5 Ways Betterment Differs from Its Competitors

Betterment’s investment services first came on my radar a couple of years ago. I invested $1,000 with the company as one of my investment experiments for the first Grow Your Dough Throwdown in January 2014. Later that year, I became an affiliate for the firm (gaining the opportunity for sales commissions on new accounts) and became a contributor to the firm’s online magazine.

Those in the financial industry refer to Betterment and similar companies as “robo advisors.” Robo references a robotic, rather than human, financial advisor. Advisor references the services the company provides as an SEC registered investment advisor (RIA), which involves the recommendation and management of a diversified investment portfolio for clients.

There are many similarities among robo-advisory services. But here are five ways that Betterment differs from similar advisory services, such as those from Wealthfront and TradeKing Advisors.

TradeKing Advisors Review

TradeKing Advisors offers professionally managed portfolios for investors as an alternative to self-directed investing. Investing in one of the firm’s Core Portfolios and/or Momentum Portfolios for a relatively small fee (less than 1% of assets under management).

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