Betterment Fee Disclosure

Updated May 5, 2026

How Betterment makes money

At Betterment, transparency is part of how we earn your trust. We want you to understand how we make money, and below, we outline the key ways Betterment earns revenue.

Advisory fees

We make money primarily through advisory fees on our investing accounts. For most customers, that’s a percentage of the assets we manage but in some cases, a flat monthly fee may apply.

  • Betterment Digital: 0.25% annual fee for $24K - $1M balance or $200+ monthly recurring deposit. Otherwise, $5 per month.
  • Betterment Premium: 0.65% annual fee, which includes access to our team of financial consultants.
  • Higher Balances: If your eligible household investing balance exceeds $1 million, you’ll receive a discount on Betterment’s management fee, the same rates apply whether you're enrolled in Digital or Premium:
    • 0.15% (15 bps) annual fee on the portion within $1–$2 million
    • 0.10% (10 bps) annual fee on the portion above $2 million

These discounted rates apply automatically to your eligible investing balances. The Premium benefits still apply above $1 million, even though the additional 0.40% Premium fee is not charged beyond the first $1 million.

These fees cover portfolio management, trading and custody fees associated with your account, rebalancing, tax tools, and the technology that helps you reach your financial goals. We don’t charge additional trading commissions or account maintenance fees. In addition, Betterment waives its advisory fees on assets held in self-directed accounts.

Cash management and interest

When you hold cash at Betterment, we do not charge our advisory fees on cash (including Cash Reserve) and instead Betterment receives payments from Program Banks based on deposit balances (except for cash in transfer accounts).

Betterment Securities receives payments on cash in transit held in specific transfer accounts at certain Program Banks.

When payments to Betterment on cash balances exceed Betterment’s advisory fee, Betterment will have a financial incentive to have clients hold greater cash balances. Higher client deposit balances and lower interest paid to clients both serve to increase the revenue Betterment receives from Program Banks. Betterment addresses this conflict by, among other measures, waiving its advisory fees on cash, targeting a small operational cash allocation in managed portfolios (generally targeting 0.5% of total portfolio value), facilitating same-day transfers of cash between SDI accounts and Cash Reserve, and ensuring that participation in Cash Reserve is elective. Review our Form ADV Part 2A, Item 14 for more information.

Securities lending

Launching in 2026, Betterment will earn revenue through securities lending, a common practice where securities like ETFs or single stocks are temporarily loaned to other market participants.

When clients lend their shares, the activity generates interest. We share that interest with the client and keep a portion as our fee. 

Payment for order flow

Betterment Securities earns revenue from a portion of the payments or rebates (also known as payment for order flow or PFOF) received by its clearing broker Apex for trades executed on behalf of Betterment Securities, if applicable volume thresholds are met.

While these payments are typically fractions of a cent per share, they can create a conflict of interest because they’re tied to trading volume. We address this through our best execution policies.

When trades are placed, we focus on achieving fair pricing, liquidity, and reliable execution, which involves aggregation of similar client trades. Betterment’s Best Execution Committee regularly reviews execution quality across market centers to meet Betterment’s best execution obligations under applicable regulations.

Transparency is central to how we operate. While Betterment receives limited revenue from PFOF, our priority remains clear: to act in the best interest of our clients.

Transfer fees

Betterment charges a flat fee for each outbound investing account transfer to another company, with no minimum transfer amount and no limit on the number of transfers. There are no fees for withdrawing funds to a linked checking account or for closing your account.

Model Portfolio Support Payments

Betterment or its affiliates receive compensation in the form of ongoing support payments from certain third-party portfolio managers to provide technology and infrastructure to support their portfolios on the Betterment platform. For more information, please review our Form ADV Part 2A, Item 14.