Robo-Advisors for U.S. Newcomers: Fees, Minimums, Tax-Loss Harvesting & Eligibility (2026)

Imagine two new investors living in the United States. One has $2,000 and wants to automate monthly ETF investing. The other has $25,000 and wants hands-off management. They may see the same list of robo-advisors, yet face very different fees and account-opening restrictions.

For the first investor, Betterment’s $5 monthly charge may matter more than its headline 0.25% rate. For the second, Fidelity Go’s pricing changes sharply when the managed balance reaches $25,000. And for someone with an F-1 visa and only an ITIN, account eligibility may decide the shortlist before performance charts even enter the conversation.

Research verified: October 16, 2026. We checked provider pricing, eligibility and disclosure pages and independently calculated the examples below. We did not submit accounts, negotiate fees or run first-hand applications. Fees and requirements may change; see original documents and provider contacts before acting.

The decision table: six services, six very different cost structures

Scope note: The figures above relate to the specified automated advisory products, not the providers’ self-directed brokerages, savings products or premium advice tiers. Each service can hold different funds, with separate expenses. Wealthfront now markets its automated service as the Wealthfront Portfolio; older materials may use Automated Investing Account.

The $24,000 and $25,000 thresholds can change the answer overnight

Consider an investor who does not have $200 in recurring monthly Betterment deposits. Betterment Digital then charges $5 per month until its eligible balance threshold is met. That flat amount is $60/year, regardless of whether the initial portfolio has $1,000 or $10,000. At $24,000 the percentage tier applies, subject to Betterment’s household-balance definitions.

Fidelity Go behaves differently: under $25,000, the disclosed advisory fee is zero; at $25,000 and above it is 0.35% of the managed balance, not merely 0.35% on the excess dollars above $25,000. Fidelity’s current explanation also describes financial coaching and eligible taxable-account tax-loss harvesting at the threshold.

Original KoruVest calculation: what a fixed account balance would cost

The following is a one-year, flat-balance illustration of advisory charges only. It assumes Betterment’s recurring-deposit condition is not met, no promotional credits, no changes in investments or provider rules, and ignores fund expenses and other charges. These are not annualized investment returns or quotations of actual client statements.

*Betterment’s eligible household balance and recurring-deposit terms control which tier applies; at exactly $24,000 the 0.25% tier also equals $60/year. The $25,000 Fidelity Go charge assumes the full $25,000 is subject to the percentage fee for an entire year. Actual thresholds may be crossed midyear; actual billing is time- and balance-dependent.

Do not use the table as a universal winner ranking. A brokerage that requires an SSN is not comparable for an ITIN-only applicant; a higher-fee service may offer planning, human coaching, specific tax management, or a portfolio construction approach worth considering.

Schwab’s $0 advisory fee: compare cash and the interest paid on cash

Schwab Intelligent Portfolios charges no advisory fee and has a $5,000 minimum. It holds a required cash allocation, generally ranging from 6% to 30%, depending on the recommended strategy. Schwab earns revenue associated with those deposits; fund expenses also apply. That is a business-model difference, not automatically a bad investment result.

Important 2026 nuance: Schwab’s required sweep cash is interest-bearing. Its current program page ties the interest-rate-setting method to a specified seven-day money fund yield and shows an effective-date APY. Therefore, the blanket claim that Schwab cash earns nothing—or always earns less than every alternative—is misleading. The cash APY can change. Always compare the actual sweep yield, portfolio allocation and relevant alternatives on the same date.

Original KoruVest worksheet: cash allocation is a trade-off, not a guaranteed loss

Assume a hypothetical $10,000 portfolio. With 6% cash, $600 remains in the sweep; with 30% cash, $3,000 remains there. If, only as an invented illustration, the sweep earned 3% while the investments that cash replaces earned 5% over the same year, the illustrative return difference would be:

These 3% and 5% assumptions are not Schwab’s advertised yield or a forecast of stock returns. If risky investments lose value, holding cash can instead reduce losses; different portfolio risks cannot be reduced to an annual fee comparison. Compare the provider’s actual disclosure, not a manufactured ‘effective advisory fee.’

