Updated September 29, 2026 · BrokerCue Editorial Team
Betterment vs Lightyear
What sets them apart
| Compare |  Betterment |  Lightyear |
|---|---|---|
| Minimum investment | $10 | €1 |
| Regulators | U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member, SIPC | Estonian Financial Supervision Authority, Estonian Financial Supervision Authority (EFSA) |
| Investor protection | SIPC up to USD 500,000 | EU ICS up to EUR 20,000 |
| Account types | IRA, Roth IRA | Corporate |
| Portfolio types | ETF, ESG, Cash, CryptoCovers more | ETF, Cash, Crypto |
| Management fee | 0.25% | Not confirmed |
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Key differences
- Betterment scores higher overall: 9.6 vs 8.9.
- Regulators: only Betterment offers U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member, SIPC.
- Regulators: only Lightyear offers Estonian Financial Supervision Authority, Estonian Financial Supervision Authority (EFSA).
- Account types: only Betterment offers IRA, Roth IRA.
- Account types: only Lightyear offers Corporate.
- Portfolio types: only Betterment offers ESG.
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.
Lightyear
Lightyear suits you if you want stocks, ETFs, bonds, funds and crypto in a place with clear upkeep costs and email based help. Your stock trades cost $1, account upkeep sits at €0 and inactivity stays at €0 while cover reaches EU ICS up to EUR 20,000.
Score breakdown
| Area | Betterment | Lightyear |
|---|---|---|
| Cost | 9.3HigherManagement fee of 0.25% and no account fee, with a minimum investment of $10. | 9.1Upkeep at €0 and inactivity at €0 with trades at $1 |
| Offer | 9.7Higher | 8.8Covers stocks, ETFs and crypto with fractional shares and crypto access for varied plans |
| Trust | 9.7Higher | 8.7Cover through EU ICS up to EUR 20,000 alongside Estonian supervision for reassurance |
What each covers
| Portfolio types | Betterment | Lightyear |
|---|---|---|
| ETF | Yes | Yes |
| ESG | Yes | No |
| Cash | Yes | Yes |
| Crypto | Yes | Yes |
| Account types | Betterment | Lightyear |
|---|---|---|
| IRA | Yes | No |
| Roth IRA | Yes | No |
| Corporate | No | Yes |
Where they rank in our lists
| Ranking | Betterment | Lightyear |
|---|---|---|
| Stock and ETF brokers | 33 of 490 | 29 of 490 |
| Robo-advisors | 9 of 153 | 6 of 153 |
Where these facts come from
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
Lightyear
- lightyear.com: 5 facts, checked September 26, 2026
Every fact side by side
| Fact | Betterment | Lightyear |
|---|---|---|
| Legal entity | MTG LLC | Not confirmed |
| Headquarters | United States | Not confirmed |
| Founded | 2008 | Not confirmed |
| Support channels | Phone, Email, Chat, Help centre | Not confirmed |
Brokers
| Fact | Betterment | Lightyear |
|---|---|---|
| Minimum deposit | $10 | Not confirmed |
| Stock trade fee | Not confirmed | $1 |
| Account fee | $0 | €0 |
| Inactivity fee | Not confirmed | €0 |
| Markets | Stocks, ETFs, Bonds | Stocks, ETFs, Crypto, Bonds, FundsCovers more |
| Features | Not confirmed | Crypto, Fractional shares |
| Pricing model | Not confirmed | Low fees |
| Currency conversion fee | Not confirmed | 0.35% |
| Deposit and withdrawal fees | No fees | Free bank transfers in and out |
| Interest on cash | 3.5%Higher | 2.42% |
Where each stands against the rest
| Fact | Betterment | Lightyear | Median |
|---|---|---|---|
| Management fee | 0.25%below the median | Not confirmed | 0.35% |
Median across 67 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
Lightyear
Pros
- Account upkeep at €0 and inactivity at €0 keep quiet months calm
- You can hold stocks, ETFs and crypto with fractional shares available for smaller positions
- You can begin from €1, below many peers, with cash interest at 2.42%
Cons
- Stock trades at $1 look pricey beside ActivTrades at $0 for frequent equity orders
- Currency conversion at 0.35% adds cost when you trade outside your base currency
- Support runs on email and help centre only, so you use email and help centre without phone or chat
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
Lightyear
Who it suits
- You want upkeep at €0 and inactivity at €0 and prefer XTB only if ticket fees matter more
- You seek stocks, ETFs and crypto from modest sums starting at €1 rather than eToro style ranged pricing
Who should look elsewhere
- You trade stocks very often and want ticket fees of $0 from ActivTrades rather than fees of $1
- You want phone or chat help rather than help on email and help centre, so XTB may suit you better
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
| Country | Betterment | Lightyear |
|---|---|---|
| United States | Yes | No |
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.
Lightyear
What will I pay to trade stocks and keep the account open?+
Stock orders carry fees of $1. Account upkeep sits at €0 and inactivity stays at €0. Currency conversion applies at 0.35% when your trade currency differs from your account currency.
Who regulates Lightyear and where can I check it?+
Lightyear names Estonian Financial Supervision Authority and Estonian Financial Supervision Authority (EFSA) as its supervisors. Oversight sits in Estonia under MiCA CASP 254900BBBJZF2IE8EN54. You can check the licence details on the relevant public register before you fund an account.
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