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Acorns: Micro-Investing & Automatic Rounding

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  Published in Stocks and Investing on Thursday, November 13th 2025 at 18:37 GMT by Business Insider

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The Landscape of Beginner‑Friendly Investment Apps

In recent years, the surge of fintech has turned the world of investing into a consumer‑grade marketplace. Platforms that were once the preserve of institutional traders now offer user‑friendly interfaces, fractional shares, zero‑commission trades, and educational tools designed to demystify the stock market. For someone just starting out, the key questions are:

1. What are the hidden costs?
2. How much control do I have over my portfolio?
3. Does the app provide educational content?
4. Can I automate investing to build long‑term wealth?

Below is a deep dive into the most popular apps that meet—or exceed—these criteria, grouped by their core value proposition.

1. Acorns – Micro‑Investing & Automatic Rounding

What it does
Acorns turns everyday purchases into micro‑investments. When you link a debit or credit card, the app rounds each transaction up to the nearest dollar and invests the spare change in a diversified portfolio of ETFs.

Why it’s great for beginners
- Automation: No need to remember to invest; the app does it for you.
- Educational content: Bite‑size articles explain key investment concepts in plain language.
- Diversification: Portfolios are pre‑built, reducing the learning curve associated with picking individual stocks.

Cost
- $3/month for the “Acorns Starter” tier (includes a 5‑year retirement plan and a “Acorns Boost” feature that automatically trades a portion of your round‑ups for potentially higher returns).
- Higher tiers ($5–$9/month) unlock more investment options (e.g., crypto, alternative assets) and additional savings features.

Drawbacks
- Limited control over the exact mix of assets.
- Fees are relatively high compared to commission‑free brokerage platforms.

2. Stash – “Buy What You Love” Investing

What it does
Stash lets you invest in individual stocks and ETFs with as little as $5. The platform recommends “themes” (e.g., electric vehicles, clean energy) that align with personal interests and values.

Why it’s great for beginners
- Educational prompts: “Stash Education” unlocks content after you complete micro‑courses.
- Low entry point: Minimal initial investment lowers the barrier to entry.
- Customization: You can build a personal portfolio, gradually adding or removing holdings.

Cost
- $1/month for “Stash Basic” (no monthly fees, but you pay per transaction).
- $5/month for “Stash Plus” (includes additional investment options and “Stash Portfolio” that offers automatic rebalancing).

Drawbacks
- Slightly higher transaction fees (e.g., $1 per trade).
- Limited research tools compared to full‑service brokerages.

3. Robinhood – Zero‑Commission Trading with a Social Twist

What it does
Robinhood offers commission‑free trades of stocks, ETFs, options, and cryptocurrencies. Its interface is deliberately streamlined, making it appealing to the “first‑time investor” demographic.

Why it’s great for beginners
- Zero commission: All trades are free, which encourages experimentation.
- Mobile‑first design: Easy to navigate on a phone.
- “Cash Sweep”: Earns a small interest rate on uninvested cash.

Cost
- No commissions on trades.
- Premium “Robinhood Gold” ($5/month) provides margin trading, extended hours, and higher instant deposits.

Drawbacks
- Limited educational resources; the learning curve relies on external content.
- Controversies around order execution and the “Robinhood‑fied” trading frenzy.
- No fractional shares on crypto, which may limit diversification.

4. M1 Finance – “Set It and Forget It” Automation

What it does
M1 Finance is a hybrid of robo‑advisor and brokerage. You build “pie” portfolios composed of stocks or ETFs and set a target allocation. The platform automatically rebalances and reinvests dividends.

Why it’s great for beginners
- Fractional shares: Invest in high‑priced stocks like Apple or Amazon without a large upfront sum.
- Zero fees: No commissions, no account minimums.
- Long‑term focus: Rebalancing keeps your portfolio aligned with risk tolerance.

Cost
- $0 for the free tier.
- “M1 Plus” ($9.95/month) unlocks extra features such as instant deposits, the ability to hold a broader range of securities, and a margin account.

Drawbacks
- No research or research tools on the free tier.
- Limited customer support compared to premium brokerages.

5. Fidelity – Traditional Brokerage with a Modern Twist

What it does
Fidelity remains one of the industry giants. The app offers commission‑free trading on U.S. stocks and ETFs, an extensive range of research, and a suite of educational tools.

