

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Open an account directly with the broker. Confirm current fees and account eligibility on the broker's website before depositing.

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Trading fees & commissions

Betterment charges 0.25% per year (or $5 per month for balances under $24,000 without qualifying recurring deposits). The Premium plan costs 0.65% per year with a $100,000 minimum. Crypto portfolios carry a 1% annual management fee. There are no deposit, withdrawal, or inactivity fees.

Fees

Item	Fee
Crypto	1% per year annual management fee for Crypto ETF portfolio, in addition to embedded ETF trading costs
Account	Digital plan: $5/month for balances below $24,000 without $200+/month recurring deposits; 0.25% per year otherwise; Progressive discounts above $1M (0.15% on $1M-$2M; 0.10% above $2M)
Deposit	Free
Premium	0.65% per year on eligible balances under $1M; requires $100,000 minimum investing balance; includes unlimited CFP professional access
Inactivity	Free
Withdrawal	Free for withdrawals to linked bank accounts
Self Directed	No management fee; commission-free stock and ETF trading
Outbound Transfer	$75 per investing account transfer out to another brokerage

Trading platform & features

Platforms

Betterment Web app
iOS app
Android app

Regulation and investor protection

Betterment LLC is an SEC-registered investment adviser. Brokerage services are provided by Betterment Securities, an SEC-registered broker-dealer and FINRA and SIPC member. Cash Reserve deposits are FDIC-insured up to $4 million through program banks.

Broker FAQs

Is Betterment safe?

Betterment LLC is an SEC-registered investment adviser. Brokerage services are provided through FINRA and SIPC member firms, and Cash Reserve deposits are FDIC-insured up to $4 million through program banks.

Is Betterment a scam?

No. Betterment LLC is an SEC-registered investment adviser, and its brokerage entities are registered with the SEC and are FINRA and SIPC members.

Is Betterment regulated and by whom?

Yes. Betterment LLC is regulated by the SEC as a registered investment adviser. Betterment Securities, its broker-dealer entity, is also SEC-registered and a member of FINRA.

Does Betterment keep client funds in segregated accounts?

Brokerage accounts are held through Betterment Securities and Apex Clearing Corporation, both of which are SIPC members. Cash Reserve deposits are held at program banks and are FDIC-insured up to $4 million for individual accounts.

What happens to my money if Betterment goes bankrupt?

Brokerage assets in investing accounts are protected by SIPC up to standard coverage limits. Cash Reserve deposits are FDIC-insured through program banks up to $4 million per individual account.

What products does Betterment offer?

Betterment offers automated investing in diversified ETF portfolios, self-directed stock and ETF trading, cryptocurrency ETF portfolios, traditional and Roth IRAs, SEP IRAs, Cash Reserve, and a checking account.

Does Betterment offer ETFs?

Yes. Betterment's automated portfolios are built entirely from ETFs. Users can also buy and sell individual ETFs in the self-directed investing product.

Does Betterment offer crypto?

Yes. Betterment offers a Crypto ETF portfolio composed of spot Bitcoin and Ethereum ETFs, weighted by market capitalization and managed automatically. This product carries a 1% annual management fee.

Can I buy individual stocks on Betterment?

Yes. Betterment's self-directed investing product allows users to buy and sell individual stocks and ETFs with no trading commissions and no management fee.

Does Betterment offer fractional shares?

Yes. Betterment uses fractional shares in automated portfolios so that all invested cash is deployed without any portion sitting uninvested.

What does Betterment charge for its management fee?

The Digital plan charges $5 per month for balances below $24,000 without a qualifying recurring deposit, or 0.25% per year for larger balances. The Premium plan costs 0.65% per year with a $100,000 minimum. Progressive discounts apply above $1 million.

Is there a withdrawal fee at Betterment?

No. Withdrawals to a linked bank account are free. However, transferring an investing account out to another brokerage incurs a flat $75 fee per account.

Does Betterment charge an inactivity fee?

No. Betterment does not charge an inactivity fee.

What does Betterment charge for its crypto portfolio?

The Crypto ETF portfolio carries a 1% annual management fee in addition to the embedded expense ratios of the underlying spot Bitcoin and Ethereum ETFs.

Does Betterment have a demo account?

No. Betterment does not offer a practice or demo account for users to test the platform before investing real money.

Does Betterment have a mobile app?

Yes. Betterment has iOS and Android apps available through the App Store and Google Play. The app carries a combined rating of 4.8 stars across more than 78,000 reviews as of 2026.

Is Betterment good for beginners?

Betterment is designed for hands-off investors. It has no account minimum, automated portfolio management with rebalancing included, goal-based planning tools, and a straightforward onboarding process.

Is Betterment good for long-term investing?

Betterment's automated portfolios are built for long-term investing and include tax-loss harvesting and tax-coordinated portfolios to minimize drag over time. It offers IRAs, taxable accounts, and multiple diversified ETF portfolio strategies.

Bottom line

Betterment suits users who want automated, low-cost portfolio management with built-in tax optimization, a broad range of ETF portfolio strategies, and no account minimum. It may not suit users who want active trading tools, a dedicated human financial adviser, direct indexing, or a demo account before committing.

Betterment

Hands-off automated investors

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Your capital is at risk. Other fees apply.