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Personal Finance · head to head

Betterment vs Charles Schwab

Betterment logo

Betterment

Personal Finance

Your path to financial independence

From
On request
Rated
-
Charles Schwab logo

Charles Schwab

Personal Finance

Investing made simple

From
On request
Rated
-

The short version

  • Each has a real cost: Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance; Charles Schwab broker-assisted trades cost $25 and automated phone trades cost $5 in addition to the standard $0 online commission, per the App Store listing for Schwab Mobile
  • They diverge on capability: Betterment covers Automated investing, Charles Schwab 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 Charles Schwab actually diverge.

Attributes where Betterment and Charles Schwab differ
AttributeBettermentCharles Schwab
Pricing modelsubscriptiontransaction
Founded20081971

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 Charles Schwab

  • Commission-free trading
  • Wealth management
  • 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 Charles Schwab
  • High-yield cash savingsnot Charles Schwab
  • Self-directed investingnot Charles Schwab

Charles Schwab

  • 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

Charles Schwab

  • Broker-assisted trades cost $25 and automated phone trades cost $5 in addition to the standard $0 online commission, per the App Store listing for Schwab Mobile
  • Options trades carry a $0.65 per-contract fee on top of the $0 online commission, per the App Store listing for Schwab Mobile

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

Charles Schwab

On request
  • Individual BrokerageFree
    • Commission-free trading
    • Research tools
  • Schwab Advisor Services$undefined/month
    • All Brokerage features
    • Wealth management
    • Personal advisors

Which should you pick?

Choose Betterment if

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

Choose Charles Schwab if

  • You need commission-free trading.
  • You work on Web, IOS, Android.
  • You also want wealth management.

Questions people ask

Is Betterment or Charles Schwab better?
Neither clearly leads. Betterment starts at On request and Charles Schwab at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Betterment or Charles Schwab?
Betterment starts at On request and Charles Schwab at On request.
Does Betterment or Charles Schwab run on more platforms?
Betterment runs on Web, iOS, Android. Charles Schwab 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 Charles Schwab is typically brought in for.
What can Betterment do that Charles Schwab cannot?
Betterment covers Automated investing, Financial advisory, Goal tracking. Charles Schwab covers Commission-free trading, Wealth management, 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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