What changes for an F-1 student, H-1B worker or ITIN holder?

Immigration status, U.S. physical residence, federal tax residence and the presence of a Social Security number are separate questions. A service may list certain eligible visas but still decline an individual after identity checks. Never assume that a bank account at the same company has identical rules to its investment product.

SoFi says eligible non-permanent residents must reverify U.S. residency every six months and that it cannot support individuals who reside outside the U.S. Betterment also says it does not support people living abroad, subject to stated exceptions. Wealthfront’s current rule requires a U.S. residential address and U.S. phone. For Fidelity, Vanguard and Schwab, use their current specific managed-service eligibility rather than assuming a standard brokerage account’s terms automatically apply.

Tax-loss harvesting: do you have a taxable account, and can the loss actually help you?

In a taxable investment account, tax-loss harvesting generally involves selling an investment at a loss, buying a replacement to maintain similar exposure, and using the realized capital loss subject to federal tax rules. It can be useful, but it is not a cash rebate, not guaranteed tax savings and not automatically a net gain after trading costs and future tax effects.

For an IRA or Roth IRA, sales inside the account generally do not produce the same deductible capital losses as a normal taxable brokerage account. Marketing a robo-advisor for its tax-loss harvesting while choosing an IRA can therefore misstate the value of that feature.

The IRS wash-sale rule also matters. A taxable sale at a loss followed by a purchase of substantially identical securities within 30 days before or after can disallow the loss—including certain purchases in an IRA or Roth IRA. Automated rebalancing across another account or a spouse’s accounts can complicate this further. Avoid assuming that a provider’s automated system can see every account you hold elsewhere.

Product-specific distinction: Fidelity Go describes tax-loss harvesting for qualifying taxable accounts with $25,000 or more; Schwab’s feature requires an eligible taxable account with $50,000 or more and an opt-in election; Vanguard Digital Advisor includes tax-loss harvesting where applicable, with its own consent and eligibility conditions. Wealthfront and Betterment provide tax-management features on qualifying taxable portfolios. Always read the product-specific restrictions.

Two costs and one comparison mistake

First, advisory fees are distinct from the annual expense ratios charged by many underlying ETFs or funds. If a service charges 0.25% and its selected holdings have a weighted average 0.08% expense ratio, the simplistic combined cost is about 0.33%, or $33 on a $10,000 balance in a constant-balance year. The real cost depends on the actual portfolio and fee treatment.

Second, do not blindly add a headline percentage to Vanguard’s displayed $15–$16 per $10,000 estimate. Vanguard explains fee credits and the distinction between program advice charges and underlying investment expenses. Compare like-for-like disclosure definitions before ranking the total fee.

Third, the cheapest advisory-fee row does not establish the cheapest after-tax, risk-adjusted, useful outcome. The accounts can use different funds, asset allocation, tax strategies and cash policies. For a person comfortable owning a low-cost target-date fund or broad index ETF, self-directed investing can be a legitimate alternative—though it shifts portfolio decisions and monitoring back to the investor.

Your pre-application worksheet: six checks that can prevent an expensive mismatch

1. Residence: Where do I genuinely live today? Will I relocate within 12–24 months, and what does the product say about my destination?
2. Identity: Is my visa type accepted, and must I provide SSN, ITIN, U.S. phone, particular address, or an additional ID?
3. Balance: At my realistic starting balance and recurring contribution amount, which fee tier applies?
4. All-in fees: What are the advisory, fund, transfer-out and optional subscription fees? Are required cash holdings compensated with interest?
5. Account type: Is it taxable or tax-advantaged? Will tax-loss harvesting be available and potentially beneficial?
6. Exit: What happens to holdings and automated management when I move, and how are account-to-account transfers or withdrawals processed?

