Free for 90 days: Sign up now and get 90 days managed free after your first deposit. See offer details

What We Offer

Active trading websites should be regulated as gambling

Today, our friends at have posted a feature explaining the difference between what we offer consumers here at 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: is a sponsor of Dealbreaker

Recommended Content

View All Resources
What is Tax Coordination? How Asset Location Works at Betterment

What is Tax Coordination? How Asset Location Works at Betterment

What is Betterment's approach to asset location? It's called Tax Coordination, and it's a built-in tax optimization strategy for retirement goals at Betterment.

Empowering our Community: Introducing the SHARE Series

Empowering our Community: Introducing the SHARE Series

Betterment’s new series is a platform designed to bring women in the tech community together to lead, learn, and grow.

What’s Inside the Betterment Portfolio Strategy?

What’s Inside the Betterment Portfolio Strategy?

Explore the asset classes in Betterment's recommended set of portfolios. Then, take a look at the exchange-traded funds (ETFs) underlying each part of the portfolio strategy.

Explore your first goal

Safety Net

This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.


Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.

General Investing

If you want to invest and build wealth over time, then this is the goal for you. This is an excellent goal type for unknown future needs or money you plan to pass to future generations.

Smart Saver

You could earn 20X more than a typical savings account with our low-risk investing account for your extra cash.


Search our site

For more information and disclosures about the Betterment Resource Center, click here. | See our contributors.