When we are talking about investment platform, there are numerous of them in present day. Some lets you do your own plan while the other pick what is best for you, it all depends on what you are looking for. In today Betterment vs Robinhood article, we are going to give you information about these two similar yet different platforms and their difference, so you can pick which is the most suitable one for your plan. If you are interested, go check our article below.
In this article, we are going to give you information about:
– What are Betterment and Robinhood
– How to use Betterment and Robinhood
– Betterment vs Robinhood
Many people know Betterment as the largest robo-advisor platform on the net and the company actually has hundreds of thousands of customers with assets under their management counting at more than $5 billion. The platform offer you a technology driven investment that will give you a diversified portfolio of exchange traded funds that put together to make the best possible expected returns for your future plan like building wealth, retirement planning or other savings goals. They also offer both taxable investment and retirement accounts.
Betterment Ease of Use
Unlike those who will let you to do the planning yourself, you can’t do that if you pick Betterment. The platform will determine your time horizon, goals and risk tolerance, then buildup a custom-designed portfolio that works in your favor within those parameters. You don’t have to worry about changes since they will manage your portfolio on an ongoing basis and rebalance it to make sure it is remains consistent with the first design. As a hands-off investment platform, you cannot select individual funds, invest outside the chosen 13 ETFs and add individual stock.
6 of those 13 ETFs are the stock portion of your portfolio while the rest are the bond portion. The company set them to cover various sectors of each asset class for both US and foreign securities. Stock funds will represent investment growth and the bond funds will provide capital preservation. Read also: Betterment vs Etrade here.
Another platform you can use to start investing today is Robinhood. The name is quite new but the popularity is already so high up there making it worth at $5.6 billion, four times than how it is last year. The platform service is running in their app that you can download for free in both App Store and Google Play. This app is built around one promise, which is no-fee stock and cryptocurrency trading. This marketing itself already attract so many attention to the service since it first available.
Robinhood Ease of Use
Using the app is also very simple and chances are you can start trading instantly after you set up you bank, which probably need a few working days to complete. To start buying, you have to transfer some money into your Robinhood account from your bank. After the funds is ready, you can start searching for the stock you want, which you can type in its search tab and choose buy to do the transaction.
The same process apply to cryptocurrency and if you have stock or coins, together with Buy button, you will also get Sell button to sell them. To see the summary of your account, you can tap your account page. When you sell your stock/coins, the app will need two days to make it with drawable, so you can’t instantly buy another stock after selling with the money.
Now, let’s compare Betterment with Robinhood. As you already know, Betterment is a hands-off investment platform, so you can’t decide yourself while Robinhood is only a tool that helps your trading activities, so you can pick and sell whatever you want. Betterment will need annual fee while the other is free to use.
Betterment vs Robinhood
|- Hands-off investment platform||- Designed for do-it yourself type of investors|
|- Needs annual fee||- Free|
|- Better for long term investment||- Better to playing in the stock market|
All in all, the decision is all yours to make. In our opinion, these two are made for different type of investors. Betterment is for those who don’t want to deal with the complicated things in investing while Robinhood is a great tool to build your own plan and execute the process as you prefer.