Wealthfront is a resource that many people turn to when they want to manage their finances and investments. However, there are a number of different sites like Wealthfront that may meet your needs.
Today we’re going to look at the best Wealthfront Alternatives to help you decide if it’s something you’d like to try.
Table of Contents
- Best-Of by Category
- Best Wealthfront Alternatives
- 1. Betterment
- Pros
- Cons
- 2. WealthSimple
- Pros
- Cons
- 3. M1 Finance
- Pros
- Cons
- 4. Acorns
- Pros
- Cons
- 5. Fidelity
- Pros
- Cons
- 6. Vanguard
- Pros
- Cons
- 7. Charles Schwab
- Pros
- Cons
- 8. Personal Capital
- Pros
- Cons
- 9. Altruist
- Pros
- Cons
- 10. SigFig
- Pros
- Cons
- 11. ETrade
- Pros
- Cons
- 12. Axos
- Pros
- Cons
- 13. Robinhood
- Pros
- Cons
- 14. SoFi
- Pros
- Cons
- About Wealthfront
- Cash Account
- FAQs
- Is Vanguard or Wealthfront better?
- Is M1 better than Wealthfront?
- Is Robinhood or Wealthfront better?
- Is Wealthfront better than Charles Schwab?
Best-Of by Category
Category | Product |
---|---|
Best for Automated Investing | Betterment |
Best for Sustainable Investing | WealthSimple |
Best for Customized Portfolios | M1 Finance |
Best for Micro-Investing | Acorns |
Best for Full Service Platforms | Fidelity |
Best for Mutual Funds | Vanguard |
Best for Personal Services | Charles Schwab |
Best for Combining Human/Guided Digital Advice | Personal Capital |
Best for Non-Profit Financial Advice | Altruist |
Best for Portfolio Management | SigFig |
Best for Stock Trading | ETrade |
Best for High Yield Savings | Axos |
Best for Free Stocks and Funds | Robinhood |
Best for No Fees | SoFi |
Best Wealthfront Alternatives
1. Betterment
The first Wealthfront alternative is called Betterment. Betterment is an investment company that allows you to invest your money in a number of different ways. You can choose from various investments, or you can have Betterment choose them for you.
Betterment is another automated investment company. The app lets you set goals on how much you want to invest and your preferred timing. From there, Betterment handles your portfolio transactions, fractional share investing, and even tax-efficient withdrawals.
It’s perfect for beginners because it’s easy to use and you don’t need any previous investment experience. You can open an account without putting any money down. Betterment also offers a wide variety of features, including automatic rebalancing and tax-loss harvesting.
Betterment also offers a cash account. The big difference here is that you earn rewards on your purchases. Thousands of vendors partner with Betterment to help you earn cash back, such as Adidas, Walmart, and Dunkin Donuts.
You also have the option to invest in several different ETFs. Betterment has no minimum deposit requirement and also charges a low annual fee which is why one chooses them over Wealthfront.
One difference to note between Betterment and Wealthfront is that Betterment only insures your money in your cash account up to $250,000. Therefore, it may not be ideal if your portfolio is more than that.
Like what you are hearing? Read our full Betterment review.
Pros
- No account minimums
- Automatic rebalancing
- Goal-based tools
Cons
- No options for human advisors
- The set-up process can be confusing
See Related: Best Betterment Alternatives
2. WealthSimple
Wealthsimple is a Canadian company that offers a wide variety of investment options. You can invest your money in individual stocks and bonds, or you can have it invested in a variety of different funds.
To date, they serve more than two million investors and have over $2 billion in assets under management. Wealthsimple is perfect for investors who want to invest their money but don’t have the time to do all the research. Wealthsimple takes care of all the research for you and creates a personalized portfolio that fits your needs.
WealthSimple is an excellent option for beginners because it’s so easy to use. The app has a user-friendly interface, and you don’t need any investment experience. In fact, you don’t even need to know how to read a financial statement.
Wealthsimple also offers a cash account. The account has no minimum deposit. Not to mention, sending and receiving money is completely free. One thing that makes Wealthsimple stand out from Wealthfront is that it offers 401K assistance.
