Other Disclosures
SIPC Account Protection
Betterment Securities, member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.
Investor Education and Protection
An investor brochure about Betterment Securities is available on FINRA BrokerCheck at brokercheck.finra.org. You can also call the BrokerCheck hotline at (800) 289-9999 or access the broader FINRA website at www.finra.org.
Disclosure of Transactions for Betterment’s Account
Betterment regularly trades for its own account in the same securities as we advise our clients on. Betterment’s securities positions are typically small. Our trading activity is necessary to round out transactions to the exact amounts Clients want to deposit, withdraw, or allocate. Betterment’s trading is conducted with other market participants, and we do not buy or sell with Betterment clients, although orders for our principal account are generally aggregated with our clients’ orders. The prices Betterment LLC receives for our trades are exactly the same as the prices every other client receives.
Disclosure of Order Execution and Routing Practices (SEC Rule 606)
Betterment Securities exclusively routes held orders in Rule 606 reportable securities to Apex Clearing Corporation (“Apex”) for order routing. Apex may not be the ultimate execution venue for such orders, and these orders may be further routed to execution venues. Betterment Securities does not receive any remuneration for orders routed to Apex, including any execution venue fees or rebates that may be paid by an executing venue. However, Apex may receive remuneration from executing venues through maker-taker pricing or other applicable execution venue fees or rebates.
Betterment Securities does not select the execution venues to which Apex routes Rule 606 reportable securities for execution. As a result, Apex is better positioned to prepare a quarterly report that reflects any execution venue specific maker-taker arrangements or other execution venue fees or rebates.
Please click here to view the most recent quarterly report for Apex.
Business Continuity Statements
SEC and FINRA Rules require investment advisers and broker-dealers to create and maintain a business continuity plan.
In accordance with these rules Betterment LLC and Betterment Securities have both developed a plan that is intended to permit us to continue critical business operations during natural disasters, power outages, or other significant events. While there can be no assurance that service will continue without interruption in all circumstances, the plans do address actions that the firms intend to take in the event that there is a significant disruption. Account access is planned to be restored as the first step, which would be followed by other critical business operations. If there is a local disruption to the operating facilities of either firm, the respective business continuity plans call for the affected firm to establish operations at an alternate location. We maintain data backup records, located well away from our primary facility so that they would not be affected by a regional disruption. We intend for account access to be available through these records should the primary data center suffer a disruption. Our plan will be reviewed, updated, and tested periodically.
Statement of Financial Condition
The most recent Statement of Financial Condition for Betterment Securities is available for download.
Form 8937
Form 8937 is available for download.