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Betterment vs. Robinhood
Consider your investment management style when choosing between these trading platforms.
Both Betterment and Robinhood let you trade securities and are geared toward specific types of investors. Betterment is a robo-advisor that puts your portfolio in the hands of a computer algorithm, while Robinhood doesn’t have the commissions and fees.
Which one is better?
- Choose Betterment if you want a portfolio curated by an expert.
- Choose Robinhood if you want to pick and choose individual securities.
Betterment and Robinhood get you access to the stock market, with no account minimums so you can start investing with as little as $1. The better platform depends on your investment management style.
Betterment matches you to a recommended portfolio. While it allows you to make changes, it doesn’t have the research tools to screen and analyze securities. Instead, it uses algorithms to manage and allocate your funds for a fee, making it better suited for a hands-off investor not looking to actively trade on the stock market.
If you’re looking to break into the stock market and buy securities yourself, Robinhood might be a better option. Its commission-free trades and basic research tools make it a good place for newbies and cryptocurrency traders. But you won’t find any tax-saving features or get any financial planning advice.
How do Betterment and Robinhood compare?
|Overview||Betterment is an online financial advisor that makes investing easy by creating a portfolio just for you, based on your preferences and financial goals. It’s a solid choice for those new to investing.||Robinhood is an online trading platform that offers self-directed brokerage services. Investors can trade commission-free stocks, ETFs and options with 24-hour access to 17 different cryptocurrencies. It’s well-suited to new investors looking to start buying and selling their own stocks.|
|Minimum deposit to open||$0||$0|
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Betterment’s advisory fee is lower than its competitors, and the platform matches you with a recommended portfolio built for your financial goals and timeline. And if you want more personalized advice, you can buy a one-time call to speak with a financial advisor.
Robinhood is better suited for investors who want to trade on the stock market regularly. Its platform is free to use and stocks, ETFs and options trade for free. But what sets Robinhood apart from other brokers is the ability to trade cryptocurrency.
Experienced traders looking for in-depth research tools might want to consider other trading platforms.
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