Wealthfront Vs Betterment

Having considered both robo-advisors independently, we now look at them as go head-to-head:

 

Account opening: Where Betterment requires $0 in order to create an account, you'd have to shell out $500 in order to create one with Wealthfront.

 

Investor strong-points: Betterment seems to be better suited to large investors, especially those with portfolios of over $100,000. Wealthfront on the other hand seems better suited for those with investments of $10,000 and below.

 

This doesn't in any way mean that these robo-advisors cannot manage small and large investors for Betterment and Wealthfront respectively; it just means that those groups seem to be their undisputed strengths.

 

Fees: Betterment weigh-in with 0.35% of average balance with $100 per month direct deposit or $3 per month. For funds of minimum $10,000, 0.25% is the management fee. The management fee for funds with $100,000 minimum is 0.15% of the average balance.

 

Wealthfront makes things a little easier here as your first $10,000 is managed for free. However, for every excess on the $10,000, you pay a 0.25% flat management fee.

 

Refer-a-friend program: both platforms seem to understand what investors want and though their interpretations are different, they still seem to hit the mark.

 

For Betterment, you receive 30-days of free management per referral. If you want a full year of free management, all you need to do is refer 3 investors. Wealthfront on the other hand, attaches a value to theirs. On every referral, you receive free management for $5000 of your funds, meaning that if for example you have $15,000 in your portfolio and you refer just a friend, you won't have to pay a dime in management fees.

 

That's pretty cool.

 

Having said all these, it's pretty clear that both advisors offer a lot of the same benefits with some unique perks that make each standout. Working with one or the other is now based on personal preferences and value expected from each. While it's also clear that both have numerous benefits, you'd have to decide on which robo-advisor you want to go with.



http://www.wealthfrontvsbetterment.com/