The growing popularity of robo-advisors means sifting through more offers to automate your investment savings, but which one is the best for you?
Betterment, Wealthfront and Wealthsimple are three of the best robo-advisors, but each company differentiates its offerings in some notable ways.
Some factors that may make a difference in your choice: How much money do you have to start with? Is socially responsible investing, or being able to invest according to your beliefs, important to you? Do you want to also have access to a human financial advisor? (We’ve written a primer if you want to learn more about how robo-advisors work.)
At a glance
 Account management fees: 0.25% to 0.40%, depending on plan. Account minimum: $0. Account types: Individual and joint nonretirement accounts; trusts; Roth, traditional, SEP and rollover IRAs. Portfolio: ETFs from up to 12 asset classes. Socially responsible investing portfolio available. Customer support: Phone and email support and live chat. Betterment Premium customers get access to team of financial advisors via phone. Promotion: Up to one year of free management with qualifying deposit. |
 Account management fees: First $5,000 managed free for NerdWallet readers; 0.25% after that. Account minimum: $500. Account types: Individual and joint nonretirement accounts; trusts; Roth, traditional, SEP and rollover IRAs; 529 college savings plan Portfolio: ETFs from 11 asset classes. Customer support: Phone and email support. Promotion: First $5,000 managed free for NerdWallet readers. |
 Account management fees: 0.40% to 0.50%, depending on plan Account minimum: $0 for Wealthsimple Basic; $100,000 for Wealthsimple Black. Account types: Individual and joint nonretirement accounts; trusts; Roth, traditional, SEP and rollover IRAs. Portfolio: ETFs from 10 asset classes. Socially responsible and halal investing portfolio available. Customer support: Phone and email support. All customers can consult a financial advisor by phone. Promotion: First $10,000 managed free for one year for NerdWallet users (new clients only). |
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Account management fees |
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| 0.25% to 0.40%, depending on plan. | First $5,000 managed free for NerdWallet readers; 0.25% after that. | 0.40% to 0.50%, depending on plan. |
Account minimum |
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| $0 for Betterment Digital; $100,000 for Betterment Premium. | $500 | $0 for Wealthsimple Basic; $100,000 for Wealthsimple Black. |
Account types |
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Portfolio |
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| Exchange-traded funds from up to 12 asset classes. Socially responsible investing portfolio available. | ETFs from 11 asset classes. | ETFs from 10 asset classes. Socially responsible and halal investment offerings too. |
Customer support options |
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Promotion |
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| Up to one year of free management with qualifying deposit. | First $5,000 managed free for NerdWallet readers. | First $10,000 managed free for one year for NerdWallet users (new clients only). |
All robo-advisors use passive investing strategies, which studies show often lead to higher overall returns. Better yet for the consumer, you can start investing with a robo-advisor without knowing much about how markets work.
Betterment
Betterment requires no minimum deposit to begin investing, and its 0.25% management fee is one of the most competitive in the industry. For those who want to invest in companies whose business practices align with your values, Betterment offers a socially responsible portfolio.
Betterment has a full range of tools for goal-based savings. The firm also offers the purchase of fractional shares so you can invest even if you don’t have enough cash to buy a full share. If advice from human advisors is important to you, Betterment’s premium tier allows unlimited phone calls with advisors, but the service requires a minimum balance of $100,000 and bumps its management fee to 0.4%.
QUICK FACTS
- Management fee: 0.25% to 0.4%, depending on plan
- Account minimum: $0
- Promotion: Up to one year of free management with a qualifying deposit
Betterment offers tax-loss harvesting, but it has no direct-indexing tool, which can further help savings for investors with taxable accounts. Also, the company doesn’t support 529 college savings.
» Read NerdWallet’s full Betterment review
Wealthfront
Wealthfront is the only one of the three that requires a minimum account balance, but the amount is low ($500). Its 0.25% management fee is low, too, and NerdWallet readers can get their first $5,000 managed for free. Wealthfront’s Path tool helps with financial planning, be it for buying a house, retirement, college or general savings goals. It’s also one of the few robo-advisors to manage 529 college savings plans.
For accounts with balances of $100,000 or more, Wealthfront offers tax-optimized direct indexing, a more powerful tool for tax-loss harvesting.
QUICK FACTS
- Management fee: 0.25%
- Account minimum: $500
- Promotion: NerdWallet readers get first $5,000 managed for free
Wealthfront doesn’t offer access to advisors, a downside for customers who want occasional human help with investing, nor does it offer the purchase of fractional shares. Also, Wealthfront requires you keep a cash balance equivalent to the estimated fees you’ll pay over the next year.
» Read NerdWallet’s full Wealthfront review
Wealthsimple
Wealthsimple has a robust offering for socially responsible investing, as well as halal investing products that comply with Islamic law. Wealthsimple earns its name with its beginner-friendly interface and gives all customers access to financial planners. And there’s no minimum required to open an account.
The firm’s management fee range of 0.4% to 0.5%, depending on your account balance, is higher than those at Wealthfront and Betterment.
QUICK FACTS
- Management fee: 0.4% to 0.5%
- Account minimum: $0
- Promotion: First $10,000 managed free for one year for NerdWallet users (new clients only)
Aside from its higher management fees, some consumers may find Wealthsimple’s offering too streamlined: Those who want retirement-planning tools, calculators or a strong investor-education experience won’t find that here.
» Read NerdWallet’s full Wealthsimple review
Final look
Choosing among the best advisors means looking at what features, functions and fees best suit your investing needs. Regardless of which you select, the winning choice is the decision to invest toward building your future wealth.
Best for: No minimum / Access to financial advisors (with Premium plan) / Socially responsible investing / Fractional shares Falls short: No direct-indexing tool / No 529 plan |
Best for: Digital-only management / Nonretirement (taxable) accounts / Saving for college Falls short: No human advisors / No fractional shares / Cash balance requirement |
Best for: No minimum / Access to financial advisors / Socially responsible investing / Halal investing portfolio Falls short: High account management fees / Lack of personal finance tools |
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Falls short |
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