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.