- Click Edit to make changes
- If needed, modify the name for the plan and select the billing plan type then click continue.
How do I update a client’s fees?
To edit the fee for any existing clients advisors will need to follow the steps below:
- Log onto the Advisor Dashboard
- Select “Clients”, on the left side of the window
- Locate the client and click their name
- Select “Settings”
- Locate and click the “Edit” button corresponding to the Fee column
- Select the billing plan you’d like to apply then click “Update plan”
- The new billing plan will appear under “Household Billing Plan”
Please keep in mind, if a new billing plan needs to be created the admin(s) of the firm will need to create the plan before you are able apply it to any clients’ household.
How do I get paid for the client accounts that I manage on the platform?
Betterment for Advisors operates a fee-only platform. Firm admins may create multiple billing plans using Asset Based Billing, Fixed Billing, or Tiered Billing. The billing plan applied to a client’s household will, by default, include Betterment’s platform fee. Aggregate fees are billed automatically by Betterment from the client’s account quarterly or monthly in arrears, and Betterment subsequently remits the advisor’s fee.
Can I set custom level fees for individual households?
Yes, you may utilize Billing Plans to set custom fees for a client’s household. If any of the available Billing Plans do not fit your needs, an admin of your firm may create a new customized billing plan that is either Asset Based, Fixed, or Tiered.
How are the fees calculated?
We accrue fees beginning one day before the end of the prior quarter and the accrual of fees ends two days prior to the end of the current quarter. The fee is calculated pursuant to the formula [sum of the following for each day in the preceding quarter: (the balance in a client’s account at the end of the day) * (advisory fee applicable on that day)] and will be deducted from the account three days after the transaction date, following the settlement of the trade(s) made to fund the fee. Fees are billed in arrears and the advisor’s portion of the fee is sent to the advisory firm shortly after the end of the quarter via ACH.
Are fee tiers supported?
Yes, we do support fee tiers. Anyone with admin level access to the advisor dashboard may create new billing plan types, including Tiered Billing. Once the plan is created you may apply it at the household level.
How are fees reported to my clients?
Your clients see the total fee (platform fee + billing plan applied to the household) in their client portal and on quarterly statements. You are responsible for providing the fee breakdown between the Betterment platform fee and your advisory firm fee to your clients.
Are there any trading or transacting costs associated with the Betterment for Advisors platform?
No, there are no trading or transaction costs associated with the Betterment for Advisors platform.
