Robinhood vs Acorns: The Best Investment App in 2025 for Beginners

Investing in the modern era is no longer a task reserved for experts. With the rise of apps like Robinhood and Acorns, even beginners can easily step into the world of investing and wealth-building. But with so many options available, which app is the right fit for you? In this Robinhood vs Acorns comparison, we’ll break down the core features, fees, and investment options available on both platforms in 2025, helping you choose the best tool for your financial goals.

Robinhood vs Acorns: A Quick Overview

Before diving into the specifics, let’s start with a general overview of both platforms.

Robinhood launched in 2013 as a commission-free trading platform aimed at democratizing finance for all. It has since grown into one of the most popular brokerage apps for active traders, offering stocks, ETFs, options, and cryptocurrencies with no commission fees.

Acorns, on the other hand, is designed with passive investors in mind. It uses a robo-advisor to automatically invest spare change into diversified portfolios. Launched in 2012, Acorns simplifies investing for those who want to grow their wealth over time without the stress of actively managing their portfolios.

Robinhood vs Acorns: Features and Tools

Robinhood’s Features and Tools

Robinhood offers a variety of features that cater to active investors, especially those interested in trading individual stocks and cryptocurrencies. Below are some of the key features you’ll find on Robinhood in 2025:

Commission-Free Trading: Robinhood is known for its commission-free model, meaning no fees for buying and selling stocks, ETFs, options, or cryptocurrencies.
Robinhood Gold: For $5 per month, users can access premium features such as margin trading, access to professional research, and the ability to trade after-hours.
Cryptocurrency Trading: Robinhood offers access to a variety of cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, all without commission fees.
Fractional Shares: Robinhood allows users to buy fractional shares, meaning you can invest in expensive stocks like Tesla or Amazon with as little as $1.
Cash Management: With Robinhood’s cash management feature, users can earn up to a 4% annual percentage yield (APY) on their uninvested cash, an attractive feature for savers.
Active Investing: Robinhood appeals to those who want to have control over their investments. You can place custom buy and sell orders, track real-time market data, and execute trades in just a few clicks.
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Acorns’ Features and Tools

Acorns, on the other hand, is built for those who prefer a more hands-off, automated approach to investing. Here are the standout features of Acorns:

Round-Ups®: Acorns’ signature feature, Round-Ups®, automatically rounds up your purchases to the nearest dollar and invests the change into a diversified portfolio. For example, if you buy a coffee for $3.50, Acorns rounds up the purchase to $4 and invests the $0.50 difference.
Automated Portfolios: Acorns offers automated, pre-built investment portfolios based on your risk tolerance. You can choose between a conservative or aggressive portfolio, or select from other custom options based on your goals.
Acorns Later: This is Acorns’ retirement account feature, offering traditional and Roth IRAs. Acorns automatically invests your funds into diversified portfolios to help you grow your retirement savings passively.
Acorns Spend: Acorns’ checking account feature lets you earn cashback when making purchases, while automatically investing a percentage of your balance into your chosen portfolio.
Educational Content: Acorns provides a wide range of financial education tools through its “Grow” platform. This includes articles, tips, and tools to help users better understand investing and personal finance.
Family Accounts: Acorns also offers “Acorns Early,” a feature for investing on behalf of children through custodial accounts. Parents can help their children start investing early.
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Robinhood vs Acorns: Fees and Pricing

Robinhood’s Fees and Pricing

Robinhood is best known for its fee-free trading. It does not charge commission fees for buying or selling stocks, ETFs, options, or cryptocurrencies, which is one of its most attractive features. Here’s a breakdown of its costs:

Basic Account: Free, with no account minimums or commissions.
Robinhood Gold: $5 per month, which includes features such as margin trading, research tools, and extended trading hours.
Options Trading: No commission fees, but margin trading comes with its own set of risks and costs if using Robinhood Gold.

While Robinhood doesn’t charge commissions on trades, it does have some hidden costs, such as payment for order flow, which can affect the quality of execution on trades. However, these fees are typically not passed directly to the user.

Acorns’ Fees and Pricing

Acorns operates on a subscription model with monthly fees. Here are the details:

Acorns Core: $3 per month. This plan includes basic investing tools, Round-Ups®, and an IRA account.
Acorns Premium: $5 per month. This plan includes all Core features plus access to financial planning tools and a retirement account.
Acorns Family: $12 per month. This plan includes all the Premium features, plus the ability to invest for children via custodial accounts.
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While Acorns does charge a monthly fee, it provides an all-in-one package for automated investing, retirement savings, and financial education. The fees are relatively low compared to traditional financial advisors, but some users may find them to be higher than Robinhood’s free offerings.

