Betterment Review: Robo-Advisor Pros And Cons

What Is Betterment?

Betterment was one of the first robo-advisor services. A robo-advisor is a hybrid of both a traditional brokerage account and a traditional financial advisor. It uses tools and automation to automatically set up and rebalance your portfolio. Betterment was founded in 2008 by Jon Stein and Eli Broverman. As of 2023, it had over 800,000 users and $40 Billion in assets.

We have named Betterment one of the best robo-advisors in our annual survey. In 2024, it acquired Marcus Invest by Goldman Sachs.

What Does It Offer? 

Here's a close look at the key products and services offered by Betterment:  

Automated Investing (Robo Advisor)

Betterment is best known for its robo-advisory service, an automated investing platform that helps you build and maintain a diversified portfolio without involving a human advisor. Portfolios are made up of low-cost ETFs and are automatically rebalanced over time, so it really is a hands-off investing solution. Betterment has built-in tax-efficient strategies, such as tax-loss harvesting and asset allocation. It's a great option for passive investors who are looking for a hands-off solution. 

You can open an account with no minimum deposit and start investing with as little as $10.  

Self-Directed Investing

Betterment now offers a self-directed investing platform, allowing investors to trade thousands of stocks and ETFs. The platform is commission-free and offers fractional shares. There is no minimum amount required. This self-directed option means that you could hold your managed investments alongside your stock portfolio, all under the same roof. 

Retirement Accounts

Betterment supports a wide variety of retirement accounts, including IRAs, 401(k)s and IRA Rollovers, Solo 401(k)s, and retirement planning tools. You can access personalized recommendations based on your investment timeline and your retirement goals. 

Crypto Investing

Betterment offers access to cryptocurrency portfolios (selected Bitcoin and Ethereum ETFs), though you cannot trade individual coins. This setup won't be suitable for dedicated crypto traders, but if you want a simple, diversified way to access the cryptocurrency market, this is an easy way to do it.

Bond Investing

Betterment offers limited exposure to fixed-income investments, through its Goldman Sachs Tax-Smart Bonds Portfolios, which comprises 100% short-term bond ETFs. 

Socially Responsible Investing

If investing in companies that align with your values is important to you, Betterment's Socially Responsible Investing (SRI) portfolios focus on environmental, social, and governance (ESG) criteria. These portfolios include a mix of stocks and bonds, and you can select portfolios that focus on climate, social, or broad impact. 

Betterment Checking

The Betterment Checking account is a free checking account that works seamlessly with Betterment's other products, including its Cash Reserve and robo-advisor. 

This account has a lot of great features:

• ATM fees reimbursed directly to your account worldwide, where Visa is accepted. 
• Visa foreign transaction fees reimbursed
• Mobile check deposit
• No monthly maintenance fees, no minimum balances, and no overdraft fees
• Checking is FDIC insured up to $250,000 (through NBKC Bank)

This account is comparable to some of the top free checking accounts currently out there.

Open a Betterment Checking account here >>

Betterment High-Yield Cash Reserve 

Betterment's High-Yield Cash Reserve is Betterment's cash account, where you can hold your uninvested cash. It offers an attractive return with no monthly fees. 

Currently, you can earn 3.25% APY, but there's an introductory offer that boosts it to 3.90% for the first three months. And deposits are insured by the FDIC up to $2 million. There is no minimum balance requirement, no monthly fees, and unlimited withdrawals. See how it compares on our list of the best high-yield savings accounts.

Open a Betterment Everyday account directly here >>

Betterment Premium

If you have a larger portfolio ($100k+) you can get access to Betterment's team of human advisors, for additional support. This Premium tier includes other perks too, such as a 0.25% boost on the Cash Reserve (3.50% total APY), a solo 401(k) with no annual account fee, and access to a securities-backed line of credit. It's all available for a 0.65% annual advisory fee. If you have a larger portfolio and more complex financial situation, the expert advice could be well worth the cost. 

Are there Any Fees? 

The fee structure for Betterment's managed investing portfolios is very straightforward, and is primarily based on a percentage of assets under management pricing model. For balances between $0 and $24k, you'll pay a $5 monthly fee. From $25k to $1MM, the annual fee is 0.25%. It drops to 0.15% until you hit $2MM, and then 0.10% for balances over $2MM. 

As mentioned, if you sign up for Betterment Premium, you'll pay a fee of 0.65%. 

How Does Betterment Compare?

Compared with other managed investing platforms, such as Wealthfront and Vanguard, Betterment stands out for its user experience and goal-based tools. If you're looking for more advanced automation features, like direct indexing at higher balances, you might want to consider Wealthfront. Those who prefer dealing with a well-established brand and want access to proprietary funds may prefer Vanguard. 

