You’ve heard of Acorns, perhaps even used it, to dip your toes into investing through spare change round-ups. It’s a brilliant concept that democratized investing, making it accessible even for those with limited funds. But as your financial journey evolves, you might find yourself wondering if Acorns is still the best fit, or if there are other options better suited to your growing ambitions. This guide explores the top Acorns alternatives and competitors, helping you find the perfect platform to truly grow your money.
While Acorns excels at micro-investing, its monthly fees can add up, especially for smaller portfolios, and its investment options are largely limited to ETFs. The good news is, the world of personal finance apps has blossomed, offering a vibrant ecosystem of tools for every investing style, budget, and goal. Whether you're looking for commission-free trading, advanced robo-advising, specialized savings, or tools to teach your kids about money, there's an app out there ready to help you take control.
At a Glance: Your Top Acorns Alternatives
- For Commission-Free Stock & Crypto Trading: Robinhood, Public.com, Webull, SoFi
- For Goal-Oriented Robo-Advising: Betterment, M1 Finance, Oportun, Qapital
- For Flexible Investing & Retirement Planning: Stash
- For Kids' Investing & Financial Literacy: UNest, Greenlight
- For Robust Banking Features (No Investing): Chime
Understanding Acorns (And Why You Might Look Elsewhere)
Acorns burst onto the scene by pioneering the "spare change" investment model. You link your debit card, and the app rounds up your purchases to the nearest dollar, investing that accumulated change once it hits a certain threshold (typically $5). It then puts your money into a diversified portfolio of ETFs, chosen based on your risk tolerance and goals. It’s simple, automated, and takes the guesswork out of starting.
However, Acorns isn't a one-size-fits-all solution, and many users eventually look for alternatives for a few key reasons:
- Fees for Small Portfolios: Acorns typically charges a monthly fee, starting at $3. For a small portfolio, say $100, a $3 monthly fee translates to a 3% annual expense – far higher than traditional brokerages or even other robo-advisors. For larger balances, these fees become less impactful, but for beginners building their first nest egg, they can significantly eat into returns. This makes it worth asking, Is Acorns truly worth it? in the long run.
- Limited Investment Options: Acorns focuses primarily on ETFs. While this offers good diversification, it doesn't allow for direct investment in individual stocks, specific cryptocurrencies, or alternative assets. If you want more control over what you own, you'll need to look elsewhere.
- Basic Budgeting Tools: While Acorns has a "Found Money" feature and links to spending, it's not a comprehensive budgeting platform. Users seeking advanced spending analysis or rule-based savings might find it lacking.
- No Direct Control: As a robo-advisor, Acorns makes the investment decisions for you. While this is a major benefit for many, those who want to learn and pick their own stocks will find it restrictive.
These limitations don't mean Acorns is bad; it simply means it serves a specific niche exceptionally well. But if your needs have grown beyond that niche, the market offers a wealth of robust alternatives.
The Best Acorns Alternatives and Competitors
Let’s dive into the apps that can help you grow your money, breaking them down by their strengths and unique offerings.
For Hands-On Investing & Broad Market Access
If you're ready to pick individual stocks, explore cryptocurrency, or simply want more direct control over your portfolio without paying commissions, these apps are excellent choices.
Robinhood: Pioneering Commission-Free Trading
- What it offers: Robinhood is synonymous with commission-free trading. It allows you to invest in stocks, options, ETFs, and cryptocurrency. You can start with as little as $1 thanks to fractional shares, meaning you don't need to buy a whole share of a high-priced stock.
- Why it's a strong alternative: Unlike Acorns, Robinhood gives you full control over your investment choices. It’s perfect for those who want to actively manage their portfolio, experiment with different assets, and engage with the markets directly. It also offers advanced trading features for more experienced investors.
- Key takeaway: Great for direct, commission-free trading in a wide range of assets, even with small amounts. For a deeper dive into its features, consider our detailed review of Robinhood.
Public.com: Social Investing Made Easy
- What it offers: Public.com provides commission-free trading for stocks, ETFs, and cryptocurrency, with no minimum investment. Its standout feature is its social investing platform, allowing you to follow other investors, see what they're buying, and join discussions. Instead of monthly fees, Public.com allows users to 'tip' their broker, keeping it truly commission-free.
- Why it's a strong alternative: If you appreciate community and want to learn from others while investing, Public.com is a fantastic choice. It democratizes information sharing in a way Acorns doesn't. Its "tip your broker" model is also appealing for fee-conscious investors.
- Key takeaway: Blends commission-free trading with a vibrant social network, ideal for learning and community-driven investing.
