Updated September 29, 2026 · BrokerCue Editorial Team
Betterment vs Robinhood
What sets them apart
| Compare |  Betterment |  Robinhood |
|---|---|---|
| Minimum deposit | $10 | $0Lower |
| Markets | Stocks, ETFs, Bonds | Stocks, ETFs, Options, Futures, Crypto |
| Regulators | U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member, SIPC | Bank of Lithuania (LSC), LT BL, SIPC |
| Investor protection | SIPC up to USD 500,000 | EU ICS up to EUR 20,000 |
| Deposit and withdrawal fees | No fees | $100 outgoing transfer |
| Account types | IRA, Roth IRA | IRA, Roth IRA, JointCovers more |
| Stock trade fee | Not confirmed | $0 |
| Inactivity fee | Not confirmed | $0 |
| Margin rate | Not confirmed | 3.95% |
| Options contract fee | Not confirmed | $0 |
| Platforms | Not confirmed | Robinhood app, Robinhood Legend |
| Maximum retail leverage | Not confirmed | 10X |
| Interest on cash | 3.5% | Not confirmed |
Same on both: Account fee ($0).
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
- Betterment scores higher overall: 9.6 vs 9.4.
- Regulators: only Betterment offers U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member.
- Regulators: only Robinhood offers Bank of Lithuania (LSC), LT BL.
- Founded is lower at Betterment: 2008 vs 2013.
- Robinhood is licensed in 1 more country.
- Minimum deposit is lower at Robinhood: $0 vs $10.
- Markets: only Betterment offers Bonds.
- Markets: only Robinhood offers Options, Futures, Crypto.
- Account types: only Robinhood offers Joint.
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.
Robinhood
Robinhood suits first-time investors and small, regular investors who want nothing charged for holding or trading. It is the cheapest way in on our data, with a minimum deposit of $0, no account fee and no inactivity charge, under the Bank of Lithuania and SIPC.
Score breakdown
| Area | Betterment | Robinhood |
|---|---|---|
| Cost | 9.3Management fee of 0.25% and no account fee, with a minimum investment of $10. | 9.6HigherStock trades cost $0, options contracts $0, the account fee is $0 and inactivity is $0. |
| Offer | 9.7Higher | 9.3 |
| Trust | 9.7Higher | 9.3 |
How they place
| Ranking | Betterment | Robinhood |
|---|---|---|
| Stock and ETF brokers | 33 of 490 | 13 of 490 |
| Investment platforms and apps | 6 of 85 | 1 of 85 |
| IRA providers | 4 of 43 | 1 of 43 |
Side by side, item by item
| Markets | Betterment | Robinhood |
|---|---|---|
| Stocks | Yes | Yes |
| ETFs | Yes | Yes |
| Options | No | Yes |
| Futures | No | Yes |
| Crypto | No | Yes |
| Bonds | Yes | No |
| Account types | Betterment | Robinhood |
|---|---|---|
| IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Joint | No | Yes |
Every fact side by side
| Fact | Betterment | Robinhood |
|---|---|---|
| Features | Not confirmed | Crypto, Fractional shares, Options, Futures, Mobile app |
| Pricing model | Not confirmed | Commission free, Low fees |
| Audience | Not confirmed | Beginners, Day traders |
| Legal entity | MTG LLC | Robinhood Europe UAB |
| Headquarters | United States | Lithuania |
| Founded | 2008Lower | 2013 |
| Support channels | Phone, Email, Chat, Help centre | Not confirmed |
Where each stands against the rest
| Fact | Betterment | Robinhood | Median |
|---|---|---|---|
| Minimum deposit | $10at the median | $0below the median | $10 |
| Stock trade fee | Not confirmed | $0at the median | $0 |
| Account fee | $0at the median | $0at the median | $0 |
| Inactivity fee | Not confirmed | $0at the median | $0 |
| Margin rate | Not confirmed | 3.95%lowest quarter | 8.79% |
| Options contract fee | Not confirmed | $0lowest quarter | $0.59 |
Median across 99 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
Robinhood
Pros
- Nothing to pay to open or hold an account, with an account fee of $0 and an inactivity fee of $0
- Trading a share costs $0, so a small first order is not eaten by commission
- You can start with a deposit of $0, lower than most brands on our data
Cons
- Leverage is available at 10X, which magnifies losses as well as gains
- Outgoing transfers carry a charge of $100 outgoing transfer
- Margin borrowing is priced at a margin rate of 3.95%, so interest adds to your cost
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
Robinhood
Who it suits
- Beginners opening a first account with a small deposit
- Day-traders working in options, futures and crypto on mobile
- Retirement investors using an IRA, Roth IRA or joint account
Who should look elsewhere
- Vantage if a flat minimum deposit of $5 suits you better
- CFI if you want forex and CFDs alongside shares, since its markets cover stocks, etfs and forex
- eToro if social copy trading matters more than options and futures
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 | Robinhood |
|---|---|---|
| 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.
Robinhood
What does it cost to trade shares on Robinhood?+
Trading a share costs $0, and an options contract costs $0. There is also an account fee of $0 and an inactivity fee of $0, so nothing is taken for simply holding the account open. Borrowing on margin is charged at a margin rate of 3.95%, which is the main running cost if you use leverage.
Is there a minimum deposit to open a Robinhood account?+
The minimum deposit is $0, so you can open an account and place a small first order without funding a large balance. It is worth comparing that with the deposits other brands ask for before you commit, since the figure varies widely across the market. Outgoing transfers are charged at $100 outgoing transfer, so factor that in if you plan to move money out early.
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