Is Wealthfront Legit?
Wealthfront says it offers brokerage services and more. Are these claims true? We looked into it, so keep reading.
Is Wealthfront Safe?
Two major groups oversee the securities industry in the US: FINRA and the SEC. These organizations make and enforce rules using fines and other actions. Wealthfront is registered with both and must follow their rules.
Wealthfront’s SEC identification number is 801-69766. Its FINRA number is 148456. Besides being an investment adviser, Wealthfront is also registered as a broker-dealer. For these, its SEC number is 8-68534 and its FINRA number is 153407.
Wealthfront’s BrokerCheck profile shows it has been registered with FINRA as a broker-dealer since 2010 and has no disclosures.
Wealthfront Better Business Bureau
Registering is only the first step for a brokerage. It also needs to deliver good service, and that’s where the Better Business Bureau comes in. The BBB checks customer satisfaction for companies in North America.
Wealthfront is based in California, so the BBB keeps an eye on it. Right now, Wealthfront has an average customer review of 3.4 out of 5.0 on its BBB profile: see it here. This rating is a bit better than other brokerages, but it’s only from 5 reviews. Wealthfront has over 307,000 accounts, so this is a very small sample.
The BBB itself gives Wealthfront an F for its business performance. This is the lowest grade. The rating is based on things like complaints filed and how long the business has been around.
Wealthfront and Competitors
Is Wealthfront Insured?
Brokerage accounts at Wealthfront are covered by SIPC insurance. The usual limit is $500,000 per customer.
Besides investments, Wealthfront also offers bank accounts with FDIC insurance. Wealthfront isn’t an FDIC member itself, but it works with partner banks that are. Free cash is moved to those banks, giving banking customers up to $1 million in FDIC insurance through this system.
Is Wealthfront Safe: Assessment
Wealthfront is a real and trustworthy company. There are several protections in place for customers. However, investing in securities always comes with risk, and it’s hard to avoid. Wealthfront’s robo advisor uses strategies (usually by adding more bonds) to help reduce risk.
Wealthfront Review
Now that we know Wealthfront is legit, let’s look at how it performs.
Investing and Trading
Wealthfront is mostly a robo advisor that automatically invests in a small number of ETFs. Here are some funds it uses in its 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 automatic rebalancing are basic features on Wealthfront’s robo accounts.
Since it started in 2008, Wealthfront has added more options. Today, it offers automated bond portfolios, like an automated bond ladder. One invests in bond funds, while the other buys actual bonds. You can also pick socially responsible portfolios.
There’s also S&P 500 Direct. This is Wealthfront’s new automated account that buys all 500 stocks in the S&P 500 directly. The software does tax-loss harvesting here too.
Wealthfront now also has brokerage accounts with access to ETFs and individual stocks outside the S&P 500. These accounts do not get tax-loss harvesting from the robo system, since they are mostly self-managed. There are hand-picked groups of stocks to choose from. For all brokerage accounts, trades are not-held orders, meaning Wealthfront manages price and timing.
These brokerage accounts aren’t full robo accounts, but they do give some automated advice. When we created a stock portfolio, we got this suggestion:
This portfolio has a high chance of losing a significant amount of money in any given year. Considering your net worth, risk tolerance, and all of your investments, we recommend investing less than $6,900.00 total in this portfolio.
Wealthfront also helps customers with tax-advantaged accounts: you can open retirement accounts and 529 plans.
Cash Features
Wealthfront is about more than just investing. Its cash account helps customers manage all their money. You get a Visa debit card, and other benefits include:
- 19,000 in-network ATMs
- Two out-of-network ATM fees reimbursed per month (up to $5 each)
- 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 checkbook)
Fees and Minimums
Wealthfront is fully online and has no physical branches, so its prices are low. Automated accounts cost 0.25% of assets per year with a $500 account minimum. The S&P Direct account has a $20,000 minimum but only costs 0.09% per year. There are no trading fees for either.
Brokerage accounts have no minimums, no management fees, and no commissions. The cash account also has no minimums and no recurring fees.
Margin
Wealthfront has a special margin feature called Portfolio Line of Credit. With this service, customers can borrow up to 30% of their account balance. Approval is automatic, there’s no credit check, and there’s no set repayment schedule.
What stands out about Wealthfront’s margin program is the interest rate, which is just 5.41% right now. The downside is that the Portfolio Line of Credit is only offered to taxable robo accounts with $25,000 or more in them.
Another thing to note: money borrowed from an automated account cannot be used to buy more shares of ETFs in that same account. Any money put back into the account is first used to pay off the margin loan.
Learning
Wealthfront has a blog with short posts on a wide range of money topics. These cover more than just investing and include many personal finance subjects. Here are 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 people who prefer video, Wealthfront also has a YouTube channel with hundreds of videos. Here are a few topics:
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 let you look up stock and ETF profiles, but these pages don’t have much detail. There’s only one chart style (line), no full-screen option, and just a few data points like dividend yield, volume, and market cap. There are no research reports.
Computer Software
Wealthfront does not have a browser or desktop trading platform. Robo accounts are mostly automatic, with the website dashboard giving you tools to move funds and a retirement calculator.
Robo accounts are even more hands-off. Customers add cash, and Wealthfront invests it in ETFs or bonds. The website dashboard has a funds-transfer tool and a retirement calculator. There’s also a Rewards link at the top, offering bonuses for things like referring friends.
Mobile App
Wealthfront customers can use a mobile app for Apple and Android. The app offers most features from the website, including a check deposit tool, but you need an average cash account balance of at least $1,000 to use it.
With the app, you can manage all types of Wealthfront accounts: cash, robo, brokerage, and bonds. The charting features are still basic, just like on the website, and there are no extra tools.
Additional Services
Initial Public Offerings: Not offered.
Fully-Paid Securities Lending Program: Not available.
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 S&P Direct accounts, but not in robo accounts.
DRIP Service: Wealthfront’s automated accounts (but not brokerage accounts) reinvest dividends.
Recommendations
Small Accounts: Wealthfront’s robo and cash accounts are a great choice for small investors.
Frequent Stock Trading: For active traders, Interactive Brokers is better because Wealthfront’s software is limited.
Long-Term Investors & Retirement Savers: Wealthfront is a solid option, but Charles Schwab offers more features.
Beginners: Wealthfront’s advisory account is a good way to get started.
Mutual Funds: Firstrade is a better choice for mutual funds.
Wealthfront Review Verdict
Wealthfront has grown from a simple robo advisor to a full-service money manager with many features. Still, some limits make other investment companies worth a look.
Updated on 6/20/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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