Our pick to buy stocks: Sofi Invest
- $0 commissions on stocks
- Robo advisor with no management fees
- Beginner-friendly platform
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Betterment has plenty going for it, including access to fractional shares, automated portfolio rebalancing and diversification across 10 asset classes. But depending on your investment goals, the grass may be greener with one of these five Betterment alternatives.
While it lacks tax-loss harvesting, SoFi’s robo-advisor is entirely free to use.
We like SoFi for its automatic portfolio rebalancing, unlimited access to financial planners and best of all — its entirely free robo-advisor service. While the platform hasn’t been around quite as long as Betterment, SoFi’s free robo-advisor is tough to compete with.
This platform’s flat-rate robo-advisor rounds up debit purchases to invest the difference on your behalf.
Acorns sets itself apart from Betterment — and many other robo-advisors — with a round-up feature and flat-rate pricing. Most automated investment platforms charge a percentage-based management fee, but Acorns opts for flat-rate monthly pricing that’s at its most competitive for portfolios of $5,000 or more.
To use this platform’s robo-advisor, you must link a debit card to your account. Acorns then rounds up any purchases you make and invests the difference.
Blooom can help you grow your retirement savings, but its fixed annual fee pricing structure means it’s only cost-effective for larger portfolios.
Blooom offers automated investment portfolios designed for investors with employer-sponsored accounts, like 401(k)s and 401(a)s. Fees are assessed on an annual basis, and plans start at $45 per year. The fixed cost of entry means that for Blooom’s service to be cheaper than Betterment’s, you’ll need a portfolio of at least $20,000.
Still, for those seeking guidance with an employer-sponsored account, Blooom offers portfolio analysis, automatic portfolio rebalancing and — with the higher tiers of service — access to financial advisers.
With similar management fees and asset classes, Wealthfront’s major edge over Betterment is its college savings account.
Wealthfront has plenty in common with Betterment, including a 0.25% annual management fee, a spread of over 10 asset classes and tax-loss harvesting options. In fact, the platforms share so much in common that there’s really only one reason to opt for Wealthfront over Betterment: the ability to open a 529 college savings account.
If you’re interested in saving for higher education expenses, Wealthfront is your best bet. But be prepared for a $500 minimum deposit and lack of access to fractional shares.
Wealthsimple’s fees are higher than Betterment’s, but it offers the distinct perk of human advisory services.
Wealthsimple offers a number of the same features as Betterment, including tax-loss harvesting, dividend investing and a wide variety of accounts. But unlike Betterment, it provides access to human financial advisers for all of its account holders, regardless of their tier of service. Plus, it offers Halal investments compliant with Islamic investment principles.
Consider the following benefits and drawbacks of investing with Betterment.
Interested in switching brokers? The process will depend on the type of account you have and the platform you plan to move to. Betterment doesn’t charge any account transfer fees, and most brokers don’t charge anything for account setup.
Here’s what to expect of the process.
Full shares from individual accounts will be transferred directly to your new institution. For IRA to IRA transfers, Betterment will send a check to your new brokerage.
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