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 Merrill Edge Guided Investing (MEGI) 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 Merrill Edge Guided Investing (MEGI) and Betterment stack up against each other on these threads.
To start, we will compare the fees for trading with both robo advisors. Merrill Edge Guided Investing (MEGI) has a fees starting at 0.45% 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 Merrill Edge Guided Investing (MEGI) 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 Merrill Edge Guided Investing (MEGI) does not. If you are someone who wants input on your employee-sponsored retirement account, Betterment will be your option.
Overall, Merrill Edge Guided Investing (MEGI) gets a 8/10 rating, while Betterment gets a 9/10 rating. For more information on either service, you can read our full reviews on Merrill Edge Guided Investing (MEGI) and Betterment.
About Merrill Edge Guided Investing (MEGI)
MEGI is a robo advisor that combines automated investing with active management of your portfolio. It invests your money in index-based ETFs, but it actively manages your portfolio allocation. This gives you an opportunity to both outperform the market and minimize losses in a downturn. The major negative is that the management fee is higher than those of most other robo advisors. But the active management component may very well justify the higher fee.
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||Merrill Edge Guided Investing (MEGI) 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||0.45%/year||Digital – 0.25%/year; Premium – 0.40%/year|
|Accounts Available||Taxable, Joint, Roth IRA, Traditional IRA, Rollover IRA, Custodial, SEP IRA, SIMPLE IRA, 401(k), Solo 401(k), 529||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||No||Yes — All Taxable Accounts|
|Retirement Planning Tools||Yes||Yes|
|Automatic Deposits||Daily, Weekly, Biweekly and Monthly||Weekly, Biweekly and Monthly|
|Clearing Agency||Merrill Lynch||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; Email||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|