Betterment Review 2026

Betterment at a glance

To learn how our star ratings are calculated, read our methodology.

Betterment is best for hands-off, tax-conscious investors

Betterment could be the perfect fit for the investor who wants professional portfolio management without paying traditional wealth management fees. Whether you’re just starting out with a small balance or bringing over $100,000 to unlock certified financial planner access, Betterment offers automated portfolio construction, tax-loss harvesting on every balance and a wide range of retirement and cash management accounts under one roof. The addition of self-directed stock and ETF trading in late 2025 also makes it a fit for investors who want managed portfolios with some hands-on flexibility.

What we like about Betterment

There are several benefits to Betterment, including tax-loss harvesting on every balance, self-directed stock and ETF trading, unlimited CFP access on the Premium tier and exceptional FDIC coverage on Cash Reserve.

Tax-loss harvesting on every balance

Unlike some competitors that gate tax-loss harvesting behind higher account tiers, Betterment includes it automatically on all balances — including small accounts. This feature helps offset capital gains by strategically selling securities at a loss, potentially lowering your annual tax bill. Betterment reports that nearly 70% of customers using tax-loss harvesting covered their taxable advisory fees through estimated tax savings.⁽¹⁾

Multiple portfolio strategies

Betterment offers more portfolio variety than most robo-advisors, including a globally diversified Core portfolio based on Modern Portfolio Theory, a Socially Responsible Investing (SRI) option, a Goldman Sachs Smart Beta portfolio, a bond-heavy BlackRock Target Income portfolio, Innovation and Value Tilt options, plus a Flexible Portfolio where you can adjust asset class weights yourself. Crypto portfolios with Gemini as the custody partner are also available.

Self-directed stock and ETF trading

Betterment launched self-directed investing (SDI) for retail customers in November 2025, letting you buy and sell individual US-listed stocks (from the S&P 500 and Russell 3000 indices) and eligible ETFs alongside your managed portfolios.⁽²⁾ Trades are commission-free, and Betterment’s management fee doesn’t apply to SDI accounts. A Tax Impact Preview tool shows how potential sales could affect capital gains and flag wash sales before you execute a trade.

Certified financial planner access through Betterment Premium

For investors with $100,000 or more, Betterment Premium (0.65% annual fee) unlocks unlimited access to a team of certified financial planners. CFPs can provide comprehensive planning including retirement, tax strategy and backdoor Roth conversions, and can advise on accounts held outside Betterment — though they don’t manage external accounts directly.⁽³⁾

Exceptional FDIC coverage on Cash Reserve

Betterment’s Cash Reserve account is FDIC-insured up to $4 million for individual accounts and $8 million for joint accounts through partner banks — 16 times the standard $250,000 FDIC coverage most firms offer. Cash Reserve has no monthly fees, no transfer limits and no minimum balance requirement.

Fee discounts on balances above $1 million

Most robo-advisors charge a flat rate regardless of balance. Betterment applies progressive fee discounts on eligible balances above $1 million: 0.15% on the $1M-$2M tier and 0.10% on amounts above $2M. These discounts apply whether you’re on the Digital or Premium plan.

Where Betterment falls short

When weighing the pros and cons of Betterment, it’s also important to consider its drawbacks, such as limited investment options compared to full-service brokers, the Premium tier’s high minimum balance and the outbound transfer fee.

Limited investment options compared to full-service brokers

Betterment’s self-directed investing is limited to stocks in the S&P 500 and Russell 3000 indices and eligible ETFs — no options, futures, mutual fund purchases, OTC securities or bonds you can pick yourself. Investors who want a broader universe of tradable securities will need a full-service broker like Fidelity or Interactive Brokers.

$100,000 minimum for Betterment Premium

To access unlimited certified financial planner support, you’ll need at least $100,000 in eligible investing balances. Some competitors offer human advisor access at lower thresholds, making Premium less accessible for mid-balance investors seeking one-on-one guidance.

