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Betterment Review
The original robo-advisor — automated ETF portfolios, tax-loss harvesting, and goal-based investing on autopilot
Last reviewed: 2026-05-25 · By GBBR Editorial Team
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Our Top Pick · Gold Tier
Betterment
Free plan available
The Bottom Line
Betterment earns Gold as the best robo-advisor for hands-off investors: you set a goal, a time horizon, and a risk level — Betterment builds a diversified ETF portfolio, rebalances automatically, and harvests tax losses to reduce your tax bill. At 0.25%/yr ($25/yr per $10K), it's significantly cheaper than paying a human financial advisor (typically 1%/yr) for the same hands-off portfolio management. Betterment Premium ($100K minimum, 0.40%/yr) adds unlimited access to CFP professionals. The platform has $40B+ in AUM, no account minimum, and a track record since 2010. Best for people who want to invest intelligently without managing it themselves.
What is Betterment?
Betterment was founded in 2010 by Jon Stein and Eli Broverman in New York City — widely considered the first robo-advisor. It pioneered the concept of automated, algorithm-driven portfolio management for retail investors at a fraction of traditional advisory fees. Betterment has grown to $40B+ in AUM and 850,000+ customers. It is a registered investment advisor (RIA) with the SEC. In 2023, Betterment acquired Makara to add crypto portfolios. It also acquired Wealthsimple US customers and operates as one of the most trusted names in automated investing.
What does Betterment offer?
Betterment Digital (0.25%/yr, no minimum) builds and manages a diversified ETF portfolio based on your goals and risk tolerance. Automatic rebalancing keeps your allocation on track. Tax-loss harvesting (available on all accounts) harvests investment losses to offset gains and reduce tax liability. Betterment Premium (0.40%/yr, $100K+ minimum) adds unlimited calls with CFP professionals. IRA accounts (traditional, Roth, SEP) available. Socially responsible investing (SRI) portfolios available. Cash Reserve account (FDIC-insured, competitive APY) included.
Digital (0.25%/yr)
Custom
/month
Premium (0.40%/yr, $100K+)
Custom
/month
Is Betterment worth the price?
0.25%/yr for fully automated portfolio management with tax-loss harvesting — a fraction of human advisor fees for equivalent hands-off service
Betterment at 0.25%/yr vs. a human financial advisor at 1%/yr — for a $100K portfolio, Betterment costs $250/yr vs. $1,000/yr, for the same outcome on a diversified ETF strategy
Best value for automated portfolio managementHow we scored it
Overall score: 85/100
0.25%/yr digital (no minimum), 0.40%/yr premium ($100K+) — competitive robo pricing but Fidelity Go is free under $25K
Diversified ETF portfolios (stocks/bonds), SRI portfolios, crypto portfolios, and flexible portfolios (choose ETFs) — no individual stocks
Individual taxable, joint, traditional IRA, Roth IRA, SEP-IRA, trust, and Cash Reserve savings account
Automatic rebalancing, tax-loss harvesting (all accounts), dividend reinvestment, goal tracker, smart beta portfolios, projected retirement outcomes
Goal-based planning tools, retirement projection, Betterment Advice (CFP access on Premium), educational content on investing basics
SEC registered RIA, SIPC-insured up to $500K, FDIC-insured Cash Reserve up to $2M via program banks, 14-year track record
Why Betterment is Gold Tier
Betterment earns Gold as the most complete robo-advisor: tax-loss harvesting, goal-based tools, SRI options, no account minimum, and the ability to add human CFP access at the Premium tier. It handles everything an average investor needs — diversification, rebalancing, tax optimization — automatically. The only trade-off vs. Fidelity is that Betterment charges 0.25%/yr (Fidelity Go is free under $25K), and Betterment doesn't offer individual stock picking.
Pros & Cons
Pros
- ✓Automatic portfolio rebalancing and tax-loss harvesting on all accounts
- ✓No minimum balance — start with any amount
- ✓Goal-based planning with retirement projections
- ✓SRI (socially responsible) portfolio option
- ✓Premium adds unlimited CFP access for $100K+ accounts
- ✓Cash Reserve FDIC-insured savings account included
Cons
- ✗0.25%/yr fee — Fidelity Go is free for accounts under $25K
- ✗No individual stock picking — portfolios only
- ✗Premium requires $100K minimum for CFP access
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Is Betterment worth it in 2026?
0.25%/yr for fully automated portfolio management with tax-loss harvesting — a fraction of human advisor fees for equivalent hands-off service Overall verdict: Best value for automated portfolio management.
What is Betterment best for?
Betterment is best for: Hands-off investors who want automated portfolio management without picking stocks, IRA investors who want tax-loss harvesting and automatic rebalancing, People with $100K+ who want CFP access at a fraction of traditional advisor cost.
Does Betterment have a free trial?
Betterment does not offer a permanently free plan. Contact the provider for current pricing.
Who should NOT use Betterment?
Betterment is not the right fit for: Active traders or stock pickers (use Fidelity or Robinhood); Investors under $25K who want zero fees (Fidelity Go is free at that level).
What are the best Betterment alternatives?
Top alternatives to Betterment include wealthfront, fidelity, m1-finance.
Betterment earns Gold as the most complete robo-advisor: tax-loss harvesting, goal-based tools, SRI options, no account minimum, and the ability to add human CFP access at the Premium tier. It handles everything an average investor needs — diversification, rebalancing, tax optimization — automatically. The only trade-off vs. Fidelity is that Betterment charges 0.25%/yr (Fidelity Go is free under $25K), and Betterment doesn't offer individual stock picking.
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