While Betterment has a lot going for it, it's not the only robo-advisor in town. It's on our list of the Best Robo-Advisors, but it has some close competition, so it's a good idea to look at alternatives before making your final decision. 

How Do I Open An Account? 

You can begin the account opening process by clicking on the Get Started button in the top right corner of the Betterment website. You'll be guided through a series of questions about your financial goals, timeline, and risk tolerance. Betterment will recommend a portfolio and investment plan based on your responses. Once your account is open, you'll be able to add money and start investing. 

How Do I Contact Betterment?

Betterment is primarily an automated investing platform, and as such, it tries to direct customers to non-personal support options whenever possible. This includes its online help center, which contains articles and FAQs. 

If you need to speak with a representative, you can call (718) 400-6898, Monday-Friday, 9:00 AM - 8:00 PM ET. If you're looking for 1:1 support from a Betterment advisor, consider signing up for Betterment Premium (see details above). 

Betterment Customer Service
Betterment's mobile app has high ratings, earning 4.7 out of 5 stars on the Google Play Store and 4.8 out of 5 stars on the Apple App Store, with thousands of reviews. The platform has a "Bad" rating of 1.5/5 based on 58 reviews on Trustpilot, and a 1.5/5 rating with 20 reviews on Better Business Bureau (BBB).

Is It Safe And Secure?

Yes, Betterment's website is secured by HTTPS encryption. It's servers are monitored 24 hours a day and are frequently subjected to internal and external security audits. It also offers two-factor authentication and safer connections to finance services through "App Passwords."

That covers Betterment's data security. But what about financial protection? Investment accounts are protected by SIPC insurance up to $250,000. And Betterment is able to offer up to $250,000 of FDIC insurance on Checking deposits and up to $1 million of FDIC insurance on Cash Reserve deposits through its program banks.

Why Should You Trust Us?

We've been writing about investing and have reviewed brokerage firms since 2009. When Betterment launched in 2009, we were among the first platforms to cover the "new" space of robo-advisors. And since then, we've reviewed most robo-advisor platforms in the United States.

Since then, we've regularly updated and tested the new features that Betterment has launched. Betterment is also consistently voted on by our readers each year in our survey of the best robo-advisors. Finally, our compliance team regularly checks and updates the rates in this review as needed.

Is It Worth It?

As one of the OG robo-advisory platforms, Betterment is an excellent choice for hands-off investors looking for a low-cost managed investing solution. I love that they have added self-directed trading, allowing you to hold a managed portfolio and trade stocks and ETFs all on the same platform. 

And for clients with larger portfolios, the ability to access Certified Financial Planners (CFPs) for expert human advice when needed is a nice option. Just be mindful of the additional cost. 

Get Started With Betterment>>.

Common Questions

Let's answer a few of the most commonly-asked questions about Betterment:

Can Betterment clients invest in individual stocks?

Yes. In addition to ETF portfolios that are customized to your risk tolerance and goals, Betterment now offers self-directed trading, where you can buy and sell thousands of individual stocks and ETFs, with available fractional shares. 

Can the weightings of Betterment portfolios be adjusted?

Yes, with Betterment's Flexible Portfolio options, you can modify the weights of each asset class or choose not to invest in certain classes.

What happens if Betterment goes out of business?

Betterment is an SIPC member broker, which means that client assets would be protected up to $500,000 ($250,000 maximum for cash) if it were to file for bankruptcy.

Does Betterment offer any fee-free accounts?

Yes, Betterment's Checking and Cash Reserve accounts do not come with any annual advisory fees or monthly maintenance fees. Its advice and planning tools are also accessible to everyone free of charge.

Does Betterment have any bonus offers or incentives?

You can find bonus offers for Betterment - which are typically having some of your portfolio managed for free for a certain period of time.

DISCLOSURES

Annual percentage yield (variable) is as of 06/22/2026. Cash Reserve is only available to clients of Betterment LLC, which is not a bank, and cash transfers to program banks are conducted through the clients’ brokerage accounts at Betterment Securities. {add hyperlink https://www.betterment.com/cash-reserve.

For Cash Reserve, Betterment LLC only receives compensation from our program banks; Betterment LLC and Betterment Securities do not charge fees on your Cash Reserve balance.

Checking accounts and the Betterment Visa Debit Card provided and issued by nbkc bank, Member FDIC. Checking made available through Betterment Financial LLC. Neither Betterment Financial LLC, nor any of their affiliates, is a bank. Betterment Financial LLC reimburses ATM fees and the Visa® 1% foreign transaction fee worldwide, everywhere Visa is accepted.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.