Webull: Advanced Tools for Active Traders
- What it offers: Webull is a powerful investment app that caters to both beginners and seasoned traders. It boasts no minimum investment requirements, no trading commissions, and offers individual taxable and retirement accounts. You can trade stocks, ETFs, options, and cryptocurrency, often with more sophisticated charting and analytical tools than basic platforms.
- Why it's a strong alternative: Webull is a significant step up from Acorns in terms of trading capabilities and investment choices. If you're looking to dive deeper into market analysis and active trading strategies while still enjoying commission-free access, Webull delivers.
- Key takeaway: Robust trading platform with advanced tools and a wide array of investment options, all without commissions.
SoFi: A Full-Service Financial Hub
- What it offers: SoFi provides a comprehensive personal finance experience, including banking, loans, and investing. For investing, it offers both DIY and automated options, with commission-free trading of stocks and ETFs (including fractional shares) with a $5 minimum investment.
- Why it's a strong alternative: SoFi is great if you want to consolidate multiple financial services under one roof. Its hybrid investing approach – offering both robo-advisor style portfolios and self-directed trading – gives you flexibility that Acorns doesn't.
- Key takeaway: An integrated financial platform offering both automated and DIY investing alongside banking services.
For Automated Investing & Goal-Oriented Planning
If you appreciate the automation of Acorns but want more sophisticated portfolio management, lower fees for larger balances, or specialized goal-setting, these robo-advisors are worth exploring.
Betterment: Serious Robo-Advising for Long-Term Growth
- What it offers: Betterment is a premier robo-advisor known for its sophisticated portfolio management, tax-loss harvesting, and diverse account types (taxable, retirement, trust). It builds portfolios from low-cost ETFs and bonds based on your goals, with an annual management fee starting at 0.25% for portfolios under $100,000. It has a $0 minimum funding requirement and offers SRI (Socially Responsible Investing) portfolios.
- Why it's a strong alternative: For more serious investors, especially as your portfolio grows, Betterment often presents a lower-cost and more feature-rich alternative to Acorns. Its tax-loss harvesting can save you money come tax season, a feature Acorns lacks. If you're looking for automated investing with a keen eye on optimizing returns and minimizing taxes, a closer look at Betterment's offerings compared to Acorns is essential.
- Key takeaway: A top-tier robo-advisor with advanced features like tax-loss harvesting, lower fees for larger balances, and diverse portfolio options.
M1 Finance: Build Your Own Automated Portfolio "Pies"
- What it offers: M1 Finance calls itself a "super app" because it combines investing, borrowing, saving, and spending. Its investing platform is unique: you build custom "pies" – portfolios comprised of stocks and ETFs – and M1 Finance automatically invests and rebalances them for you. You can choose from expert-designed pies or create your own.
- Why it's a strong alternative: M1 Finance offers the best of both worlds: the automation of a robo-advisor with the customization of self-directed investing. You get to choose your specific investments, but M1 handles the rebalancing and fractional share investments, making it a powerful tool for those who want control without the daily management hassle. Learning what makes M1 Finance unique is key for investors who want more input.
- Key takeaway: Automated investing with a high degree of customization through its "pie" portfolio system, ideal for hands-off management of specific investments.
Oportun: AI-Powered Investing & Budgeting
- What it offers: Similar to Acorns, Oportun uses AI to move small amounts for investment in ETFs. Beyond investing, it helps with budgeting by linking bills and credit cards to automatically set aside money for expenses like car payments or rent. It also allows users to create specific savings goals. After a six-month free trial, it costs $5 per month.
- Why it's a strong alternative: Oportun expands on the "smart savings" concept of Acorns by integrating more robust budgeting and bill management. If you want a tool that not only invests your spare change but also proactively helps you manage expenses and save for larger goals, Oportun is a strong contender.
- Key takeaway: AI-driven micro-investing paired with comprehensive budgeting and goal-based savings, offering more financial control.
Qapital: Rule-Based Savings for Your Goals
- What it offers: Qapital helps users achieve financial control through unique rule-based triggers for saving and investing. Beyond basic round-ups (which it offers), you can set rules like "Guilty Pleasure" (investing when you spend at certain places) or "Set & Forget" for automatic contributions. It supports joint savings goals for couples and offers five portfolio options. Plans range from $3 to $12 per month.
- Why it's a strong alternative: Qapital stands out with its creative approach to automating savings. If you struggle with inconsistent saving, its playful and customizable rules can make it easier and more engaging. While its investing features are more basic, its strength lies in helping you fund those investments.
