Updated September 29, 2026 · SumCue Editorial Team
Betterment vs Lightyear
Lightyear
Betterment
Higher score in this comparison
What sets them apart
| Compare | BettermentReviewSee alternativesSee alternatives | LightyearReviewVisitVisit |
|---|---|---|
| Minimum investment | $10 | €1 |
| Regulators | U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member, SIPC | Estonian Financial Supervision Authority, Estonian Financial Supervision Authority (EFSA) |
| Investor protection | SIPC up to USD 500,000 | EU ICS up to EUR 20,000 |
| Account types | IRA, Roth IRA | Corporate |
| Portfolio types | ETF, ESG, Cash, CryptoCovers more | ETF, Cash, Crypto |
| Management fee | 0.25% | Not confirmed |
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Key differences
- Betterment scores higher overall: 9.7 vs 8.9.
- Regulators: only Betterment offers U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member, SIPC.
- Regulators: only Lightyear offers Estonian Financial Supervision Authority, Estonian Financial Supervision Authority (EFSA).
- Account types: only Betterment offers IRA, Roth IRA.
- Account types: only Lightyear offers Corporate.
- Portfolio types: only Betterment offers ESG.
Our verdict on each
Betterment
Betterment suits US savers who want a managed portfolio and a cash sweep in the same app, charging a management fee of 0.25% on top of an account fee of $0. Cash earns a variable 3.5%, so the income side moves with policy rates, and its overall score is 7.9.
Lightyear
Lightyear suits you if you want stocks, ETFs, crypto, bonds and funds alongside easy access cash in a low-fees model. You pay stock trade fees of $1 with account fees of €0 and inactivity fees of €0 while keeping transfers simple.
Score breakdown
| Area | Betterment | Lightyear |
|---|---|---|
| Cost | 9.5HigherManagement fee of 0.25% ranks 18 of 49, and the account fee is $0. | 9.1Account fees of €0 with inactivity fees of €0 anchor holding costs. |
| Offer | 9.7Higher | 8.9Markets of stocks, ETFs and crypto span shares, funds, bonds and crypto alongside cash. |
| Trust | 9.9Higher | 8.7Licence MiCA CASP 254900BBBJZF2IE8EN54 under Estonian supervision frames oversight. |
Feature by feature
| Portfolio types | Betterment | Lightyear |
|---|---|---|
| ETF | Yes | Yes |
| ESG | Yes | No |
| Cash | Yes | Yes |
| Crypto | Yes | Yes |
| Account types | Betterment | Lightyear |
|---|---|---|
| IRA | Yes | No |
| Roth IRA | Yes | No |
| Corporate | No | Yes |
How they place
| Ranking | Betterment | Lightyear |
|---|---|---|
| Savings | 56 of 1492 | 49 of 1492 |
| Savings accounts | 39 of 658 | 35 of 658 |
| Investing | 52 of 654 | 51 of 654 |
| Stock and ETF brokers | 30 of 358 | 29 of 358 |
| Robo-advisors | 7 of 154 | 6 of 154 |
What we checked
Betterment
- betterment.com: 8 facts, checked September 26, 2026
- en.wikipedia.org: 1 fact, checked September 26, 2026
- sipc.org: 1 fact, checked September 26, 2026
Lightyear
- lightyear.com: 5 facts, checked September 26, 2026
Every fact side by side
| Fact | Betterment | Lightyear |
|---|---|---|
| Legal entity | MTG LLC | Not confirmed |
| Headquarters | United States | Not confirmed |
| Founded | 2008 | Not confirmed |
| Support channels | Phone, Email, Chat, Help centre | Not confirmed |
Brokers
| Fact | Betterment | Lightyear |
|---|---|---|
| Minimum deposit | $10 | €1 |
| Stock trade fee | Not confirmed | $1 |
| Account fee | $0 | €0 |
| Inactivity fee | Not confirmed | €0 |
| Markets | Stocks, ETFs, Bonds | Stocks, ETFs, Crypto, Bonds, FundsCovers more |
| Features | Not confirmed | Crypto, Fractional shares |
| Pricing model | No monthly fee | Low fees |
| Currency conversion fee | Not confirmed | 0.35% |
| Deposit and withdrawal fees | No fees | Free bank transfers in and out |
| Interest on cash | 3.5%Higher | 2.42% |
Savings
| Fact | Betterment | Lightyear |
|---|---|---|
| Headline rate | 3.5%Higher | 2.42% |
| Rate type | Variable | Variable |
| Deposit protection | FDIC up to USD 250,000 | FSCS up to GBP 85,000 |
| Access terms | Cash Reserve: no minimum balance ($10 minimum deposit), unlimited withdrawals, sweep cash held at FDIC-insured program banks up to $8M (joint) | Easy access: interest accrues daily and is paid monthly; withdrawal within 2 business days |
| Monthly fee | $0 | €0 |
| Account kind | Cash management | Easy access |
Where each stands against the rest
| Fact | Betterment | Lightyear | Median |
|---|---|---|---|
| Management fee | 0.25%below the median | Not confirmed | 0.35% |
Median across 86 listed providers.
