Updated October 13, 2026 · BrokerCue Editorial Team

Betterment vs Frec

Two brokers side by side: recorded fees, markets, regulation and platforms for Betterment and Frec, from the same records as each review.

Betterment

9.6/10

Facts checked September 26, 2026.

Frec

Facts checked September 26, 2026.

Where Betterment and Frec differ

Betterment vs Frec
Compare
BettermentBetterment
ReviewSee alternativesSee alternatives
FrecFrec
ReviewSee alternativesSee alternatives
Management fee0.25%0.09% to 1.3%Lower
Minimum investment$10Lower$20,000 to $500,000
RegulatorsU.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member, SIPCCovers moreSIPC
Account typesIRA, Roth IRAJoint, Corporate
Portfolio typesETF, ESG, Cash, CryptoCovers moreETF, Cash

Same on both: Investor protection (SIPC up to USD 500,000).

We earn a commission when you sign up through links on this site. Partner status can affect where a brand appears in our rankings.

Key differences

  • Regulators: only Betterment offers U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member.
  • Management fee is lower at Frec: 0.09% to 1.3% vs 0.25%.
  • Minimum investment is lower at Betterment: $10 vs $20,000 to $500,000.
  • Account types: only Betterment offers IRA, Roth IRA.
  • Account types: only Frec offers Joint, Corporate.
  • Portfolio types: only Betterment offers ESG, Crypto.
  • Support channels: only Betterment offers Phone, Chat.
  • Support channels: only Frec offers Community.

Our verdict on each

Betterment

Betterment suits US savers who want a robo-managed IRA with a flat, low management fee and SIPC cover. It charges a management fee of 0.25%, sits mid-table among robo-advisors on that fee, and offers only IRA and Roth IRA accounts, so UK and European readers may look elsewhere.

Read the full Betterment review

Frec

Frec provides direct indexing that buys index stocks directly with automated tax loss harvesting and personalised mixes. For people focused on tax aware market returns, it brings index tracking, long short methods and concentrated stock diversification together.

Read the full Frec review

Score breakdown

Betterment vs Frec
AreaBettermentFrec
Cost9.3Management fee of 0.25% and no account fee, with a minimum investment of $10.Not confirmed
Offer9.7Higher9.3
Trust9.7Higher8.6

Feature by feature

Betterment vs Frec
Portfolio typesBettermentFrec
ETFYesYes
ESGYesNo
CashYesYes
CryptoYesNo
Betterment vs Frec
Account typesBettermentFrec
IRAYesNo
Roth IRAYesNo
JointNoYes
CorporateNoYes

If neither fits

Empower Personal Dashboard has minimum investment at $0, against $10 for Betterment and $20,000 to $500,000 for Frec.

Empower Personal Dashboard review

Sources behind this comparison

Betterment

  • betterment.com: 8 facts, checked September 26, 2026
  • en.wikipedia.org: 1 fact, checked September 26, 2026
  • sipc.org: 1 fact, checked September 26, 2026

Frec

  • frec.com: 4 facts, checked September 26, 2026
  • sipc.org: 3 facts, checked September 26, 2026
  • help.frec.com: 1 fact, checked September 26, 2026

How they place

Betterment vs Frec
RankingBettermentFrec
Stock and ETF brokers42 of 471321 of 471
Robo-advisors10 of 151110 of 151

Every fact side by side

Betterment vs Frec
FactBettermentFrec
Legal entityMTG LLCFREC SECURITIES LLC
HeadquartersUnited StatesNot confirmed
Founded2008Not confirmed
Support channelsPhone, Email, Chat, Help centreEmail, Help centre, Community

Brokers

Betterment vs Frec
FactBettermentFrec
Minimum deposit$10Not confirmed
Account fee$0Not confirmed
MarketsStocks, ETFs, BondsNot confirmed
Deposit and withdrawal feesNo feesNot confirmed
Interest on cash3.5%Not confirmed

Where each stands against the rest

Betterment vs Frec
FactBettermentFrecMedian
Management fee0.25%below the median0.09% to 1.3%lowest quarter0.345%
Minimum investment$10below the median$20,000 to $500,000highest quarter$300

Median across 86 listed brokers.

Pros and cons

Betterment

Pros

  • A management fee of 0.25% sits below the robo-advisor median of 0.35%
  • An account fee of $0 and a deposit and withdrawal charge listed as No fees
  • Covered by SIPC protection of SIPC up to USD 500,000

Cons

  • Account types run only to ira and roth ira, so there is no taxable or ISA-style account for UK and European readers
  • A management fee of 0.25% still ranks 18 of 49 brands, so cheaper robo-advisors exist
  • Markets cover only stocks, etfs and bonds, with no forex, options or crypto trading

Frec

Pros

  • Direct indexing built around tax aware market exposure
  • Automated tax loss harvesting with no added effort
  • Multiple indices combined into one personalised portfolio

Cons

  • Focus on index tracking limits appeal for active stock pickers
  • Tax aware approach adds layers for people seeking plain market exposure
  • Personalisation stays tied to index structures rather than open choice

Who each suits

Betterment

Who it suits

  • US savers who want a robo-managed IRA or Roth IRA
  • People starting small, with a minimum investment of $10
  • Investors who want automated portfolios of etf, esg and cash

Who should look elsewhere

  • UK and European readers, since account types cover only ira and roth ira
  • Active traders wanting forex, options or crypto beyond the stocks, etfs and bonds it lists
  • Anyone seeking a management fee of 0% as at eToro

Frec

Who it suits

  • Investors interested in tax aware indexing
  • Holders of concentrated stocks seeking diversification
  • People wanting a personalised index portfolio

Who should look elsewhere

  • People wanting active stock picking
  • People wanting a pooled fund only

Current offers

Betterment

Current offer

  • Bonus

    Invest and earn up to $2,000: up to $2,000

    Terms apply; new customers only; open any individual investing account and make a deposit

    Source, checked September 26, 2026

  • Bonus

    0.75% APY boost on Cash Reserve: 0.75% APY boost, 4.25% variable APY on balances up to $1M

    New clients with a qualifying deposit; guaranteed through February 15; base variable APY 3.50% as of 9/21/2026; $10 min deposit for base APY

    Source, checked September 26, 2026

  • Discount code

    Discounted mortgage rate through Rate partnership: up to 0.75% off

    Via partnership with Rate; terms apply

    Source, checked September 26, 2026

Country by country

Betterment vs Frec
CountryBettermentFrec
United StatesYesYes

Questions about each

Betterment

How much does Betterment charge to manage my money?+

The annual management fee is 0.25%, taken as a percentage of the portfolio. That sits below the robo-advisor median of 0.35%, and Betterment ranks 18 of 49 brands on this measure. There is no separate account charge, listed as $0.

Is my money protected if Betterment fails?+

Stated protection is SIPC up to USD 500,000, and Betterment appears on the SIPC member register as SIPC member 51906. The cover applies to cash in the brokerage account if the broker-dealer fails, and the legal entity named is MTG LLC. Portfolio market values are not protected by the scheme.

Frec

What does Frec offer?+

Frec offers direct indexing that holds the underlying stocks of an index rather than a pooled fund. You can spread across multiple indices and shape the mix around your preferences.

How does direct indexing aim to help with taxes?+

Direct indexing can sell weaker holdings and replace them with similar stocks to keep index exposure. You keep market participation while the realised losses can be used to offset gains elsewhere.

Other options to compare

Betterment

Betterment

Higher score in this comparison

9.6/10See alternatives

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