Betterment is an investment service that uses software to help private investors determine their options for savings. Other apps are similar to Betterment, and many promise to be superior for planning savings and investing your money.
But Betterment isn’t the only robo-advisor. Let’s look at several alternatives to Betterment. For each of these Betterment competitors, we’ll explain some pros and cons, the key features, and who might get the most out of it.
Best-Of by Category
| Category | Product |
|---|---|
| Best for Robo-Advising | M1 Finance |
| Best for Micro-Investing | Acorns |
| Best for Wealth Management | Personal Capital |
| Best for Thematic Investing | Stash |
| Best for Automated Investing | Wealthfront |
| Best for Advisor-Guided Investing | Merrill Edge Guided Investing |
| Best for Direct Brokerage | Charles Schwab |
| Best for Budgeting and Investing | Mint |
Best Sites & Alternatives to Betterment
1. M1 Finance
Among all the apps similar to Betterment, M1 Finance is near the top. It has a unique way of investing. Clients create groups of securities called Pies. There can be up to a hundred slices in a Pie, each representing stocks, ETFs, and other Pies.
Some of the existing M1 Pies can help you start socially responsible investing with index funds and are done entirely on auto-pilot like a robo advisor, making it one of our favorite Betterment alternatives.
Key Features
M1s professionals have formed a selection of Pies to choose from with a mix of risk levels and targeting different types of investors. You can also build your pie if you’d prefer. Pies also don’t have management fees, annual membership charges, or fees for a low balance.
Users interact with M1 Finance through their app or the website. If there is a knock on M1, they lack a chatbox to speak with a broker online. Instead, customers interact with a bot that tries to answer questions, and if you need more information, you can request an email from a broker.
There is, however, a well-written and extensive FAQ section to help you get started and answer questions along the way.
Pros
- Borrow up to 35% of your account value
- Use an optional M1 debit card with 1% bonuses
- Innovative Pie method of investing
- Completely free to purchase and sell Pies (regulatory fees and ETF expense ratios still apply)
- Get started investing with as little as $100
Cons
- Customer support is a bit lacking
- Changing brokers carries a fairly hefty $100 fee
- Lack of access to human advisors
Ratings
On a scale of five, here’s how M1 Finance stacks up:
- Minimum Opening Balance – 5
- Pricing – 5
- Ease of Use – 5
- Fees – 5
- Customer Support – 3
Verdict
M1 Finance isn’t new to the online brokerage game, but it’s not as well known as some other Robo-investment companies. However, their buy Pie method of investing is innovative, and some Pies have shown impressive returns.
See Related: Best Artificial Intelligence Stocks to Buy Now
2. Acorns
Acorns targets its platform at millennials and likely first-time investors. The interface on the Acorns app is easy to use and visually pleasing, so it appeals to younger folks and injects a bit of fun into the otherwise droll experience of investing money.
Key Features
The Acorns investment app has two means of investing. You can always deposit lump sums into your account. Or, you can select a ‘spare-change’ option that rounds up from each purchase made on linked accounts.
For instance, if you link a credit card to your Acorns account and spend $12.88, Acorns will round the charge up to the next dollar and deposit twelve cents into your account.
You can’t select individual stocks in this app. Instead, you choose from five main options for how aggressively you invest your money: Conservative, Moderately Conservative, Moderate, Moderately Aggressive, or Aggressive. New users will set their preferences at startup but can change them as they go.
There are two affordable pricing plans, each with an associated monthly fee. So, for investors with only ‘spare change’ in their investment account, much of their dividend earnings may tip back toward paying monthly fees.
Investing more money will fix this, and using this app is a good way to learn how the markets work.
You can also create a family plan that provides an investment account for kids. You’ll get a 1099 form each year from Acorn automatically and without charge.
Pros
- Easy-to-use app that’s growing in popularity
- Tiered pricing plans, relatively inexpensive
- Round up purchases or lump sum deposits
- Simple to get started investing
- Tax forms sent at no cost automatically
Cons
- For small investments, fees can soak up dividends
- Can’t select individual stocks
Ratings
On a scale of five, here’s how Acorns stacks up:
- Minimum Opening Balance – 5
- Pricing – 3
- Ease of Use – 5
- Fees – 3
- Customer Support– 4
Verdict
Acorns is popular, and for good reason. The app itself and Acorns Investing is an easy way to invest and save money, and the round-up feature is also a good learning tool for novices who want to learn how investing in the stock market works.
