Betterment to Cut RIA Custody Platform Fees to 0.20% Starting Jan. 1, 2027

Betterment Advisor Solutions will roll out a simplified custody fee schedule on Jan. 1, 2027, charging advisory firms a 0.20% platform fee on assets under $10 million, CEO Sarah Levy said. Firms holding $10 million to $100 million will pay 0.12%, while those above $100 million will receive negotiated rates. The move targets increasingly multicustodial RIAs as Betterment competes with dominant custodians Charles Schwab and Fidelity Investments. Cerulli Associates research shows more than half of RIAs already use multiple custodians; 22% used three or more at the end of 2024. Betterment has surpassed $70 billion in assets under management and 1 million retail clients. Its custodian unit, launched in 2014, serves 600 RIAs. Levy said the firm is now profitable, giving it flexibility to lower pricing. Betterment also unveiled an AI onboarding document reader and an RIA referral service.