Betterment is a registered investment advisor providing automated investment management, cash management, and financial planning services primarily over the internet through an online platform and mobile application. Betterment builds and manages diversified portfolios consisting mainly of exchange-traded funds, mutual funds, and individual stocks. Clients can choose from Betterment-constructed portfolios, third-party manager portfolios, custom portfolios, or self-directed trading accounts. For retail clients with higher balances or through employer-sponsored plans, Betterment offers human financial consulting services. Betterment operates as a wrap fee program, bundling advisory, trading, and custodial services through its affiliated broker-dealer, Betterment Securities. The firm serves individual retail clients, third-party advised clients, and employer-sponsored retirement plan participants.
Fee Structure
Portfolio-Based Fees (Flat)
| Portfolio Value | Annual Fee |
|---|---|
| Any | 0.25% |
Standard digital plan fee is 0.25% annually (or $5/month for balances under $24,000 without recurring deposits). Premium plan charges 0.65% annually. Discounts apply to portions over $1M (0.10% discount) and $2M (0.15% discount).