Personal Finance · head to head
Betterment vs Charles Schwab
The short version
- Each has a real cost: Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance; Charles Schwab broker-assisted trades cost $25 and automated phone trades cost $5 in addition to the standard $0 online commission, per the App Store listing for Schwab Mobile
- They diverge on capability: Betterment covers Automated investing, Charles Schwab covers Commission-free trading.
Where they differ
Only the attributes on which Betterment and Charles Schwab actually diverge.
| Attribute | Betterment | Charles Schwab |
|---|---|---|
| Starting price | $5/month | On request |
| Pricing model | subscription | transaction |
| Founded | 2008 | 1971 |
Identical on both: free tier (No), platforms (Web, iOS, Android), user rating (Not yet rated), category (Personal Finance).
What each one covers
Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.
Only in Betterment
- Automated investing
- Financial advisory
- Goal tracking
Only in Charles Schwab
- Commission-free trading
- Wealth management
- Research tools
Both cover
- Retirement planning
- Bank accounts
- Investment accounts
- Web support
- IOS support
- Android support
What people use each for
The jobs each tool is most often brought in to do.
Betterment
- Small investors starting with automated investing at no minimum balancenot Charles Schwab
- Fee-only digital wealth management for accounts under $24,000 via $5/month flat feenot Charles Schwab
- Premium advisory access for high-net-worth individuals with $100,000+ balancenot Charles Schwab
Charles Schwab
- Budget Managementnot Betterment
- Expense Trackingnot Betterment
- Investment Trackingnot Betterment
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
Betterment
- Digital automated investing charges $5 per month fee for accounts under $24,000 balance
- Premium advisory service requires minimum balance of $100,000 in eligible investments
- Foreign transaction fees apply to checking account (though reimbursed after the fact)
- High-balance fee discounts only available above $1,000,000 account balance
Charles Schwab
- Broker-assisted trades cost $25 and automated phone trades cost $5 in addition to the standard $0 online commission, per the App Store listing for Schwab Mobile
- Options trades carry a $0.65 per-contract fee on top of the $0 online commission, per the App Store listing for Schwab Mobile
Pricing, plan by plan
Betterment
$5/monthNo published plan breakdown. See the Betterment review.
Charles Schwab
On request- Individual BrokerageFree
- Commission-free trading
- Research tools
- Schwab Advisor Services$undefined/month
- All Brokerage features
- Wealth management
- Personal advisors
Which should you pick?
Choose Betterment if
- You need automated investing.
- You work on Web, iOS, Android.
- You also want financial advisory.
Choose Charles Schwab if
- You need commission-free trading.
- You work on Web, IOS, Android.
- You also want wealth management.
Questions people ask
- Is Betterment or Charles Schwab better?
- Neither clearly leads. Betterment starts at $5/month and Charles Schwab at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Betterment or Charles Schwab?
- Betterment starts at $5/month and Charles Schwab at On request.
- Does Betterment or Charles Schwab run on more platforms?
- Betterment runs on Web, iOS, Android. Charles Schwab runs on Web, IOS, Android.
- What is Betterment best used for?
- Betterment is most often used for small investors starting with automated investing at no minimum balance, fee-only digital wealth management for accounts under $24,000 via $5/month flat fee, premium advisory access for high-net-worth individuals with $100,000+ balance. Of those, small investors starting with automated investing at no minimum balance and fee-only digital wealth management for accounts under $24,000 via $5/month flat fee are not what Charles Schwab is typically brought in for.
- What can Betterment do that Charles Schwab cannot?
- Betterment covers Automated investing, Financial advisory, Goal tracking. Charles Schwab covers Commission-free trading, Wealth management, Research tools. Both handle Retirement planning, Bank accounts, Investment accounts, Web support.