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Active trading websites should be regulated as gambling

Today, our friends at Dealbreaker.com have posted a feature explaining the difference between what we offer consumers here at Betterment.com and what active trading sites like E*Trade offer consumers.

Articles by Alan Norton

By Alan Norton
  |  Published: April 6, 2011

Our CEO, Jon Stein, had some strong words for the active trading sites in the Dealbreaker feature:

“These forms of trading should be regulated as gambling,”

Betterment is different than the active trading sites because we use the principles of modern portfolio theory to model the overall market. When you have a Betterment account, its like

owning shares in every company in the U.S. As our CEO has said, “Over the long haul, your money will grow with the market,” Stein says. “That is the only gamble a smart investor ought to take.”

Read the full Dealbreaker writeup by clicking here.

Transparency check: Betterment.com is a sponsor of Dealbreaker

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