At Investor Junkie, we reviewed over 100 investing and personal finance services. Our goal is to bring you the most honest, simple, and informative reviews. Turns out, users also want to compare specific services.
This review compares Betterment and FutureAdvisor. The better service depends on your needs. So let's dive in!
According to our readers (you!), when it comes to robo advisors, people care most about the fees, minimum investment requirements, and whether or not the service supports for 401(k) plans. Let's look at how Betterment and FutureAdvisor stack up against each other on these threads.
To start, we will compare the fees for trading with both robo advisors. Betterment has a fees starting at 0.25% fee per year. To contrast, FutureAdvisor has annual fees of 0.50%.
When it comes to fees, Betterment is the cheaper service.
Let's consider the minimum investment that's required to use both Betterment and FutureAdvisor.
At $0, Betterment requires a smaller minimum deposit.
Both Betterment and FutureAdvisor can help manage your 401(k) plan.
Betterment is a good starting point for beginner investors. The robo advisor has no minimum deposit and costs 0.25% annually. If you need the assistance, it recently added human advisors, which can assist with your retirement account. Unfortunately, its asset allocation excludes REITs or commodities.
FutureAdvisor lets you test-drive its service for free and is one of the few robo advisors that can manage your 529 college savings plan. However, the bad news is the service's fees are higher than those of most of its competition.
|Review||Betterment Review||FutureAdvisor Review|
Overall rating as by Investor Junkie.Rating
|Commissions & Fees|
|Ease of Use|
|Tools & Resources|
|Promotions||Up To 1 Year Free||None|
|Account Fees||Digital – 0.25%/year; Premium – 0.40%/year||0.50%/year|
|Accounts Available||Taxable, Joint, Roth IRA, Traditional IRA, Rollover IRA, SEP IRA, Trusts, Non-Profit||Taxable, Joint, Roth IRA, Traditional IRA, Rollover IRA, SEP IRA, 529, Coverdell|
Does the robo-advisor offer assistance with your employer sponsored retirement plan?401(k) Guidance
|Tax Loss Harvesting||Yes — All Taxable Accounts||Yes — All Taxable Accounts|
|Retirement Planning Tools||Yes||Yes|
|Automatic Deposits||Weekly, Biweekly and Monthly||Daily, Weekly, Biweekly, Monthly, Bimonthly and Quarterly|
|Clearing Agency||Apex Clearing||Apex Clearing|
|Socially Responsible Investing||Yes||No|
|Invests in Commodities||No||Yes|
|Invests in Real Estate||No||Yes|
How can you access the sevice? Website only? Via smartphone app?Access
|Website, iOS App, Android App||Website, iOS App, Android App|
More security to prevent unauthorized access to your account.Two-Factor Authentication
|Customer Service||Phone: M-Th 9A-8P, F 9A-6P ET; Live Chat: M-Th 9A-8P, F 9A-6P, Sat-Sun 11A-6P ET; Email||Phone: M-F 8:30A-5P PT; Email|
|Assets Under Management||$12B||$1B|
|Number of Accounts||393K||7K|
|Sign Up||Sign Up|