Founded in 2008, it was one of the first digital platforms to bring professional portfolio management to retail investors at scale.
Betterment builds personalized portfolios of exchange-traded funds (ETFs) based on each client’s goals and risk profile, and manages them automatically with features such as rebalancing, dividend reinvestment, and tax-loss harvesting.
The platform also offers access to financial advisors, cash management accounts, and retirement planning tools, making it a full-service digital wealth management solution.
What are the pros and cons of Betterment?
Betterment combines automated, goal-based investing with useful features, making it a solid option for novice investors and individuals who prioritise low costs.
Its key strengths include transparent pricing, a user-friendly interface, and a range of tools, including tax-loss harvesting, customizable portfolios and high-yield cash management
However, there are some limitations that may affect experienced investors looking for more customization or direct access to financial advisors.
The pros of Betterment
Transparent, low-cost pricing: Standard annual fees are 0.25%, or $4 per month, for accounts that don’t meet the minimum balance or deposit thresholds.
Sophisticated tax tools at no extra cost: Features such as tax-loss harvesting and coordinated tax strategies are available to all users.
Goal-focused investing framework: Betterment guides users with goal tracking tools, personalized portfolio allocation, and retirement planning calculators.
Advanced cash management options: This includes high-yield checking and cash reserve accounts with Federal Deposit Insurance Corporation (FDIC) protection of up to $2 million, exceeding most competitors.
The cons of Betterment
No direct indexing option: Unlike some rivals, Betterment does not offer direct indexing capabilities.
Premium advice access requires a high minimum: Individuals are required to invest $100,000 to access unlimited human advice under the Premium plan.
Limited customization: Although users can use expert-built portfolios, there is relatively little flexibility to fine-tune investment choices beyond preset options.
Betterment automated portfolio management: How much does it cost?
Betterment uses a flat, tiered pricing structure based on the level of service selected.
Investors can choose between two plans: Digital and Premium, each with a transparent Betterment advisory fee charged as a percentage of assets under management (AUM). The Betterment fee is 0.25% annually for the Digital plan and 0.40% annually for the Premium plan.
Betterment Digital
Annual fee: 0.25% of AUM
Minimum balance: $0 (requires $10 to begin investing)
Features: Automated portfolio management, goal-based tools, tax-loss harvesting, and access to financial advice in-app.
Betterment Digital review: Best for beginners and hands-off investors looking for low-cost, automated investing with useful tax tools.
Betterment Premium
Annual fee: 0.40% of AUM
Minimum balance: $100,000
Features: All features in the Digital plan, plus unlimited calls with certified financial planners (CFPs).
Betterment Premium review: Designed for higher-balance investors who want ongoing access to human advisors alongside automated portfolio management.
Additional fees and details
Fund fees: Like most robo-advisors, Betterment portfolios are made up of low-cost ETFs. These ETFs have their own expense ratios, which range from 0.03% to 0.3%, depending on the portfolio. These fees are charged by ETF providers and not collected by Betterment.
Crypto portfolios: Users with a Betterment crypto portfolio pay a 1% annual management fee in addition to trading costs embedded in the crypto products. These fees are significantly higher due to the complexity and volatility of crypto investing.
Cash and banking products: Betterment’s high-yield cash reserve and checking account do not charge monthly fees, overdraft fees, or ATM fees (ATM reimbursements are included). These are not investment accounts and are outside the scope of AUM fees.
Betterment does not charge for the following:
Account rebalancing
Deposits and withdrawals
Dividend reinvestments
Closing your account
Transferring funds between Betterment goals
What is Betterment’s minimum account size?
Betterment is highly accessible, with no minimum to create an account and only $10 required to begin investing.
The Premium plan, which includes unlimited access to CFPs, requires a $100,000 balance and is better suited for clients with complex financial needs.
Crypto investing is also available with no separate minimum beyond the standard account requirement, allowing users to start with a very small amount.
Betterment minimum requirements by account type:
| Account type | Minimum investment requirement |
|---|---|
| Betterment Digital | $10 to begin investing |
| Betterment Premium | $100,000 |
| Crypto portfolios | $1 minimum (requires Betterment investing account) |
| Cash reserve/checking | No minimum balance |
With its low $10 entry point, Betterment stands out as one of the most accessible robo-advisors, especially for younger investors, students, or those starting with limited funds.
This contrasts with traditional advisory firms that often require tens of thousands of dollars to open a managed account.
Who should choose Betterment?
Betterment is best suited for hands-off investors who want automated, goal-based investing with low fees and intuitive tools. It appeals to individuals who prefer not to manage portfolios manually but still want diversified strategies and basic financial guidance.
