Wealthfront review: Is automated investing right for you?

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18 brokers reviewed

137 data points analyzed

8 categories considered

Our verdict

Our verdict

Consider Wealthfront if you want your portfolio managed for you by a well-equipped algorithm. Wealthfront offers automated rebalancing, tax-loss harvesting, a sweeping selection of accounts, tiered perks for larger portfolios and a well-reviewed mobile app. Human advisers are on staff and are available for account support. Look elsewhere if you don't want to pay a $500 minimum deposit requirement and 0.25% management fee. It also won't likely appeal to active traders since it does the buying and selling for you. And for those who prefer the human touch, its advisers are only available by phone and don't manage portfolios.

Best for: Low ETF expense ratios.

Pros

• Offset income on your tax return via ETF sales.
• Offers individual, joint and trust accounts, traditional IRAs, Roth IRAs, SEP IRAs, 529 plans and 401(k) rollover accounts.
• Speak to FINRA-registered advisers to better help you navigate financial questions.
• Borrow up to 30% of your account value on accounts of $100,000 or more.

Cons

• It doesn't have any physical branches to visit for an in-person chat.
• 0.25% annual fee simply can't compete with robo-advisors like SoFI.
• You'll need at least $500 to fund your Wealthfront account.

4

★★★★★

Finder rating

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Minimum deposit

$500

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Wealthfront

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How we rated Wealthfront’s features

To learn how our star ratings are calculated, read the methodology at the bottom of the page.

Wealthfront platform is simple and easy to use

Wealthfront is a robo-advisor — and the investment process doesn’t differ much from most of the other robo-advisors on the market.

1. 1. 1. 1. You answer a financial questionnaire.
         2. Wealthfront puts together an investment portfolio.
         3. You approve the portfolio and fund the account.
         4. Wealthfront invests your money.

There’s no person behind the curtain here — Wealthfront’s robo-advisor relies on a sophisticated algorithm to keep your portfolio on track. That’s what automated rebalancing is — and what the financial questionnaire is for.
Your responses are used to determine your risk tolerance and portfolio makeup. This is what allows you to “set it and forget it.”
You don’t need to monitor stocks, make trades or worry about what the market is doing — simply sign in to the online dashboard or mobile app to see how your investments are doing. Wealthfront tracks it all and moves investments in and out of your portfolio to maximize your return.
You need a minimum deposit of $500 to get started and can fund your account by linking an external bank account or by transferring funds from an existing investment account. Also, you’re free to withdraw a minimum of $250 as often as you’d like as long as there’s at least $500 in your account.
If your financial circumstances change, update your preferences or add information to your account for a more personalized experience at any time.

The 0.25% fee is competitive

Wealthfront’s 0.25% annual advisory fee is fairly competitive, putting it squarely in the company of platforms like Betterment, J.P. Morgan and TD Ameritrade. But here’s the thing: Not all robo-advisors charge fees.
M1 Finance, SoFi and Worthy all offer their automated investment services for free. Even Fidelity’s robo-advisor is free for portfolios under $10,000.
Now, if fees were the only factor worth considering, a free robo-advisor might be the way to go. But Wealthfront’s 0.25% annual management fee isn’t outrageously high — it works out to $2.50 per year on a $1,000 portfolio. That said, every penny counts towards your investment return, especially when reinvesting your returns to continue growing your portfolio.
In addition to an annual management fee, you’ll also pay expense ratios on any ETFs in your portfolio. ETF expense ratios are charged by the companies that run the fund, not Wealthfront. They typically range from 0.06% to 0.15%.

Wealthfront reviews are mixed

Wealthfront reviews are lukewarm but limited. As of April 2022, the platform isn’t accredited by the Better Business Bureau (BBB) and receives an F rating for failing to respond to six complaints.
Wealthfront only has four reviews on Trustpilot, earning a TrustScore of 3.3 out of 5. Negative reviews criticize Wealthfront for its customer service, and a BBB complaint identifies a money transfer issue. Positive reviews praise Wealthfront for its digital tools.
On the upside, investors seem to like Wealthfront’s mobile app. It scores 4.6 out of 5 after 4,652 reviews on Google Play and 4.8 out of 5 after 14,816 reviews in the Apple App Store. Investors report that the app is clear and easy to navigate.

What to expect of the application process

1. Visit the Wealthfront website and select Invest Now.
2. Answer Wealthfront’s questionnaire, which includes questions about why you want to invest, your pretax income, your tax filing status and your risk tolerance. After completing the questionnaire, you’ll receive a diversified investment plan.
3. Choose Open My Account to continue.
4. Create an account by entering your name and email address and creating a password.
5. Enter your mobile phone number for security verification.

Eligibility

To open a Wealthfront account, you’ll need to meet a few eligibility requirements:

Required information

Throughout the application process, you’ll be asked to provide the following information:

Get help via phone or email

If you need to get in touch with customer service, you have two options.

• Email. Send an email through the Wealthfront website for a response within one business day.
• Phone. Log in to your account to set up a phone call with one of Wealthfront’s product specialists.

Alternatives to Wealthfront

Wealthfront has plenty of robo-advisor standards, including automated rebalancing, tax-loss harvesting — even human advisers on hand to act as account support. But there are a few places it misses the mark, and it won’t be a sensible fit for everyone.
Take its $500 minimum deposit requirement, for example. If you’re just starting out and can’t meet the minimum, look for a platform that doesn’t impose a minimum deposit requirement, like Betterment.
Or maybe you want a platform that takes automated investing a step further with transactional round-ups. If that’s the case, you’ll want to look at a service like Acorns.
There are plenty of platforms to consider, so weigh your options by comparing features, investor feedback and trading fees to find the account best suited to your financial goals.

Compare Wealthfront to other platforms

Wealthfront

★★★★★

Finder rating 4 / 5

Go to site

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Available asset types

Stocks, ETFs

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Stock trade fee

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Minimum deposit

$500

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Complete signup bonus

Acorns

★★★★★

Finder rating 4 / 5

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Available asset types

Stocks, ETFs

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Stock trade fee

$0

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Minimum deposit

$0

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Complete signup bonus

Get a $20 bonus when you set up an account and make your first recurring investment (min. $5)

JPMorgan Automated Investing

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Available asset types

ETFs

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Stock trade fee

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Minimum deposit

$500

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Complete signup bonus