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Betterment vs FTX

Betterment logo

Betterment

Software

Your path to financial independence

From
$5/month
Rated
-
Full reviewWebsite
F

FTX

Software

Cryptocurrency derivatives exchange

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only FTX has a free tier, so it costs nothing to try first.
  • Each has a real cost: Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance; FTX the exchange collapsed and FTX Trading Ltd filed for Chapter 11 bankruptcy protection on 11 November 2022
  • They diverge on capability: Betterment covers Automated investing, FTX covers Futures Trading.

Where they differ

Only the attributes on which Betterment and FTX actually diverge.

Attributes where Betterment and FTX differ
AttributeBettermentFTX
Starting price$5/monthFree
Pricing modelsubscriptionfreemium
Free tierNoYes
Founded20082019

Identical on both: 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
  • Bank accounts
  • Investment accounts
  • IOS support

Only in FTX

  • Futures Trading
  • Options
  • Leveraged Tokens
  • Spot Trading
  • FTT Token
  • Serum DEX
  • Ios support

Both cover

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

FTX

  • Exchangesnot Betterment
  • Derivativesnot Betterment
  • Tradingnot 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

FTX

  • The exchange collapsed and FTX Trading Ltd filed for Chapter 11 bankruptcy protection on 11 November 2022
  • Around 130 affiliated companies including Alameda Research entered the same proceedings, with more than 100,000 creditors and assets and liabilities each between $10 billion and $50 billion
  • Founder Sam Bankman-Fried resigned as CEO on the filing and was replaced by John J. Ray III
  • It is not a service anyone can sign up for; the estate exists to repay creditors

Pricing, plan by plan

Betterment

$5/month

No published plan breakdown. See the Betterment review.

FTX

Free
  • StandardFree
    • Spot trading
    • Futures
    • Options

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 FTX if

  • You need futures trading.
  • You want to start without paying.
  • You work on Web, Ios, Android.
  • You also want options.
FTX review

Questions people ask

Is Betterment or FTX better?
Neither clearly leads. Betterment starts at $5/month and FTX at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Betterment or FTX?
FTX has a free tier; the other does not. Paid plans start at $5/month for Betterment and Free for FTX.
Does Betterment or FTX run on more platforms?
Betterment runs on Web, iOS, Android. FTX runs on Web, Ios, Android.
Can I use FTX for free?
Yes. FTX has a free tier, so you can try it without paying. Betterment starts at $5/month.
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 FTX is typically brought in for.
What can Betterment do that FTX cannot?
Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. FTX covers Futures Trading, Options, Leveraged Tokens, Spot Trading. Both handle Web support, Android support.

Answered from the vendors’ own pages

FTX: What happened to FTX?

FTX filed for bankruptcy on November 11, 2022, after revelations about Alameda Research's massive holdings of FTX's token (FTT) triggered a liquidity crisis. The platform collapsed within days as a competing rescue deal fell through.

Source
FTX: Can I recover funds from FTX bankruptcy?

FTX has been in Chapter 11 bankruptcy proceedings since November 11, 2022. Customer funds have been subject to claims through the bankruptcy process, with asset recovery efforts ongoing.

Source
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