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 TD Ameritrade Essential Portfolios and Betterment. 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 TD Ameritrade Essential Portfolios and Betterment stack up against each other on these threads.
To start, we will compare the fees for trading with both robo advisors. TD Ameritrade Essential Portfolios has a fees starting at 0.30% fee per year. To contrast, Betterment has annual fees of 0.25%.
When it comes to fees, M1 Finance wins by not charging anything to use their service.
Let's consider the minimum investment that's required to use both TD Ameritrade Essential Portfolios and Betterment.
At $0, Betterment requires a smaller minimum deposit.
When it comes to support for 401(k) plans, there is a clear line of division. Betterment does offer support for 401(k) plans, while TD Ameritrade Essential Portfolios does not. If you are someone who wants input on your employee-sponsored retirement account, Betterment will be your option.
Overall, TD Ameritrade Essential Portfolios gets a 7/10 rating, while Betterment gets a 9/10 rating. For more information on either service, you can read our full reviews on TD Ameritrade Essential Portfolios and Betterment.
About TD Ameritrade Essential Portfolios
With TD Ameritrade's robo advisor, you can take advantage of having at least some of your portfolio professionally managed while you maintain other self-directed investments. The advisory fee is reasonable, and the company offers local branches as a point of contact. However, details of the service's asset allocation remain cloudy.
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.
|Review||TD Ameritrade Essential Portfolios Review||Betterment Review|
Overall rating as by Investor Junkie.Rating
|Commissions & Fees|
|Ease of Use|
|Tools & Resources|
|Promotions||None||Up To 1 Year Free|
|Account Fees||0.30%/year||Digital – 0.25%/year; Premium – 0.40%/year|
|Accounts Available||Taxable, Joint, Roth IRA, Traditional IRA, Rollover IRA, Custodial, SEP IRA, SIMPLE IRA, Trusts, 529, Coverdell||Taxable, Joint, Roth IRA, Traditional IRA, Rollover IRA, SEP IRA, Trusts, Non-Profit|
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||No||Yes|
|Automatic Deposits||Yes||Weekly, Biweekly and Monthly|
|Clearing Agency||N/A||Apex Clearing|
|Socially Responsible Investing||No||Yes|
|Invests in Commodities||No||No|
|Invests in Real Estate||No||No|
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 — 24/7; Live Chat — 24/7; 100+ Local Branches||Phone: M-Th 9A-8P, F 9A-6P ET; Live Chat: M-Th 9A-8P, F 9A-6P, Sat-Sun 11A-6P ET; Email|
|Assets Under Management||$0||$12B|
|Number of Accounts||N/A||393K|
|Sign Up||Sign Up|