| Website |
https://www.betterment.com/ |
https://robinhood.com |
| Pros |
- Super-easy to setup and invest
- Lower fees (0.25%) than a traditional advisor (1%)
- Automatic rebalancing
- Tax-loss harvesting for taxable accounts
- Cash reserve account offers a competitive APY
- Joint and single accounts
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- Simple Signup and account creation.
- Very large platform with millions of active users.
- Allows for investing while transferring money from your bank.
- Unlimited free trades.
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| Cons |
- No direct indexing of stocks
- Tax-loss harvesting’s benefits may be overstatated
- No real estate exposure
- Fees (0.25%) are higher than self-managed accounts
- Doesn’t take into account investments on other platforms
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- Signing up is simple, but creates a brokerage (taxable) account.
- Gamification features may encourage you to trade more often.
- No retirement account options.
- Trades go through an intermediary – resulting in longer trade times.
- They can shut off access to individual stocks at any time.
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| Promotions |
- Up to 1 year with no advisor fee (up to $100,000)
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- 1 random free stock when you sign up and make a deposit valued between $3 and $225.
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| Fees |
- Avg yearly expenses: 0.36%
- 0.25% yearly advisor fee for all assets under management
- 0.40% yearly advisor fee for Premium Investing
- 0.15% advisor fees for assets above $2 million
- 0.07% to 0.15% expense ratios for funds (avg 0.11%)
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- No fees are charged directly to you.
- Due to Robinhoods payment flow order, your trades go through an intermediary that allows Robinhood to make money when you trade.
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