Charles Schwab vs Betterment 2025

Betterment versus Charles Schwab brokerage firm comparison: IRA, fees, commissions, benefits, pros and cons. Which investing service to choose?

Charles Schwab vs. Betterment Introduction

Betterment and Charles Schwab both mix banking and investing, giving a full view of money management. Before you choose one, check out this side-by-side look:

Cost

Services

Investment Services

Schwab lets you pick self-directed or advisory accounts. Advisory plans include both robo and human help. Schwab’s robo is free. Full-service advice usually stays under 1 %.

Self-directed traders can buy:

• U.S. stocks
• Foreign and OTC shares
• Bonds and other fixed-income
• Mutual, exchange-traded, and closed-end funds
• Options
• Futures

Betterment skips self-directed accounts—that’s the first big gap. Its robo plan costs 0.25 % a year (or $4 monthly) once you meet its balance or deposit rules.




Betterment also lets you buy crypto through a separate portfolio for 1 % per year plus roughly 0.15 % in trade costs.

Winner: Schwab

Cash-Management Services

Banking matters too. Betterment offers checking and high-yield savings. The checking pays no interest but gives a Visa card with cash-back deals and unlimited ATM fee refunds. Savings now earns 3.75% APY and has no withdrawal cap.

Schwab also sells checking and savings, though rates lag Betterment’s. Schwab’s checking adds free bill pay and a free checkbook—two perks Betterment skips.

Both debit cards refund ATM fees worldwide and waive FX fees. Schwab stacks on AmEx credit cards and home loans via Rocket Mortgage®.

Winner: Too close to call

PC Software

Betterment’s site is clean and simple—no trade tools, no security pages, just goal tracking and a few lessons.





Schwab’s site packs much more: in-depth research pages, charts, ratings, and a flexible order form.





On top of that, Schwab adds thinkorswim (desktop, web, and mobile) plus its main web trader. Features include:

- Level II quotes
- Direct-route orders
- CNBC live stream
- Multi-leg option tools

Winner: Schwab

Mobile Apps

Betterment’s app stays true to its robo roots, showing cash-back offers and friend referrals.





Schwab runs two apps. thinkorswim Mobile brings pro-level tickets—OTO, OCO, and price triggers—though it sometimes displays oddly on older phones. The main Schwab app handles mutual funds, multi-leg options, trailing stops, AI chat, live news, watchlists, PDF reports, alerts, and mobile check deposit.





Winner: Schwab

Margin

Schwab lends on margin from 12.325% down to about 10.575%, with big balances negotiable. Short sales start at $5 margin per share; long positions need $3. Betterment has no margin.

Winner: Schwab

Additional Services

Fully-Paid Stock Lending: Schwab only.

Extended Hours: Schwab offers pre- and post-market.

Auto Mutual-Fund Buys: Schwab only.

Dividend Reinvesting: Both firms.

IRAs: Both, but Schwab lists more types (e.g., SIMPLE).

IPO Access: Schwab only.

Fractional Shares: Both (Schwab limits to S&P 500 names in self-directed accounts).

Winner: Schwab

Websites

Charles Schwab: $0 commissions + ACAT reimbursement + satisfaction guarantee at Charles Schwab.

Betterment: Get up to one year managed free.

Our Recommendations

New Investors: Either firm’s robo can start you off, but we like adding a human touch—available at both.

Frequent Traders: Schwab—its research plus thinkorswim beats a robo-only platform.

Retirement & Long-Term Goals: Both offer planners, but Schwab’s extra tools and account choices tip the scale.

Small Balances: Schwab has no account fees; Betterment’s flat fee can sting.

Mutual Funds: Schwab—all the research you need.

Charles Schwab vs Betterment: Judgement

Betterment helped make robo investing popular, but against Schwab’s broad lineup it now looks limited. Schwab’s mix of free robo, deep research, and full brokerage tools makes it the stronger all-around choice.