Betterment is best for beginners seeking automated investing with a user-friendly platform. Charles Schwab is a solid choice for those prioritizing excellent customer service and educational resources. Interactive Brokers (IBKR) is ideal for active and professional traders who need advanced tools and access to global markets but can handle a complex platform.
| Metric | Betterment | Charles Schwab | Interactive Brokers (IBKR) |
|---|---|---|---|
| Fees | Digital Premium: 0.25% annual fee on balances over $20,000 or $4/month if balance is lower and recurring deposits are less than $250/month; Premium Plan: 0.65% annual fee for balances over $100,000; Expense Ratios: 0.04% to 0.11% for Betterment Core Portfolio; Transfer Out Fee: $75 | No fees for opening or maintaining an account; $0 commission for online trades of U.S. stocks and ETFs; $0.65 per contract for options; $25 service charge for broker-assisted trades; Some mutual funds may have transaction fees up to $74.95 per purchase; Foreign transaction fees may apply for UK stocks; Regulatory fees apply (Section 31 Fee, FINRA Trading Activity Fee, Options Regulatory Fee) | IBKR Lite: $0 commission for stock trades, $0.65 per contract for options. IBKR Pro: Choice of fixed commission ($0.005 per share) or variable commission ($0.0005 - $0.0035 per share) for stocks. Options: $0.15 to $0.65 per contract (volume-based). |
| Minimum Account Balance | No minimum deposit to open an account, $10 minimum to start investing, $50 minimum for rebalancing | No account minimum; $5,000 minimum for Schwab Intelligent Portfolios | No minimum account. |
| Investment Options | Stocks, bonds, ETFs, socially responsible portfolios, Crypto ETF portfolio | Stocks, bonds, ETFs, mutual funds, options, futures, and forex | Stocks, options, futures, forex, bonds, ETFs, and cryptocurrency. |
| Automated Investing | Yes, automated portfolio management | Yes (Schwab Intelligent Portfolios) | No |
| Human Advisor Access | Yes, with Premium Plan (0.65% annual fee for balances over $100,000), includes unlimited access to Certified Financial Planners (CFPs) | Not available | Not available |
| Customer Service Quality | Mixed reviews, some users report poor response times and difficulty getting help | Excellent | Varies |
| Platform Usability | Simple, user-friendly interface, easy to set up and manage | Clunky interface | Complex platform, steep learning curve, overwhelming for beginners, can be difficult to navigate. |
| Tax Loss Harvesting | Yes | Not available | Not available |
| Fractional Shares | Yes | Yes (Schwab Stock Slices) | Yes |
| Rating | Not available | Not available | Not available |