Betterment vs Wealthfront
By Itai Varochik | Updated 2026
Quick Verdict
Overall Winner: Betterment (4.5/5)
We tested Betterment and Wealthfront side-by-side. Betterment comes out ahead overall, but Wealthfront may be better for specific use cases.
Score Breakdown
| Criteria | Betterment | Wealthfront |
|---|---|---|
| Features | 8/10 | 8.5/10 |
| Ease of Use | 9/10 | 8.5/10 |
| Value for Money | 8.5/10 | 8.5/10 |
| Customer Support | 8/10 | 7/10 |
| Overall | 8.5/10 | 8.3/10 |
Feature Comparison
| Feature | Betterment | Wealthfront |
|---|---|---|
| Automated Investing | Yes | Yes |
| Tax-Loss Harvesting | Yes | No |
| Goal Planning | Yes | No |
| SRI Portfolios | Yes | No |
| Cash Reserve | Yes | No |
| Financial Advice | Yes | No |
| Automatic Rebalancing | Yes | No |
| Direct Indexing | No | Yes |
| Path | No | Yes |
| Cash Account | No | Yes |
| Portfolio Line of Credit | No | Yes |
Pricing Comparison
Betterment: 0.25%/year
Wealthfront: 0.25%/year
Betterment Pros & Cons
Pros
- No minimum deposit required to start investing, making it accessible for beginners.
- Industry-leading automated tax-loss harvesting significantly boosts after-tax returns.
- Offers diverse socially responsible investing (SRI) portfolios to align with personal values.
- High-yield Cash Reserve account with competitive APY and FDIC insurance.
- Intuitive and user-friendly interface simplifies financial planning and tracking.
- Goal-based investing framework helps users visualize and achieve financial milestones.
Cons
- Does not support direct trading of individual stocks or ETFs, limiting active investor control.
- Access to a human financial advisor requires a substantial $100,000 minimum balance for the Premium plan.
- Limited customization options for investment portfolios beyond pre-set allocations.
- No cryptocurrency investment options are currently available.
Wealthfront Pros & Cons
Pros
- Automated tax-loss harvesting from $500
- Low 0.25% annual advisory fee
- Path financial planning tool
- Direct Indexing for $100K+ accounts
- Self-Driving Money auto-routing
- No trading commissions or hidden fees
Cons
- No human financial advisor access
- $500 minimum to start investing
- Limited investment customization
- No individual stock picking
- Cash Account APY may vary
Key Specifications
| Spec | Betterment | Wealthfront |
|---|---|---|
| Rating | 4.5/5 | 4.5/5 |
| Pricing | 0.25%/year | 0.25%/year |
| Year Founded | 2008 | 2008 |
| Headquarters | New York, NY | Palo Alto, CA |
| Employees | 400+ | 350+ |
| Best For Region | United States | United States |
| Cash Account APY | 4.00%+ | 4.50% |
Our Verdict
Betterment wins overall. Choose Betterment if you value Hands-off investors wanting automated, diversified portfolios.. Choose Wealthfront if you prioritize Hands-off long-term investors.
Frequently Asked Questions
Is Betterment better than Wealthfront?
Based on our testing, Betterment scores higher with a rating of 4.5/5 compared to Wealthfront's 4.5/5. However, the best choice depends on your specific needs.
What is the main difference between Betterment and Wealthfront?
Betterment is known for: America's largest independent robo-advisor with automated investing and tax optimization.. Wealthfront is known for: Robo-advisor with direct indexing, financial planning, and high-yield cash account..
Which is cheaper, Betterment or Wealthfront?
Betterment pricing: 0.25%/year. Wealthfront pricing: 0.25%/year.
Can I use Betterment and Wealthfront together?
While both tools serve similar purposes in the Robo-Advisors category, some users do use complementary features from both platforms.
What are the pros of Betterment?
No minimum deposit required to start investing, making it accessible for beginners.. Industry-leading automated tax-loss harvesting significantly boosts after-tax returns.. Offers diverse socially responsible investing (SRI) portfolios to align with personal values.
What are the pros of Wealthfront?
Automated tax-loss harvesting from $500. Low 0.25% annual advisory fee. Path financial planning tool
Which robo-advisors should I choose?
Choose Betterment if you value Hands-off investors wanting automated, diversified portfolios.. Choose Wealthfront if you prioritize Hands-off long-term investors.