Software · head to head
Wealthfront vs Betterment
The short version
- Each has a real cost: Wealthfront the Automated Investing Account carries a 0.25% annual advisory fee on top of the underlying fund expenses; Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance
- They diverge on capability: Wealthfront covers Automated portfolio management, Betterment covers Automated investing.
Where they differ
Only the attributes on which Wealthfront and Betterment actually diverge.
| Attribute | Wealthfront | Betterment |
|---|---|---|
| Starting price | On request | $5/month |
| Pricing model | transaction | subscription |
| Founded | 2011 | 2008 |
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 Wealthfront
- Automated portfolio management
- Tax-loss harvesting
- Financial planning
- Index fund investing
Only in Betterment
- Automated investing
- Retirement planning
- Financial advisory
- Goal tracking
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.
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
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
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
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
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
Wealthfront
On request- BasicFree
- Automated investing
- Tax-loss harvesting
- Rebalancing
- Premium Plus$50/month
- All Basic features
- Financial planning
- Human advisor access
Betterment
$5/monthNo published plan breakdown. See the Betterment review.
Which should you pick?
Choose Wealthfront if
- You need automated portfolio management.
- You work on Web, IOS, Android.
- You also want tax-loss harvesting.
Choose Betterment if
- You need automated investing.
- You work on Web, iOS, Android.
- You also want retirement planning.
Questions people ask
- Is Wealthfront or Betterment better?
- Neither clearly leads. Wealthfront 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, Wealthfront or Betterment?
- Wealthfront starts at On request and Betterment at $5/month.
- Does Wealthfront or Betterment run on more platforms?
- Wealthfront runs on Web, IOS, Android. Betterment runs on Web, iOS, Android.
- What is Wealthfront best used for?
- Wealthfront is most often used for automated index fund investing with periodic rebalancing, tax loss harvesting in a taxable brokerage account, buying fractional shares of individual stocks with no commission. Of those, automated index fund investing with periodic rebalancing and tax loss harvesting in a taxable brokerage account are not what Betterment is typically brought in for.
- What can Wealthfront do that Betterment cannot?
- Wealthfront covers Automated portfolio management, Tax-loss harvesting, Financial planning, Index fund investing. Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. Both handle Bank accounts, Investment accounts, Web support, IOS support.