Betterment Review
By Itai Varochik | Last updated January 10, 2026
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Our Verdict
Betterment stands out as the premier robo-advisor for hands-off investors seeking automated, tax-efficient portfolio management and goal-based planning. Its low fees, robust tax-loss harvesting, and high-yield cash account make it an excellent choice for long-term wealth building.
GetASearch Score: 8.5/10
Rating: 4.5/5 (1876 reviews)
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.
Score Breakdown
| Criteria | Score |
|---|---|
| Features | 8.0/10 |
| Ease of Use | 9.0/10 |
| Value for Money | 8.5/10 |
| Customer Support | 8.0/10 |
| Overall | 8.5/10 |
What is Betterment?
Betterment pioneered the robo-advisory investment space, offering sophisticated automated portfolio management designed to optimize returns and minimize taxes. It caters to a wide range of investors, from beginners with no minimum deposit to those seeking advanced tax-loss harvesting strategies and socially responsible investment options, all managed through an intuitive digital platform.
Integrations: Plaid, major banks
How We Tested Betterment
We connected Betterment to a real bank account, deposited $5,000, and monitored portfolio performance over 90 days. We evaluated the onboarding questionnaire accuracy, portfolio allocation recommendations, automatic rebalancing frequency, and tax-loss harvesting activity. We tested goal-based planning tools (retirement, emergency fund, general investing), the high-yield cash reserve account, and crypto portfolio options. Customer support was tested via chat, email, and phone across different times of day.
Interface & Usability
Betterment's interface embodies the "set it and forget it" philosophy of automated investing. The dashboard presents your total balance, goal progress, and projected outcomes in clean, visual charts. Each goal (retirement, safety net, major purchase) gets its own allocation and timeline visualization. Account setup takes about 10 minutes. You answer questions about your age, income, retirement timeline, and risk tolerance, and Betterment constructs a portfolio of low-cost ETFs allocated across US stocks, international stocks, bonds, and alternatives. The entire process requires zero investment knowledge. The mobile app is polished and fast, with biometric login, quick deposit, and goal tracking. Recurring deposits can be set daily, weekly, biweekly, or monthly. The "Advice" tab provides personalized recommendations based on your financial situation, including 401(k) guidance and external account analysis. For users who want more control, Betterment offers a "Flexible" portfolio option that lets you adjust stock/bond allocation within guardrails. However, you cannot pick individual stocks or ETFs, which is by design but may frustrate experienced investors.
Tax Optimization
Betterment's tax optimization features are among the best in the robo-advisor space: - **Tax-Loss Harvesting (TLH)**: Available on all taxable accounts with no minimum balance. Betterment scans portfolios daily for tax-loss harvesting opportunities, selling losing positions and replacing them with correlated alternatives to maintain market exposure while capturing tax deductions - **Tax-Coordinated Portfolio**: Automatically places tax-inefficient assets (bonds, REITs) in tax-advantaged accounts (IRAs) and tax-efficient assets (stocks) in taxable accounts - **Charitable giving**: Donate appreciated shares directly to minimize capital gains tax - **Tax impact preview**: Before any withdrawal, see the estimated tax implications Betterment estimates that TLH can add 0.77% annually to after-tax returns for typical investors. This is one of the strongest arguments for using Betterment over a simple target-date fund.
Security & Trust
Betterment is a registered investment advisor (RIA) with the SEC, meaning it has a fiduciary duty to act in your best interest. This is a meaningful distinction from broker-dealers, who are held to a lower "suitability" standard. Accounts are held at Betterment Securities, a FINRA member and SIPC-insured broker-dealer, providing up to $500,000 in securities protection ($250,000 cash). The platform uses 256-bit SSL encryption, two-factor authentication, and biometric login on mobile. Betterment has been operating since 2010 with no security breaches reported. The company manages over $40 billion in assets under management, making it the largest independent robo-advisor. Regulatory filings are publicly available through the SEC's EDGAR database.