Robinhood vs Acorns: Investment Options

Robinhood’s Investment Options

Robinhood offers a wide range of investment options, making it ideal for active investors who want to diversify their portfolios. Here’s a look at what you can invest in:

Stocks: You can buy and sell thousands of individual stocks from various sectors, including technology, healthcare, and energy.
ETFs: Robinhood offers commission-free trading of over 3,000 exchange-traded funds (ETFs), including sector-specific and index ETFs.
Options: For more advanced traders, Robinhood supports options trading, including covered calls, puts, and spreads.
Cryptocurrencies: Robinhood gives users access to a variety of popular cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin, with no trading fees.
Fractional Shares: Robinhood allows you to buy fractional shares of expensive stocks, allowing users to diversify their portfolios without investing large amounts.

Acorns’ Investment Options

Acorns’ investment options are centered around automated, diversified portfolios. You’ll find the following options on the platform:

Pre-Built Portfolios: Acorns offers a range of portfolios based on your risk tolerance. These portfolios invest in diversified ETFs that span domestic and international equities, bonds, and real estate.
Acorns Later: This retirement account option allows users to choose from traditional and Roth IRAs. The funds are automatically allocated into a pre-set portfolio that fits your retirement goals.
Acorns Early: A unique offering that allows parents to create custodial accounts for their children, helping them start investing early.

While Acorns doesn’t offer individual stocks or cryptocurrencies like Robinhood, its focus on long-term, passive investing makes it an attractive option for those who want a set-it-and-forget-it approach.

Robinhood vs Acorns: FAQ

1. What are the main differences between Robinhood and Acorns?

Answer: Robinhood is a commission-free trading platform offering stocks, ETFs, options, and cryptocurrencies. It caters to active investors, allowing users to make their own investment decisions. Acorns, on the other hand, is a robo-advisor designed for passive investors, using Round-Ups® to invest spare change into diversified portfolios. Acorns focuses on long-term, automated wealth-building.

2. Which platform is better for beginners in 2025?

Answer: Acorns is ideal for beginners because of its automated, hands-off investing approach. It’s perfect for people who want to start investing without actively managing their portfolios. Robinhood is better suited for those who want to learn and actively trade stocks, ETFs, and cryptocurrencies.

3. How do the fees compare between Robinhood and Acorns?

Answer: Robinhood offers commission-free trading but charges $5/month for Robinhood Gold, which includes premium features. Acorns charges a monthly subscription fee ranging from $3 to $12, depending on the plan. While Acorns charges for its services, it includes automated investing tools and retirement accounts.

4. Can I use both Robinhood and Acorns simultaneously?

Answer: Yes, many users choose to use both platforms. You can use Acorns for automated, passive investing and Robinhood for active trading of stocks and cryptocurrencies, combining the strengths of both platforms.

5. Do Robinhood and Acorns offer retirement accounts?

Answer: Yes, both platforms offer retirement account options. Robinhood offers Traditional and Roth IRAs, while Acorns offers a broader range through its “Acorns Later” feature, including Traditional, Roth, and SEP IRAs.

6. Are my investments safe with Robinhood and Acorns?

Answer: Both Robinhood and Acorns are members of the SIPC, which provides protection up to $500,000 for securities, including $250,000 for cash claims. However, they do not protect against market losses. Both platforms also use encryption to secure user data.

Robinhood vs Acorns: Which Platform Is Right for You?

Choose Robinhood if:

You want to actively manage your investments and trade stocks, ETFs, and cryptocurrencies without commissions.
You’re comfortable making your own investment decisions and learning about trading.
You want access to advanced features like margin trading and extended trading hours with Robinhood Gold.

Choose Acorns if:

You prefer a hands-off, automated approach to investing.
You’re a beginner who wants a simple way to start investing with small amounts of money.
You’re interested in retirement savings, children’s accounts, or other long-term financial goals without having to manage them manually.

Conclusion

Both Robinhood vs Acorns offer compelling features and tools for investors, but the right choice depends on your personal preferences and financial goals. Robinhood is ideal for active traders and those who want control over their portfolios, while Acorns is perfect for passive investors who want to grow their wealth through automated investing.

No matter which platform you choose, make sure it aligns with your long-term financial strategy, risk tolerance, and desire for control over your investments. Whether you’re looking for commission-free trading or a simple way to invest spare change, both Robinhood and Acorns have something valuable to offer.

Robinhood vs Acorns: The Best Investment App in 2025 for Beginners

Robinhood vs Acorns: A Quick Overview