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Betterment vs E*TRADE

Betterment logo

Betterment

Software

Your path to financial independence

From
$5/month
Rated
-
Full reviewWebsite
E*TRADE logo

E*TRADE

Software

Express your investing style

From
On request
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance; E*TRADE stock and ETF trades were $0 commission but options carried a $0.65 per-contract fee, broker-assisted trades added a $25 surcharge, and margin interest rates ranged from 12.70% to 13.20% depending on balance tier (Internet Archive capture, 3 January 2023)
  • They diverge on capability: Betterment covers Automated investing, E*TRADE covers Advanced trading tools.

Where they differ

Only the attributes on which Betterment and E*TRADE actually diverge.

Attributes where Betterment and E*TRADE differ
AttributeBettermentE*TRADE
Starting price$5/monthOn request
Pricing modelsubscriptiontransaction
Founded20081956

Identical on both: free tier (No), platforms (Web, iOS, Android), user rating (Not yet rated), category (Unknown).

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
  • Retirement planning
  • Financial advisory
  • Goal tracking
  • Investment accounts

Only in E*TRADE

  • Advanced trading tools
  • Options and futures
  • Research tools
  • Mobile trading
  • Wire transfers

Both cover

  • Bank 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 E*TRADE
  • Fee-only digital wealth management for accounts under $24,000 via $5/month flat feenot E*TRADE
  • Premium advisory access for high-net-worth individuals with $100,000+ balancenot E*TRADE

E*TRADE

  • 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

E*TRADE

  • Stock and ETF trades were $0 commission but options carried a $0.65 per-contract fee, broker-assisted trades added a $25 surcharge, and margin interest rates ranged from 12.70% to 13.20% depending on balance tier (Internet Archive capture, 3 January 2023)

Pricing, plan by plan

Betterment

$5/month

No published plan breakdown. See the Betterment review.

E*TRADE

On request
  • Stock & ETF TradingFree
    • Commission-free trades
    • Real-time quotes
  • Advanced Trading$undefined/month
    • All Stock & ETF features
    • Options, futures
    • Advanced tools

Which should you pick?

Choose Betterment if

  • You need automated investing.
  • You work on Web, iOS, Android.
  • You also want retirement planning.
Betterment review

Choose E*TRADE if

  • You need advanced trading tools.
  • You work on Web, IOS, Android.
  • You also want options and futures.
E*TRADE review

Questions people ask

Is Betterment or E*TRADE better?
Neither clearly leads. Betterment starts at $5/month and E*TRADE at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Betterment or E*TRADE?
Betterment starts at $5/month and E*TRADE at On request.
Does Betterment or E*TRADE run on more platforms?
Betterment runs on Web, iOS, Android. E*TRADE 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 E*TRADE is typically brought in for.
What can Betterment do that E*TRADE cannot?
Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. E*TRADE covers Advanced trading tools, Options and futures, Research tools, Mobile trading. Both handle Bank accounts, Web support, IOS support, Android support.
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