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Robo-advisors all pitch the same basic promise: hand over some money, answer a risk questionnaire, and let software build and rebalance a diversified portfolio for less than a human advisor would charge. What actually separates them is the fee structure underneath that promise, and it’s more different than the marketing suggests — a flat monthly fee, a percentage of assets, or a subscription tier all land very differently depending on how much you’re investing. Five platforms, compared on what they actually charge at different balances.
A flat fee and a percentage fee cross over at a specific number
Betterment charges a flat $5 a month if your balance is under $24,000 and you’re not setting up a $200-a-month recurring deposit; hit either of those and it switches to 0.25% annually instead. Do the math and the crossover is worth knowing: 0.25% of $24,000 is $60 a year, well above the $60-a-year flat fee ($5 × 12). Below that balance, the flat fee usually wins. Above it, percentage-based pricing usually does, up until the point where a competitor’s model beats both.
| Platform | Fee | Minimum | Tax-loss harvesting |
|---|---|---|---|
| Betterment | $5/mo flat (or 0.25%/yr with $200/mo deposits or $24k+ balance) | $0 | Included from $0 |
| Wealthfront | 0.25%/yr, any balance | $500 | Included from $0; direct indexing at $100k+ |
| Schwab Intelligent Portfolios | $0 management fee | $5,000 | Requires $50k balance |
| Acorns | $3–12/mo flat, by tier | $0 (starts investing at $5) | Not offered |
| Fidelity Go | Free under $25k; 0.35%/yr above it | $10 | Not offered |
Wealthfront’s flat percentage rewards larger balances
Wealthfront skips the flat-fee tier entirely and charges 0.25% annually regardless of balance, which makes it simple to compare against Betterment’s percentage tier directly — they’re priced identically once Betterment crosses into percentage territory. Wealthfront’s edge shows up at higher balances: direct indexing, which can improve tax efficiency beyond what a standard tax-loss harvesting feature does, becomes available at $100,000. The $500 minimum to open an account is the highest of the group here, though still low compared to a traditional advisor.
Schwab’s $0 fee has a catch worth knowing before you fund the account
Schwab Intelligent Portfolios charges no management fee at all, which sounds like it should win this comparison outright. The catch is a cash allocation Schwab holds as part of every portfolio, sometimes described as a cash “drag” since that portion isn’t invested in the market and earns less than the rest of the portfolio would. Schwab makes money on that cash position instead of charging a direct fee. Tax-loss harvesting, a feature Betterment and Wealthfront offer from a $0 balance, isn’t available on Schwab’s robo product until $50,000.
Acorns is a subscription, and subscriptions don’t scale down with your balance
Acorns charges $3, $6, or $12 a month depending on tier, regardless of how much is actually invested — the same flat fee whether the account holds $200 or $20,000. That structure favors people just starting out: a $5 initial investment and no minimum balance make it the easiest entry point here. It stops being competitive once a balance grows large enough that a percentage-based fee elsewhere would cost less than the flat subscription; on the Bronze tier’s $3/mo ($36/yr), that crossover against Wealthfront’s 0.25% lands around $14,400.
Fidelity Go is free until it isn’t, cleanly
Fidelity Go charges nothing at all for balances under $25,000, a straightforward proposition for someone starting small. Cross $25,000 and it becomes 0.35% annually, applied to the whole balance, not just the amount above the threshold. That’s a plainer structure than Schwab’s cash-drag model, even if the eventual fee is higher than Wealthfront’s or Betterment’s percentage tier.
Where robo-advisors help, and where a human still might
Real advantages
- All five automate rebalancing, which most people managing their own portfolio skip or delay.
- Fees across this group are a fraction of a traditional advisor’s typical 1% AUM charge.
- Low or no minimums (Betterment, Acorns) make starting with a small amount realistic.
Real limits
- None of these offer the estate-planning or complex-tax-situation guidance a human fee-only advisor can.
- Schwab’s cash allocation isn’t a line-item fee, but it functions like one — worth factoring into any “free” comparison.
- Acorns’ flat subscription becomes the expensive option well before a balance reaches five figures.
By starting balance
- Under $1,000: Acorns or Betterment — both accept small balances without penalizing them.
- $1,000–$25,000: Fidelity Go’s free tier or Betterment’s flat fee, whichever ends up cheaper at your specific balance.
- $25,000 and up, want tax-loss harvesting from day one: Wealthfront or Betterment, both of which include it without a higher-balance requirement.
- $50,000 and up, already banking with Schwab: Schwab Intelligent Portfolios becomes genuinely competitive once tax-loss harvesting unlocks.
Related read
Once a robo-advisor account is open, keeping it visible alongside everything else you own matters more than the initial pick. See our comparison of free net-worth and investment trackers → for tools that pull robo-advisor balances in automatically. If you’re still building the budget that funds these deposits in the first place, our budgeting apps comparison → is the earlier step. If you’re weighing crypto as part of that mix, see our comparison of crypto exchanges for beginners → first, including the one insurance fact most guides skip.
Before you fund an account
Fee structures, minimums, and which features require which balance all change as these platforms update their pricing, and none of this is investment advice tailored to your situation. Confirm current terms directly on each provider’s site, and consider talking to a fee-only fiduciary advisor if your situation involves more than a straightforward taxable or retirement account.
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