Betterment LLC is a member of FINRA/SIPIC and an SEC-registered investment adviser. An investment adviser is defined as a firm or person that engages in the business of providing investment advice to others about securities or issuing reports regarding securities as part of a regular business. Those who are "investment advisers" are registered with the SEC or state securities authorities.
Investment advisers are held to a fiduciary standard, meaning they are legally and ethically bound to operate in the best interest of their clients. Through this fiduciary responsibility, the adviser retains a duty of loyalty, taking on the clients' interests as their own. A fiduciary also must provide full and fair disclosure. The adviser must disclose all material conflicts of interest that could affect the advisory relationship in a specific manner so that the client can determine the need for informed consent. Please note: Betterment has no affiliation with the financial products it recommends to its clients.
While Betterment isn't backed by the Better Business Bureau, it is held to a higher standard through its fiduciary duty and SEC registration. This ensures that a client's financial wellbeing is held to the highest standard of care.
Betterment states that investments in securities and digital assets are not FDIC insured and not bank guaranteed, so there is the possibility to lose value on your principal investment. Deposits made to Betterment's Cash Reserve savings account is FDIC insured up to $2 million and up to $4 million for a joint account.