It might be frustrating to see much of your earnings used up by fees, but it’s a good lesson that it takes money to make money.
Like what you are hearing? Read our full Acorns Sustainable Portfolio Review.
See Related: Best Artificial Intelligence ETFs to Invest in Today
3. Personal Capital
Personal Capital boasts over one million users and nearly $250 billion in investment assets. That makes it a sizeable investing platform, especially in the new world of investment apps.
With Empower (Formerly Personal Capital) and beyond being just another robo advisor, you’ll get access to human financial advisors (actual certified financial planners) that can help you plan your financial future more efficiently.
It’s easy to get started, and once you’ve entered some simple information and opened an account, you can link it to your other accounts and manage everything from the Personal Capital’s dashboard.
That means you can automatically picture your accounts to get a complete picture of your financial picture. With this information at your fingertips, you can make adjustments and investments to save for the future.
Key Features
The top-line feature of Personal Capital is its dashboard. All your financial information is visible at a glance, so you can see how your cash flow, balances, and assets stack up to create your true net worth.
You can easily track your returns and project investment growth and fees. Use the dashboard to set a course by tweaking the data and seeing how an investment or paying off a loan early changes your future.
The dashboard is the first thing you’ll notice, but there’s much more. Use the personalized Investment Checkup Tool to see how your portfolio stacks up against benchmarks and what your goals should be.
The Retirement Planner projects your earnings and expenses throughout your career and into retirement. You can adjust for potential windfalls or likely expenses and even factor in your projected Social Security income and how it will affect your balances.
There is also a tool for analyzing your 401(K) and optimizing your assets to avoid brokerage fees that can significantly impact your savings. Everything is done with a commitment to security, and if you need more personalized service, it’s yours, but for a fee.
With as little as $25,000, you can access their specialized service, including comprehensive portfolio management and access to advisors when you need it.
If you have a significant sum to invest, you can tap into Private Client services for even more individualized attention. But, those services carry increased costs.
Pros
- The account dashboard is customizable and widely considered the best in the business
- A personalized touch to your investments is available
- Suite of free tools for analysis, forecasting, and planning
- Real-time reporting and adjustments are simple and accessible
- Commitment to comprehensive services
Cons
- Only the first consultation with a financial planner is free
- Premium services for managed assets carry a percentage of balance fees
Ratings
On a scale of five, here’s how Personal Capital stacks up:
- Minimum Opening Balance – 4
- Pricing – 4
- Ease of Use – 5
- Fees – 3
- Customer Support– 5
Verdict
For new investors, Personal Capital is a perfect vehicle for an initial entry into the world of investments. The big fees for managed assets don’t come until you discuss millions of dollars. With their free tools and superlative dashboard, all the information you need to grow a fledgling nest egg is easily accessed.
Using these tools can help you avoid mistakes or fees that might seem small in the near term but can add up to a significant loss over the ears when left unchecked. Plus, they have the word ‘personal’ in their name for a reason.
If you need a little bit more hand-holding than a typical Robo-investment brokerage provides, Personal Capital is your best bet. Like what you are hearing? Read our full Personal Capital SRI Review.
See Related: Free Financial Advisors to Start Financial Planning
4. Stash
Stash has almost four million users, who pay a $1 monthly maintenance fee to access their services. Their investment options are relatively inexpensive, and their retirement and debit accounts require additional fees.
But, due to their simple interface on the web or the app and the helpful Stash Coach that guides you toward understanding your investments, Stash is pretty popular.
Key Features
Any discussion of Stash has to start with its unique tilt toward teaching investors about financial products, investing, market volatility, and more.
The Stash website and app offer access to the Stash Learn page and an impressive array of informative, educational articles explaining everything a beginning investor needs to know to start their investing journey.
And it’s a little bit of a secret, but the entire Stash Learn page is available even to those who don’t hold an account. Once you’re there, it will be pretty clear from the volume of ‘sign up now’ messages that this is a tool to draw you in, but there is still plenty of worthwhile reading.
