Self Directed Investing

You can fund your self-directed investing account just like any other taxable Betterment account. This includes transferring money via ACH from a linked bank account, instantly moving funds from your Betterment Cash Reserve account, and transferring eligible securities from another broker via ACAT. You may initiate a transfer from your automated investing account to your self-directed account, but note that this will result in the sale of securities and potential tax impact. You’ll receive a ...

You can transfer eligible securities from another brokerage to your Betterment self-directed investing account via ACAT (Automated Customer Account Transfer). The minimum transfer amount is $10. See how to get started and learn more about ACATS transfers.

Any Betterment customer can open an SDI account! At the moment, only individual taxable accounts are supported, but we plan to expand to joint accounts, trusts, and IRAs in the near future. If your account is advised through the Betterment Advisor Solutions platform, contact your advisor to get started.

Betterment shows you how much of your self-reported investable assets are held in your self-directed investing account as a percentage of your estimated household investable assets you may have reported in Settings. If you haven’t shared your estimated household investable assets with us, this preview won’t be available. You can update this information at any time in your account settings.

Betterment’s self-directed accounts currently support trading in U.S.-listed stocks from the S&P 500 and Russell 1000 indices, along with a wide range of ETFs. If you can’t find a particular ticker, it may be because it’s outside that universe, doesn’t meet our liquidity or custody standards, generates a K-1 tax form, or is under review for onboarding. At this time, mutual funds can only be transferred in and sold, not purchased, in self-directed investing accounts.

If you would like us to add a ticker that we do not support today, please send an email to support@betterment.com, and we will review the request to see if we can accommodate the addition.

At this time, trades cannot be canceled or modified after being submitted.

Buy orders can be submitted in dollar amounts. Support for share-based orders is not currently available, but will be available in the future. Sell orders can be submitted by either share amount or dollar amount. Fractional share orders are supported, and no action is required by a client to buy or sell fractional shares.

We aim for consistent, high-quality execution based on market conditions, not perfect timing. Our system is designed to improve outcomes over time, not to chase daily price swings. Want to learn more about our trading? See here.

The price shown during trade review is an estimate based on delayed market data. Your actual execution price may differ, since Betterment executes trades during the next available trading window. Because of this, the final price you receive will reflect market conditions at the time your order is executed, which may be higher or lower than what you saw during review. While we can’t guarantee an exact price in advance, our trading system is designed to seek the best price reasonably available ...

A marketable limit order is set near the current market price with the intention of filling quickly, while helping protect you from paying too much or selling too low. It balances speed and price control.

Betterment will provide an estimate of when your order will be processed before you submit an order. After you submit a trade, Betterment processes it during the next trading window. This structure helps us aggregate client orders when appropriate, potentially accessing better pricing and improved execution quality (such as by reaching round lots). For more information about Betterment’s managed execution, please review our whitepaper. In rare cases, trading may be paused in response to market ...

Yes, you can submit orders after hours, on weekends, and on market holidays, but trades will not be executed until the next market day. Betterment begins processing trades at 10:00 AM ET on market days.

Betterment combines (or aggregates) client orders when possible, which can help improve pricing and execution quality. Aggregating trades enhances access to liquidity while maintaining client anonymity with execution venues. This aggregation only happens when it occurs naturally within the normal trading window. Our approach emphasizes efficient, fair, and high-quality execution based on prevailing market conditions, not perfect timing. Our goal is to improve outcomes over time, not to chase ...

While you choose what to invest in, we continue to manage how your trade is executed to help ensure quality, cost efficiency, and tax awareness. Most orders are sent as marketable limit orders, which are orders that are set near the current market price with the intention of filling quickly, while helping protect you from paying too much or selling too low. Marketable limit orders balance speed and price control. For more information about marketable limit orders, review our whitepaper.

Cash held in self-directed investing accounts is held through the Transfer Sweep Program and is FDIC-insured, but is not interest-bearing. Learn more about cash buying power in your self-directed investing account

Dividends earned on self-directed investing assets will be paid as cash directly to your self-directed investing account and will be reflected as part of your available cash balance. At this time, automatic dividend reinvestment is not supported.

Trades settle within the typical T+1 window. Proceeds can be used when they are reflected in your available cash balance.

We will handle all corporate actions for you. No action is required to ensure splits, mergers, or other corporate actions apply to your account.

There are a few important rules and limits to keep in mind when trading in your self-directed investing account: No day trading: Betterment prevents day trading in self-directed investing accounts. You won’t be able to complete same-day round trips (that is, buying and selling or selling and buying the same security within one market day). This includes activity across your Betterment accounts, so if a managed goal already traded a security earlier in the day, you may be unable to trade the ...

All trades are commission-free. ETFs can carry fees (the expense ratio), which are embedded within the fund’s cost of ownership.

Self-directed investing account performance can initially be tracked at the top of your self-directed investing account overview. Self-directed investing accounts will be incorporated into the user-level performance in the near future. You can access more details on your realized gains and losses in your Documents tab. Tax forms will be made available in your Documents tab at the beginning of each year.

Please see our helpful guidelines on Withdrawal instructions and Transaction timelines. If you choose to use the instant transfer option to Cash Reserve, your transfer amount will appear in your Cash Reserve balance right away. However, it won’t begin earning interest until the funds are received at one or more Program Banks—typically within 1–3 business days. Learn more about transfers to/from your cash buying power.

A wash sale occurs when you sell a security at a loss and buy the same or a substantially identical security within 30 days before or after the sale. The IRS disallows the loss for tax purposes, which could impact your ability to use that loss to offset gains. If we detect a potential wash sale in your account, we’ll let you know so you can understand how it may affect your tax situation.