Betterment vs Wealthfront for robo investing and your IRA in 2026
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Key takeaways
- Betterment charges $5 a month on balances under $24,000 unless you set up $200 or more in monthly deposits, which is $60 a year, or 1.2% of a $5,000 account.1
- When choosing between Betterment and Wealthfront, start with your balance and whether you'll deposit $200 a month before you compare features, because above $24,000 both charge 0.25% a year.
- Wealthfront is the stronger fit for a saver starting under $24,000 without a monthly deposit, and Betterment for a saver who wants a human advisor once they have $100,000 to invest.
In this article
- Betterment vs Wealthfront at a glance
- What is Betterment?
- What is Wealthfront?
- Betterment vs Wealthfront features compared
- Betterment vs Wealthfront fees for three kinds of saver
- Betterment vs Wealthfront for a Roth IRA
- Should you choose Betterment or Wealthfront?
- Price the fee against your balance before you open either account
- Frequently asked questions about Betterment vs Wealthfront
Key takeaways
- Betterment charges $5 a month on balances under $24,000 unless you set up $200 or more in monthly deposits, which is $60 a year, or 1.2% of a $5,000 account.1
- When choosing between Betterment and Wealthfront, start with your balance and whether you'll deposit $200 a month before you compare features, because above $24,000 both charge 0.25% a year.
- Wealthfront is the stronger fit for a saver starting under $24,000 without a monthly deposit, and Betterment for a saver who wants a human advisor once they have $100,000 to invest.
Betterment and Wealthfront both charge a 0.25% annual advisory fee to manage a portfolio, but Betterment switches to a flat $5 a month below $24,000 unless you deposit $200 a month.2 Wealthfront has a $500 minimum and no advisor tier. This guide compares Betterment and Wealthfront on fees, advice, taxes, cash, IRAs, and exit costs.
Betterment vs Wealthfront at a glance
At a glance, Betterment vs Wealthfront comes down to how each prices a small account, whether you can talk to an advisor, and what it costs to leave.
| Betterment | Wealthfront | |
|---|---|---|
| Best for | Savers who deposit every month or want an advisor at $100,000 | Savers starting small without a monthly deposit, or who may move accounts later |
| Minimum | No minimum balance | $500 for Automated Investing |
| Advisory fee | $5 a month under $24,000; 0.25% a year with $200+ monthly deposits or $24,000+ | 0.25% a year at every balance |
| Advisor tier | Premium, 0.65% a year, $100,000 minimum | None |
| Tax-loss harvesting | Yes, plus tax coordination between an IRA and a taxable account | Yes, in taxable accounts |
| Cash account | Cash Reserve, 3.50% APY as of September 21, 2026 | Cash Account, 3.55% base APY as of October 1, 2026 |
| FDIC eligibility on cash | Up to $4 million, $8 million joint, through program banks | Up to $8 million, $16 million joint, through program banks |
| IRAs | Traditional, Roth, SEP, 401(k) rollover, Solo 401(k) | Traditional, Roth, SEP, 401(k) rollover |
| IRA match | None shown | None shown |
| Fee to transfer out | $75 per investing account | $0 |
Betterment's figures were read on Betterment's pages and Wealthfront's on Wealthfront's, both on October 10, 2026.
What is Betterment?
Betterment is a robo-advisor that builds and manages a portfolio of ETFs for you, charging $5 a month on balances under $24,000 and 0.25% a year above that or once you deposit $200 a month. Betterment says the $24,000 counts across all your Betterment investing accounts, including Cash Reserve.
Betterment also runs self-directed stock and ETF trading with no commissions, a Cash Reserve account, and checking. Premium adds access to an advisor for 0.65% a year once your household holds $100,000. This page covers Betterment's fees, advisor tier, and cash account.
What is Wealthfront?
Wealthfront is a robo-advisor that manages a portfolio for a flat 0.25% a year at every balance, with a $500 minimum and no advisor tier. The Wealthfront app also holds a Cash Account and a commission-free Stock Investing Account.
Wealthfront is a Tweed partner. The Wealthfront review covers its full fee table and IRA rules.
Betterment vs Wealthfront features compared
Betterment vs Wealthfront features split on five things: how each prices a small account, access to an advisor, tax handling, cash, and the cost to leave. Each section below opens with the one that comes out ahead, and ties are named as ties.
