Wealthfront vs. Empower

For investors seeking the convenience of online trading, Wealthfront and Empower are two popular platforms with a lot to offer. While Wealthfront targets a wide pool of investors with its low fees, Empower caters to those who still want a human touch for their investment guidance. If you are seeking an online platform for your investment needs, this is what to consider when comparing Wealthfront vs. Empower.

If you prefer a more hands-on approach, a financial advisor can help you create a financial plan for your investment needs and goals.

Overview of Wealthfront vs. Empower

Both platforms address similar needs, but they take separate approaches that each serve different types of investors. Wealthfront targets millennial investors, so trading fees are relatively low, and portfolio options are easy to manage. For more informed investing, academic research-based software is heavily integrated and forms the backbone of Wealthfront’s personalized portfolios and financial advisory programs.

Whereas Wealthfront focuses its attention on young investors, Empower supports high-net-worth individuals. Therefore, its fees are higher than Wealthfront’s charges, but it also opens up access to human financial advisors and hands-on portfolio options.

Both services support stock investments, as well as retirement accounts, like IRAs and trusts. However, Wealthfront goes the extra mile to offer additional services, like bonds and college plans.

Wealthfront vs. Empower: Fees

Given today’s technological advancements, many platforms are able to offer lower rates. The more automation a service offers, the more affordable it is likely to be, because it eliminates the cost of human support and all that it entails. That is why Wealthfront is able to offer lower fees than Empower. With its automated system, there are fewer costs to cover.

The difference starts at the minimum necessary investment for the two services. Wealthfront requires a minimum account size of $500. Their 0.25% flat annual advisory fee. That means if your account holds $70,000, you’re paying $14.86 for the service.

As for Empower, there is no minimum to begin investing, unless you opt for the Empower Managed Portfolios account, which requires a $5,000 minimum. For equities, there is no commission for your first 1,000 trades, although it costs $19.99 to place trades over the phone. Certain mutual funds have no transaction fees, and no fee for new-issue certificates of deposit (CDs).

Empower says that it does not charge hidden fees, trailing fees or trade commissions, except for its Managed Portfolios. Likewise, Wealthfront will not charge you account transfer fees, trading or commission fees, nor any fees to open, withdraw or close your account.

Wealthfront vs. Empower: Services and Features

When comparing Wealthfront vs. Empower, both have a similar scope of account types available. They offer IRA accounts, including traditional and Roth IRAs, and taxable brokerage accounts. Beyond these similarities, there are notable differences between the two platforms.

Empower

Empower offers both managed and self-managed investment options. The Empower Investment Account includes access to a wide variety of investments with no minimum to open an account and no commission or annual fees. There is also the Empower Premier Investment Account (EPIA), which provides greater support with access to financial advisors.

Empower offers a generous suite of tools and resources to help you with your accounts. You can access everything from its Retirement Planner to its portfolio analysis and savings planner, allowing you to better organize your finances.

Wealthfront

Wealthfront offers tax-loss harvesting, portfolio rebalancing and asset allocation. Its automated advisory system customizes portfolio options that minimize your risk while seeking the best possible returns. The platform promotes this through PassivePlus and Path features, which focus on investment strategies, tax-loss harvesting, risk parity and smart beta. The availability of each of these features will depend on your account value, though tax-loss harvesting is available to all investors. With the exception of the 0.03% risk parity fee, you can benefit from features like customized, expert-built portfolios with your account for no extra fee. Meanwhile, Path helps you create a financial plan.

Wealthfront also offers short-term cash management. The robo-advisor has the Wealthfront Cash Account, which offers a 4.00% APY of 4.05% and is FDIC-insured up to $8 million. And if you have a joint account, Cash Account deposits are insured up to $16 million. Also available is the Portfolio Line of Credit, in which clients with at least $25,000 in a taxable account are automatically enrolled. This establishes a line of credit that is accessible for as much as 30% of your account value without paperwork or a credit check required.

Another way to create earnings is to participate in the referral program by bringing new customers to the platform. In return, you receive a 0.50% APY boost for three months.

Wealthfront vs. Empower: Online and Mobile Experience

A young investor compares Wealthfront vs. Empower.

When evaluating the digital experience of Wealthfront vs. Empower, they are pretty similar. They both offer desktop platforms you can use, but they also heavily promote their apps. You’ll find that Wealthfront boasts a slightly better score on the Apple store and the Google Play store, with a 4.8 and 4.9, respectively. Empower’s App Store app on is on par with Wealthfront, holding a 4.8 rating, but it struggles with its Google Play rating, earning just a 3.9 rating.

The advisory sites share a goal in their mobile experience in that they aim to streamline account management by integrating all of your financial needs into one platform. Essentially, they want to act as your one-stop shop for all your financial accounts.

Both offer a thorough range of tools that cater to financial planning. Empower’s app includes a free financial dashboard, budgeting features, investing and planning tools. Meanwhile, Wealthfront offers its free Path feature with planning tools that promote the platform’s hands-off experience.

Wealthfront vs. Empower: Account Minimums and Accessibility

One of the clearest differences between Wealthfront and Empower is how easy it is to get started.

Wealthfront requires only a $500 minimum investment, making it accessible to new investors, younger professionals, or anyone just beginning to build wealth. This low barrier allows even cautious beginners to start testing the waters without committing a large sum of money.

Empower, by contrast, has no account minimum, although those with a minimum account size of $100,000 earn extra benefitsWhile Empower does provide access to its free financial dashboard and budgeting tools for anyone, its paid wealth management services are out of reach for most beginner investors with a $100,000 minimum account requirement.

If you are still in the early stages of your financial journey, Wealthfront’s low minimum, automated guidance and free cash management tools offer a more practical entry point. Empower is best suited for investors who are already well-established financially and looking for advanced planning, customized portfolios and direct advisor support.

Who Should Use Wealthfront?

Thanks to its low costs, Wealthfront is an opportunity for those just getting started to gain more experience in investing. The app provides thorough digital guidance that helps keep even the most cautious investor safe. Portfolio customization also gives users a more personalized experience tailored to their specific needs. However, the lack of human advisors can impact how well that comes across.

Overall, beginner investors, those in a lower investment tier and even those who just want to improve their financial situation are likely to find Wealthfront a useful tool. However, if you want to be a little more hands-on with your investing or want to use fractional shares, you might need to look somewhere else.

Who Should Use Empower?

Empower directs most of its attention to creating an individualized experience for those targeting mid-level investments. The higher management costs may be too expensive for someone just breaking into investments. However, a number of their investment management tools come free, which may appeal to DIY investors.

Overall, Empower offers a comprehensive investment management service that can help even savvy investors reevaluate their risk tolerance and maximize returns.

Bottom Line

A couple review their investment account over breakfast.

In the end, the right investment platform depends on your needs. New investors will find Wealthfront an affordable and personalized experience. However, those same risk protections might be too hands-off for an individual with experience. On top of that, the team of human advisors available at Empower may make the higher-priced platform the winner for those who invest in a higher bracket. Either way, both are valuable options for different investment styles.

Consider talking to a financial advisor to determine an investment strategy based on your current holdings and long-term financial goals.

Tips for Investing

A financial advisor can help you create a financial plan and investment strategy to reach your goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Whether you’re considering getting started with investing or you’re already a seasoned investor, an investment calculator can help you figure out how to meet your goals. It can show you how your initial investment, frequency of contributions and risk tolerance can all affect how your money grows.
While these platforms are great options, they might not tick all the boxes you need. Read up on our in-depth brokerage reviews, where we analyze both Betterment and Fidelity Go in detail.