- Key takeaway: Excellent for highly customizable, rule-based savings automation, making it easier to reach financial goals.
For Flexible & Specialized Investing
Some apps carve out unique niches, offering specific account types or approaches that might resonate more deeply with your personal situation.
Stash: Personalized Investing & Banking
- What it offers: Stash is a personal finance app that combines investing and banking. Unlike Acorns, it supports investments in ETFs, individual stocks, and crypto. It offers fractional stock shares, custodial accounts for kids (UTMA), and options for taxable and retirement accounts (Roth and Traditional IRAs).
- Why it's a strong alternative: Stash offers a more guided yet flexible investing experience than Acorns. You can choose investments based on themes or values you care about, rather than just pre-set portfolios. The inclusion of custodial and retirement accounts makes it a versatile platform for different life stages. To compare them directly, see how Stash stacks up against Acorns.
- Key takeaway: A flexible platform for personalized investing (stocks, ETFs, crypto) and banking, with a variety of account types including custodial and retirement.
Plynk: Guided Investing Decisions
- What it offers: Plynk distinguishes itself by guiding investors to make their own direct investment decisions, rather than functioning as a robo-advisor like Acorns. It offers a selection of stocks, ETFs, mutual funds, and four cryptocurrencies.
- Why it's a strong alternative: If you want to learn to invest for yourself but still appreciate some guidance, Plynk is an excellent bridge. It provides educational content and a curated selection of investments to help you get started without feeling overwhelmed, unlike the fully automated approach of Acorns.
- Key takeaway: Supports direct investment decisions with helpful guidance, ideal for those transitioning from passive investing to active participation.
For Kids' Investing & Financial Literacy
Teaching the next generation about money is crucial. These apps are specifically designed to help parents introduce their children to investing.
UNest: Investing for Kids' Futures
- What it offers: UNest specializes in custodial (UTMA) accounts for children, allowing investment in low-cost Vanguard ETFs. It simplifies contributions from friends and family, and the account automatically converts to a regular brokerage account when the child reaches adulthood. Pricing is $2.99 per month for an individual account or $5.98 per month for a family plan (up to five children).
- Why it's a strong alternative: If your primary goal is to save and invest for a child's future, UNest provides a focused and easy-to-use platform specifically designed for custodial accounts. It removes the complexity of setting up these accounts through traditional brokers.
- Key takeaway: Dedicated platform for custodial accounts, making it easy to invest in low-cost ETFs for a child's financial future.
Greenlight: Smart Debit Cards & Investing for Kids
- What it offers: Greenlight is primarily known for its debit card for kids, which allows parents to set spending rules and manage allowances. With a Greenlight Max subscription, children can also invest in stocks and ETFs with as little as $1, with parents required to approve all transactions.
- Why it's a strong alternative: Greenlight combines practical money management (spending, saving) with a controlled introduction to investing. It's an excellent tool for teaching financial literacy in a hands-on way, with parental oversight, something Acorns doesn't offer for children directly.
- Key takeaway: Combines a debit card for kids with parental controls and an integrated, parent-approved investing platform.
For Robust Banking Features (Without Investing)
Sometimes, the best alternative isn't an investing app at all, but one that excels at everyday banking and savings, offering similar "round-up" features for saving rather than investing.
Chime: High-Yield Savings & Fee-Free Banking
- What it offers: Chime doesn't offer investment options, but it's a powerful personal finance platform focused on banking. It provides a high-yield savings account (currently 1.25% APY), spare change round-ups for savings, a free checking account, credit-building features, and "SpotMe" overdraft protection up to $200 (fee-free). It boasts no monthly fees, no minimum balance requirements, and free withdrawals at over 60,000 AllPoint ATMs.
- Why it's a strong alternative: If you're looking for an app that simplifies banking, offers competitive savings, and helps you avoid fees, Chime is unparalleled among these alternatives. Its round-up feature for savings is similar to Acorns' investing round-ups, making it an excellent choice for building an emergency fund.
- Key takeaway: A banking-first app with a high-yield savings account, fee-free checking, credit building, and round-ups for saving, not investing.
Choosing Your Ideal Acorns Alternative: What to Consider
With so many excellent options, how do you pick the right one? Focus on what matters most to you and your financial goals.
- Fees: This is often the biggest deciding factor.
- Acorns' Monthly Fee: Can be disproportionately high for small portfolios (e.g., $3/month on $100 is 36% annually!). As your portfolio grows, the percentage impact diminishes, but it's still a fixed cost.
