Wealthfront vs. Acorns

The robo-advisors Wealthfront and Acorns both have an impressive suite of account options and similar features. Ultimately, the choice hinges on how much you plan to invest and what type of account you want.

Which one is better?

Both Wealthfront and Acorns are well-equipped to serve passive investors with an extensive range of account options and educational blogs to help investors expand their knowledge. The biggest difference between these platforms is their fee structures: Wealthfront charges a percentage-based fee, while Acorns charges a flat monthly rate.

The fee structures for both of these platforms play a pivotal role in how far your money can go. The choice boils down to the size of your portfolio. For investors with less than $5,000 on hand, Wealthfront is the more competitive option. And for investors with portfolios of $5,000 and up, Acorns rates are ideal.

• Crunching numbers: Why Acorns is better for larger portfolios

  If you have $1,000 in your portfolio and open a Wealthfront account, its 0.25% annual fee means you’ll pay $2.50 in annual fees. Take that same $1,000 portfolio to Acorns, and its $1-monthly fee becomes a $12 annual fee.

  Wealthfront’s percentage-based fee scales based on how much you have to invest. No matter how big or small your portfolio, you’ll pay 0.25% in annual fees. The same goes for Acorns: its flat rate remains the same no matter the size of your portfolio.

  Acorns’ flat rate becomes advantageous for investors with larger portfolios, and the tipping point sits close to the $5,000 mark. Investors with less than $5,000 save more in management fees by signing up with Wealthfront. But if you have more than $5,000 to invest, Acorns is more competitive.

How do Wealthfront and Acorns compare?

A breakdown of features, fees, feedback and more for these two platforms:

	Wealthfront	Acorns
		Open an account
Overview	Wealthfront is an investment firm that removes the guesswork from investing. It helps you build a financial plan and reach your goals with the help of automated investments.	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.
Annual fee	0.25%	$1/month
Minimum deposit to open	$500	$0
Benefits	Automatic deposits. Investors can set up weekly, biweekly, monthly or quarterly automatic deposits. Risk parity. Software aims to minimize investment risk by diversifying its investor funds across multiple asset classes. Portfolio line of credit. Investors with at least $100,000 in their portfolio who don’t hold a tax-advantaged retirement account gain automatic access to a line of credit that allows them to borrow up to 30% of their account value with rates from 4.05% to 5.3%. Path investment plan. Analyze your financial habits to devise a long-term retirement investment plan.	Round-up feature. Automate your savings goals by rounding purchases up to the nearest dollar and investing the difference. Fractional investing. Buy a portion of a stock to make the most of every dollar. ATM fee reimbursements. Checking account holders qualify for unlimited ATM fee reimbursements.
Drawbacks	Minimum deposit. While Acorns imposes no minimum deposit requirement, Wealthfront investors need at least $500 to open an account. No fractional shares. Without fractional investing, investors may be left with unallocated funds in their portfolio, limiting their earning potential. Limited support. Wealthfront customer support is only available by email.	Limited support. The only way to contact support is by calling on weekdays. Limited asset classes. Unlike its competitor that offers access to 10 asset classes, Acorns limits its investments to seven.
Tools and research	Educational blog. Access a suite of educational resources to familiarize yourself with key terms and strategies. Financial planning. Analyze your bank accounts, credit cards, loans — even your Social Security information— to receive a customized savings plan.	Personal finance blog. Expand your knowledge by reading articles from Acorns Grow. Articles. Explore articles from Money Basics across a spectrum of financial topics, including taxes, insurance, debt and the economy.
Reputation and customer reviews	Reviews are: Mixed Customers praise: Tax-loss harvesting and polished platform Customers complain about: Account transfer delays	Reviews are: Mostly negative Customers praise: Ease of use and automated round-up feature Customers complain about: Account withdrawal delays and slow customer service
Apple App Store reviews more info button	★★★★★ 4.9/5	★★★★★ 4.7/5
Google Play Store reviews more info button	★★★★★ 4.7/5	★★★★★ 4.5/5
Support	Phone. Call Log in to your account to set up a phone call. Email. You can send an email through the Wealthfront website.	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

Both Wealthfront and Acorns are equipped to help passive investors allocate and diversify their assets. With so many features in common, the biggest factor is the size of your portfolio.

Review your account options with other robo-advisors to find the ideal platform for your portfolio.

Frequently asked questions

• What types of assets does Acorns invest in?

  Acorns allocates investor funds across a mix of stocks, bonds and ETFs.

• Can I set up recurring investments on Acorns?

  Yes, investors can set up recurring investments on a daily, weekly or monthly basis.

• Are there Wealthfront withdrawal limits?

  Wealthfront investors can withdraw $250 or more as often as they’d like as long as their account balance stays above $500.

• Can I transfer an existing investment to Wealthfront?

  Yes, new investors must select the transfer option during signup to move assets to Wealthfront. Existing investors simply follow the steps after clicking Transfer/rollover on their account dashboard.