Pricing below $24,000
Below $24,000, Wealthfront wins unless you'll deposit $200 a month, because it charges 0.25% at every balance and Betterment charges a flat $5 a month. That $60 a year is 6% of $1,000, 1.2% of $5,000, and 0.6% of $10,000, and at $24,000 the two prices meet.
If you choose Betterment with a small balance, set up a recurring deposit of $200 or more a month before the first fee posts. Wealthfront's $500 minimum is the trade-off, because a saver with less than $500 can start only at Betterment.
Access to a financial advisor
On access to an advisor, Betterment wins, because Premium gives you an advisor for 0.65% a year and Wealthfront has no advisor tier. Premium needs $100,000 in eligible investments per household, which can sit in IRAs, a Solo 401(k), and taxable accounts.
Wealthfront offers free planning tools in the app instead, and its retirement page describes its IRAs as managed automatically, with no need to talk to anyone.
Tax-loss harvesting and tax coordination
On taxes, it's close to a tie: both run automated tax-loss harvesting in taxable accounts, and Betterment adds tax coordination between an IRA and a taxable account. Harvesting does nothing inside an IRA, where gains and losses aren't taxed each year, so it matters only for taxable money. Wealthfront watches trades across your Wealthfront accounts to avoid wash sales.
Cash accounts
On cash, Wealthfront wins narrowly with a 3.55% base APY as of October 1, 2026, vs 3.50% at Betterment Cash Reserve as of September 21, 2026.3 Wealthfront publishes FDIC insurance eligibility up to $8 million, or $16 million joint, through program banks, and Betterment publishes up to $4 million, or $8 million joint.
Both run new-client boosts: Wealthfront adds 0.65% for 3 months on up to $150,000, and Betterment adds 0.75% for new clients with a qualifying deposit. Plan on the base rate, because the boosts end and both rates are variable.
Fees to move your account out
On the cost to leave, Wealthfront wins: it charges no account transfer or closing fees, and Betterment charges $75 for each investing account you move to another firm.4 Withdrawing cash to your linked bank account is free at both. Selling a taxable portfolio to move cash, instead of moving the holdings, can trigger capital gains tax at either.
Betterment vs Wealthfront fees for three kinds of saver
Betterment vs Wealthfront fees differ only below $24,000 and at the advisor tier, so the tables below price those cases. Each one shows advisory fees only, held for one year, and leaves out fund expense ratios and returns.
A saver starting with under $24,000
A saver starting with under $24,000 and no monthly deposit pays more at Betterment at every balance below the line.
| Balance, no monthly deposit | Betterment | Wealthfront | Difference |
|---|---|---|---|
| $1,000 | $60 | $2.50 | $57.50 |
| $5,000 | $60 | $12.50 | $47.50 |
| $10,000 | $60 | $25 | $35 |
| $20,000 | $60 | $50 | $10 |
| $24,000 | $60 | $60 | $0 |
From $24,000 up, both charge 0.25%, so $50,000 costs $125 a year at either.
A saver who deposits $200 or more a month
A saver who deposits $200 or more a month pays the same 0.25% at both, so the fee doesn't decide this one. If you open with $1,000 and deposit $200 a month for a year, you'll pay about $5.75 in advisory fees at either. Without the monthly deposit, Betterment charges $60 for the year. For this saver, advice, cash, and the cost to leave decide it, so go back to the features compared above.
A saver with $100,000 who wants an advisor
A saver with $100,000 who wants an advisor pays $400 a year more for Betterment Premium than for Wealthfront, which has no advisor to offer.
| $100,000, one year | Betterment Digital | Betterment Premium | Wealthfront |
|---|---|---|---|
| Advisory fee | $250 | $650 | $250 |
| Advisor access | No | Yes | No |
| Moving a taxable account and a Roth IRA out later | $150 | $150 | $0 |
Whether $400 a year is worth it to you depends on how often you'll use the advisor. The frequently asked questions below cover whether a 1% advisor fee is worth it.
Betterment vs Wealthfront for a Roth IRA
Betterment vs Wealthfront for a Roth IRA is close, because both offer traditional, Roth, and SEP IRAs and rollovers, and neither shows an IRA match.5
| Roth IRA | Betterment | Wealthfront |
|---|---|---|
| Managed Roth fee | $5 a month under $24,000, or 0.25% with $200+ monthly deposits | 0.25% |
| Minimum | No minimum balance | $500 |
| IRA match | None shown | None shown |
| Backdoor Roth support | Not checked | Listed on its retirement page |
| Fee to transfer out | $75 | $0 |
The 2026 IRA limit is $7,500 across all your IRAs combined. That's $625 a month, which clears Betterment's $200 deposit line, so a saver funding a Roth monthly pays 0.25% at either.