$5/month flat fee on small accounts

Betterment Digital’s headline 0.25% annual fee only applies if your household balance is above $24,000 or you have at least $200/month in recurring deposits enabled. Otherwise, you’ll pay a $5/month flat fee — which works out to a much higher effective rate on smaller balances (roughly 6% annually on a $1,000 account).⁽⁴⁾

$75 outbound transfer fee

If you decide to move your investments away from Betterment to another brokerage, you’ll be charged a $75 fee for each outbound account transfer. Some major competitors, including Fidelity, charge nothing to transfer assets out.

Is Betterment legit?

Betterment is a legitimate financial services company that follows industry regulations to protect both your money and your data. Betterment launched in 2008 and is headquartered in New York City. As of early 2026, it manages over $65 billion in assets for more than 1 million customers, making it one of the largest and longest-running robo-advisors in the US.⁽⁵⁾

Betterment’s brokerage services are provided by Betterment Securities, an SEC-registered investment advisor and member of the Financial Industry Regulatory Authority (FINRA). It’s also a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers up to $500,000, including $250,000 for cash claims, if the broker fails.

Funds in the Cash Reserve account are FDIC-insured up to $4 million individual / $8 million joint through partner banks (Betterment itself is not a bank). Betterment uses bank-level 256-bit encryption and two-factor authentication to secure account data.

How is Betterment Digital different from Betterment Premium?

Betterment Digital is fully automated portfolio management with no minimum balance requirement. It charges 0.25% annually (or $5/month for accounts under $24,000 without recurring deposits) and includes all of Betterment’s core features: automated portfolio construction, tax-loss harvesting, rebalancing and access to multiple portfolio strategies.

Betterment Premium adds unlimited access to a team of certified financial planners for comprehensive financial planning, including consultation on assets held outside Betterment. Premium charges 0.65% annually (0.25% base fee + 0.40% premium add-on) and requires a minimum balance of $100,000. Both tiers receive the same fee discounts on balances above $1 million.

If you want automated investing with occasional professional guidance and have the required minimum balance, Premium can be worth the extra cost. If you prefer a fully hands-off, low-cost approach without human advisor access, Digital is likely the better fit.

How to sign up for Betterment

Setting up your account with Betterment is a simple and straightforward process.

On your desktop:

1. Visit Betterment’s website and select Get started.
2. Create an account with your email address, name and phone number.
3. Choose from Betterment’s available products in your dashboard, or answer a series of questions to get a personalized portfolio recommendation.
4. Enter your personal and financial information, including your address, employment details and Social Security number.
5. Confirm your email address using the link sent to your inbox.
6. Link your bank account and set up your first deposit.
7. Select your portfolio strategy and complete your first investment.

On your mobile phone:

1. Download the Betterment app on the App Store or Google Play.
2. Tap Get started.
3. Enter your email address, name and phone number.
4. Answer questions about your financial goals and risk tolerance.
5. Provide your personal information, including your Social Security number and employment details.
6. Set up two-factor authentication and link your bank account.
7. Confirm your email and fund your first investment.

Eligibility requirements include being at least 18 years old, a valid US residential address, a valid government-issued ID and a valid Social Security number.

Customer experience

Compare Betterment to other platforms

Compare similar platforms by available asset types, trade fees and minimum deposit requirements. Select Go to site to sign up for an account.

9.2 Excellent

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Available asset types

ETFs, High-yield cash account

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Annual fee

0.25% on balances up to $99,999 0.4% on balances of $100,000+

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Minimum deposit

$10

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Signup bonus

N/A

9 Excellent

Go to site

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Available asset types

Stocks, ETFs, High-yield cash account

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Annual fee

0.25%

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Minimum deposit

$500

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Signup bonus

Get $50

7.8 Great

Go to site

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Available asset types

ETFs, Investments

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Annual fee

$25 per month

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Minimum deposit

$500

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Signup bonus

N/A

• Betterment terms and conditions