Pros
- Ease of use
- No minimum balance account
- 401K assistance
Cons
- Delayed deposit times
- Higher management expense ratio
See Related: Best Banks for Low-Income Earners
3. M1 Finance
M1 Finance is an investment platform that allows you to invest in different ETFs (exchange-traded funds). You can also create custom portfolios with M1 Finance.
M1 is a one-stop shop for all of your financial needs. They offer a cash account as well as a credit card. The cash account has no minimum deposit and no fees. The credit card gives you up to 10 percent cashback when you spend money at specific companies.
M1 Finance is perfect for investors who want to be in control of their investments and manage all of their finances in one place. You can even borrow money from your investments at some of the lowest rates on the market (2-3.5 percent).
Pay for things with physician checks without ever having to write one. M1 Finance also has custodial accounts. Custodial accounts are perfect for parents who want to invest in their children’s future. The account has a $0 minimum deposit and no fees.
One may choose M1 Finance over Wealthfront if they are a self-directed investor who can easily manage pre-built portfolios without much guidance. The M1 platform lets you take total control over your finances while utilizing complete automation in one place.
Pros
- No trading fees
- Borrow against the value of the portfolio
- Low account minimum
Cons
- Less than Wealthfront
- Harder to assess the risk
See Related: Best Apps for Automatic Investing in ETFs
4. Acorns
Acorns is an app that allows you to invest your spare change into several different ETFs. This is a great way to get started investing if you don’t have a lot of money to invest.
Signing up for Acorns takes about five minutes, and you can start building your portfolio right away. Acorns have a small minimum deposit compared to Wealthfront and they offer custodial accounts.
They offer intelligent portfolios designed by experts to help you reach your financial goals. Acorns also offer a $5 bonus when you sign up and make your first deposit. Then there are round-ups. This is when Acorns takes all of your purchases and rounds them up to the nearest dollar. The difference is then automatically invested into your portfolio.
The “grow your knowledge” feature makes it the perfect platform for beginners. It houses a ton of different articles, videos, and webinars to help you learn more about investing. Learn more about investing along the way and grow your portfolio along the way. Like what you are hearing? Read our full Acorns review.
Pros
- Small minimum investment
- Small management fee
- Custodial accounts
Cons
- No tax-loss harvesting
- Fees are not based on a percentage (flat)
5. Fidelity
Fidelity Investments is a large investment company that offers various investment options. You can invest your money in individual stocks and bonds or have it invested in several different funds.
Fidelity is a Wealthfront robo-advisor alternative that supports smaller investments. They have minimum deposit requirements in place. While this may not be feasible for newer investors, they offer a wide variety of different funds to invest in.
You’ll have everything you need to make the most of your money, from their straightforward planning and advice to their straightforward pricing and investing tools. They also offer a Retirement Savings Calculator so you can see how much money you’ll need to save in order to retire comfortably.
Fidelity lets you work with a dedicated advisor who partners with you to create a plan that meets your specific needs. You also have the option to invest in individual stocks and bonds.
Choose the option that works best for you, that could be low-cost Robo advisors or a hybrid approach combining your dedicated advisor alongside your Robo-advisor. Also, enjoy worry-free investing as they offer around-the-clock support, unlike Wealthfront.
Pros
- Smaller investment minimum
- Fee-Free index mutual funds
- 24-hour support
Cons
- No tax-loss harvesting
- Lack of diversification on investments
6. Vanguard
Vanguard is another large investment company that offers a wide variety of investment options. Investors can invest their money in individual stocks and bonds or participate in various funds.
As an investor with Vanguard, you automatically have access to personalized financial advice, retirement tools, market insights, and high-quality investments.
Like Fidelity, Vanguard is a great platform to invest if you have a lot of money. They have minimum deposit requirements for their investments. If you can meet those requirements, you are eligible to take advantage of the variety of investment opportunities they offer.
Because everyone is regarded as the owner, Vanguard has low fees across the board. Their focus is on ensuring that you are getting the most out of your investments. This is their advantage over Wealthfront.
There are no Vanguard loyalties to get in the way of your investment plan, so you can work with an advisor or choose to invest on your own. Their goal is to help you make the most of your money.
Pros
- Goal planning and tracking
- Impressive tools and calculators
- Dedicated advisor
Cons
- High account minimums
- Higher fees
See Related: Mainvest Review: Is It Legitimate?
