Betterment Introduces Self-Directed Investing for Retail Investors, Expanding Control and Flexibility

Betterment's New Self-Directed Investing: A Game Changer for Retail Investors

Betterment, a well-known platform in wealth management and saving solutions, has taken a significant step towards evolving its offerings by introducing self-directed investing for retail customers. This innovative service allows individuals to buy and sell various stocks and exchange-traded funds (ETFs) without incurring commission fees. The launch is not just a new feature; it marks a pivotal moment in Betterment's journey as it expands its services to cater to a growing demand for more personalized investment options.

The new self-directed investing (SDI) service is tailored for investors who wish to manage their portfolios actively while maintaining the benefits of Betterment's established platform. This development is particularly noteworthy given that over 75% of Betterment's current customers reportedly already hold investments outside their platform. The company aims to retain these clients by providing them with an integrated experience that allows them to manage their investments more effectively and conveniently.

Sarah Levy, CEO of Betterment, highlighted the company's commitment to meeting customer needs by stating, "Investing isn't binary, it's a spectrum. 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."

One of the standout features of the self-directed investing service is the Tax Impact Preview tool, which provides users with important insights on the tax implications of their trading decisions. This innovative functionality allows customers to assess how a potential sale could affect their taxes, including factors such as capital gains and potential wash sales, before they execute any trades. As Levy expressed, tools like the Tax Impact Preview empower customers to make informed choices, drastically changing how individuals approach self-directed trading.

Looking ahead, Betterment is gearing up for a dynamic 2026. In addition to the launch of self-directed investing, the company has announced plans for new offerings such as direct indexing and enhanced investor personalization tools within the first half of the upcoming year. These initiatives align with Betterment's mission to provide modern, technology-driven solutions that simplify investing, saving, and retirement planning for its users.

For customers excited about the new self-directed investing option, they can find more information by visiting Betterment's official website at Betterment.com/sdi.

In summary, Betterment's introduction of self-directed investing not only enhances customer autonomy in managing investments but also showcases the company's commitment to innovation and customer satisfaction. With its easy-to-use platform and tools, Betterment is set to empower retail investors to take control of their financial futures like never before.