At Investor Junkie, we reviewed over one hundred investing and personal finance services. Our goal is to bring you the most honest, simple, and informative reviews. It turns out; users also want to compare specific services.
This review compares Betterment and TD Ameritrade Essential Portfolios. 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 TD Ameritrade Essential Portfolios stack up against each
other on these features.
To start, we will compare the fees for trading with both robo
advisors. Betterment has
annual fees at 0.25% fee per year. In
contrast, TD Ameritrade Essential Portfolios has annual fees of 0.30%.
When it comes to fees, Betterment is the cheaper service.
Let's consider the minimum investment that's required to use both Betterment and TD Ameritrade Essential Portfolios.
At $0, Betterment requires a smaller minimum deposit.
When it comes to supporting 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 help on your employee-sponsored retirement account, Betterment will be your option.
Overall, Betterment rates 9 out of 10, while TD Ameritrade Essential Portfolios ranks 7 out of 10. For more information on either, you can read our full reviews on Betterment and TD Ameritrade Essential Portfolios.
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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, who can assist with your retirement account. Unfortunately, its asset allocation excludes REITs or commodities.
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.