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Robinhood vs Betterment

Robinhood logo

Robinhood

Software

Investing for everyone

From
Free
Rated
-
Full reviewWebsite
Betterment logo

Betterment

Software

Your path to financial independence

From
$5/month
Rated
-
Full reviewWebsite

The short version

  • Only Robinhood has a free tier, so it costs nothing to try first.
  • Each has a real cost: Robinhood robinhood Gold costs 5 USD a month after a 30 day free trial; Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance
  • They diverge on capability: Robinhood covers Commission-free trading, Betterment covers Automated investing.

Where they differ

Only the attributes on which Robinhood and Betterment actually diverge.

Attributes where Robinhood and Betterment differ
AttributeRobinhoodBetterment
Starting priceFree$5/month
Pricing modelfreemiumsubscription
Free tierYesNo
Founded20132008

Identical on both: 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 Robinhood

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

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.

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

Betterment

  • Small investors starting with automated investing at no minimum balancenot Robinhood
  • Fee-only digital wealth management for accounts under $24,000 via $5/month flat feenot Robinhood
  • Premium advisory access for high-net-worth individuals with $100,000+ balancenot Robinhood

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

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

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

Robinhood

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

Betterment

$5/month

No published plan breakdown. See the Betterment review.

Which should you pick?

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

Choose Betterment if

  • You need automated investing.
  • You work on Web, iOS, Android.
  • You also want retirement planning.
Betterment review

Questions people ask

Is Robinhood or Betterment better?
Neither clearly leads. Robinhood starts at Free and Betterment at $5/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Robinhood or Betterment?
Robinhood has a free tier; the other does not. Paid plans start at Free for Robinhood and $5/month for Betterment.
Does Robinhood or Betterment run on more platforms?
Robinhood runs on Web, IOS, Android. Betterment 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 $5/month.
What is Robinhood best used for?
Robinhood is most often used for commission free trading of us stocks and etfs from a phone, options and futures trading for retail investors, holding an ira with a contribution match. Of those, commission free trading of us stocks and etfs from a phone and options and futures trading for retail investors are not what Betterment is typically brought in for.
What can Robinhood do that Betterment cannot?
Robinhood covers Commission-free trading, Options trading, Crypto trading, Fractional shares. Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. Both handle Bank accounts, Web support, IOS support, Android support.
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