Wealthfront vs Formation

Wealthfront invests your money.
Formation organizes all of it.

Wealthfront is an excellent automated investing service — low-cost index portfolios, a high-yield cash account, in-house tax-loss harvesting. But it manages the money inside Wealthfront. Formation takes no custody and never trades; it's the independent, cited layer across every custodian you already use, built for entities and complexity Wealthfront's robo isn't.

No charge today · Cancel in two clicks · Founding price $199/yr, locked for as long as you stay

What Wealthfront does well

Automated, low-fee index investing with a polished experience, a competitive cash account, direct indexing at higher balances, and tax-loss harvesting inside its own managed accounts. If you want a robo-advisor to run a portfolio for you, Wealthfront is one of the best — and we'll say so.

Feature by feature

Wealthfront

robo-advisor

Formation

one plan · $199/yr founding

Automated investing / robo portfolios
Works across all your existing custodians
Net worth aggregation, cited
Cross-custodian wash-sale-aware TLH
Legal-entity model — trust · LLC · joint
K-1 / partnership ingestion
Equity comp — RSU/ISO/ESPP, AMT
Multi-state tax exposure
Every number cited to its source
Flat fee — not a % of your assets
Price
0.25% of assets / yr
$199/yr founding · $349/yr list

Wealthfront's 0.25% advisory fee per wealthfront.com as of June 2026. Its tax-loss harvesting operates within Wealthfront-managed accounts only.

The shipped feature, captured live from the demo's sample household.

Custody vs. clarity

Wealthfront's TLH stops at its own walls.

Wealthfront harvests losses inside the accounts it manages — but the wash-sale rule spans every account you own, including the IRA at another broker and your spouse's accounts. A robo can't see those, so it can't protect a harvest from a disallowing buy it doesn't know about. Formation scans the unified feed across every custodian, takes no custody, and charges a flat fee instead of a slice of your assets.

Common questions

Is Formation a good Wealthfront alternative?

Formation is built for households whose finances have outgrown a single-login tool: money spread across many custodians, more than one legal entity (trusts, LLCs, S-Corps), equity compensation, K-1s, and multi-state tax — unified in one view, organized by the entity that owns each account, with every number traced back to its source. The feature-by-feature table above lays out where Formation differs from Wealthfront so you can judge the fit for your own situation.

How much does Formation cost compared to Wealthfront?

Formation is one plan with full access — $29.99/month or $349/year list, and founding members lock $17.99/month or $199/year for as long as they stay subscribed. Every subscription starts with a 7-day free trial; there is no free tier and no percentage-of-assets (AUM) fee. The pricing row in the comparison table above shows how that lines up against Wealthfront.

Can Formation handle trusts, LLCs, equity compensation, and K-1s?

Yes. Formation models every account by the legal entity that owns it (personal, joint, trust, LLC, S-Corp), tracks RSUs, ISOs, NSOs, and ESPP with alternative-minimum-tax awareness, ingests Schedule K-1s from PDF, and runs cross-custodian, wash-sale-aware tax-loss harvesting across all your brokers at once. AURA, Formation's education-only AI, explains and analyzes these numbers but never gives personalized advice, places trades, or moves money.

Keep your investments where they are.

Get one cited, cross-custodian view — entity-aware, wash-sale-aware, and flat-fee — over the accounts you already hold.

No charge today · Cancel in two clicks · Founding price $199/yr, locked for as long as you stay

Full pricing details

Formation Money provides financial planning software and educational content, not personalized investment, legal, or tax advice. Formation Money is not a registered investment adviser. For personalized guidance, work with your own CPA or a licensed financial adviser.

How we compute and cite every number →

© 2026 Formation Money LLC. All rights reserved.