Personal Finance · head to head
Charles Schwab vs Betterment
The short version
- Each has a real cost: 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; Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance
- They diverge on capability: Charles Schwab covers Commission-free trading, Betterment covers Automated investing.
Where they differ
Only the attributes on which Charles Schwab and Betterment actually diverge.
| Attribute | Charles Schwab | Betterment |
|---|---|---|
| Starting price | On request | $5/month |
| Pricing model | transaction | subscription |
| Founded | 1971 | 2008 |
Identical on both: 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 Charles Schwab
- Commission-free trading
- Wealth management
- Research tools
Only in Betterment
- Automated investing
- Financial advisory
- Goal tracking
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.
Charles Schwab
- Budget Managementnot Betterment
- Expense Trackingnot Betterment
- Investment Trackingnot Betterment
Betterment
- Small investors starting with automated investing at no minimum balancenot Charles Schwab
- Fee-only digital wealth management for accounts under $24,000 via $5/month flat feenot Charles Schwab
- Premium advisory access for high-net-worth individuals with $100,000+ balancenot Charles Schwab
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
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
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 $1,000,000 account balance
Pricing, plan by plan
Charles Schwab
On request- Individual BrokerageFree
- Commission-free trading
- Research tools
- Schwab Advisor Services$undefined/month
- All Brokerage features
- Wealth management
- Personal advisors
Betterment
$5/monthNo published plan breakdown. See the Betterment review.
Which should you pick?
Choose Charles Schwab if
- You need commission-free trading.
- You work on Web, IOS, Android.
- You also want wealth management.
Choose Betterment if
- You need automated investing.
- You work on Web, iOS, Android.
- You also want financial advisory.
Questions people ask
- Is Charles Schwab or Betterment better?
- Neither clearly leads. Charles Schwab starts at On request and Betterment at $5/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Charles Schwab or Betterment?
- Charles Schwab starts at On request and Betterment at $5/month.
- Does Charles Schwab or Betterment run on more platforms?
- Charles Schwab runs on Web, IOS, Android. Betterment runs on Web, iOS, Android.
- What is Charles Schwab best used for?
- Charles Schwab is most often used for budget management, expense tracking, investment tracking. Of those, budget management and expense tracking are not what Betterment is typically brought in for.
- What can Charles Schwab do that Betterment cannot?
- Charles Schwab covers Commission-free trading, Wealth management, Research tools. Betterment covers Automated investing, Financial advisory, Goal tracking. Both handle Retirement planning, Bank accounts, Investment accounts, Web support.