The second major feature of Stash is the Stash Coach. This feature uses an algorithm to guide you toward completing goals that can lead you toward better-balanced investments and other strategies to increase your return and minimize risk. Each move you make may earn you points in the Stash system.
While not worth any money, accruing points bring some short-term excitement to what is almost always a long-term investment strategy.
Again, this is an excellent way for novice investors to learn, as building points usually means their investment strategy matures and improves.
There are fees for using Stash. There are three levels of management accounts, including Beginner ($1 per month), Growth ($3 per month), and Stash+ ($9 per month).
Each comes with access to a personal investment account and financial education. As you pay more, the number of included options expands.
This differs from paying an annual percentage, but if you’re investing small amounts, like most beginners, the fees can stack up quickly and deplete much of your return.
Pros
- Very simple to set up and get started
- Simple, intuitive, straightforward website and app
- No fees for trades and the Coach guides you toward sound practices
- Free and comprehensive educational materials are easy to access
- Bonuses for signing up a new account or for other services
Cons
- Limited investment instruments, focused on stocks (but growing)
- Limited tools for deep analysis and research
Ratings
On a scale of five, here’s how Stash stacks up:
- Minimum Opening Balance – 5
- Pricing – 3
- Ease of Use – 5
- Fees – 3
- Customer Support – 4
Verdict
Stash’s platform is growing. New features are rolling out to assist in your financial management objectives, and the company seems to be pushing to add account types and services that mirror those of other brokerages.
For instance, there is a round-up feature coming shortly, as well as an automated deposit feature to transfer small sums from your checking account to your investment account.
This is an excellent platform for first-time investors to learn the fundamentals, grow their knowledge, and increase their investment gains simultaneously.
See Related: Green Century Funds Review
5. Wealthfront
Wealthfront is the brainchild of Dan Carroll and Andy Rachleff. mIt’s worth mentioning that Rachleff’s career includes co-founding Benchmark Capital. This venture capital outfit helped fund some big names when they were small and unproven startups (Uber, Twitter, Instagram, and more).
They offer automated investment management services for a small fee, just like many other online brokerages.
Like most clients, they stand out from the pack for their promotion and focus on services that aren’t usually available to smaller investors.
Key Features
Wealthfront offers a service they call Tax-Optimized Direct Indexing. That particular service speaks to their overall strategy of minimizing taxable gains. In effect, tax efficiency yields increased gains. This specialized approach only works for a fairly specific type of investor.
For example, someone who holds a tax-free or tax-deferred account, like an IRA, doesn’t need increased tax efficiency. This is a solid and inexpensive option for automated investment management for other investors looking for simple management tools and having a relatively transparent financial situation.
They take no commissions but charge a .25% annual fee for account maintenance and any IRA. Their fund tilts heavily towards a well-diversified strategy, so understand that before jumping in.
Pros
- Overall strategy guided by diversification
- Streamlined app and simple tools
- Advanced services to minimize tax exposure for investors
- Minimal fees
- Big names at the helm of the company
Cons
- Not every investor benefits from tax-efficient investment advice
- History of negative reviews and complaints at Better Business Bureau (F Rating)
Ratings
On a scale of five, here’s how Wealthfront stacks up:
- Minimum Opening Balance – 5
- Pricing – 4
- Ease of Use – 4
- Fees – 5
- Customer Support – 2
Verdict
Wealthfront solves a big problem for many investors: tax loss harvesting is a smart move. But, that strategy is immaterial for others who already have a tax-deferred retirement account.
Combined with some seemingly unresolved complaints on their track record, their limited services may not appeal to a typical investor. But they’re still worth checking out if you want to diversify your assets and minimize tax liability to reach your financial goals.
See Related: Wealthfront SRI Review
6. Merrill Edge Guided Investing
Next on the list of Betterment alternatives is Merrill Edge. Bank of America bought out Merrill Lynch in 2008. Merrill Edge does some things well and others not so well.
For instance, they offer a variety of products and a wealth of easily accessible information about investing. While most of their performance is solid across different investment categories, Merrill Edge underperforms in retirement savings.
