Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Betterment vs. Acorns
The size of your portfolio plays a role in how you weigh these platforms.
Both Betterment and Acorns help investors allocate funds with the help of a robo-advisor. But one becomes more competitively priced the more you have to invest.
Which one is better?
- Choose Betterment if you have less than $5,000 in your portfolio.
- Choose Acorns if you have more than $5,000 in your portfolio.
These two platforms offer the same convenient set-it-and-forget-it approach to investing: investors sign up, create a profile, fund their account and the robo-advisor takes care of the rest.
Betterment and Acorns have a number of similar offerings — they both have tiered services, well-reviewed mobile apps and aim their features squarely at passive investors. They also offer fractional shares, portfolio rebalancing and tax-loss harvesting.
So is one better than the other? It depends on what you value most as an investor — and how much you have to invest. When we compared Betterment’s standard annual rate with Acorns’ lowest monthly fee, we discovered that Betterment’s pricing structure was better suited to portfolios under $5,000, while Acorns rates were more competitive above the $5,000 mark.
How do Betterment and Acorns compare?
|Overview||Betterment is an online financial advisor that makes investing easy by creating a portfolio just for you, based on your preferences and financial goals. It’s a solid choice for those new to investing.||Acorns is a robo-advisor that offers individual investment accounts, retirement accounts, custodial accounts — even a checking account that comes with a free Visa debit card. It’s best suited to buy-and-hold investors who want their money managed for them.|
|Minimum deposit to open||$0||$0|
|Tools and research|
|Reputation and customer reviews|
|Apple App Store reviews|
|Google Play Store reviews|
Betterment and Acorns aim their platform features at passive investors executing a buy-and-hold strategy. Betterment has more asset classes to choose from, but Acorns tosses in a free checking account for investors who subscribe to its Personal tier. Their differing fee structures makes Betterment the practical option for portfolios under $5,000 and Acorns better priced for portfolios above $5,000.
Before you apply, review your account options across multiple brokerages to find the account best suited to your investment needs.
Frequently asked questions
More guides on Finder
Sofi vs. Robinhood
Two trading platforms for beginners with no commission fees or bells and whistles. But which one comes out on top?
How to buy Bitcoin (BTC) in the US
Want to buy bitcoin but don’t know where to start? This comprehensive guide provides step-by-step instructions on how and where to buy BTC in the US.
Vanguard Digital Advisor review
Features and feedback to consider before you sign up for Vanguard Digital Advisor.
A beginner’s guide to retirement investing
What you need to know to start building your retirement nest egg.
Pros, cons and features to consider before you sign up with FutureAdvisor.
Best Roth IRA accounts of 2021
These Roth IRAs stand out for their competitive fees, intuitive platforms and practical research tools.
Investing strategies: How income stocks make you money
Earn passive income with the right investment.
9 best cash management accounts
Most cash management accounts offer a combination of checking, savings and investing features.
Best IRA accounts of 2021
Check out the best IRAs with the lowest fees and the most useful features.
Investing for kids: Get started the right way
Custodial brokerage accounts for kids — because it’s never too early to start saving and investing.
Ask an Expert