Betterment vs. Charles Schwab robo advisors
Schwab Intelligent Portfolios charge no advisory fee but need $5,000 and keep part of your money in cash. Betterment costs 0.25% with no minimum and harvests tax losses at any balance.
BettermentBestGuide Score: 3.8 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.
Charles SchwabBestGuide Score: 4.4 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.Quick verdict
It depends on your balance and how you feel about holding cash. Schwab Intelligent Portfolios charge no advisory fee and no commissions, but you need $5,000 to start, tax-loss harvesting only begins at $50,000, and every portfolio keeps a slice in cash at Schwab Bank, which earned 3.47% APY as of October 1, 2026. Betterment charges 0.25% a year (or $5 a month on balances under $24,000 without $200 monthly deposits) but has no minimum, harvests losses without a balance threshold and lets you add human financial experts at $100,000. Schwab's big advantage beyond the robo is a full brokerage with $0 trades, 24/7 support and about 300 branches.
On this page11 sections
Betterment vs. Charles Schwab side by side
"Edge" marks the better option on that line for most people. Betterment leads on 4, Charles Schwab on 4.
Ratings and complaint records
Our score and sub-scores from each company's review, with the facts both reviews list.
Fees versus cash: what each robo really costs
Schwab Intelligent Portfolios charge no advisory fee and no commissions. Schwab explains that it can do this partly because Schwab Bank earns income on the cash allocation in every portfolio, and earns more the larger that allocation is. A Schwab affiliate also collects management fees on the Schwab ETFs the portfolios use. You also pay each ETF’s expense ratio.
That cash isn’t lost. It earns the Sweep Program rate, which Schwab sets each month from the yield of its government money fund, and which was 3.47% APY as of October 1, 2026. The cost shows up when stocks and bonds earn more than cash, because that slice of your money doesn’t take part. In June 2022, Schwab paid $187 million to settle SEC charges that it hadn’t told clients this cash would reduce their returns under most market conditions.
Betterment charges 0.25% a year, or $5 a month on balances under $24,000 unless you deposit at least $200 a month. On $10,000 with monthly deposits that’s $25 a year; without them it’s $60. On $100,000 it’s $250.
Which is cheaper depends on markets: in years when stocks beat cash by a wide margin, a cash allocation can cost more than a 0.25% fee. In flat years, Schwab’s model costs less.
Getting started and tax-loss harvesting
Betterment has no minimum for its digital plan, so you can start with a small first deposit and add to it. Schwab requires $5,000 to open an Intelligent Portfolios account.
Tax-loss harvesting, where losing positions are sold to offset gains and replaced with similar funds, is also easier to get at Betterment. Betterment runs it automatically and says it can cover its fee. Schwab offers it only to clients with $50,000 or more invested in Intelligent Portfolios, and you have to turn it on.
Betterment’s harvesting has a past problem worth knowing about. In April 2023 the SEC fined Betterment $9 million after finding that from 2016 to 2019 it hadn’t disclosed changes to how often its software scanned for losses, a programming limit affecting some clients, and two coding errors. More than 25,000 accounts lost about $4 million in potential tax benefits, and Betterment agreed to pay clients back.
Both offer IRAs and taxable accounts. Betterment also handles solo 401(k)s, trusts and 401(k) rollovers, and offers socially responsible, climate and crypto portfolios. Withdrawals from Schwab Intelligent Portfolios can take 4 to 6 business days when ETFs have to be sold first.
Human advice and the rest of the account
If you might want to talk to a person, Betterment’s path is cheaper. Its Premium tier costs 0.65% a year with a $100,000 minimum and gives you access to financial experts, with lower rates above $1 million. Schwab’s robo service includes a 24/7 service team, and for a dedicated advisor Schwab Wealth Advisory starts at 0.80% with a $500,000 minimum.
Where Schwab is clearly stronger is everything around the robo account. You get a full Schwab brokerage in the same login, with $0 online stock and ETF trades, $0.65 options contracts, futures, about 300 branches and phone and chat support around the clock. Betterment is built around automated investing, with custom stock and ETF portfolios, a Cash Reserve account (3.50% base APY) and checking, but no branches.
Customer feedback is mixed at both. Betterment has an A- from the BBB (accredited since June 2025), a 1.3 out of 5 on Trustpilot and 56 CFPB complaints over three years, mostly about its cash and checking accounts. In January 2026 a voice phishing attack on Betterment’s marketing and operations tools exposed data on about 1.4 million customers and contacts, mostly names and email addresses; Betterment says account systems and passwords were not breached. Schwab has a 1.5 on Trustpilot. Both apps hold a 4.8 out of 5 on the US App Store.
Brokerage accounts at both are covered by SIPC up to $500,000, including $250,000 for cash, if the firm fails.
Moving your money later
If you might move a robo account to another firm later, both charge something. Betterment lists $75 for each investing account transferred to another company. Schwab’s pricing guide lists $50 for a full brokerage account transfer to another firm, with partial transfers free.