See Related: Best Banks for Low-Income Earners
Key Features
Merrill Edge’s app and interface are outstandingly presented and easy to use. If you want to understand trends, evaluate options, and research different funds and ETFs, CDs, bonds, and more. Obtaining financial education through the Merrill Edge platform is among its best features.
For instance, if you want information on a particular stock, it’s easy to go to the website, enter a ticker symbol, and see a comprehensive summary of information broken down into consumable categories.
This makes it easy for novice and experienced investors to analyze individual securities. The app is a pared-down version of the website, but you can still trade, perform transfers, deposit checks, and pay bills.
Opening a brokerage account with Merrill Edge is free, with no annual fees. Particular investments, like a 529 plan, require a minimum investment, and there are fees for closing an IRA or borrowing funds.
You can research and invest in IRAs, ETFs, Mutual Funds, securities, and more through Merrill Edge. But you can’t chat with customer service online. Instead, use the website for 24/7 access to an agent through an internal message.
Again, the website is a massive resource; you will find all the information you need to open and manage your investment. You can easily set up digital notifications, access and download tax documents, and link accounts.
You can even opt to have a financial advisor from Merrill Edge make decisions for you if Robo-investing isn’t your thing. But that costs 45 basis points annually. Or, you can work in person with an advisor if you can invest at least $20,000. That will cost almost 1% of your dividends.
Pros
- Link to banking instruments at B of A easily
- Excellent analysis and research tools
- 24/7 customer service
- No annual fees
- Interface is simple and well laid out
Cons
- App isn’t as powerful as the website
- Financial advisors cost extra
Ratings
On a scale of five, here’s how Merrill Edge Guided Investing stacks up:
- Minimum Opening Balance – 5
- Pricing – 5
- Ease of Use – 4
- Fees – 4
- Customer Support– 4
Verdict
Merrill Edge is a great service for ‘students of the game’ who want to get deep into analysis and broaden their understanding of investments and the stock market. But, for those who prefer to sit back and let the brokerage manage their money, it might not be the best choice.
But if you are already a B of A customer, you can link all your accounts. Having all of your banking and investment products under one umbrella gives the customer some advantages.
Since Merrill Edge isn’t a regular bank account, any banking features you add on, like checking or a debit card, are not FDIC insured.
Alternatively, you could open an FDIC-backed account with Bank of America for your banking needs and link it to your account with Merrill Edge. Sometimes, having everything under one collective banking and investing roof makes the most sense.
See Related: Public Investment App Review: Is it Worth It?
7. Charles Schwab
Charles Schwab doesn’t charge to open an account with their brokerage. You can opt for a self-managed account through their Schwab One service.
Or, you can opt for a Schwab Managed Portfolio. Either way, you’ll receive access to a variety of tools and research that allow you to learn more about investments, strategies, and how to maximize returns.
Key Features
Schwab One is free to start, and you can invest in stocks, ETFs, and other financial products. This user-controlled investment portfolio carries no commissions, trades, or fees when buying or selling instruments, including ETFs and stocks.
You may also open a checking account linking to your investment account. Doing so may be very appealing, as the Schwab High-Yield Investor Checking Account is considered a top performer in high-yield checking accounts and is just as competitive as savings accounts offered at a traditional bank. There’s no minimum balance to get started investing with Charles Schwab One.
If you step up to a managed portfolio, it will require a minimum ante of $25,000. You can pursue an investment in mutual funds or ETFs. On the mutual fund side, choose from 24 templates to create a semi-personalized portfolio that suits your approach, risk tolerance, and sensitivity.
Or, choose from twelve ETF model portfolios designed to find a balance between income and growth, with an eye toward diversification.
Both managed portfolios offer competitive fees compared to similar instruments, though you may pay more on the ETF side of Schwab Managed Portfolios.
All clients have access to the robo-advisor’s diversified portfolio. To speak with a human financial advisor or customer service, contact Schwab 24/7.
