Which Broker is better for you: M1 Finance or Acorns?
M1 Finance and Acorns are two relatively different and unique investing platforms. One will fit you better than the other depending on your personal finance mentality.
The bottom line is while M1 Finance has lower fees (none) compared to Acorns. If you cannot commit to just automatically transferring into M1 Finance every week or month automatically then Acorns may be better for you, as without the self-control and planning to commit to that you’ll likely end up investing more just using acorns due to the “spare change round-up” feature.
Below we’ll go more in detail into the fees and benefits of each platform over one another, but to put things simply the only way Acorns is better is if you aren’t interested in learning about investing or financial planning. If you don’t mind allocating a small portion of your income, even if it’s just $25 a week or $50 a month, you can automatically transfer that into M1 Finance and have more freedom over your investments and no fees, which means you’ll make more money in the long-term.
I exclusively use M1 Finance for my long-term saving and investing, as I believe it’s the best platform for disciplined individuals. If you’re serious about finances and “getting ahead” through investing, I’d recommend M1 Finance over Acorns.
Which Platform has better features?
This is a toss-up, as it depends on what you value. Acorns has the ability to “round up” everyday purchases you make, thus sneakily stealing money from yourself and putting it into investments, which can be useful for people who have, uhm, “spending problems.” No judgment here though, my parents were always those people, as are most people in society.
That’s really the only redeeming feature that Acorns has though; Acorns lacks the ability to invest in individual stocks, many ETF’s and funds, and asset classes that M1 Finance allows. Acorns also lacks the ability to research the stocks in more detail, the ability to withdraw money in a tax advantageous way, and the ability to automatically re-balanced a diversified portfolio you may have with them. They also lack the ability to borrow money against your portfolio at a very low interest rate.
Which Platform has lower fees?
As briefly touched on before, M1 Finance charges no fees, while Acorns charges low-fees so long as your account is below a few thousand dollars. At the same time percentage-wise if your account is below that it’s a high fee percentage-wise, it’s just the dollar amount is low.
In truth the fees don’t matter all too much for either of them, as Acorns has such a little fee that it’s nearly as low as M1 Finances, but when you can get a better platform with more features for free, why not use M1 Finance instead of Acorns?
So Which broker is best for you?
I’m pretty confident in saying M1 Finance is definitely better than Acorns, as truthfully the only benefit of Acorns is the purchase-roundups, but you can easily mimic that by simply setting up recurring transfers from your bank account every week for a small amount and keep the fee that Acorns would normally take from you.
After-all that fee Acorns takes, while small it can come out to 3-10% or more of what you get through their “round-ups.”
If you want to sign up for M1 Finance you can do so by clicking here. If you use that link you should receive between $10 and $25 or so after making your first investment of $100 or more, which is a bonus M1 Finance offers to readers of Greenery Financial.
Acorns doesn’t offer any free stock or signup bonus as far as I know of, but if you do want to go with them you can signup normally here.