7. Charles Schwab
Charles Schwab is another significant investment company known for its transparent pricing and low costs. They offer many investment products such as mutual funds, ETFs, index funds, stocks, options, bonds, CDs, money market funds, and cryptocurrency.
Right now, they offer a Schwab Starter Kit that includes investing education, tools and resources, and money toward the top five stocks in the S & P 500.
Use their gain/loss analyzer to track your portfolio and find the right mix of investments for you. Schwab gives investors live webcasts and daily content to help them make the most of their money. One thing to appreciate is their knowledgeable support and trading team that’s available 24/7 online.
When it comes down to building a portfolio, you can use their asset allocation models to help you build ETF or mutual fund portfolios that are either conservative or aggressive. Not to mention, they stand out from Wealthfront because there are no management fees.
No matter what you choose to invest in, Charles Schwab has got your back.
Pros
- No management fees
- Ease of use
- Investment education
Cons
- High minimum investment
- You need an appointment to talk to an advisor
See Related: Public Investment App Review: Is it Worth It?
8. Personal Capital
Personal Capital is a financial advisor that allows you to track your net worth, budget, and investments. They also have several different investment options.
Personal Capital offers many financial tools to help you reach your goals, such as the savings and retirement planner, investment checkup, fee analyzer, and mobile app.
Personal Capital’s goal is to help you retire with confidence by helping you understand the small changes that could be impacting your goals. That is why they offer an advisor on all accounts, which is the major advantage over Wealthfront.
Create a plan that works for you and understand that plans change along the way. Anticipate significant expenses and plan to have enough money saved up.
The investment checkup tool looks at your portfolio and tells you if you are taking too much risk, not taking enough risk, or if you are on the right track.
One of the most exciting things about Personal Capital is that they offer a net worth calculator to track your net worth and investment portfolio. This is an excellent way for people who are just starting out with their finances to get started.
Like what you are hearing? Read our full Personal Capital review.
Pros
- Comprehensive investment management
- Net worth tracker
- Savings and retirement planner
Cons
- Higher fees
- Only electronic transfers
See Related: Betterment vs Personal Capital: Which One is Better?
9. Altruist
Altruist is one of Wealthfront’s competitors. Altruist offers a wide variety of different investment options.
When you invest with Altruist, you can rest assured that you’re working with a brokerage that’s regulated to give you personal and customized advice. Altruist advisors are fiduciaries, which means they are legally required to always act in your best interest.
They also offer a unique 401k plan that gives you immediate diversification and the ability to invest in socially responsible companies.
Altruist is an SEC-registered investment advisor that ensures that all accounts are secured and properly regulated. Not to mention, all accounts are insured by the SIPC up to $500,000. Wealthfront only insures individual accounts up to $450,000.
Altruist partners with financial advisors to help them do their best and enhance their careers, improving client returns by up to three percent each year.
Altruist is another platform similar to Vanguard that focuses mainly on ensuring that the consumer is getting the best bang for their buck with personalized service and attention.
The Altruist platform is only available to Registered Investment Advisors (RIAs) and their clients.
Pros
- Personal advisors
- SIPC insurance
- Unique 401K
Cons
- Maybe more risk
- Not so much a robo advisor
10. SigFig
SigFig believes that the acceleration of digital transformation across financial services is the key to unlocking new opportunities for investors. They offer a free portfolio tracker, which is great for people who are just starting out managing their finances and want to get a better understanding of their investments.
They also offer unlimited access to financial advisors which, unfortunately, Wealthfront does not. SigFig also has a wide variety of investment options to choose from, which helps accommodate people with different investment goals.
One thing to note about SigFig is its interactive user experience that gives customers personalized tips and recommendations along the way.
SigFig thrives on creating stronger customer-institution relationships by helping retail banks and credit unions offer clients high-quality and accessible affordable wealth management solutions.
Pros
- Robust goal-based tools
- Unlimited access to financial advisors
- Lower management fees
Cons
- No savings account
- Higher investment minimum
See Related: VFTAX Review: Is This a Good ESG Mutal Fund?
11. ETrade
ETrade is another Wealthfront competitor. Etrade offers a variety of different investment options for investors on all levels.
They offer stocks, options, mutual funds, ETFs, futures, bonds and CDs, and prebuilt portfolios.
