Acorns vs Robinhood comes up constantly for anyone getting into investing. Most comparisons skip the actual fee structures and IRA match rules. Here’s what each one really costs and requires, verified from their own pages.
Acorns vs Robinhood: The Core Difference Is Automation
Acorns invests for you automatically. It rounds up your purchases and puts the spare change into a pre-built portfolio, with no stock-picking involved. Robinhood works the opposite way — you pick every stock or ETF yourself. Nothing happens unless you place the order. Neither approach is objectively better. They fit different comfort levels with making the actual investing decisions.
What Acorns Actually Costs
Bronze costs $4/month for basic round-up investing. Silver costs $8/month and adds a 3.35% APY emergency savings account plus a 1% IRA match. Gold costs $12/month, bumps the IRA match to 3%, and adds custom portfolios and free tax filing. That flat fee applies no matter your balance. On a small account, it can eat a large share of what you’ve invested. We break down exactly how much in our guide to starting with $5.
What Robinhood Actually Costs
Stock and ETF trades are commission-free for everyone, with a $1 minimum and no account minimum. Robinhood Gold costs $5/month, mainly for a 3.35% cash APY and a bigger IRA match. Without Gold, IRA contributions get a 1% match. With Gold, that jumps to 3%.
The Catch in Robinhood’s IRA Match
Robinhood’s IRA match sounds simple, but it has real conditions attached. You have to keep the matched assets in your IRA for at least 5 years. Withdraw early and your balance drops too low, and you could face a fee equal to the match. Gold subscribers also have to keep paying for Gold for at least a year after receiving the match. Cancel early, and the extra 2% gets clawed back down to the 1% base rate. This match FAQ spells out the exact rules.
Which One Fits a Beginner
If you want investing to run in the background without decisions, Acorns’ automation does that. Just watch how the flat fee affects a smaller balance. If you want to keep full control and every dollar working, Robinhood’s free, self-directed structure does that instead. You can start with as little as $5, the same way our guide to investing your first $5 walks through. Neither is financial advice — just a rundown of what you’re actually signing up for either way.