Pros
- An established full-service online broker with a heavy pedigree
- Multiple investment strategies to choose from
- Commission-free trading and no minimum balance for Schwab One investors
- Handy market analysis and research tools included
- Modest bonuses when opening a qualifying account
Cons
- Probably a bit involved for a novice investor
- The platform targets mid to high-net-worth investors more than millennials just starting out
- You only get the customer service you pay for
Ratings
On a scale of five, here’s how Charles Schwab stacks up:
- Minimum Opening Balance – 5
- Pricing – 5
- Ease of Use – 3
- Fees – 3
- Customer Service – 4
Verdict
Schwab is a big name in the investment game. That alone might have some pull for investors. For new investors starting, you may want to stick with a platform geared to your demographic.
Many educational materials are available with Schwab but aren’t presented in a millennial-friendly game like other robo advisors.
See Related: Best Investments for Young Adults
8. Mint
Mint is another option for investors who want information, not necessarily an investment vehicle. Instead of serving as a brokerage, Mint compiles your financial data into a simple schematic.
Then, the app presents the information in a graphical interface that makes it easy to understand. It’s also entirely free to use.
Key Features
Even though Mint costs nothing, it uses advertising to make money. So, while not that intrusive, some of the app’s suggestions are thinly veiled ads. Here’s how it works. First, you enter all your account information for your various accounts.
Once everything is linked, you can see your total financial picture. Then, as your expenses and deposits accumulate, Mint categorizes them intelligently so you can quickly see trends.
For instance, you can see how much more you spent on gasoline during the inflation crisis compared to earlier expenses and how the increased spending might affect your long-term savings.
However, the suggestions you see may be informed by the data and Mint’s advertising partners. For instance, in our example above, rising fuel costs may see you receive a suggestion to start a fuel card with a partner credit card company. Unfortunately, there is next to no customer service.
Pros
- Simple and intuitive interface
- Integrate all your accounts easily and safely
- Use tools to budget, analyze, and forecast
- Free
- Great for accessing personal financial data at a glance
Cons
- Recommendations are advertising-driven
- No customer service
Ratings
On a scale of five, here’s how Mint stacks up:
- Minimum Opening Balance – 5
- Pricing – 5
- Ease of Use – 5
- Fees – 5
- Customer Support – 4
Verdict
Mint isn’t the strongest tool for forecasting investments. But, it’s very useful for analyzing your financing. By understanding how today’s snapshot can affect your long-term planning, you’re already on the road to success.
This free tool doesn’t have the same modeling or investment capabilities as its big competitors and doesn’t have a customer service team. But it’s also 100% free.
See Related: Revolut Review
How Robo-Advisors Work
After installing the app, you enter data points that describe your financial situation and often your goals. For example, a 40-year-old investor might set a goal of retiring at 65. Their annual salary is $75,000 before taxes.
Betterment uses that data to calculate a time horizon for the investment. In this case, 25 years. Then, the software lets you identify your investment’s risk profile and asset mix.
Using your salary, it automatically identifies a target living expense for comfortable retirement spending and calculates a required savings balance.
Then, all the data is plotted into a chart that shows how your savings will grow over the years. And you can make adjustments and see how they change the projections. For instance, you can change your timeline, risk profile, and more.
You can also make adjustments for the amounts of your monthly deposits, single lump sum deposits, and more to see how they will influence the plot of your savings chart. You can plot your financial goals easily, making investing your money with Betterment easy.
Betterment has over 500,000 clients with about $20 billion in total assets invested. They offer retirement accounts (Roth, traditional, and Sep IRAs) and non-retirement investment accounts like trusts and taxable accounts.
Not every app is attached to an investment fund. Some are just planning tools and may offer advice management fees or suggestions regarding the risk in your investments.
Betterment offers three service tiers, ranging from a basic auto-managed portfolio to a plan where you can speak with the licensed professionals at Betterment for investing advice as often as you want.
Best Betterment Alternatives Bottom Line
All of these apps, like Betterment, can be useful. It’s up to you to determine which one is best for you. There are subtle differences in how they are designed, the type of information they offer, and the financial instruments they might access. But they’re all part of a wave of technological transformation in the banking industry.
Betterment is a solid and popular choice in the world of robo-investing. But there are plenty of apps like Betterment to choose from. Now that you see how these eight compare to Betterment, you can fine-tune your selection to get what you need. Most make it easy to start an investing account, so save for your future today!
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