Personal Finance · head to head
E*TRADE vs Betterment
The short version
- Each has a real cost: E*TRADE stock and ETF trades were $0 commission but options carried a $0.65 per-contract fee, broker-assisted trades added a $25 surcharge, and margin interest rates ranged from 12.70% to 13.20% depending on balance tier (Internet Archive capture, 3 January 2023); Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance
- They diverge on capability: E*TRADE covers Advanced trading tools, Betterment covers Automated investing.
Where they differ
Only the attributes on which E*TRADE and Betterment actually diverge.
| Attribute | E*TRADE | Betterment |
|---|---|---|
| Starting price | On request | $5/month |
| Pricing model | transaction | subscription |
| Founded | 1956 | 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 E*TRADE
- Advanced trading tools
- Options and futures
- Research tools
- Mobile trading
- Wire transfers
Only in Betterment
- Automated investing
- Retirement planning
- Financial advisory
- Goal tracking
- Investment accounts
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.
E*TRADE
- Budget Managementnot Betterment
- Expense Trackingnot Betterment
- Investment Trackingnot Betterment
Betterment
- Small investors starting with automated investing at no minimum balancenot E*TRADE
- Fee-only digital wealth management for accounts under $24,000 via $5/month flat feenot E*TRADE
- Premium advisory access for high-net-worth individuals with $100,000+ balancenot E*TRADE
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
E*TRADE
- Stock and ETF trades were $0 commission but options carried a $0.65 per-contract fee, broker-assisted trades added a $25 surcharge, and margin interest rates ranged from 12.70% to 13.20% depending on balance tier (Internet Archive capture, 3 January 2023)
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 $1,000,000 account balance
Pricing, plan by plan
E*TRADE
On request- Stock & ETF TradingFree
- Commission-free trades
- Real-time quotes
- Advanced Trading$undefined/month
- All Stock & ETF features
- Options, futures
- Advanced tools
Betterment
$5/monthNo published plan breakdown. See the Betterment review.
Which should you pick?
Choose E*TRADE if
- You need advanced trading tools.
- You work on Web, IOS, Android.
- You also want options and futures.
Choose Betterment if
- You need automated investing.
- You work on Web, iOS, Android.
- You also want retirement planning.
Questions people ask
- Is E*TRADE or Betterment better?
- Neither clearly leads. E*TRADE 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, E*TRADE or Betterment?
- E*TRADE starts at On request and Betterment at $5/month.
- Does E*TRADE or Betterment run on more platforms?
- E*TRADE runs on Web, IOS, Android. Betterment runs on Web, iOS, Android.
- What is E*TRADE best used for?
- E*TRADE 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 E*TRADE do that Betterment cannot?
- E*TRADE covers Advanced trading tools, Options and futures, Research tools, Mobile trading. Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. Both handle Bank accounts, Web support, IOS support, Android support.