If your income is above the Roth limit, the backdoor Roth guide covers the steps. If you'd rather have a broker that pays a match, see the best Roth IRA accounts.
Should you choose Betterment or Wealthfront?
Three things decide whether Betterment or Wealthfront fits: your balance, whether you'll deposit every month, and whether you want an advisor. If a third robo is on your list, Wealthfront vs SoFi, Wealthfront vs Vanguard, and Wealthfront vs Schwab compare Wealthfront with each.
Choose Betterment if
- You'll set up recurring deposits of $200 or more a month, so you pay 0.25% from the first dollar
- You want access to an advisor once you have $100,000 to invest
- You want your IRA and taxable account coordinated for taxes
- You have less than $500 to start, or you want a Solo 401(k)
Choose Wealthfront if
- You're starting with under $24,000 and won't deposit $200 a month
- You want the higher base cash rate and FDIC eligibility up to $8 million in the same app
- You may move your accounts to another firm later and don't want to pay to leave
- You're comfortable with software only and no advisor
Price the fee against your balance before you open either account
Run the Tweed retirement calculator with your expected return lowered by the fee you'll pay, 0.25% at either firm or 1.2% for $5,000 at Betterment without a monthly deposit, to see what it costs by retirement. If the account is a Roth, check the best Roth IRA accounts list too.
If Wealthfront fits, you can open a Wealthfront account.
Frequently asked questions about Betterment vs Wealthfront
What is the Wealthfront controversy?
The Wealthfront controversy is a 2018 SEC settlement over its tax-loss harvesting. The SEC found Wealthfront told clients it would monitor accounts for wash sales but didn't, and wash sales hit at least 31% of enrolled accounts. Wealthfront paid a $250,000 penalty without admitting or denying the findings.
How trustworthy is Betterment?
Betterment is an SEC-registered investment adviser, and its record includes one SEC settlement. In 2023 the SEC found Betterment misstated how its tax-loss harvesting worked from 2016 to 2019, affecting more than 25,000 accounts. Betterment paid a $9 million penalty, distributed to affected clients, without admitting or denying the findings.
Is there anything better than Wealthfront?
Something is better than Wealthfront only for a specific saver. Schwab Intelligent Portfolios charges no advisory fee from $5,000, and SoFi's robo charges the same 0.25% from $50 and pays a 1% IRA match. Wealthfront's case is one flat fee, a strong cash account, and no cost to leave.
Who is better than Betterment?
Who is better than Betterment depends on what you want from it. Fidelity Go charges nothing on balances under $25,000, and Vanguard Digital Advisor's gross fee is 0.20% for an index portfolio from $100. Betterment's case is Premium, tax coordination across accounts, and no minimum balance to start.
Is a 1% fee worth it for a financial advisor?
A 1% fee for a financial advisor is worth it only if the advice changes what you'll do with your money. On $100,000, 1% is $1,000 a year, vs $650 for Betterment Premium and $250 for a robo with no advisor. Ask what you'll get for the difference before you pay it.
Does Betterment or Wealthfront have better returns?
Neither Betterment nor Wealthfront has better returns in a way you can compare fairly, because returns depend on the portfolio and risk level you pick and when you invest. Both build portfolios from low-cost ETFs, so two similar allocations should track each other closely, minus the fees you'll pay at each.
Are Wealthfront fees high?
Wealthfront fees aren't high for a robo-advisor: 0.25% a year, or $250 on $100,000, plus the expense ratios of the funds it holds. Its S&P 500 Direct and Nasdaq-100 Direct portfolios charge less, 0.09% and 0.12%. The fee has no cap, so the dollar cost grows with your balance.
Sources
- https://www.betterment.com/pricing
- https://www.wealthfront.com/pricing
- https://www.wealthfront.com/cash
- https://support.wealthfront.com/hc/en-us/articles/13992378758676-Understanding-Wealthfront-fees
- https://www.wealthfront.com/retirement
Fees and rates are as each company published them on October 10, 2026, and can change. The tables show advisory fees for one year and don't include fund expense ratios or returns.
Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.
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