Updated October 13, 2026 · BrokerCue Editorial Team
Finhabits vs Frec
Finhabits vs Frec: the differences
| Compare |  Finhabits |  Frec |
|---|---|---|
| Management fee | 1% | 0.09% to 1.3%Lower |
| Regulators | U.S. Securities and Exchange Commission (SEC) | SIPC |
| Account types | IRA, Roth IRA | Joint, Corporate |
| Portfolio types | ETF | ETF, CashCovers more |
| Minimum investment | Not confirmed | $20,000 to $500,000 |
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 Finhabits offers U.S. Securities and Exchange Commission (SEC).
- Regulators: only Frec offers SIPC.
- Management fee is lower at Frec: 0.09% to 1.3% vs 1%.
- Account types: only Finhabits offers IRA, Roth IRA.
- Account types: only Frec offers Joint, Corporate.
- Portfolio types: only Frec offers Cash.
- Support channels: only Finhabits offers Phone.
- Support channels: only Frec offers Community.
Our verdict on each
Finhabits
Finhabits is a US robo-advisor built for beginners, opening at a minimum deposit of $0 and running managed stocks and etfs portfolios under US regulation. The trade-off is the $120 account fee, which sits on top of the 1% management fee.
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.
Score breakdown
| Area | Finhabits | Frec |
|---|---|---|
| Cost | 8.1Management fee of 1% against a 0.35% median here, plus an account fee of $120 and a minimum deposit of $0. | Not confirmed |
| Offer | 8.9 | 9.3Higher |
| Trust | 8.7Higher | 8.6 |
Positions in our rankings
| Ranking | Finhabits | Frec |
|---|---|---|
| Stock and ETF brokers | 213 of 471 | 321 of 471 |
| Robo-advisors | 93 of 151 | 110 of 151 |
Availability and regulation
| Country | Finhabits | Frec |
|---|---|---|
| United States | SIPC SIPC member 70797 |
Available in 1 country for both.
Also worth a look
eToro has management fee at 0%, against 1% for Finhabits and 0.09% to 1.3% for Frec.
eToro reviewSources behind this comparison
Finhabits
- finhabits.com: 7 facts, checked September 26, 2026
- flexoffers.com: 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
Every fact side by side
| Fact | Finhabits | Frec |
|---|---|---|
| Legal entity | Finhabits, Inc. | FREC SECURITIES LLC |
| Headquarters | United States | Not confirmed |
| Support channels | Email, Phone, Help centre | Email, Help centre, Community |
Brokers
| Fact | Finhabits | Frec |
|---|---|---|
| Minimum deposit | $0 | Not confirmed |
| Account fee | $120 | Not confirmed |
| Markets | Stocks, ETFs | Not confirmed |
| Features | Mobile app | Not confirmed |
| Audience | Beginners | Not confirmed |
Where each stands against the rest
| Fact | Finhabits | Frec | Median |
|---|---|---|---|
| Management fee | 1%highest quarter | 0.09% to 1.3%lowest quarter | 0.345% |
| Minimum investment | Not confirmed | $20,000 to $500,000highest quarter | $300 |
Median across 86 listed brokers.
Pros and cons
Finhabits
Pros
- Regulated by the U.S. Securities and Exchange Commission, with investor protection listed as SIPC up to USD 500,000.
- Support runs on email, phone and help centre, so help is easy to reach.
- The portfolio build is etf focused, with picks made for you across stocks and etfs.
Cons
- The $120 account fee is the sting, sitting on top of the 1% management fee.
- The range is limited to stocks and etfs, so there is no wider asset choice.
- Account types come down to ira and roth ira options at a brand based in the United States.
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
Finhabits
Who it suits
- US beginners, since the service is built for beginners.
- Savers who want the holdings chosen for them across stocks and etfs.
- People already investing for retirement, matching the ira and roth ira list.
Who should look elsewhere
- Readers who want to pay nothing on management can start with eToro, where the fee is 0%.
- Anyone after a wider fee band should look at Vivid Standard, at 0.5% to 1.5%.
- Investors who treat the protection scheme as the deciding factor can also check Axos Invest, which names SIPC.
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
Country by country
| Country | Finhabits | Frec |
|---|---|---|
| United States | Yes | Yes |
Questions about each
Finhabits
What does Finhabits cost to run an account?+
Finhabits charges a management fee of 1% on the portfolio and an account fee of $120. The account fee is the part to watch, since it is a flat charge on top of the percentage. The median management fee across the robo-advisors compared here is 0.35%.
How much do I need to put in before I can start?+
The minimum deposit is $0, so there is no floor to clear before saving begins. Accounts come as ira and roth ira options, which decides the wrapper you hold. The listed feature is mobile app, so the app is the main way in.
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
Other matchups
- Finhabits vs Fidelity
- Finhabits vs Moneybox
- Finhabits vs ChoiceTrade
- Finhabits vs Firstrade
- Finhabits vs Smartbroker
- Finhabits vs Charles Schwab
- Finhabits vs bevestor
- Finhabits vs Ally Bank
- Finhabits vs Evergreen GmbH
- Finhabits vs Exness
- Finhabits vs InvestEngine
- Finhabits vs Moneyfarm
- Finhabits vs ActivTrades
- Finhabits vs XTB
- Finhabits vs eToro
- Finhabits vs Mintos
- Finhabits vs Robinhood
- Finhabits vs Kraken
- Finhabits vs EBC Financial Group
- Finhabits vs Revolut UK
- Finhabits vs Lightyear