Betterment Launches Self-Directed Investing for Retail Customers
TECHNOLOGY
Betterment, a trusted wealth and savings platform, today announced the launch of self-directed investing, a new offering that allows retail customers to buy and sell thousands of stocks and ETFs commission-free.
For years, Betterment has been the trusted name in automated investing, pioneering the Robo-Advisor model that makes long-term wealth building simple and accessible. Now, the wealth and savings platform is making a major evolutionary leap by launching a new offering that caters to investors who want more control: self-directed investing (SDI).
This launch marks a significant milestone in Betterment's evolution into a full-service wealth management platform. The new SDI feature allows retail customers to buy and sell thousands of stocks and Exchange-Traded Funds (ETFs) completely commission-free, bringing the company’s hallmark customer-first experience to those seeking greater choice and flexibility.
The move is strategically aligned with user demand. According to Betterment's internal data, more than 75% of its current customers already hold self-directed investments off-platform. By bringing these capabilities into one unified, trusted environment, Betterment is creating a truly holistic solution.
The Power of the Tax Impact Preview
While the shift to commission-free trading is noteworthy, the standout feature of Betterment’s self-directed offering is a powerful, integrated tool called Tax Impact Preview.
This is designed to address one of the most complex and stressful aspects of self-directed trading: understanding the tax consequences before executing a trade. The tool provides customers with immediate, actionable insights into how a potential sale could affect their taxes, including calculated capital gains and the risk of triggering a wash sale.
Sarah Levy, CEO of Betterment, emphasized the game-changing nature of the feature. "Investing isn't binary, it's a spectrum," she said. "Our customers want the ability to pick stocks and ETFs alongside their managed accounts. By bringing these capabilities to Betterment, we're delivering a more holistic investing and savings solution on one trusted platform."
Levy added, “Tools like our Tax Impact Preview are game-changers. They empower customers to make informed, confident decisions at the moment of trade, something that's never been done before in self-directed investing.”
A Full-Spectrum Wealth Partner
The addition of SDI transforms Betterment from a purely automated service into a versatile partner capable of serving both hands-off investors and active traders. It also sets the stage for a dynamic 2026, with the company already planning to introduce features like direct indexing and further tools for investor personalization in the first half of the year.
Betterment has successfully grown its platform to help over 1 million customers manage more than $65 billion in assets. By serving retail investors, small to mid-sized businesses (Betterment at Work), and independent RIAs (Betterment Advisor Solutions), the company continues to redefine what it means to be a modern, technology-driven wealth platform.
With self-directed investing now available, Betterment is ensuring that every customer, regardless of their preferred investing style has access to the tools and tax intelligence needed to build wealth with confidence and ease.