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Robinhood vs. Acorns

The ideal platform depends on whether you’re a passive or active investor.

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Both platforms are practical choices for first-time investors, but their individual offerings are markedly different from one another.

Which one is better?

  • Choose Robinhood if you’re seeking a self-directed brokerage account.
  • Choose Acorns if you’d like to invest through a robo-advisor.

Robinhood and Acorns offer drastically different investment services. Robinhood is an online trading platform that offers self-directed brokerage accounts. And Acorns is a robo-advisor for hands-off investors seeking automated portfolio management.

Active investors ready to buy and sell their own securities will want to explore Robinhood. The commission-free trading that made Robinhood so popular has been emulated by many of its competitors — but there’s more to the Robinhood name than low-cost trading. The platform has one of the most intuitive trading interfaces in the industry, positioning itself as one of the most popular beginner-friendly platforms. But multiple service outages have been reported and some traders report feeling frustrated with its lack of advanced research tools.

Passive investors looking to have their money managed for them will want to explore Acorns. Investors select from one of five portfolio options, fund their account and Acorns’ robo-advisor takes care of the rest. While ideal for a passive set-it-and-forget-it investor, the platform’s fee structure favor’s investors with high account balances and the available asset classes are limited.

How do Robinhood and Acorns compare?

RobinhoodAcorns
Robinhood logo
Open an account
Acorns logo
Open an account
OverviewRobinhood is an online trading platform that offers self-directed brokerage services. Investors can trade commission-free stocks, ETFs and options with 24-hour access to 17 different cryptocurrencies. It’s well-suited to new investors looking to start buying and selling their own stocks.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. When investors sign up, they select one of Acorns’ five investment portfolios crafted by industry experts under the guidance of Nobel Prize-winning economist Dr. Harry Markowitz. Platform services are available through three distinct service tiers with accompanying monthly fees. It’s best suited to buy-and-hold investors who want their money managed for them.
Stock trade fee$0N/A
Option trade fee$0N/A
Annual fee0%$1/month
Minimum deposit to open$0$0
Benefits
  • Commission-free. Robinhood doesn’t charge any commissions for stocks, ETFs, options or cryptocurrency trades.
  • Instant deposits. Deposits of up to $1,000 are approved in seconds.
  • Cryptocurrency trading. Not many trading platforms offer access to the crypto market, helping Robinhood stand out from competitors.
  • Account variety. Acorns investors can apply for individual investment accounts, IRAs, custodial accounts and checking accounts.
  • Round-up feature. The platform’s round-up feature helps investors automate their savings goals by rounding purchases up to the nearest dollar and investing the difference.
  • Unlimited ATM fee reimbursements. Acorns checking accounts come with unlimited ATM fee reimbursements for withdrawals made within the US.
Drawbacks
  • No retirement accounts. Investors seeking an IRA will need to look elsewhere.
  • Limited support. Robinhood support is limited to email inquiries.
  • Unreliable. Multiple service outages were reported in 2020.
  • High fees. Unlike most robo-advisors that charge percentage-based fees, Acorns charges a flat monthly rate that has the potential to harm investors with small portfolios.
  • Limited asset classes. Acorns limits its investments to seven asset classes — a range that may be sufficient for some but isn’t as comprehensive as robo-advisors like Betterment that offer over 10 asset classes.
Tools and research
  • Newsfeed. Tap into topical investor news from the Financial Post, MarketWatch, Reuters and the New York Times.
  • Daily stock information. Review a daily rundown of significant movers in the stock market.
  • Robinhood Gold. Opt into Robinhood Gold for an added $5 monthly to receive Morningstar and NASDAQ Level II Market Datastock research reports.
  • Acorns Grow. Investors have access to Acorns Grow: a personal finance blog that covers a diverse range of investment topics.
  • Money Basics. The Acorns website is home to hundreds of articles that answer investor questions about taxes, insurance, debt, credit, saving, retirement, investing and the economy.
Reputation and customer reviews
  • Reviews are: Mostly negative.
  • Customers praise: Beginner-friendly platform and commission-free trades.
  • Customers complain about: Limited customer support and cash withdrawal delays.
  • Reviews are: Mostly negative.
  • Customers praise: Ease of use and automated round-up feature.
  • Customers complain about: Account withdrawal delays and unresponsive customer service.
Apple App Store reviews

★★★★★ 4.8/5

★★★★★ 4.7/5

Google Play Store reviews

★★★★★ 4.3/5

★★★★★ 4.5/5

Support
  • Email. Fill out an online support ticket request on Robinhood’s website for an email response from the customer service team.
  • Phone. Call 855-739-2859
  • Email. Fill out an online support ticket request on Acorns’ website
  • Twitter: contact the team through their Twitter, @Acorns.
Learn more

Read our review

Read our review

Bottom line

Robinhood and Acorns tailor their investment offerings to new investors with educational materials and easy-to-use platforms. Robinhood’s commission-free trading and instant deposits feature is ideal for investors who want to actively trade, while Acorns’ robo-advisor is designed to help passive investors manage their portfolio.

Before you sign up, explore your account options with multiple providers for the broker best suited to your investment needs.

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