Pros and cons
Betterment
Pros
- A single app holds a managed portfolio and a cash sweep paying a variable 3.5%.
- The management fee of 0.25% sits under the site median management fee of 0.35%.
- The monthly fee is $0 and the minimum deposit is $10, so an account that is opened and left alone carries no standing charge.
Cons
- Cash pays a variable rate of 3.5%, so the income from the sweep can be cut without warning.
- Betterment ranks 18 of 49 on management fee, so cheaper robo-advice sits on the same list.
- Account types cover ira and roth ira, which rules out a UK ISA or workplace pension wrapper for most UK readers.
Lightyear
Pros
- Account fees of €0 and monthly fees of €0 keep ongoing holding costs low
- Inactivity fees of €0 suit buy and hold investors who trade at intervals
- Markets of stocks, ETFs and crypto give broad choice across shares, ETFs, bonds, funds and crypto
Cons
- Stock trade fees of $1 look pricey next to ActivTrades at $0 and XTB at €0
- Currency conversion is 0.35%, which adds cost when you deal across currencies
- Support runs on email and help centre only, which limits how you can get help
Who each suits
Betterment
Who it suits
- US savers who want automated investing and a variable cash yield handled from the same app.
- First-time investors who can begin from a minimum investment of $10 without a large opening balance.
- Retirement savers who want a traditional or Roth IRA built around automatic contributions.
Who should look elsewhere
- eToro, if you would rather choose individual markets yourself, since the portfolio options here are etf, esg and cash.
- Axos Invest, whose minimum investment of $100 suits readers who want a higher entry point and a managed portfolio.
- Empower Personal Dashboard, whose management fee is 0%, for readers who put the advisory charge ahead of a managed account with a cash sweep.
Lightyear
Who it suits
- You invest at intervals across shares and funds and prefer Lightyear over DKB for lower per trade dealing costs
- You hold spare cash alongside shares and prefer Lightyear over ActivTrades for Vault interest paired with broking
- You start modestly and prefer Lightyear over XTB for low entry balances with broad market access
Who should look elsewhere
- You want commission free share dealing on every trade, so XTB may suit better given stock trade fees of €0 against Lightyear at $1
- You want phone based help, so DKB may suit better as Lightyear support runs on email and help centre only
Current offers
Betterment
Current offer
Bonus
Invest and earn up to $2,000: up to $2,000
Terms apply; new customers only; open any individual investing account and make a deposit
Source, checked September 26, 2026
Bonus
0.75% APY boost on Cash Reserve: 0.75% APY boost, 4.25% variable APY on balances up to $1M
New clients with a qualifying deposit; guaranteed through February 15; base variable APY 3.50% as of 9/21/2026; $10 min deposit for base APY
Source, checked September 26, 2026
Discount code
Discounted mortgage rate through Rate partnership: up to 0.75% off
Via partnership with Rate; terms apply
Source, checked September 26, 2026
Country by country
| Country | Betterment | Lightyear |
|---|---|---|
| United States | Yes | No |
Questions about each
Betterment
What does Betterment charge to run an account?+
Two figures matter. The management fee is 0.25%, charged on the portfolio, and the monthly fee is $0, with an account fee of $0. Taking money in and out carries nothing, with the deposit and withdrawal fee reading No fees. Over a year the management fee is the line that reduces the balance, since nothing else here charges for holding the account open.
How much do I need to open an account and start investing?+
The minimum investment is $10 and the minimum deposit for the cash side is $10. The site median minimum deposit is €0.88 and the median minimum investment is €25, so the floor here sits inside the normal range rather than at either extreme. Neither figure asks for a large opening balance.
Lightyear
What does Lightyear charge for investing?+
Stock trade fees are $1 per execution. Account fees are €0 and inactivity fees are €0, while monthly fees are €0. Currency conversion is 0.35%, so cross currency dealing adds a separate charge to weigh.
How is Lightyear regulated and protected?+
Lightyear holds licence MiCA CASP 254900BBBJZF2IE8EN54 and names Estonian Financial Supervision Authority as regulator. Investor protection is EU ICS up to EUR 20,000 and deposit protection is FSCS up to GBP 85,000. Cover applies within stated limits and eligibility rules.
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Lightyear
Betterment