If you’ve been researching beginner investing apps, Acorns and M1 Finance have almost certainly both come up. They’re two of the most popular options available — but they take completely different approaches to investing.
Choosing the wrong one won’t just cost you money in fees. It could mean using a platform that doesn’t match how you actually want to invest.
A high return matters — but it means nothing if the platform doesn’t match how you actually want to invest. From everything I’ve researched, the most important first step isn’t picking the app with the best performance. It’s picking the one that fits your investing style from the beginning.
Here’s an honest breakdown of how they compare — and which one is the right fit for your situation.
Acorns vs M1 Finance: The Core Difference
Both apps are US-only investing platforms designed to make investing more accessible. But their philosophies are fundamentally different.
Acorns is a fully automated robo-advisor. It makes all the investment decisions for you — you choose a risk level, and Acorns handles everything else. Its signature Round-Ups feature invests your spare change automatically with every purchase.
M1 Finance gives you control over your portfolio while automating the execution. You build a “Pie” of investments, set target allocations, and M1 automatically buys and rebalances to maintain those percentages. You decide what to invest in — M1 handles the how.
Quick Comparison
| Feature | Acorns | M1 Finance |
|---|---|---|
| Approach | Fully automated robo-advisor | Self-directed + automated rebalancing |
| Portfolio control | ❌ 5 pre-built options only | ✅ Full control |
| Round-Ups | ✅ Core feature | ❌ |
| Individual stocks | ❌ | ✅ |
| Monthly fee | $3–$12/month | $3/month (waived at $10,000+) |
| Fee ever waived | ❌ | ✅ At $10,000+ in assets |
| IRA accounts | ✅ All plans | ✅ |
| Kids accounts | ✅ Gold plan | ✅ |
| Crypto | 🟡 Bitcoin ETF only | ✅ Via Bakkt (1% fee) |
| Mobile app | ✅ Highly rated | ✅ Highly rated |
| US only | ✅ | ✅ |
| Best for | Complete beginners | Intermediate investors |
Where Acorns Wins
Zero Investment Decisions Required
With Acorns, you answer a few questions about your goals and risk tolerance, and the app builds and manages your portfolio automatically. There’s nothing to learn, no decisions to make, and no ongoing management required. For a complete beginner, that’s genuinely valuable.
Round-Ups Feature
Acorns’ signature feature rounds up every purchase to the nearest dollar and invests the spare change automatically. It’s one of the most effective ways to build an investing habit without thinking about it. M1 Finance has no equivalent feature.
All-in-One Simplicity
Acorns combines investing, retirement accounts, a checking account, kids’ accounts, and financial education in one simple interface. The experience is designed to feel approachable — not intimidating.
Better for Very Small Balances
For investors just starting with a few dollars, Acorns’ round-up model makes sense. M1 Finance requires a $100 minimum to start investing in taxable accounts and $500 for IRAs.
For me, the biggest advantage of Acorns is that it removes the decision entirely. Based on my research, one of the most common reasons beginners never start investing is decision paralysis — and Acorns solves that by handling everything automatically after just a few simple questions.
→ Read our full Acorns Review 2026 for a detailed breakdown.
Where M1 Finance Wins
Full Portfolio Control
M1 Finance lets you choose exactly what you invest in — individual stocks, ETFs, or pre-built expert pies. You set target percentages and M1 handles the rebalancing automatically. For investors who want a say in their portfolio without managing trades manually, M1 is significantly more powerful.
Fees Disappear at $10,000
M1’s $3/month fee is automatically waived for accounts with $10,000 or more in assets — making it effectively free for investors who reach that threshold. Acorns’ fees are never waived, regardless of balance size.
Access to Individual Stocks
Acorns only offers pre-built ETF portfolios — you can’t choose individual stocks. M1 Finance gives you access to thousands of individual stocks and ETFs, which opens up far more investing options.
Better Long-Term Value
As your balance grows, M1 Finance becomes increasingly cost-effective. At $10,000+, the fee disappears entirely. With Acorns, you’ll pay $36–$144/year regardless of how large your account gets.
M1 Borrow
M1 Finance offers a portfolio line of credit at competitive rates — you can borrow against your investments without a credit check. Acorns has no borrowing feature.
As you gain investing experience, you naturally start forming ideas about where you want your money to go. Based on my research, M1 Finance’s biggest advantage is letting you act on those ideas immediately — turning your preferred allocations into a portfolio and executing them automatically.
→ Read our full M1 Finance Review 2026 for a detailed breakdown.
Pricing Comparison
| Plan | Acorns | M1 Finance |
|---|---|---|
| Entry level | $3/month (Bronze) | $3/month |
| Mid tier | $6/month (Silver) | — |
| Top tier | $12/month (Gold) | — |
| Fee waived | Never | ✅ At $10,000+ in assets |
| First months free | ❌ | ✅ First 3 months free |
The key difference: On a $10,000 balance, Acorns costs $36–$144/year. M1 Finance costs $0/year.
Who Should Choose Acorns?
Acorns is the right choice if you:
- Are a complete beginner who has never invested before
- Want zero investment decisions — full automation
- Love the idea of investing spare change automatically
- Have a very small starting balance
- Want everything — investing, banking, retirement — in one simple app
- Need the simplest possible onboarding experience
Who Should Choose M1 Finance?
M1 Finance is the right choice if you:
- Have some idea of what you want to invest in
- Want control over your portfolio without managing trades manually
- Are building toward a $10,000 balance (where fees disappear)
- Want access to individual stocks, not just ETFs
- Prefer a platform that gets cheaper as you grow
- Are ready to move beyond full automation
For beginner investors, Acorns is the easier and more accessible starting point — no decisions, no learning curve, just automatic investing. For those with some experience who already have a sense of where they want to invest, M1 Finance is the stronger choice. The ability to build your own portfolio and let the platform handle the execution is exactly what makes it worth graduating to.
Frequently Asked Questions
Is Acorns or M1 Finance better for beginners? It depends on the beginner. Acorns is better for complete beginners who want zero decisions and full automation. M1 Finance is better for beginners who are comfortable choosing their own investments and want more control over their portfolio.
Which has lower fees — Acorns or M1 Finance? M1 Finance wins on fees for accounts over $10,000, where its $3/month fee is waived entirely. For smaller accounts, both charge $3/month at the entry level — but Acorns goes up to $12/month, while M1 stays at $3/month.
Can I use both Acorns and M1 Finance? Yes. Some investors use Acorns to build the habit of saving through round-ups, while using M1 Finance for their main investment portfolio. Both are free to open.
Are Acorns and M1 Finance available outside the US? No. Both platforms are only available to US citizens or legal residents with a US address. Neither is available internationally.
For more details, see our full Acorns Review 2026 and M1 Finance Review 2026.
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