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Personal Finance · head to head

Betterment vs Fidelity

Betterment logo

Betterment

Personal Finance

Your path to financial independence

From
On request
Rated
-
Full reviewWebsite
Fidelity logo

Fidelity

Personal Finance

Building a better financial future

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; Fidelity options trades carry a 0.65 USD per contract fee on top of zero commission
  • They diverge on capability: Betterment covers Automated investing, Fidelity covers Commission-free trading.
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which Betterment and Fidelity actually diverge.

Attributes where Betterment and Fidelity differ
AttributeBettermentFidelity
Pricing modelsubscriptiontransaction
Founded20081946

Identical on both: starting price (On request), 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 Fidelity

  • Commission-free trading
  • Advisory services
  • 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

  • Automated portfolio managementnot Fidelity
  • High-yield cash savingsnot Fidelity
  • Self-directed investingnot Fidelity

Fidelity

  • Commission free trading of US stocks and ETFsnot Betterment
  • Holding IRAs, 401(k) plans and taxable brokerage accountsnot Betterment
  • Trading bonds, options and mutual funds from one accountnot 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

Fidelity

  • Options trades carry a 0.65 USD per contract fee on top of zero commission
  • Non Fidelity mutual funds carry a 49.95 USD transaction fee per purchase
  • Secondary market bonds cost 1.00 USD per bond, while new issues are free
  • A foreign settlement fee of 50 USD applies per trade
  • Margin rates are tiered by debit balance, from 11.825 percent below 25,000 USD down to 7.50 percent at 1 million USD or more, against a base rate of 10.575 percent effective 12 December 2025
  • Margin liquidation by the broker costs 32.95 USD per liquidation

Pricing, plan by plan

Betterment

On request
  • Automated Investing$null/month
    • AUM-based or flat monthly advisory fees
  • Premium Service$0.4/percent of AUM
    • Requires $100,000 minimum balance
  • Self-Directed InvestingFree
    • No wrap fee
  • High-Yield Cash$4/APY promotional
    • $10 minimum deposit
    • New customer boost through 1/15/2027

Fidelity

On request
  • Brokerage$undefined/month
    • Commission-free trading
    • Research tools
  • Advisory$undefined/month
    • Personal advisor
    • Wealth management

Which should you pick?

Choose Betterment if

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

Choose Fidelity if

  • You need commission-free trading.
  • You work on Web, IOS, Android.
  • You also want advisory services.
Fidelity review

Questions people ask

Is Betterment or Fidelity better?
Neither clearly leads. Betterment starts at On request and Fidelity at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Betterment or Fidelity?
Betterment starts at On request and Fidelity at On request.
Does Betterment or Fidelity run on more platforms?
Betterment runs on Web, iOS, Android. Fidelity runs on Web, IOS, Android.
What is Betterment best used for?
Betterment is most often used for automated portfolio management, high-yield cash savings, self-directed investing. Of those, automated portfolio management and high-yield cash savings are not what Fidelity is typically brought in for.
What can Betterment do that Fidelity cannot?
Betterment covers Automated investing, Financial advisory, Goal tracking. Fidelity covers Commission-free trading, Advisory services, Research tools. Both handle Retirement planning, Bank accounts, Investment accounts, Web support.

Answered from the vendors’ own pages

Betterment: What is the minimum to start investing with Betterment?

Betterment requires only $10 to open an account and begin either automated or self-directed investing.

Source
Betterment: How much does Betterment's Premium Service cost?

Premium Service charges an additional 0.40% fee on your invested balances and requires a minimum account balance of $100,000.

Source
Betterment: What APY does Betterment's High-Yield Cash offer?

High-Yield Cash offers 3.25% base APY plus a new customer boost of 0.75% APY (up to $1M) through January 15, 2027, totaling 4.00% promotional APY.

Source
Betterment: Does Betterment charge a wrap fee on self-directed accounts?

No, Betterment waives its wrap fee for self-directed investing accounts, allowing customers to invest without advisory fees.

Source
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