Why it’s great for beginners
- Research tools: Real‑time market data, earnings reports, analyst ratings.
- Low cost: $0 commissions on most trades; $4.95/month for the “Fidelity Mobile” subscription (includes extra tools).
- Learning center: Fidelity’s “Investor Education” series and webinars.

Cost
- $0 commissions for U.S. stocks, ETFs, and options.
- $4.95/month for the premium “Fidelity Mobile” plan (optional).

Drawbacks
- Slightly steeper learning curve due to a feature‑rich interface.
- No built‑in portfolio automation (unless you use Fidelity’s separate “Guided Investing” program).

6. Schwab – Full‑Service with Zero Commissions

What it does
Charles Schwab offers commission‑free trades for U.S. stocks, ETFs, and options. It also features robust research, a vast network of physical branches, and a “Schwab Intelligent Portfolios” robo‑advisor.

Why it’s great for beginners
- Customer support: 24/7 phone and chat support, plus in‑person help.
- Education: “Schwab Learning Center” offers video tutorials and live webinars.
- Zero fees: $0 commissions on U.S. equities; $4.95/month for “Schwab Intelligent Portfolios”.

Cost
- $0 commissions on all U.S. equities and ETFs.
- $4.95/month for the robo‑advisor service.

Drawbacks
- No fractional shares for non‑U.S. assets.
- Limited cryptocurrency options compared to newer platforms.

7. Public – Social Investing with Free Trades

What it does
Public focuses on social investing: users can follow other traders, copy their trades (via “copying”), and see real‑time activity on the feed. The app offers commission‑free trades on stocks and ETFs.

Why it’s great for beginners
- Community learning: Observing the activity of seasoned investors can accelerate learning.
- Zero commissions: Every trade is free.
- User‑friendly: Simple onboarding, quick account opening.

Cost
- $0 commissions.
- Optional “Public Plus” plan ($5/month) provides a higher “copying” threshold and better customer support.

Drawbacks
- Limited research tools; heavily reliant on community insight.
- Copying trades can be risky if followers make poor choices.

8. Vanguard – Low‑Cost Indexing for the Long Haul

What it does
Vanguard is synonymous with low‑expense index funds. Its app lets you invest in Vanguard’s low‑cost ETFs and mutual funds, and you can set up automatic contributions.

Why it’s great for beginners
- Expense ratios: Vanguard’s funds typically have the lowest fees in the industry.
- Automatic investing: Monthly or quarterly contributions are painless.
- Educational resources: Vanguard’s “Investor Academy” offers comprehensive guides.

Cost
- $0 commissions on Vanguard ETFs.
- $0 for most Vanguard mutual funds.
- Optional “Vanguard Mobile” plan ($5/month) adds extra features.

Drawbacks
- No fractional shares (except for Vanguard’s “Vanguard ETF Portfolio” feature).
- App is less flashy; may feel “old school” to younger users.

How to Pick the Right App for You

1. Define Your Goals
   - Short‑term fun investing? Try Robinhood or Public for the community vibe.
   - Long‑term passive investing? Consider M1 Finance, Acorns, or Vanguard.

2. Assess Your Comfort with Risk
   - If you want a hands‑off approach, M1 Finance’s automatic rebalancing can keep your portfolio aligned.
   - If you enjoy picking individual stocks, Stash or Schwab may be preferable.

3. Consider Your Budget
   - Look beyond the free tier: some apps charge for premium research or advanced features.

4. Prioritize Education
   - Acorns, Stash, and Fidelity all provide strong educational resources.
   - If you prefer learning on the go, look for apps that bundle video tutorials and interactive tools.

5. Check for Automation & Rounding Features
   - Acorns and Stash automatically round up purchases; this is ideal if you’re starting with a small budget.

6. Factor in Security & Support
   - Fidelity and Schwab offer robust customer support.
   - If you value 24/7 chat and phone help, choose a platform with a strong support network.

Bottom Line

The modern investing landscape offers a plethora of tools tailored to every type of beginner. Whether you’re drawn to a gamified experience, an automated savings plan, or a low‑cost index‑fund approach, there’s an app that matches your preferences and financial goals.

• For effortless, “set‑and‑forget” investing: M1 Finance, Acorns, or Vanguard.
• For social learning and free trades: Robinhood, Public, or Stash.
• For comprehensive research and premium support: Fidelity or Schwab.

By weighing the features, costs, and educational offerings of each platform, you can select the app that best aligns with your investment style and helps you build confidence in the market. Happy investing!