Never put a full SSN, bank login, passport scan or other sensitive details in ordinary email or a public contact form. Use the provider’s secure verification channel.

Which robo-advisor deserves a closer look first?

Very small U.S. account: Begin by checking Fidelity Go’s zero-advisory-fee bracket and whether other available services’ minimums and flat charges fit your contribution plan. A $5 monthly fee is $60/year even on a $1,000 balance, unless you qualify for Betterment’s percentage-rate conditions.

ITIN-only eligible visa holder: SoFi and Betterment have relevant published eligibility language; that is a reason to ask them for a determination, not an approval prediction. Wealthfront currently asks for an SSN.

U.S. taxable investor focused on automated tax handling: Examine which provider actually offers the relevant feature at your balance and account type, then assess whether you have capital gains, other accounts or tax circumstances that alter the expected usefulness.

Investor who may soon reside outside the United States: Treat long-term account servicing as a threshold requirement. An excellent domestic investing platform can still be unsuitable if automated advice stops after departure.

There is no universal winning provider. The best comparison starts with account eligibility and the exact cost schedule rather than a logo or a star rating.

Frequently asked questions newcomers should resolve

Is Fidelity Go free forever below $25,000?

The current published advisory charge is $0 for balances under $25,000; this is not a guarantee that pricing will never change, nor a statement that investing is risk-free. At $25,000 or more, Fidelity Go’s disclosed advisory fee is 0.35%/year on the managed balance.

Does Betterment always cost $5 a month?

No. Its current Digital pricing changes to 0.25% annually when you meet the qualifying balance or recurring-deposit condition. Check which eligible household balances and transfer types count.

Does Schwab’s 0% advisory fee mean 0% total cost?

No. Underlying ETF costs and its required interest-bearing cash allocation still matter. Cash can improve or reduce outcomes depending on markets and yields; the cost cannot be inferred from a fixed hypothetical market return.

Can a non-U.S. citizen use a robo-advisor?

Sometimes. Citizenship is not the only criterion. The provider may require U.S. residence, an accepted visa, SSN or ITIN, a phone and qualifying identification. Do not equate immigration status with federal tax residence or assume all products at one firm have identical restrictions.

Does SIPC protect an account against investment losses?

No. SIPC may protect customer securities and cash at a covered broker when the broker fails and assets are missing, up to applicable limits; it does not compensate normal market losses. Robo investment portfolios are not the same product as FDIC-insured bank savings.

Research method and official sources

KoruVest examined official fee schedules, account eligibility pages, managed-portfolio disclosures, and U.S. investor-protection and IRS guidance on October 16, 2026. The balance comparisons and cash-allocation arithmetic are independent calculations of disclosed or explicitly hypothetical inputs. No provider sponsored these calculations; this article does not claim live applications, broker interviews or first-hand platform testing. The provider’s current agreement governs actual accounts.

• Betterment — Digital fees & thresholds
• Betterment — eligibility and residency
• Betterment — ITIN and SSN guidance
• Fidelity — Fidelity Go fee tiers and tax features
• Wealthfront — Portfolio pricing
• Wealthfront — account eligibility
• Wealthfront — automated account agreement and minimum
• Vanguard — Digital Advisor terms and fees
• Schwab — Intelligent Portfolios and tax-loss harvesting
• Schwab — required sweep interest rates
• Schwab — required cash allocation disclosure
• SoFi — Robo advisory fees
• SoFi — U.S. residence, tax ID and immigration eligibility
• SoFi — accepted visa documentation
• IRS Publication 550 — wash sales
• SIPC — what SIPC protects

Related KoruVest guides

• Brokerage Accounts for Non-U.S. Citizens: Eligibility, SSN/ITIN and Documents
• Index Funds vs. ETFs: Differences New Investors Should Know
• Leaving the U.S. on an H-1B? What Happens to a 401(k) or IRA

Originally published: June 26, 2026 · Last substantively reviewed: October 16, 2026