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Broker Comparison

Betterment vs Charles Schwab

Compare Betterment and Charles Schwab side by side: fees, regulation, platforms.

Betterment

Betterment

Hands-off automated investors

Betterment is a US robo-advisor offering automated ETF portfolios, tax-loss harvesting, self-directed investi…

VS
Charles Schwab

Charles Schwab

Investors who want brokerage, trading, and advice options

Charles Schwab combines $0 online listed stock and ETF commissions with thinkorswim platforms, fractional S&P…

Head-to-head comparison

Betterment vs Charles Schwab
Feature Betterment Charles Schwab
Minimum deposit - -
Stock trading fee No commissions for self-directed investing accounts $0 online commission for listed stocks and ETFs; US OTC equities $6.95
Regulators SEC, FINRA, SIPC SIPC, FDIC, CFTC, NFA
Best for Hands-off automated investors Investors who want brokerage, trading, and advice options
Markets & account
Stocks
ETFs
Forex
-
Crypto
Bonds
Options
-
Futures
-
Fractional Shares
Ready Made Portfolios
Investment Plans
-
Savings Vaults
-
Money Market Funds
Funds
-
Margin
-
Demo Account
-

Pros & cons

Betterment

Betterment

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
Charles Schwab

Charles Schwab

Pros

  • $0 online listed stock and ETF commissions reduce trading costs
  • $0 brokerage opening, maintenance, and account minimums
  • Stock Slices let clients buy S&P 500 fractional shares from $5
  • paperMoney offers simulated trading on thinkorswim platforms
  • Schwab Intelligent Portfolios has no advisory fee or commissions
  • Treasuries trade online for $0 commission
  • Investor Checking has no monthly service or foreign transaction fees

Cons

  • Options carry a $0.65 per-contract fee
  • Broker-assisted stock and ETF trades add a $25 service charge
  • US OTC equities cost $6.95 online
  • Other mutual funds can cost up to $74.95 per purchase
  • Stock Slices are limited to S&P 500 companies
  • Day trading on thinkorswim requires margin approval and $25,000 equity
  • Futures and forex accounts are not protected by SIPC
  • Direct crypto cannot currently be traded in a Schwab brokerage account
Betterment

Betterment

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

Visit Betterment Read review

Your capital is at risk. Other fees apply.

Charles Schwab

Charles Schwab

Charles Schwab combines $0 online listed stock and ETF commissions with thinkorswim platforms, fractional S&P 500 Stock Slices, and automated portfolios.

Visit Charles Schwab Read review

Your capital is at risk. Other fees apply.

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