Softwr

Software · head to head

Betterment vs Wealthfront

Betterment logo

Betterment

Software

Your path to financial independence

From
$5/month
Rated
-
Full reviewWebsite
Wealthfront logo

Wealthfront

Software

Automated investing for your money

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; Wealthfront the Automated Investing Account carries a 0.25% annual advisory fee on top of the underlying fund expenses
  • They diverge on capability: Betterment covers Automated investing, Wealthfront covers Automated portfolio management.

Where they differ

Only the attributes on which Betterment and Wealthfront actually diverge.

Attributes where Betterment and Wealthfront differ
AttributeBettermentWealthfront
Starting price$5/monthOn request
Pricing modelsubscriptiontransaction
Founded20082011

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

Only in Wealthfront

  • Automated portfolio management
  • Tax-loss harvesting
  • Financial planning
  • Index fund investing

Both cover

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

Wealthfront

  • Automated index fund investing with periodic rebalancingnot Betterment
  • Tax loss harvesting in a taxable brokerage accountnot Betterment
  • Buying fractional shares of individual stocks with no commissionnot 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

Wealthfront

  • The Automated Investing Account carries a 0.25% annual advisory fee on top of the underlying fund expenses
  • Tax-Loss Harvesting and automated rebalancing apply to the Automated Investing Account, not the self-directed Stock Investing Account
  • It is a US brokerage product and is not offered to investors outside the United States

Pricing, plan by plan

Betterment

$5/month

No published plan breakdown. See the Betterment review.

Wealthfront

On request
  • BasicFree
    • Automated investing
    • Tax-loss harvesting
    • Rebalancing
  • Premium Plus$50/month
    • All Basic features
    • Financial planning
    • Human advisor access

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 Wealthfront if

  • You need automated portfolio management.
  • You work on Web, IOS, Android.
  • You also want tax-loss harvesting.
Wealthfront review

Questions people ask

Is Betterment or Wealthfront better?
Neither clearly leads. Betterment starts at $5/month and Wealthfront at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Betterment or Wealthfront?
Betterment starts at $5/month and Wealthfront at On request.
Does Betterment or Wealthfront run on more platforms?
Betterment runs on Web, iOS, Android. Wealthfront 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 Wealthfront is typically brought in for.
What can Betterment do that Wealthfront cannot?
Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. Wealthfront covers Automated portfolio management, Tax-loss harvesting, Financial planning, Index fund investing. Both handle Bank accounts, Investment accounts, Web support, IOS support.
ShareXLinkedInRedditWhatsAppEmail

Related pages

More on Betterment

More on Wealthfront

Keep looking

Other head to heads