Wealthfront Rating: 
Overview of Wealthfront
If you’re looking for a place to build some serious wealth, Wealthfront may be worth a shot. The financial firm offers banking, investing, and planning tools at very low cost.
Investing and Trading
Wealthfront mainly functions as a robo advisor that automates trades in a small group of ETFs. Below are some of the funds it uses to build portfolios:
| Ticker | Fund Name |
|---|
| ARKK | ARK Innovation ETF |
| BSV | Vanguard Short-Term Bond ETF |
| DIA | SPDR Dow Jones Industrial Average ETF |
| ECNS | iShares MSCI China Small-Cap ETF |
Tax-loss harvesting and auto rebalancing come standard on Wealthfront's robo accounts.
Since it began in 2008, Wealthfront has broadened its services. It now offers automated bond portfolios, such as an automated bond ladder. The first invests in bond funds, while the second holds individual bonds. Socially responsible automated portfolios are also available.
Next is S&P 500 Direct, Wealthfront’s new automated account that lets users directly own the 500 stocks in the Standard & Poor's Index. Wealthfront’s software also runs tax-loss harvesting on this account.
Wealthfront also introduced brokerage accounts with access to ETFs and individual stocks beyond the S&P 500. Because these accounts are mostly self-directed, they don’t come with the automated system’s tax-loss harvesting. However, curated stock collections are available. In either case, brokerage account orders are not-held orders, so Wealthfront manages their pricing and timing.
Although not purely robo accounts, the company’s brokerage accounts offer some automated guidance. When we built a stock portfolio on the website, we got this recommendation:
This portfolio could lose a substantial amount of money in any year. Given your net worth, risk comfort, and your full investment picture, we suggest investing under $6,900.00 in this portfolio.
Another way Wealthfront supports its clients’ financial well-being is with tax-sheltered accounts. You can open retirement accounts and 529 plans.
Cash Features
As the name suggests, Wealthfront focuses on building wealth, not just investing. Its cash account adds to comprehensive money management. A Visa debit card is included, along with these benefits:
- 19,000 in-network ATMs
- Two out-of-network ATM fees reimbursed per month (maximum of $5 per event)
- Free wire transfers
- 4% APY
- FDIC sweep with $8 million of insurance
- Instant ACH
- Customizable savings goals
- Bill pay
- Ability to send paper checks (but there’s no physical checkbook)
Fees and Minimums
Since Wealthfront is fully online with no physical branches, its fees are quite low. Robo accounts cost 0.25% of assets each year and require at least $500. The S&P Direct account needs a $20,000 minimum and charges just 0.09% a year. Neither type has trading fees.
Brokerage accounts have no minimum deposit, no management fees, and no commissions. The cash account also has no minimums and no regular fees.
Margin
Wealthfront offers a special margin program named Portfolio Line of Credit. Through it, clients can borrow up to 30% of their account balance. Approval is instant, with no credit check or fixed repayment plan.
We appreciate the margin program’s low interest rate, which is currently just 5.41%. However, the Portfolio Line of Credit only applies to taxable robo accounts with at least $25,000.
Another key point: funds borrowed from a robo account can’t be used to buy more ETFs in that same account. Any money you put back goes first toward repaying margin debt.
Learning
Wealthfront runs
a blog filled with brief posts on many financial topics. These discuss more than just investing and include various personal finance issues. Some examples:
Is a Recession Bad for Investors?
How the Fed Funds Rate Impacts the Wealthfront Cash Account
How Should I Save for Short-Term vs. Long-Term Goals?
For those who like a more modern approach, Wealthfront also has
a YouTube channel with hundreds of videos. Here are a few:
How To Invest Without Taxes (Roth IRA)
What Is The Best Investment Strategy For Beginners?
How To Use Home Equity (AND a 401k) To Pay Off Debt
Brokerage accounts do provide stock and ETF profiles, but the data is sparse. Charts only have one style (a line), and there’s no full-screen view. The limited data includes dividend yield, volume, and market cap. Equity reports are unavailable.
Computer Software
Wealthfront does not offer a browser-based or desktop trading platform. Robo accounts are largely hands-off, with a website dashboard that has a funds-transfer feature and a retirement calculator.
Robo accounts are even simpler. You just deposit funds, and Wealthfront invests in ETFs or bonds. The website dashboard includes a funds-transfer tool and a retirement calculator. A Rewards link at the top highlights bonuses for different actions, like referring friends.
Mobile App
Wealthfront users can download a mobile app for Apple and Android. It offers most of the website’s functions, plus a check deposit feature that needs an average balance of at least $1,000 in a cash account.
The app, on both platforms, lets you manage any Wealthfront account, such as cash, robo, brokerage, or bond portfolios. However, charting remains as basic as on the website; there are no available tools.
Additional Services
Initial Public Offerings: Not available.
Fully-Paid Securities Lending Program: Missing in action.
Individual Retirement Accounts: Roth, SEP, and Traditional IRAs can be opened at Wealthfront.
Extended Hours: Pre-market and after-hours trading are not available.
Fractional Shares: Available in brokerage and Direct S&P accounts but not in robo accounts.
DRIP Service: Wealthfront’s automated accounts (but not its brokerage accounts) reinvest dividends.
Recommendations
Small Accounts: For smaller investors, Wealthfront’s robo and cash accounts are strongly recommended
for small investors.
Frequent Stock Trading: Because of limited trading tools, Interactive Brokers is a superior
choice.
Long-Term Investors & Retirement Savers: Wealthfront is fine, though
Charles Schwab provides more resources.
Beginners: An advisory account with Wealthfront is an excellent starting point.
Mutual Funds: Firstrade is a better choice for mutual funds.
Wealthfront Review Verdict
Wealthfront has evolved from a basic robo advisor into a wealth manager with many capabilities. Yet, certain restrictions make other brokerages worth exploring.
Updated on 2/7/2025.