Updated 2026-03-20

Morgan Stanley vs Betterment 401(k) Comparison

Compare Morgan Stanley at Work (#19, 6.8/10) and Betterment at Work (#20, 6.7/10) side by side across fees, ratings, features, and investment options.

Overall Comparison

FeatureMorgan StanleyBetterment
Overall Score6.8/106.7/10
Rank#19#20
AUM$6.2 trillion$45 billion
Participants6 million400,000
Plan Sponsors15,000+1,500+
Founded19352010

Ratings Comparison

CategoryMorgan StanleyBetterment
Fees & Costs3.0/54.0/5
Investment Options4.5/53.2/5
Customer Service4.1/54.0/5
Mobile App4.0/54.4/5

Fee Comparison

Fee TypeMorgan StanleyBetterment
Admin FeesVaries by plan size and services$150/month + $6/employee
Expense Ratios0.03% - 1.5%0.03% - 0.15%
Trading Fees$0 for stocks/ETFs via E*Trade$0
Advisory Fees0.50% - 1.5%Included in platform fee

Morgan Stanley Strengths

Betterment Strengths

Rollover, Loans & Withdrawals

FeatureMorgan StanleyBetterment
Rollover PlatformMorgan Stanley at Work PortalBetterment App
Loans AvailableYesNo
Withdrawal MethodsOnline via Morgan Stanley portal, Phone (800-869-3326), Through Morgan Stanley financial advisor, Branch office visitOnline via Betterment app, Email support
Distribution OptionsLump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRA, Required Minimum DistributionsLump sum, Partial withdrawal, Rollover to IRA, Required Minimum Distributions

Which Should You Choose?

Choose Morgan Stanley if you want:

  • Companies with stock plans
  • Employees wanting full brokerage access
  • High-net-worth participants
  • Self-directed traders

Choose Betterment if you want:

  • Tech companies
  • Startups
  • Hands-off investors
  • ESG-conscious employers

Our Verdict: Morgan Stanley vs Betterment

Morgan Stanley at Work wins this comparison with a score of 6.8/10 vs 6.7/10. Morgan Stanley excels with access to morgan stanley financial advisors, making it the stronger choice for most investors in this matchup. However, the best choice ultimately depends on your specific needs, employer plan availability, and investment preferences.

Full Morgan Stanley Review Full Betterment Review

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Morgan Stanley vs Betterment: Complete 401(k) Comparison for 2026

Choosing between Morgan Stanley at Work and Betterment at Work for your 401(k) is an important decision that affects your retirement savings. Morgan Stanley offers wealth management while Betterment is known for robo-advisor. In terms of fees, Morgan Stanley charges 0.03% - 1.5% expense ratios compared to Betterment's 0.03% - 0.15%. Morgan Stanley manages $6.2 trillion in assets and serves 6 million participants, while Betterment has $45 billion AUM and 400,000 participants.

Key Differences: Morgan Stanley vs Betterment

When comparing Morgan Stanley and Betterment, consider their core strengths: Morgan Stanley excels with access to morgan stanley financial advisors, while Betterment stands out for fully automated portfolio management. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Morgan Stanley's customer service rating is 4.1/5 compared to Betterment's 4.0/5. For mobile experience, Morgan Stanley scores 4.0/5 while Betterment scores 4.4/5.

Which Provider is Right for You?

Choose Morgan Stanley if you prioritize companies with stock plans. Choose Betterment if you're looking for tech companies. Your decision should also consider your employer's plan availability, fee sensitivity, desired investment options, and customer service expectations. For detailed reviews, visit our individual Morgan Stanley and Betterment provider pages.

Frequently Asked Questions

Morgan Stanley at Work scores higher in our 2026 rankings with 6.8/10. Morgan Stanley is best for companies with stock plans, while Betterment is best for tech companies. The right choice depends on your employer's plan and your priorities.

Morgan Stanley charges expense ratios of 0.03% - 1.5% with admin fees of Varies by plan size and services. Betterment charges 0.03% - 0.15% expense ratios with admin fees of $150/month + $6/employee. Morgan Stanley's fees rating is 3.0/5 compared to Betterment's 4.0/5.

Yes, you can roll over between Morgan Stanley and Betterment. Morgan Stanley uses Morgan Stanley at Work Portal for rollovers, while Betterment uses Betterment App. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.

Morgan Stanley offers 401(k) loans. Betterment does not offer 401(k) loans.

Morgan Stanley scores 4.5/5 for investment options, while Betterment scores 3.2/5. Both offer target-date funds, index funds, and managed accounts. Morgan Stanley's investment options include Mutual Funds, Target Date Funds, Index Funds. Betterment offers ETF Portfolios, Target Date Portfolios, Socially Responsible Portfolios.

For small businesses, consider plan minimums and per-participant costs. Morgan Stanley is best for companies with stock plans, employees wanting full brokerage access, high-net-worth participants, self-directed traders. Betterment is best for tech companies, startups, hands-off investors, esg-conscious employers. Compare admin fees: Morgan Stanley charges Varies by plan size and services vs Betterment's $150/month + $6/employee.

Pavlo Pyskunov

Pavlo Pyskunov

Managing Director & Investment Fund Director

Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.

Last updated: 2026-03-20