Betterment LLC is a registered investment advisor offering investment advice primarily through its online platform. Betterment provides discretionary asset management services for portfolios composed of exchange-traded funds, mutual funds, and stocks, as well as limited discretionary services for self-directed investing. Betterment offers services to retail clients, third-party advised clients, and retirement plan clients. Betterment's services are built to advise clients on how to achieve particular financial goals that clients indicate in their account.
Fee Structure
Betterment charges an asset-based fee for its investment advisory services.
Retail clients pay a $5 per month fee if their total account balance is under $24,000 and they do not have a monthly $200 recurring deposit. If the balance exceeds $24,000 or they have a $200 recurring deposit, they pay 0.25% annually. Clients with a Solo 401(k) pay 0.25% annually. HSA accounts are subject to an annualized fee of 0.50%. Premium clients pay 0.65% annually, which includes a 0.40% fee for access to financial consultants. The 0.40% fee is waived for balances above $1 million. Betterment waives its fee on balances held in self-directed investing and Cash Reserve accounts.