- Percentage-Based Fees: Robo-advisors like Betterment charge a percentage (e.g., 0.25% annually). For larger portfolios (e.g., $50,000 or more), this can be significantly lower than Acorns' fixed fee.
- Commission-Free: Many platforms like Robinhood, Public.com, and Webull offer commission-free trading, meaning you only pay if you sell or for certain premium features.
- Subscription Fees: Some apps like Stash or Qapital have tiered monthly subscription fees, which might include banking and investing features.
- Investment Options:
- ETFs Only: Acorns primarily uses ETFs. If you're happy with diversified, pre-built portfolios, this might be fine.
- Stocks, ETFs, Options, Crypto: If you want to pick individual companies, dabble in cryptocurrency, or explore more complex instruments like options, you'll need platforms like Robinhood, Webull, Public.com, SoFi, or Stash.
- Mutual Funds: Some platforms, like Plynk, also offer mutual funds.
- Account Types:
- Taxable Brokerage: Standard investment accounts for general investing. All listed apps offer this.
- Retirement Accounts (IRAs): For long-term savings with tax advantages. Look for apps like Betterment, Stash, Webull, or M1 Finance if you need a Roth or Traditional IRA.
- Custodial Accounts (UTMA/UGMA): For investing in a child's name. UNest, Greenlight, and Stash specialize in or offer these.
- Minimum Investment Requirements:
- No Minimums: Many apps like Robinhood, Public.com, Webull, and Betterment have $0 minimums, often enabled by fractional share investing.
- Small Minimums: SoFi has a $5 minimum.
- Hidden Minimums: Be aware that while some apps have no initial minimum, there might be minimums to trade certain assets or to access certain features.
- Features & Automation:
- Round-ups: Acorns, Chime (for savings), Oportun, and Qapital (among others) offer round-up features.
- Budgeting Tools: Oportun and Qapital excel here.
- Social Investing: Public.com is a leader.
- Automated Rebalancing & Tax-Loss Harvesting: Betterment and M1 Finance are strong in this area.
- Parental Controls: Greenlight is built around this.
- Customer Service: While often overlooked, good customer support can be invaluable, especially when you're dealing with your money. Check reviews for responsiveness and availability.
When to Consider a Dedicated Brokerage
For larger portfolios (e.g., $50,000 or more) or if you're ready for truly advanced tools, a dedicated brokerage firm like Fidelity or Charles Schwab might be more appropriate. They often offer the lowest fees for large balances, a vast array of investment products, advanced research tools, and comprehensive financial planning services. Robo-advisors like Betterment also become very cost-effective at these higher balances due to their percentage-based fee structure.
Common Questions About Micro-Investing and Its Alternatives
Is micro-investing enough to build substantial wealth?
Micro-investing is an excellent first step, but it shouldn't be your only strategy for building substantial wealth. It excels at helping you start early and develop good financial habits. The real power comes when you combine micro-investing with more significant, automated contributions over time, such as regular deposits into a Roth IRA or participation in an employer-sponsored 401(k). The broader benefits of micro-investing are about developing the habit, not necessarily becoming a millionaire on spare change alone.
Are these micro-investing apps safe?
Generally, yes. Most reputable investing apps are members of the Securities Investor Protection Corporation (SIPC), which protects your investments up to $500,000 in case the brokerage firm fails. Always ensure the app you choose is SIPC-insured. Additionally, your personal and financial data are typically protected with bank-level encryption and security measures. However, always use strong, unique passwords and enable two-factor authentication.
How do fees impact small portfolios in these apps?
Fees have a disproportionately large impact on small portfolios. For example, a $3 monthly fee on a $100 portfolio represents a 3% expense each month, or a staggering 36% annually. This can significantly erode any investment gains. As your portfolio grows, that fixed $3 fee becomes a much smaller percentage. This is why it’s critical to choose an app with a fee structure that aligns with your current balance. Many alternatives offer commission-free trading or percentage-based fees that become more economical for larger sums.
Taking the Next Step with Your Investments
The journey to financial security is personal, and the tools you use should reflect your evolving needs. While Acorns was a groundbreaking entry point for many, the landscape of financial technology has expanded dramatically.
Take some time to assess your current financial situation, your investment goals, and your desired level of involvement. Do you want to pick individual stocks, or prefer full automation? Are you saving for retirement, a down payment, or your child's education? Once you have a clear picture, revisit the alternatives discussed here. Many offer free trials or allow you to open an account with no minimums, letting you test the waters before committing.
The most important thing is to start (or continue) investing. Every small step, every dollar saved, and every thoughtful decision moves you closer to financial freedom. Choose the platform that empowers you to take that next step with confidence.