How much more does a robo-advisor IRA cost each year than one you run yourself?
Summary
On a $100,000 rollover, a robo-advisor IRA costs $0 to $350 a year more than running the IRA yourself, because that is the range of advisory fees at the seven automated services checked October 6, 2026, and a self-directed IRA at the same firms charges none. The funds inside either account charge their own expenses on top. Schwab Intelligent Portfolios and M1 charge no advisory fee, Vanguard Digital Advisor up to $200, Betterment, Wealthfront and SoFi $250, and Fidelity Go $350. Over 25 years, this site's example puts the cost of a 0.25% fee on $100,000 at about $24,600.
What one month looks like
Wealthfront's own help page does the arithmetic for a balance this size: "An Automated Investing Account with an average monthly balance of $100K will have a monthly advisory fee of $20.55." The fee is 0.25% a year, charged monthly on the whole balance, and taken from the account rather than billed to you. Over a year that's about $250. The ETFs in the portfolio charge their own expense ratios on top, which Wealthfront calls "the only other fee you incur."
Seven services on the same two balances
| Service | Advisory fee as published | On $100,000, first year | On $20,000, first year | Fund costs on top |
|---|---|---|---|---|
| Schwab Intelligent Portfolios | None; $5,000 minimum | $0 | $0 | ETF expenses |
| M1 (M1 Advisory Services) | None "through December 2027" | $0 | $0 | ETF expenses |
| Vanguard Digital Advisor | 0.20% gross for index portfolios | Up to $200 | Up to $40 | Fund expenses |
| Betterment Digital | 0.25%; $5 a month under $24,000 unless you deposit $200+ a month | $250 | $60 | ETF expenses |
| Wealthfront | 0.25% | $250 | $50 | ETF expenses |
| SoFi Automated Investing | 0.25% | $250 | $50 | ETF expenses |
| Fidelity Go | $0 under $25,000; 0.35% at $25,000 and above | $350 | $0 | Flex funds with no expense ratio, "with limited exceptions" |
Checked October 6, 2026, on each firm's own pricing or help page. SoFi's fee statement is on a page last modified January 10, 2025. Vanguard's net fee is lower than the gross figure and "will vary based on your unique asset allocation"; the firm says you'll pay "no more than $20 per $10,000 annually" for the index option. Betterment's Premium plan is 0.65%, or $650 on $100,000.
Two rows need a second look. Schwab charges no advisory fee, but part of each portfolio sits in a deposit at Charles Schwab Bank; its FAQ shows example cash allocations of 6.90%, 10.50% and 15.00%, and says "Schwab Bank earns income on the deposits, and earns more the larger the cash allocation." The sweep paid 3.47% APY effective October 1, 2026. Fidelity Go's 0.35% looks highest, but its funds "do not charge management fees or, with limited exceptions, fund expenses," while every other row adds an ETF expense ratio.
Over 10 and 25 years
Example: $100,000 rolled over once, no further deposits, earning 6% a year before the advisory fee. Each row subtracts the fee from the return every year, the same method as the expense ratio comparison on a $100,000 rollover.
| Advisory fee | Gap after 10 years | Gap after 25 years |
|---|---|---|
| 0.15% | $2,518 | $14,928 |
| 0.20% | $3,350 | $19,793 |
| 0.25% | $4,179 | $24,602 |
| 0.35% | $5,826 | $34,059 |
| 0.65% | $10,683 | $61,174 |
The gap is measured against the same money with no advisory fee, which is what a self-directed IRA at these firms charges. Fund expenses aren't in the table because they apply on both sides if you hold similar funds. These are illustrations, not forecasts.
Small balances are where the flat charges bite
On $20,000, Betterment's $5 a month is $60 a year, or 0.30%, more than its 0.25% rate. M1 charges a $3 monthly platform fee to an IRA-only customer with less than $10,000 in M1 assets, which is $36 a year, or 0.72% of $5,000. Fidelity Go is the reverse: nothing under $25,000. If your rollover is near one of these thresholds, the first-year figure can jump in either direction when the balance crosses it.
What the fee buys, and what to ask
The services pick the funds, rebalance, and keep the mix in line with the risk level you chose. Whether that's worth $250 a year on $100,000 is a judgment only you can make; the numbers above are the price side of it. Before rolling over, ask for the advisory fee in writing at your balance, the weighted expense ratio of the portfolio they'd give you, and the cash allocation if there is one. Then put the advisory fee and a self-directed alternative side by side in the fee calculator. A full-service adviser charging 1% is a different scale of cost; what a financial adviser charges to handle a rollover runs those numbers, and whether a 1% rollover match outweighs a yearly fee shows how long a sign-up match covers a 0.25% fee.
Pricing pages for two of the services above: Betterment's pricing and M1 Finance IRA.
Sources
- Wealthfront, Understanding Wealthfront fees (checked October 6, 2026)
- Wealthfront pricing (checked October 6, 2026)
- Schwab Intelligent Portfolios (checked October 6, 2026)
- Schwab automated investing FAQs (checked October 6, 2026)
- Schwab Intelligent Portfolios sweep rates (checked October 6, 2026)
- M1, miscellaneous fees (checked October 6, 2026)
- M1, platform fee disclosure (checked October 6, 2026)
- Vanguard Digital Advisor (checked October 6, 2026)
- Betterment pricing (checked October 6, 2026)
- SoFi, fees for automated investing (checked October 6, 2026)
- Fidelity Go overview (checked October 6, 2026)
- Fidelity Go FAQs (checked October 6, 2026)
Written by Kaz, an independent publisher.
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