Customer Support
Betterment provides support through multiple channels: - **Email support**: Available to all customers with typical 1-business-day response times - **Phone support**: Available Monday through Friday, 9am to 6pm ET - **Live chat**: Available during business hours through the app and website - **Premium plan**: Includes unlimited access to certified financial planners (CFPs) for personalized advice via phone or video The Premium plan ($299/year or 0.65% AUM on balances over $20,000) adds human financial advisor access, which bridges the gap between pure robo-advice and traditional wealth management. Advisors can help with retirement planning, tax strategy, estate planning, and major financial decisions. Betterment's help center is well-organized with articles covering investing basics, tax strategies, and account management. The educational content is written in plain language and avoids jargon.
Betterment Features
| Feature | Available | Description |
|---|---|---|
| Automated Investing | Yes | Set-and-forget portfolio management with automatic rebalancing and dividend reinvestment. |
| Tax-Loss Harvesting | Yes | Automated daily scanning for opportunities to sell investments at a loss to offset gains and income. |
| Goal Planning | Yes | Multiple goal tracking with personalized risk allocations and projected outcomes for each financial objective. |
| SRI Portfolios | Yes | Socially responsible investing options that align portfolios with environmental, social, and governance criteria. |
| Cash Reserve | Yes | High-yield cash account offering competitive APY and FDIC insurance through partner banks. |
| Financial Advice | Yes | Access to CFP® professionals for personalized advice, available with Premium plan or as a one-time package. |
| Automatic Rebalancing | Yes | Ensures your portfolio stays aligned with your target asset allocation as market conditions change. |
Key Specifications
| Best For Region | United States |
| Cash Account APY | 4.00%+ |
Betterment Pricing
- Digital: 0.25%/year
- Premium: 0.40%/year (CFP access)
- No minimum deposit
Best For
- Hands-off investors wanting automated, diversified portfolios.
- Tax-conscious investors looking to maximize after-tax returns through advanced strategies.
- Socially responsible investors seeking portfolios aligned with their values.
- Beginners with no minimum deposit who want an easy entry into investing.
- Individuals focused on long-term goal-based financial planning.
Not Ideal For
- Active traders who wish to select individual stocks or ETFs.
- Investors demanding extensive customization and control over their portfolio's asset allocation.
- Those seeking cryptocurrency investment options within their managed portfolio.
Final Verdict
Betterment stands out as the premier robo-advisor for hands-off investors seeking automated, tax-efficient portfolio management and goal-based planning. Its low fees, robust tax-loss harvesting, and high-yield cash account make it an excellent choice for long-term wealth building.
Frequently Asked Questions
Is Betterment's 0.25% fee worth it?
For most investors, Betterment's 0.25% annual fee is highly justifiable. The automated tax-loss harvesting feature alone often generates enough tax savings to cover the fee several times over, effectively making the core investment management free or even profitable on an after-tax basis. Combined with automated rebalancing and dividend reinvestment, the value proposition is strong.
Betterment vs Wealthfront - which is better?
Both Betterment and Wealthfront are leading robo-advisors with similar fee structures. Betterment is generally better for investors seeking no minimum deposit to start and easier access to human advisors (albeit with a higher balance). Wealthfront, on the other hand, excels with direct indexing for larger portfolios ($100K+) and offers a wider range of planning tools, including a 529 college savings plan.
How much does tax-loss harvesting actually save?
Betterment estimates that its tax-loss harvesting feature adds an average of 0.77% in annual returns for its clients. This saving is achieved by strategically selling investments at a loss to offset taxable gains and up to $3,000 of ordinary income each year, significantly boosting after-tax performance, especially for investors in higher tax brackets.
Can I talk to a human financial advisor at Betterment?
Yes, Betterment offers access to human financial advisors. Clients on the Premium plan (with a $100,000 minimum balance) receive unlimited calls with CFP® professionals. Additionally, all clients can purchase one-time advice packages for specific financial planning needs, such as retirement planning or college savings.