Betterment vs. Stash: Which One to Use?

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For beginners, it might be challenging to learn the investing process, but some applications make investing simple. And Betterment and Stash are one of those applications.

The two are investing platforms that ease the process of investing. Unlike other platforms that leave you on your own to determine the correct investment, these platforms guide beginners and help them effortlessly invest their money in the right place. 

Though the working of both platforms is different, you need to know the offering of these platforms. Also, it would help if you contemplated the difference between the two, i.e., Betterment vs. Stash.

By doing so, you can choose the right option, depending on your requirements. For this, we have brought this article to you. This article will cover the basic details of both platforms and how they’re different from each other.

So, let’s start the article and comprehend each platform in detail. We will also compare and contrast them and perceive the right option for you.

Overview of Betterment

Betterment is a financial advisory company established in 2010 that facilitates different services, such as cash management, digital investment, and retirement services. The principal motive of the company is to assist you in setting up your goals and giving a purpose to your money.


It would help if you simply told them your risk tolerance and investing timeline, and they will invest your money across different assets. By The Balance, Betterment was chosen too as the Best Overall Robo Advisor of 2021.

Visit: Betterment

Features Of Betterment

There are various features of Betterment, and a few of them are as follows:-


The company’s algorithm looks after your investment portfolio and rebalances it automatically to maintain the preferable asset allocation.

With this, you get free from the struggle of manually monitoring and adjusting your portfolio.

Offers a Diverse Range Of Portfolios

Another feature of the company is that it offers you a variety of portfolios. Depending on your risk tolerance capacity and investment goals, you can pick out any available ones.

It provides socially responsible portfolios that invest in companies aligning with your values.

Tax-Loss Harvesting

Betterment helps lower your tax liability and increases your after-tax returns by automatically selling the investments with a decrease in value. It does so to balance the taxable gains from other investments in your investment portfolio.

Overview of Stash

Stash is another platform that helps beginners simplify their investment process. Unlike Betterment, Stash does not take any management over your money.


Instead, it provides different tools to select the investment portfolio independently. Or you can also give access to Stash to manage a pre-designed portfolio depending on your risk tolerance capacity.

Stash offers you a variety of accounts with different charges and facilities.

Visit: Stash

Features Of Stash

Stash comes with a variety of different features, and several parts of Stash are:-

Ease Of Use

The platform is drawn to simplify the investing process for beginners and make investing more accessible. You can easily navigate its website and start using it by registering there.

Provides Educational Resources

Another feature is that it offers various educational resources, such as videos and articles, to help users to learn about investing. It also provides Stash Learn, through which you can have bit-size lessons on investing.

Stock-Back Feature

Stash provides an additional stock-back feature that enables you to earn stocks instead of cashback while purchasing with your Stash debit card. With this, you can build your investment portfolio and make everyday purchases.

Betterment vs. Stash

Now that you know about both platforms, let’s compare them based on their fees, user experience, etc.


Betterment charges a management fee of 0.25% for a low-cost Betterment Digital Account and allows you to invest in different ETFs.

On the other hand, it demands a management fee of 0.40% per year for the Betterment Premium account and equips you with expert advice from a financial advisor.

Stash charges a flat monthly fee on its accounts. So, if you have little money to invest, you must pay higher fees.

The Stash growth account charges a monthly fee of $3 and offers diverse investment options. And for the Stash+ account, set a $9 monthly fee and facilitate expert advice from a financial advisor.

Investment Options

While investing with Betterment, your money is categorized into different ETF types. You can trade these as stocks, but they will not purchase you a stake in the company.

Instead, the ETFs track the financial indexes or provide exposure to a particular sector or industry by investing in those companies of that sector.

But with Stash, you have the option to purchase ETFs as well as fractional shares of individual companies. Also, if you do not have money, you can start investing.

For example, if you want to purchase Amazon shares for around $105, you can buy this share as low as $1.

Account Minimums

There is a $0 account minimum for the Betterment account, but you need an account minimum of $10 if you want to start investing in different options.

In the case of Stash, it is the same as Betterment, i.e., there are no account minimums. But for intelligent portfolios, you need an account minimum of $5.

User Experience

Betterment and Stash both platforms provide an excellent user experience. The platforms have a clean interface that you can easily stick to and navigate.

You can access them from your desktops and mobile phones; it will not make any difference. Both platforms provide a smooth user experience.

Pros and Cons of Betterment and Stash

After comparing both, i.e., Betterment vs. Stash, let’s comprehend some pros and cons of both platforms. The pros and cons of Betterment and Stash are:-

It provides multiple options for portfolios for investment.Allows you to invest in fractional shares.
Management of all the assets by Robo-Advisors.It provides additional educational resources for beginners.
Low fees for advisory and account minimums.You can earn rewards on your debit card purchases.
It provides tax-management features, such as tax-loss harvesting, etc.It includes budgeting tools with an online bank account, etc.
High fees for getting professional advice.For small portfolios, monthly fees are much higher.
No direct indexing.Robo-Advisors manage only the taxable returns.
Emergency fund portfolios might be very risky, etc.Lack of automatic tax-loss harvesting feature, etc.

Who Should Use Betterment Or Stash?

Betterment is the right choice if you want top-notch investing advice from Robo-Advisor and want them to carry out the investment process, such as investing money, managing portfolios, and managing the tax effects of investing.

But if you want to pick and choose individual stocks and ETFs and manage them manually by yourself, then go with the option of Stash.

Read also: Advanced ETF Trading Strategies: How experienced traders stay ahead in the UK market


Which is better: Stash or Betterment?

Both of the platforms are best. If you are looking for financial advisory, you can opt for Betterment. And if you are seeking to pick and manage your stocks manually, then Stash is the right option.

Does Betterment have high fees?

The management fee for the Betterment Digital account is 0.25%, and the annual fee for the Betterment Premium account is 0.40%.

What are the essential requirements to start with Stash?

To start with Stash, a person must have a bank account with US Bank, a green card or citizenship of the US, and a social security number. Additionally, you must be 18+.


Both the options of Betterment and Stash are good tools in their places that will help you to learn the investing process. After reading the complete article and comparing Betterment vs. Stash, you might have an idea of the correct platform for your investment.

Before choosing any platform, you must contemplate your financial goals, investing interests, risk tolerances, and financial situation. So, consider this article and start investing with the above best platforms. `

See also, Robinhood vs Acorns vs Stash: Which One is the Best