A transfer moves your ETFs as they are, which avoids selling and paying capital gains tax in a taxable account. Schwab’s portfolios use a mix of Schwab ETFs and other ETFs, and Betterment’s portfolios are built from ETFs, so in both cases the holdings can usually move to a standard brokerage account.
Two practical points before you choose. First, Schwab’s $5,000 minimum applies at opening, so if you’re building up from zero, Betterment lets you start now and you can move later if you like. Second, once a taxable account has gains, switching robo advisors means either transferring the ETFs as they are or selling and paying tax, so it’s worth picking carefully.
If you’re comparing other robo services, Wealthfront and Fidelity Go are the closest alternatives. See our Betterment vs. Wealthfront comparison.
Pros and cons
Betterment
Pros
- 0.25% digital plan with no minimum
- Premium CFP access at 0.65%, below typical traditional advisor fees
- Automatic rebalancing and tax-loss harvesting
- Fee discounts on balances over $1 million
Cons
- $5 a month on balances under $24,000 without recurring deposits, 2.4% a year on $2,500
- Premium needs $100,000 and gives access to a team, not one dedicated planner
- $75 per account to transfer out
- $9 million SEC penalty in 2023 over tax-loss harvesting disclosures
Charles Schwab
Pros
- Free robo-advisor with no advisory fee from $5,000
- Free retirement plan for every client
- Dedicated advisor fee falls as low as 0.30% for large balances
- Satisfaction guarantee refunds eligible advisory fees within 90 days
Cons
- No paid human advisor tier under $500,000 since Premium closed in 2026
- Robo portfolios hold cash that earns Schwab money, the subject of a $187 million SEC settlement
- 0.80% starting rate is well above Vanguard's 0.30% at the same $500,000 minimum
- Schwab earns more when it recommends its own managed strategies, a conflict its brochure discloses
Also consider
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Vanguard 4.5 Buy-and-hold investors who want low-cost, index-based management and are fine with a robo or an advisor team until they reach $500,000. -
Fidelity 4.4 Investors who want a free or low-cost robo through Fidelity Go, or who already keep most of their money at Fidelity and value one firm for banking, brokerage and a dedicated advisor.Visit site -
Wealthfront 4.3 Savers and investors comfortable with an app-only service who want a no-fee cash account and automated, low-cost index investing in one place.
Frequently asked questions
Is Schwab Intelligent Portfolios really free?
There's no advisory fee or commission, but you pay ETF expense ratios, and part of each portfolio is held in cash at Schwab Bank, which Schwab says helps it offer the service without a fee. That cash earned 3.47% APY as of October 1, 2026.
Is Betterment better than Schwab for beginners?
Often, yes, because Betterment has no minimum while Schwab Intelligent Portfolios need $5,000. Betterment charges $5 a month under $24,000 unless you deposit $200 or more a month.
Which has better tax-loss harvesting?
Betterment offers it without a listed balance threshold. Schwab offers it only once you have $50,000 invested, and you must opt in.
Can I talk to a human advisor at Betterment or Schwab?
Betterment Premium costs 0.65% a year with a $100,000 minimum. Schwab Wealth Advisory starts at 0.80% with a $500,000 minimum. Schwab's robo also has a 24/7 service team.
Why did the SEC fine Schwab over its robo advisor?
In June 2022 Schwab paid $187 million to settle SEC charges that it didn't tell Intelligent Portfolios clients that the cash allocation would reduce their returns under most market conditions.
Does Betterment charge a fee to leave?
Betterment lists $75 for each investing account transferred to another company. Schwab lists $50 for a full brokerage account transfer.
Sources (22)
Facts on this page come from company websites, government agencies and regulators, checked on the dates shown. Editorial standards
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- Betterment, Pricing (accessed Oct 12, 2026) (accessed October 12, 2026)
- Charles Schwab, Schwab Intelligent Portfolios Sweep Program rate (effective Oct 1, 2026) (accessed Oct 12, 2026) (accessed October 12, 2026)
- Betterment, Cash Reserve (accessed Oct 12, 2026) (accessed October 12, 2026)
- Charles Schwab, Pricing (accessed Oct 12, 2026) (accessed October 12, 2026)
- Charles Schwab, Roth IRA (support and branches) (accessed Oct 12, 2026) (accessed October 12, 2026)
- Charles Schwab, Pricing guide for individual investors (accessed Oct 12, 2026) (accessed October 12, 2026)
- SEC, Schwab subsidiaries misled robo-adviser clients about absence of hidden fees (2022-104) (accessed Oct 12, 2026) (accessed October 12, 2026)
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- Betterment, About (assets and customers) (accessed Oct 12, 2026) (accessed October 12, 2026)
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- BBB, Betterment business profile (accessed Oct 13, 2026) (accessed October 13, 2026)
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