ETrade has been in business for over 30 years and has a wide variety of different features for its customers to choose from.
They offer banking through Morgan Stanley Private Bank that is not only protected but allows you to transfer money for free. You can take advantage of their integrated account view, which means you can see all of your accounts in one place.
In addition to their competitive brokerage rates, they offer low-cost lines of credit to help you get the money you need for expenses. ETrade also has a higher SIPC insurance than Wealthfront at $500,000.
Etrade is an excellent alternative for people looking for a more comprehensive investment experience. They offer both a mobile app and desktop site that are sleek and easy to use.
ETrade is a great resource for retirement and tax planning as well as advanced trading.
Pros
- Support from financial consultants
- Higher SIPC insurance
- Retirement calculators
Cons
- Higher managment fees
- Not driven by goal planning
12. Axos
Axos is another hands-off investing opportunity that has a lot to offer customers. Axos offers various investment options, similar to Wealthfront and its competitors. They give customers access to data-driven algorithms to help them manage their portfolios and reach their goals.
Axos is a great choice for people looking for an automated investing solution. They offer a mobile app and desktop site that are both easy to use, meaning that you don’t need investing experience to get started.
Axos helps you plan for short and long-term goals as well as retirement. One of the best features of Axos is that they don’t require account minimums, which is awesome for beginner investors.
They believe that the less you spend on investment fees, the more you’ll have to invest. Combine your vision and current finances with the precision of Axos. While Wealthfront offers a similar deal, there are still account minimums. Each time you update your information and goals, Axos automatically adjusts your portfolio to keep you on the right track toward reaching your goals.
Invest and chill is their motto, and for a good reason, as their hands-off approach can be a lifesaver for people who don’t have the time or experience to manage their investments actively. Like what you are hearing? Read our full Axos review.
Pros
- No management fees
- No account minimums
- Goal-based investing
Cons
- No branch access
- Savings rate not competitive
13. Robinhood
Robinhood is a unique investment platform that allows you to buy and sell stocks for free. It is one of the most popular Wealthfront alternatives.
Robinhood is a great choice for people who are looking for a more affordable option when it comes to investing. You don’t have to worry about any account minimums or hidden fees.
In addition to stocks, you can also invest in ETFs and options on Robinhood. They are a better option for managing individuals’ stocks, cryptocurrencies, and trade options than Wealthfront.
The best part about Robinhood is that its app is incredibly easy to use. You can trade stocks on the go, making it an excellent option for people who are constantly multitasking.
Robinhood is perfect for people just starting out with investing and building wealth. It is an incredible way for them to dip their toes into the investment world.
Robinhood is now offering IPO access which means you can invest in some of the most popular stocks when they go public. Robinhood has a track record of success, giving customers the ability to invest in stocks & funds, options, Crypto, and Gold.
Pros
- No minimum to open an account
- No commissions
- Cash management options
Cons
- Higher account transfer fee
- No mutual fund trading
14. SoFi
SoFi is a wealth management company that offers a variety of different services to its customers.
SoFi is a tremendous Wealthfront alternative for people who are looking for a more comprehensive solution. In addition to their investment services, they also offer loans, banking, and other financial products.
Many know it as a student loan refinance company, but they offer a lot more than that. SoFi has a mobile app and desktop site that are both easy to use and look great.
With SoFi, you can invest, bank, take out personal and mortgage loans, monitor your credit score, and get credit cards, insurance, auto loan refinancing, and even private student loans.
SoFi is probably the most prominent one-stop-shop on our list because of the variety of products they offer.
When it comes down to investing, you can trade stocks and ETFs, invest in IPOs and cryptocurrency, and try out automated investing. You get all these options without paying a commission and with a $0 account minimum.
Like Wealthfront, SoFi offers its customers portfolio rebalancing and tax loss harvesting. SoFi has a lot of features that can compete with Wealthfront, and they are perfect for people who want a little bit of everything.
Creating a good relationship with SoFi could ensure you’re on the best financial ground for years to come.
Having everything in one place makes it easy to keep an eye on your overall financial health and make decisions when needed.
