Betterment Vs. Fidelity Go: Which Is Better For You?

Are you searching for the best financial platform to help level up your investments? If so, you're likely considering two of the industry's heavy hitters: Betterment and Fidelity Go. Both platforms offer users robust portfolios suitable for all levels of investing--from entry-level to experienced investors.

But which one is right for you, and more importantly, which affords better growth opportunities? In this article, we'll dig deep into Betterment vs. Fidelity Go.

We'll explore their investment options, fees, customer service options, and more to give you a clear understanding of what each can specifically bring to your portfolio.

Overview of Betterment and Fidelity Go

Betterment and Fidelity Go are the most popular investment platforms today. They offer various investment options, from traditional investments such as stocks and bonds to Robo-advisory services.

Both companies have low fees, reliable customer service, and intuitive user interfaces that make investing easy for everyone—a beginner or an experienced investor.

Investment Options

Regarding investment options, Betterment offers more flexibility than Fidelity Go. Betterment allows you to invest in various asset classes, such as stocks, bonds, ETFs, and mutual funds.

You can also use the platform’s “smart portfolio” option, automatically diversifying your investments according to your financial goals. This makes it easy for those who don’t have time to do their research.

Fidelity Go also offers a variety of investment options, including stocks, ETFs, and mutual funds. However, its Robo-advisory service is much more limited than Betterment’s. Fidelity Go only offers investments in pre-built portfolios, which are limited in customization and investment choices.

Fees

Regarding fees, both Betterment and Fidelity offer competitive rates. Betterment has a flat fee of 0.25% for all accounts, regardless of size. Fidelity Go charges an annual fee of 0.35%, but its fees are waived for accounts with over $10,000 in assets.

Customer Service

Betterment and Fidelity Go both offer reliable customer service. Betterment has a 24/7 telephone hotline and live chat support on its website and app. Fidelity Go also offers 24/7 customer service by phone and live chat.

Pros and Cons of Betterment Vs. Fidelity Go

Pros of Betterment:

Variety of asset classes.
A low flat fee of 0.25%.
Reliable customer service with 24/7 phone and chat support.
The intuitive interface makes it easy for beginners to invest.

Cons of Betterment:

Limited customization options in the Smart Portfolio option.
No fractional shares are offered.

Pros of Fidelity Go:

Low annual fee of 0.35%, with fees waived for accounts over $10,000 in assets.
Variety of asset classes to choose from.
Reliable customer service with 24/7 phone and chat support.

Cons of Fidelity Go:

Limited customization options in the pre-built portfolios.
No fractional shares are offered.
More intuitive than Betterment for beginners.

Breakdown of Cost - Which is Cheaper & More Profitable?

When it comes to cost, Betterment is cheaper than Fidelity Go. Betterment has a flat fee of 0.25%, whereas Fidelity Go charges an annual fee of 0.35%. However, if you have an account with over $10,000 in assets, Fidelity Go’s fees are waived, and the platforms become equal in cost.

In terms of profitability, both Betterment and Fidelity offer robust portfolios that can help you achieve your financial goals.

However, Betterment’s Smart Portfolio gives it an edge over Fidelity Go regarding customization options and investment choices. This makes it easier for investors to tailor their investments to their financial needs and goals.

How to Choose the Right Platform for Your Investing Goals

Consider Your Investment Goals

The first step before investing is to determine your investment goals. Are you looking for long-term or short-term investments? Do you want to diversify your portfolio or focus on a specific asset class? Answering these questions will help narrow down the platform best suits your needs.

Analyze Fees & Customer Service

Fees and customer service should also be taken into consideration. Betterment and Fidelity offer competitive fees, but Betterment is cheaper if you have an account with under $10,000 in assets. Additionally, both platforms have 24/7 customer service by phone and live chat for any questions or concerns.

Evaluate Investment Options

Finally, evaluate the investment options offered on each platform. Betterment offers a variety of asset classes as well as its Smart Portfolio option, which makes it easier to diversify your investments according to your financial goals. Fidelity Go also offers a variety of asset classes but has more limited customization options in terms of pre-built portfolios.

Different Investment Strategies Each Platform Offers

Betterment

Automated Investing: Betterment’s “Smart Portfolio” option allows users to automate their investments based on their financial goals and risk tolerance.
Tax Loss Harvesting: This feature helps reduce the overall tax burden by harvesting losses in your portfolio to offset any gains.
Socially Responsible Investing: Betterment’s “Socially Responsible Portfolio” allows users to create a portfolio that aligns with their values.

Fidelity Go

Pre-built Portfolios: Fidelity offers several pre-built portfolios with different levels of risk and return, allowing users to choose the one that best fits their goals.
Portfolio Rebalancing: Fidelity Go will automatically rebalance your portfolio regularly to ensure it remains aligned with your financial goals.
Retirement Planning: The platform’s feature helps you create and manage a retirement plan tailored to your needs.

FAQs

Is Betterment worth it?

Betterment is a great platform for beginning investors and those with extensive investment experience. Its low fees, and automated investing options make it easy to create a portfolio that fits your financial goals and risk tolerance.

Is Fidelity Go Better than Betterment?

It depends on what you’re looking for in an investing platform. Fidelity Go offers pre-built portfolios and retirement planning tools, which are great for those just starting or looking to diversify their portfolio. Betterment, on the other hand, is better suited for more experienced investors due to its customizable Smart Portfolio feature and tax loss harvesting options.

Which platform has better customer service?

Betterment and Fidelity offer 24/7 customer service by phone and live chat for any questions or concerns. Both services are reliable, so it comes down to personal preference.

Conclusion

Your decision comes down to personal preference and financial goals. Betterment and Fidelity offer robust portfolios with competitive fees and reliable customer service. However, Betterment has an edge due to its Smart Portfolio feature, which allows users to customize their investments according to their needs. So when it comes to choosing the right platform for your investments, it boils down to what you want and need in terms of investment options, fees, customer service, and more. Ultimately, the best financial platform is the one that fits your individual goals.