Betterment charges a management fee of 0.15% to 0.35%, depending on your balance and auto-deposit, and is prorated across the entire year and is charged at the end of each calendar quarter (every three months).

For accounts under $10,000 we provide 2 pricing options. For those who have automated deposits turned on for at least $100/month, the rate is just 0.35%. If you choose not to automate your savings, the fee is still a low flat rate of just $3/month. This is either/or and never combined. After your account reaches $10,000 there are no longer deposit requirements and we focus on reducing your fee down to just 0.25% per year, and then further to 0.15% when your account is over $100,000.

In other words, for those clients with pricing 0.15% to 0.35%, every three months Betterment charges 0.0375% to 0.0875% based on your average balance for the period. If you withdraw all of your money before the end of the quarter you are charged a prorated fee only for the days your money was managed by Betterment.

Betterment's single management fee covers everything you need including transactions, trades, transfers, rebalancing, advice, account administration, etc. Unlike other companies Betterment does not charge you transaction fees to buy and sell securities. 

Your money is invested in a fully diversified index-fund portfolio made up of 12 exchange-traded funds, or ETFs. Each of these ETFs has an expense ratio, which you would pay no matter where you purchased these funds. When these funds are combined to form a Betterment portfolio, the overall expense ratio of your portfolio can range from 0.09% to 0.17% depending on your specific allocation. The cost charged by the funds may be a little harder to see because many fund companies collect their fees by slightly reducing the dividends they pay out. Rest assured that Betterment works hard to offer funds with some of the lowest fees.