Betterment works well for:
First-time investors: With only a $10 minimum, Betterment Digital makes it easy to start investing without complexity.
Busy professionals: Automated portfolio construction, rebalancing, and tax-loss harvesting keep users invested with minimal effort.
Goal-based savers: Multiple goals, such as building retirement or emergency funds, can have tailored strategies.
Digital-first users: Betterment Digital offers messaging support, while Premium provides unlimited access to CFPs for balances of $100,000 or more.
Long-term investors: Low management fees and diversified ETFs suit those focused on retirement or passive wealth building.
Who might not benefit as much?
Active traders: The platform doesn’t support stock-picking or frequent trading.
Investors seeking comprehensive advice without high balances: Unlimited access to CFPs requires a Premium account with at least $100,000.
Those wanting highly customized portfolios: Options remain limited beyond standard, socially responsible investing (SRI) options and crypto portfolios.
Is Betterment secure?
Yes, Betterment is considered a secure platform for online investing. The platform uses 256-bit SSL encryption to protect data, along with two-factor authentication (2FA) to prevent unauthorized access.
Client assets are held by Apex Clearing Corporation, an SEC-registered custodian, and are protected by SIPC insurance up to $500,000 (including $250,000 for cash). This coverage protects against broker failure, but not market losses.
Betterment is also a Securities and Exchange Commission (SEC) registered fiduciary, so it is legally required to act in clients’ best interests. The platform monitors accounts for suspicious activity and automatically logs users out after inactivity to reduce security risks.
While no online system is entirely risk-free, Betterment’s safeguards are in line with those of major financial institutions.
Betterment: Customer Service
Betterment’s customer service is generally well-regarded, with users often highlighting responsive support and clear guidance — especially for Premium clients who receive direct access to certified financial planners (CFPs). While the overall experience is considered reliable, some reviews note slower response times during peak periods like tax season.
Access to support depends on the service tier. Digital plan users primarily interact through email and live chat during business hours, which works well for routine questions but can feel limited compared to competitors with 24/7 availability. Premium clients benefit from the ability to schedule phone consultations with CFPs, adding more personalized advice on topics such as retirement planning, tax strategies, and portfolio adjustments.
Betterment reviews: What real customers say?
Feedback about Betterment is generally positive, with many users highlighting the platform’s ease of use, low fees, and automated tools.
Clients often note that the goal-based approach and simple interface make it appealing for beginners or those who prefer a hands-off experience. Some also appreciate features such as tax-loss harvesting and being able to set multiple financial goals within the platform.
However, there are a few recurring concerns. Some users mention that while customer support is helpful, response times can slow during peak periods such as tax season.
Others point out that access to CFPs requires a Premium account with a $100,000 balance, which can be a barrier for smaller investors. In addition, some investors want more portfolio customization beyond the standard and SRI options.
Betterment: Mobile app
The Betterment mobile app earns strong reviews, with a 4.8/5 rating on the Apple App Store and 4.5/5 on Google Play. Its design makes it simple to track balances, set up recurring deposits, and monitor progress toward goals like retirement or emergency savings. Many users find it especially helpful for staying engaged with long-term investing without needing complex tools.
Still, the app is light on advanced charting and its crypto dashboard is less developed than the core investing features. For investors who want more trading flexibility or detailed analytics, alternatives like Wealthfront, SoFi Automated Investing, or Schwab Intelligent Portfolios may offer a different experience. But for those who value ease of use and goal-based investing, Betterment’s app remains one of the strongest options among robo-advisors.
Is Betterment worth it?
Whether Betterment is worth it depends on the type of investor. For beginners and long-term, hands-off investors, it offers low fees, automated portfolio management, and useful tools such as tax-loss harvesting and goal tracking.
The $10 minimum makes it one of the most accessible robo-advisors, and Premium users can access CFPs for more in-depth guidance.
However, active traders or investors seeking highly customized portfolios may find Betterment limiting. And while Premium does provide advisor access, those who want more dedicated, ongoing relationships with a human financial advisor might compare options such as Vanguard Personal Advisor, Merrill Guided Investing, or Facet Wealth, which emphasize direct planner interaction.
Get expert financial advice
Betterment is one of the most accessible robo-advisors, combining automated investing, tax tools, and goal-based planning. It suits beginners and long-term investors seeking a hands-off approach, though those wanting more customization or advisor access may prefer alternatives.
If you need expert financial advice beyond robo-advisors, Unbiased can match you with a financial advisor who will help you manage your money and maximize your investments.