Updated September 29, 2026 · SumCue Editorial Team
Betterment vs Merrill Edge
Betterment
Higher score in this comparison
Merrill Edge
What sets them apart
| Compare | BettermentReviewSee alternativesSee alternatives | Merrill EdgeReviewSee alternativesSee alternatives |
|---|---|---|
| Management fee | 0.25%Lower | 0.45% to 0.85% |
| Minimum investment | $10 | $0 to $1,000Lower |
| Regulators | U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member, SIPC | FINRA, SEC |
| Account types | IRA, Roth IRA | IRA, Roth IRA, Joint, CorporateCovers more |
| Portfolio types | ETF, ESG, Cash, CryptoCovers more | ETF |
Same on both: Investor protection (SIPC up to USD 500,000).
We earn a commission when you sign up through links on this site. Partner status can affect where a brand appears in our rankings. Partners with a live offer in your country come first, then every other brand by score.
Key differences
- Betterment scores higher overall: 9.7 vs 9.5.
- 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 Merrill Edge offers FINRA, SEC.
- Founded is lower at Merrill Edge: 1914 vs 2008.
- Management fee is lower at Betterment: 0.25% vs 0.45% to 0.85%.
- Minimum investment is lower at Merrill Edge: $0 to $1,000 vs $10.
- Account types: only Merrill Edge offers Joint, Corporate.
- Portfolio types: only Betterment offers ESG, Cash, Crypto.
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.
Merrill Edge
Merrill Edge suits people who want to trade US stocks and ETFs with no commission and no monthly charge. It suits beginners and experienced investors who want a retirement, joint or corporate account, and the minimum deposit is $0 with a stock trade fee of $0.
Score breakdown
| Area | Betterment | Merrill Edge |
|---|---|---|
| Cost | 9.5HigherManagement fee of 0.25% ranks 18 of 49, and the account fee is $0. | 9.3Account fee $0, inactivity fee $0 and stock trade fee $0 are the lowest we rank. |
| Offer | 9.7Higher | 9.6 |
| Trust | 9.9Higher | 9.7 |
Licences and countries
| Country | Betterment | Merrill Edge |
|---|---|---|
| United States | SIPC SIPC member 51906 |
Available in 1 country for both.
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
Merrill Edge
- merrilledge.com: 9 facts, checked September 26, 2026
- en.wikipedia.org: 1 fact, checked September 26, 2026
How they place
| Ranking | Betterment | Merrill Edge |
|---|---|---|
| Investing | 52 of 654 | 66 of 654 |
| Stock and ETF brokers | 30 of 358 | 41 of 358 |
| Robo-advisors | 7 of 154 | 12 of 154 |
Every fact side by side
| Fact | Betterment | Merrill Edge |
|---|---|---|
| Legal entity | MTG LLC | Merrill Lynch, Pierce, Fenner and Smith Incorporated |
| Headquarters | United States | United States |
| Founded | 2008 | 1914Lower |
| Support channels | Phone, Email, Chat, Help centre | Phone, Chat, Help centre, Email |
Brokers
| Fact | Betterment | Merrill Edge |
|---|---|---|
| Minimum deposit | $10 | $0Lower |
| Stock trade fee | Not confirmed | $0 |
| Account fee | $0 | $0 |
| Inactivity fee | Not confirmed | $0 |
| Markets | Stocks, ETFs, Bonds | Stocks, ETFs, Options, Bonds, FundsCovers more |
| Features | Not confirmed | Fractional shares, Demo account, Mobile app, Options |
| Pricing model | No monthly fee | Commission free |
| Audience | Not confirmed | Beginners, Experienced |
| Options contract fee | Not confirmed | $0.65 |
| Deposit and withdrawal fees | No fees | Not confirmed |
| Platforms | Not confirmed | Merrill Edge website, Merrill Edge MarketPro, Merrill mobile app |
| Interest on cash | 3.5% | Not confirmed |
Savings
| Fact | Betterment | Merrill Edge |
|---|---|---|
| Headline rate | 3.5% | Not confirmed |
| Rate type | Variable | Not confirmed |
| Deposit protection | FDIC up to USD 250,000 | Not confirmed |
| Access terms | Cash Reserve: no minimum balance ($10 minimum deposit), unlimited withdrawals, sweep cash held at FDIC-insured program banks up to $8M (joint) | Not confirmed |
| Monthly fee | $0 | Not confirmed |
| Account kind | Cash management | Not confirmed |
Where each stands against the rest
| Fact | Betterment | Merrill Edge | Median |
|---|---|---|---|
| Management fee | 0.25%below the median | 0.45% to 0.85%above the median | 0.35% |
| Minimum investment | $10below the median | $0 to $1,000lowest quarter | $500 |
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.
Merrill Edge
Pros
- Stock trades cost $0 and the account fee is $0.
- Nothing is charged for inactivity, at $0, and the minimum deposit is $0.
- Fractional shares, a demo account, a mobile app and options are all available.
Cons
- Options carry a fee of $0.65, so the commission-free deal stops at derivatives.
- The advisory side adds a management fee of 0.45% to 0.85% and a minimum investment of $0 to $1,000.
- Most retail accounts lose money, 72.05% on this ranking, so low charges say nothing about how the portfolio performs.
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.
Merrill Edge
Who it suits
- First-time US share buyers using fractional shares and a demo account.
- Experienced investors who want options and a mobile app in one place.
- Anyone saving into an IRA, Roth IRA, joint or corporate account.
Who should look elsewhere
- Traders after forex, CFDs or crypto: CFI covers stocks, etfs and forex.
- Savers wanting a bank balance, since bunq personal plans start from a minimum deposit of €10.
- Borrowing rather than investing, as Fiesta Credito MX answers to CONDUSEF.
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
Merrill Edge
Current offer
First period offer
$0 program fee for 6 months - Merrill Guided Investing: $0 for 6 months
New enrollments, use offer code 6FREE
Source, checked September 26, 2026
Country by country
| Country | Betterment | Merrill Edge |
|---|---|---|
| United States | Yes | Yes |
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.
Merrill Edge
What does it cost to hold a Merrill Edge account?+
The account fee is $0 and the inactivity fee is $0, so there is no monthly charge for keeping the account open. Costs appear in the products you pick, such as the options fee of $0.65, rather than in the account itself.
Is stock trading really commission free?+
Stock trades carry a fee of $0 and the pricing model is commission-free, so buying shares and ETFs in the usual way adds nothing per trade. Options are charged at $0.65, and the spread you receive can still widen as prices move.
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Betterment
Merrill Edge