Pros
- No account minimum
- Loan discounts
- No management fees
Cons
- No tax-loss harvesting
- Shorter track record in investing
About Wealthfront
Wealthfront is used by almost 500,000 people to manage over $27 billion in assets. It offers a wide range of features, including portfolio management, tax-loss harvesting, and automated rebalancing. Wealthfront is an excellent option for beginners, as it’s easy to use and has a wide range of features.
If you are an experienced investor looking for sophisticated strategies to help you maximize your returns and minimize your taxes, Wealthfront can help get you there.
You can invest in U.S., foreign, and dividend stocks, as well as municipal bonds, and emerging markets. The best part about Wealthfront is that it’s completely automatic. You will never have to make a manual trade.
In fact, the app rebalances your portfolio while diversifying your deposits so that you can focus on doing the things you enjoy. With Wealthfront, there are no trading fees, but they don’t offer access to human financial advisors for investing assistance.
There is, however, a low annual advisory fee. But the great thing about this is that 96 percent of clients pay their advisory fee with the money Wealthfront helped them save on taxes. So, they save money in the long run.
There are no limits on what you can do with Wealthfront. You can invest for retirement, and education, as well as individual, joint, and trust accounts.
Cash Account
The Wealthfront cash account is a great alternative to a standard checking account. You get to earn interest on your paycheck.
The best part about it is that you can set goals and automatically transfer money toward your savings account, travel expenses, and even a down payment on a new home.
Cash out at any time without having to deal with any fees. And the cherry on top, your cash is insured for up to one million dollars.
FAQs
Is Vanguard or Wealthfront better?
Vanguard and Wealthfront are both investment management companies that offer different types of investment services. Vanguard is known for its low-cost index funds and exchange-traded funds (ETFs), while Wealthfront is a robo-advisor that uses algorithms to manage investment portfolios. Ultimately, the better choice between Vanguard and Wealthfront depends on an individual’s investment goals, risk tolerance, and preferences for investment management style.
Is M1 better than Wealthfront?
M1 and Wealthfront are both online investment management platforms that offer various financial services, including automated investing, retirement accounts, and financial planning tools. M1 is a platform that allows investors to create and manage custom portfolios of stocks and ETFs, while Wealthfront utilizes a robo-advisor to create portfolios for clients based on their risk tolerance and financial goals. Ultimately, the choice between M1 and Wealthfront will depend on individual preferences and investment goals, as both platforms offer unique features and benefits.
Is Robinhood or Wealthfront better?
Robinhood and Wealthfront are both financial services companies, but they offer different services. Robinhood is a stock trading platform that allows users to trade stocks, ETFs, and options commission-free. Wealthfront is a robo-advisor that offers automated investment management services, including tax-loss harvesting and portfolio rebalancing. The choice between Robinhood and Wealthfront depends on an individual’s investment goals and preferences.
Is Wealthfront better than Charles Schwab?
Wealthfront and Charles Schwab are both investment platforms that offer different features and benefits. Wealthfront is a robo-advisor that uses algorithms to manage investments and has a low account minimum, while Charles Schwab offers a wider range of investment options and has a larger network of physical branches. Whether Wealthfront is better than Charles Schwab depends on individual investment goals and preferences. It’s important to compare the features and fees of each platform to determine which one aligns best with your investment strategy.
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Kyle Kroeger, esteemed Purdue University alum and accomplished finance professional, brings a decade of invaluable experience from diverse finance roles in both small and large firms. An astute investor himself, Kyle adeptly navigates the spheres of corporate and client-side finance, always guiding with a principal investor’s sharp acumen.
Hailing from a lineage of industrious Midwestern entrepreneurs and creatives, his business instincts are deeply ingrained. This background fuels his entrepreneurial spirit and underpins his commitment to responsible investment. As the Founder and Owner of The Impact Investor, Kyle fervently advocates for increased awareness of ethically invested funds, empowering individuals to make judicious investment decisions.
Striving to marry financial prudence with positive societal impact, Kyle imparts practical strategies for saving and investing, underlined by a robust ethos of conscientious capitalism. His ambition transcends personal gain, aiming instead to spark transformative global change through the power of responsible investment.
When not immersed in the world of finance, he’s continually captivated by the cultural richness of new cities, relishing the opportunity to learn from diverse societies. This passion for travel is eloquently documented on his site, ViaTravelers.com, where you can delve into his unique experiences via his author profile.