Betterment vs Wealthfront (2026)
Betterment and Wealthfront both charge 0.25% a year on their main portfolio and both offer tax-loss harvesting in taxable accounts. Betterment has no minimum and CFP access on Premium, but charges $5 a month under $24,000 without a $200 monthly deposit and $75 per transfer out. Wealthfront needs $500, has no human advisors and adds US direct indexing from $100,000.
By Wealthy Pot Editorial · Facts checked October 19, 2026
| Feature | Betterment | Wealthfront |
|---|---|---|
| Type | Standalone | Standalone |
| Advisory fee | $5/mo under $24k (unless $200+/mo deposits), else 0.25%/yr; Premium 0.65% | 0.25%/yr (Bond Ladder 0.15%, S&P 500 Direct 0.09%) |
| Year cost on $5,000 | $62.50 to $66.50 | $12.50 + funds |
| Year cost on $25,000 | $75 to $95 | $62.50 + funds |
| Year cost on $100,000 | $300 to $380 | $250 + funds |
| Account minimum | $0 ($10 first deposit) | $500 |
| Tax-loss harvesting | Yes | Yes |
| Platforms | Web, iOS, Android | Web, iOS, Android |
| Best for | Goal-based automated investing with tax-loss harvesting and no account minimum | Automated investing with tax-loss harvesting from $500 and direct indexing from $100,000 |
Year-cost rows are our arithmetic: advisory fee plus typical fund expenses, balance held flat for a year, using each firm's published fee rules. Hypothetical, not a quote.
Key differences
The headline fee is the same 0.25% a year, so the difference sits below $24,000. Betterment charges a flat $5 a month while the balance is under $24,000, unless you set a recurring deposit of $200 or more a month. Hypothetically, on $5,000 with no recurring deposit, that is $5 x 12 = $60 a year at Betterment, against $5,000 x 0.25% = $12.50 at Wealthfront. With a $200 monthly deposit, Betterment also charges 0.25%, or $12.50. Wealthfront needs $500 to open its managed portfolio; Betterment has no minimum and takes a $10 first deposit.
Two costs sit outside the table. Since May 2026 Betterment keeps about 0.5% of taxable, IRA and HSA portfolios in cash that earns no interest, and it charges $75 for each full or partial transfer to another brokerage firm. Wealthfront lists no account opening, withdrawal, closing, trading or transfer fees. On fund costs, Betterment shows 0.05% to 0.13% a year for its Core portfolio, while Wealthfront shows its fund expense ratios in the app rather than on its public pages, so they cannot be checked before you sign up.
The service model differs. Wealthfront is software only, and its own brochure says it is probably not the most appropriate service for someone who wants frequent feedback from an advisor. Betterment Premium adds calls and video with CFP professionals at 0.65% a year, with $100,000 in eligible investments. In the other direction, Wealthfront offers US Direct Indexing from $100,000 in a taxable portfolio at no extra fee, which Betterment's brochure does not offer retail clients. Both have SEC orders over tax-loss harvesting: Betterment $9 million in April 2023, Wealthfront $250,000 in December 2018.
Where Betterment wins
- No minimum balance and a $10 first deposit
- Optional tax-loss harvesting and Tax Coordination, with no balance threshold stated
- 0.25% at any balance with a $200+ monthly recurring deposit
- CFP professionals on Premium from $100,000
- Lower rates on balances above $1 million (0.15%, then 0.10%)
Where Wealthfront wins
- Tax-loss harvesting on taxable portfolios with no minimum balance
- US Direct Indexing from $100,000 and Smart Beta from $500,000 at no extra fee
- No transfer, closing, withdrawal or trading fees
- Lower-fee options: Bond Ladder 0.15%, S&P 500 Direct 0.09%
- Joint, trust and custodial accounts besides IRAs
Which should you choose?
Pick Betterment if
- You invest every month and can set a recurring deposit of $200 or more, so the 0.25% fee applies at any balance.
- You hold a taxable account and want optional tax-loss harvesting with no stated balance threshold.
- You have $100,000 or more and want calls with CFP professionals for 0.65% a year.
- You want an HSA or Solo 401(k) managed in the same place as your IRA.
Pick Wealthfront if
- You want tax-loss harvesting in a taxable account at any balance.
- You want a percentage fee with no flat monthly charge and no transfer-out fee.
- You have $100,000 or more in a taxable account and want US direct indexing at no extra fee.
- You want a Treasury ladder (0.15%) or an S&P 500 direct index (0.09%) managed alongside.
Betterment vs Wealthfront: FAQ
Is Betterment or Wealthfront cheaper on $5,000?
It depends on your deposits. Without a recurring deposit of $200 or more a month, Betterment charges $5 a month under $24,000, which is $60 a year on $5,000. Wealthfront charges 0.25%, or $12.50. With a $200+ monthly deposit, Betterment also charges 0.25%. From $24,000 both charge 0.25% on the main portfolio, before fund costs.
Which has human advice, Betterment or Wealthfront?
Betterment, on Premium only: calls and video with CFP professionals at 0.65% a year, which needs $100,000 in eligible investments per household. Wealthfront has no human advisors; support staff answer account questions, and its planning tools are free in the app.
Which account types do Betterment and Wealthfront offer?
Betterment lists individual and trust taxable accounts, traditional, Roth and SEP IRAs, an HSA and a Solo 401(k). Wealthfront lists individual, joint and trust taxable accounts, IRAs, UTMA/UGMA custodial accounts and a 529 through the Nevada plan. Betterment's HSA costs 0.50% a year all in.
Compare these against every option in our robo-advisors comparison.
We summarize each company's published terms and pricing, not user reviews or our own testing. Facts come from our full reviews of both services, each checked against the firm's own fee pages and SEC filings on October 19, 2026 with every source listed. We do not earn a commission from either service. Nothing here is investment advice.