Empower vs Betterment

Empower vs Betterment Comparison Table 2024
Empower Betterment
2.8

Empower is #21 in our broker rankings.

3.2

Betterment is #35 in our broker rankings.

United States Flag Traders from US accepted
United States Flag Traders from US accepted

Empower, previously Personal Capital, is a US-based and SEC-regulated trading platform and advisory firm. Clients can access pensions, robo-advisors and do-it-yourself investing in stocks, mutual funds, fixed-income products and ETFs. Millions of clients trust Empower with their long-term investments, attracted by the suite of free financial planning tools and excellent reputation.

Betterment is a US wealth management and investing company, offering a range of account options, portfolios and ETFs. Established in 2010, the firm has over 800,000 customers and $40+ billion in AUM. With self-directed trading alongside pre-made investment portfolios, savings accounts and debit cards, Betterment caters to a range of financial goals.

Comment by Reviewer
"Empower is best for hands-off investors looking for a US-regulated platform and robo-advisor with free financial planning services. However, investors need to be willing to make a large minimum investment and pay higher than average fees for premium services." "Betterment is one of the most trusted robo-advisors on the market. It’s great if you want to invest and save for the long-term, especially for new investors looking for a low starting investment and competitive fees."
Pros
  • Award-winning customer support team
  • Intelligent budgeting and portfolio management tools
  • Empower's advisory services are regulated by the SEC
  • Millions of active users and good industry reputation
  • Highly rated mobile app available on Apple and Android devices
  • Beginner-friendly financial dashboard with customizable widgets
  • Robo-advisor service with pre-built portfolios and investment strategies
  • Transparent pricing - $4 a month or 0.25% annually for automated investment services
  • User-friendly and modern platform makes it easy to set goals and track portfolio performance
  • SEC-registered investment advisor with SIPC protection up to $500,000 coverage per account
  • Expert insights, investment articles, financial news and product guides available
  • Pre-built portfolios with auto-rebalancing and reinvestments
  • No minimum balance makes the firm suitable for beginners
  • Automated and optimized tax strategies
Cons
  • Limited choice of payment methods with only wire transfer
  • 0.49% - 0.89% management fees are high vs alternatives
  • $100,000 is needed for the robo-advisor service
  • No forex, commodity or crypto trading
  • No demo account for prospective users
  • Only available in the US
  • Access to personalized services and guidance has a $100,000 minimum investment
  • Margin trading accounts are not available
  • Instruments cannot be traded separately
Awards
  • America’s Best Customer Service 2019 - Newsweek
Instruments
Stocks, ETFs, Mutual Funds, Fixed Income Bonds
Demo Account
No No
Minimum Deposit
$1 (Cash), $100,000 (Robo Advisor) $0
Trading Platforms
  • Own
  • Own
Payment Methods
Minimum Trade
Variable $1
Regulator
SEC, FINRA SEC, FINRA
Margin Trading
No No
STP Account
No No
ECN Account
No No
DMA Account
No No
MAM Account
No No
PAMM Account
No No
LAMM Account
No No
Demat Account
No No
AI / Machine Learning
No Yes
Robo Advisor
Yes No
Negative Balance Protection
No No
Market Maker
No No
P2P Trading
No No
Spot Trading
No No
Mobile Apps
iOS & Android iOS & Android
Auto Trading
Yes (Auto Portfolios)
Copy Trading
No No
Social Trading
No No
VPS Hosting
No No
Tournaments
No No
Demo Competitions
No No
Ethical Investing
Yes Yes
Custodial Account
No No
Guaranteed Stop Loss
No No
Islamic Account
No No
Account Currencies
  • USD
  • USD
Stock Exchanges
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