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Head to head

Betterment vs Wealthfront vs M1 Finance

The same six questions asked of each one, side by side.

AttributeLowest ongoing costBettermentAlternativeWealthfrontAlternativeM1 Finance
Starting price$5 a month flat on balances under $24,000, switching to 0.25% a year with a $200+ monthly recurring deposit or once your balance reaches $24,000. Premium is 0.65% a year and requires $100,000 invested.0.25% a year on Automated Investing — roughly $3.18 a month on a $15,000 balance. The Stock Investing Account has no advisory fee and no commissions. The Cash Account has no monthly fee.$3/mo
Free tierNoNoNo
Ease of startScored 4/5Running in an hourScored 4/5Running in an hourScored 3/5A weekend to learn
Fit for solo / small teamScored 5/5Made for one personScored 5/5Made for one personScored 4/5Good for a small team
Switching costMediumLowMedium
Best forPeople who want their investing automated — rebalancing, tax-loss harvesting and diversification handled without them thinking about it.Hands-off investors who want automation plus a competitive cash account, without exit fees if they change their mind later.Investors with $10,000 or more who want automated allocation but still pick the holdings themselves. Above that threshold the platform fee is waived and there is no advisory fee at all.
Worth knowing side by side
Renews higherNoNoNo
Worst forSmall balances without regular deposits. The $5 monthly flat fee on a $2,000 balance works out to 3% a year, far above the headline rate.People starting with very little. Automated Investing requires $500 to open, where some competitors start at a dollar.Small balances. At $1,000 invested, $3 a month is 3.6% a year — more than ten times what a robo-advisor charges on assets.
Skip it ifYou are happy buying an index fund yourself. Doing that at a low-cost broker avoids the management fee entirely.You want human financial advice. Wealthfront is deliberately software-only, with no advisor to call.You are starting with a few hundred dollars and want to keep costs proportional. A percentage-of-assets fee is cheaper than a flat one until you cross roughly $14,000.
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Why Betterment is flagged here

Hands-off investing at 0.25% a year, with a $75 charge on the way out. It has the lowest ongoing cost of the tools compared here. We compare on the price you keep paying, not the introductory rate — a plan advertised cheaply that renews higher is ranked on its renewal price. Read the methodology.

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