Softwr

Personal Finance · head to head

Betterment vs Robinhood

Betterment logo

Betterment

Personal Finance

Your path to financial independence

From
On request
Rated
-
Full reviewWebsite
Robinhood logo

Robinhood

Personal Finance

Investing for everyone

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only Robinhood 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; Robinhood robinhood Gold costs 5 USD a month after a 30 day free trial
  • They diverge on capability: Betterment covers Automated investing, Robinhood 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 Robinhood actually diverge.

Attributes where Betterment and Robinhood differ
AttributeBettermentRobinhood
Starting priceOn requestFree
Pricing modelsubscriptionfreemium
Free tierNoYes
Founded20082013

Identical on both: 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
  • Retirement planning
  • Financial advisory
  • Goal tracking
  • Investment accounts

Only in Robinhood

  • Commission-free trading
  • Options trading
  • Crypto trading
  • Fractional shares
  • Crypto wallets

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

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

Robinhood

  • Commission free trading of US stocks and ETFs from a phonenot Betterment
  • Options and futures trading for retail investorsnot Betterment
  • Holding an IRA with a contribution matchnot 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

Robinhood

  • Robinhood Gold costs 5 USD a month after a 30 day free trial
  • The 3.35 percent APY on brokerage cash is available only to Gold subscribers
  • The 3 percent IRA contribution match requires keeping the Gold subscription for one year and leaving the assets in the IRA for five years, and is capped at 225 USD against 2026 contribution maximums
  • Reduced contract fees of 0.50 USD per futures contract and 0.35 USD per index option apply only to Gold subscribers
  • Management fees are waived only above 100K USD in expert managed portfolios

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

Robinhood

Free
  • FreeFree
    • Commission-free trading
    • Real-time data
    • Mobile app
  • Gold$4.99/month
    • All Free features
    • Extended hours trading
    • Premium research

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 Robinhood if

  • You need commission-free trading.
  • You want to start without paying.
  • You work on Web, IOS, Android.
  • You also want options trading.
Robinhood review

Questions people ask

Is Betterment or Robinhood better?
Neither clearly leads. Betterment starts at On request and Robinhood at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Betterment or Robinhood?
Robinhood has a free tier; the other does not. Paid plans start at On request for Betterment and Free for Robinhood.
Does Betterment or Robinhood run on more platforms?
Betterment runs on Web, iOS, Android. Robinhood runs on Web, IOS, Android.
Can I use Robinhood for free?
Yes. Robinhood has a free tier, so you can try it without paying. Betterment starts at On request.
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 Robinhood is typically brought in for.
What can Betterment do that Robinhood cannot?
Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. Robinhood covers Commission-free trading, Options trading, Crypto trading, Fractional shares. Both handle Bank accounts, Web support, IOS support, Android 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
Robinhood: What is the minimum amount needed to open a Robinhood account?

You can get started with as little as $1.

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
Robinhood: What does Robinhood Gold cost and what does it include?

Robinhood Gold is $5 per month and includes zero management fees on portfolios exceeding $100,000 through Robinhood Strategies.

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
Robinhood: Are there trading commissions on Robinhood?

Robinhood offers 24/5 commission-free stock and ETF trading. Other fees may apply to your brokerage account as detailed in the RHF Fee Schedule.

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
Robinhood: What cash back rate does Robinhood's credit card offer?

The Robinhood Agentic Credit Card offers 3% cash back on purchases.

Source
Robinhood: How much FDIC insurance coverage do Robinhood Cash Card accounts have?

Cash Card accounts are covered up to $250,000 through FDIC insurance via Sutton Bank.

Source
Share

Related pages

More on Betterment

More on Robinhood

Keep looking

Other head to heads