Betterment vs. Stash: Which Broker Is Right for You?

Whether you're just beginning to invest or you're already investing and don't need a lot of help from a human, two options to consider are Betterment and Stash. Both platforms are known for their robo-advisory services and their top-rated mobile apps. However, there are a few key differences between Betterment vs. Stash that you should be aware of before you let either one manage your money.

Keep reading to learn about the differences between Betterment vs. Stash. We'll explain the fees, account minimums, investment choices, types of accounts each platform offers, and how its mobile and desktop versions compare.

Both Betterment and Stash make The Ascent's list of top robo-advisors due to their low fees and easy-to-use platforms. However, Betterment's fee structure is a bit more friendly to customers who aren't starting with a large balance.

Betterment charges a base monthly fee of $4. Once your balance hits $20,000, you'll be switched over to a 0.25% annual fee instead of the monthly fee. You can also lock in the 0.25% annual fee and avoid the monthly charge if you set up monthly recurring transfers of at least $250.

Securing the 0.25% annual fee through monthly deposits will save you money if you're investing a relatively small amount. Suppose you have a $1,000 investment. A $4 monthly fee adds up to annual investment costs of nearly 5%, which can seriously eat away at your returns. With the 0.25% fee, you'd only pay $2.50 a year on a $1,000 balance.

Stash charges a monthly subscription fee. The Stash Growth plan costs $3 per month and gives you access to basic investing, including individual stocks and ETFs, managed portfolios, retirement accounts, and banking. If you upgrade to the $9 plan, you get more advanced research features, up to two Kids Portfolios®, and the ability to earn in stock through the Stock-Back® card.

Again, a monthly investment fee can substantially reduce your earnings. Think carefully before signing up for the $9 Stash+ plan if you're starting with a small balance. However, on larger balances, the $3 monthly subscription fee for a Stash Growth plan could be quite cheap.

Both Betterment and Stash have low minimum upfront deposits, making them good for beginning investors. You'll need $10 to get started with Betterment, though no minimum balance is required. Stash requires just $4 to get started: $3 for the monthly subscription fee, plus $1 for your investment account.

Users who want advice from a human can get access to Betterment's team of Certified Financial Planners™ for an extra 0.15% management fee (0.40% total). But this feature requires a balance of at least $100,000, which may be out of reach for many investors. Stash doesn't offer the opportunity to work with a human financial advisor.

Betterment is designed for hands-off, passive investors and isn't a good fit for those who want to actively manage their portfolios. Unlike the top stock trading platforms, Betterment doesn't let you invest in individual stocks, bonds, and exchange-traded funds (ETFs).

Instead, you'll pick from around a dozen portfolios based on your goals and preferences. The Core Portfolio is the default for retirement savers, but you can also select other options. You can also choose from portfolios focused on themes like tech companies, socially responsible investing, or fixed income, as well as three managed crypto portfolios.

Though Stash offers robo-advisory services, it also has options for DIY investors, with over 3,000 stock offerings, including fractional shares. It also offers nearly 100 individual ETFs, which is somewhat limited compared to other platforms, but still more than you get with Betterment. Stash also lets you invest in individual cryptocurrencies, whereas Betterment only offers crypto access through its managed portfolios.

Note that both platforms cater to new investors. If you want a top options broker or access to other advanced trading strategies, you'll need to look elsewhere.

Betterment and Stash offer similar types of accounts, including taxable brokerage accounts and individual retirement accounts (IRAs). Both offer traditional and Roth IRAs, but Betterment has a few more retirement account options, like SEP IRAs, which are designed for self-employed people and small business owners.

Neither platform is a bank, but both partner with FDIC-insured banks to offer banking services. While the Betterment Cash Reserve account earns an APY similar to the best high-yield savings accounts, Stash's deposit account doesn't pay interest.

Both accounts give you debit card access, as well. Betterment's debit card lets you earn cash back on your spending. Stash's Stock-Back® card is available to customers with both plan tiers, but you'll need the $9 monthly Stash+ plan to earn 1% stock on card purchases.

Betterment's mobile app gets 4.7 stars in the App Store and 4.6 stars in the Google Play store. The app makes it fairly easy to deposit, transfer, and withdraw funds. You can also link outside accounts and monitor their performance and your net worth using the dashboard on the app or the desktop platform.

The Stash app gets an average rating of 4.7 stars on the App Store and 3.7 stars on the Google Play store. Stash's mobile app offers banking features similar to what you get with the Betterment app. Though Stash doesn't have a lot of personalized investment tools, one nice feature is the diversification analysis tool, which gives you a snapshot of how diversified your portfolio is, as well as ways to improve it.

Betterment and Stash are both solid options for beginning investors and those who want to invest using a robo-advisor. Each is good for people who want to invest and bank under the same umbrella. However, neither platform is a good pick for investors who want advanced trading strategies.

Stash is a better option for those who want to pick their own stocks and ETFs, as Betterment only allows you to invest through its managed portfolios. Betterment is more appropriate if you prefer a hands-off approach to your investing.

Betterment's fee structure is slightly better for those getting started with a small amount, provided that you can make recurring monthly deposits to lock in the 0.25% annual fee instead of the monthly fee. Stash's monthly subscription fee could add up to more than what you'd pay with Betterment, particularly if you upgrade to Stash's higher-priced plan. However, for investors who have larger balances, Stash's $3 monthly subscription fee could be a bargain.