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- Key Highlights
- Introduction
- Understanding Acorns and Fidelity: A Brief Overview
- Investment Options Compared
- Fees and Costs: A Detailed Analysis
- Conclusion
-
Frequently Asked Questions
- Which platform is better for beginners?
- Can I switch from Acorns to Fidelity or vice versa?
- What are the main differences between Acorns and Fidelity investment platforms?
- Which platform offers better options for long-term investing, Acorns or Fidelity?
- How do the fees compare between Acorns and Fidelity?
- Are there any specific features or tools that set Acorns apart from Fidelity for investors?
- Recommended Reads
Key Highlights
- Acorns and Fidelity are popular investing platforms catering to different needs.
- Acorns excels in simplicity, using spare change round-ups for automated investing, ideal for beginners.
- Fidelity offers a wider array of investment options, including stocks, bonds, mutual funds, and ETFs, attracting experienced investors.
- Acorns charges monthly fees, while Fidelity has no account minimums but may have higher investment fees.
- Your ideal platform depends on your investment goals, experience level, and preference for hands-on or automated investing.
Introduction
In today’s world, it’s important to make smart choices when investing to protect your future. Whether you are starting a retirement account or if you are a skilled investor wanting to add mutual funds, picking the right platform matters. This comparison looks at two well-known companies in the investment field – Acorns and Fidelity. We will explore their advantages and disadvantages. This way, you can choose what fits your needs and financial goals best. We will cover more than just bank account features to give you a clear view of your options.
Understanding Acorns and Fidelity: A Brief Overview
Acorns started with a goal to make investing easy for everyone. It has become popular with millennials and new investors. The platform makes investing simple. It uses a “round-up” method where spare change from your daily purchases gets invested automatically. This micro-investing method helps people start investing with little money.
Fidelity is a well-known name in financial services. It has a strong history of trust and offers many investment products. Fidelity serves a larger group of investors. This includes beginners who want to try managed portfolios and experienced traders who want more control and advanced investment choices. The platform provides a range of services, including retirement accounts, brokerage services, and access to financial advisors.
What Sets Acorns Apart
Acorns is strong because it has an easy-to-use mobile app and a simple design. This makes it very attractive to young people who are used to handling their finances on phones. The app’s feature that allows you to “round up” your spending helps make investing very easy.
Also, Acorns supports a “set it and forget it” way of investing. This is great for people who find the market hard to understand or don’t have time for trading. The app takes spare change and invests it automatically into a mix of ETFs based on your risk level and financial goals.
Additionally, Acorns does more than just investing. It offers savings accounts and retirement accounts too. This makes Acorns a potential one-stop shop for personal finance. It appeals to people who want to manage everything in one place.
The Unique Features of Fidelity
Fidelity stands out because it offers many ways to invest. They have everything, from mutual funds and ETFs to individual stocks and options trading. This allows experienced traders to create personalized portfolios and follow smart investment plans.
If you want some help with your investments, you can use Fidelity Go. This is their robo-advisor platform. It uses smart technology to manage your portfolio, while also connecting you with human advisors when needed. This way, you get both tech help and personal advice.
Fidelity is also serious about retirement planning. They offer many retirement accounts, such as traditional IRAs, Roth IRAs, and SEP IRAs. This helps people invest wisely for a secure future.
Investment Options Compared
Acorns and Fidelity have different ways of helping people invest. Acorns aims to keep things simple. It targets new investors and mostly offers automated investing in a mix of ETFs.
Fidelity takes a broader approach. It provides many types of investments like individual stocks, bonds, options, and mutual funds. They also have a robo-advisor called Fidelity Go to help investors. This wide variety makes Fidelity a good choice for experienced traders and those who want help with investing.
Acorns: Simplifying the Investment Process
Acorns has an investment strategy that focuses on making investing easy and automated. It aims to help everyone invest, no matter how much they know about finance. The platform mainly uses Exchange Traded Funds (ETFs) to build diverse portfolios based on a person’s risk tolerance and investment goals.
With the Acorns app, users can easily change their risk level. They can choose between conservative, moderate, and aggressive investment options. This ability to adjust ensures that the investment strategy can change as the user’s financial situation and risk appetite change.
Additionally, Acorns supports different investment goals, such as retirement planning with traditional, Roth, and SEP IRAs. By focusing on long-term financial health and providing user-friendly tools, Acorns helps make investing simple and achievable for everyone.
Fidelity’s Comprehensive Investment Solutions
Fidelity offers many investment choices for all types of investors. Whether you are experienced or just starting, you will find something that suits you. The platform gives you access to thousands of stocks and Exchange Traded Funds (ETFs). This allows you to mix and match investments to make your portfolio different and unique.
If you prefer a professional handling your investments, Fidelity has many mutual funds to choose from. These funds come in different styles and risk levels. They are a good option for anyone who wants expert management and more diversity with one investment.
Fidelity also understands that planning for retirement is important. They provide a wide range of retirement accounts, such as traditional IRAs, Roth IRAs, and SEP IRAs. This helps you pick the right plan based on your financial goals and tax needs.
Fees and Costs: A Detailed Analysis
When looking at investment platforms, it is important to understand the fees. Acorns has a simple monthly fee system. This fee ranges from $3 to $12 based on the plan you choose. This fee includes all investment management. It makes it easy for people to plan and expect their costs.
On the other hand, Fidelity uses a mix of fees. These depend on the services and investment products you use. Fidelity does not have a minimum amount for self-directed accounts. However, some investment options, like mutual funds and trading, may have their own fees. Investors need to think carefully about these fees.
How Acorns Charges for Its Services
Acorns employs a transparent, flat-fee pricing structure based on a tiered system, catering to different investment needs and account balances. This straightforward approach eliminates the complexities often associated with investment fees, making it easy for users to understand the costs involved. There are no hidden fees or commissions charged on trades, contributing to the platform’s user-friendliness.
The “Personal” plan, starting at $3 per month, encompasses a checking account, investment account, and retirement account (IRA), making it suitable for individuals seeking an all-in-one financial solution. The “Family” plan, priced at $5 per month, includes the same features as “Personal” with the added benefit of investment accounts for kids. This plan is ideal for individuals planning for their children’s future.
Acorns Plan |
Monthly Fee |
Features Included |
Personal |
$3 |
Investment Account, Retirement Account (IRA), Checking Account |
Family |
$5 |
Investment Account, Retirement Account (IRA), Checking Account, Investment Accounts for Kids |
For users seeking more personalized financial advice, Acorns offers the “Personal Plus” plan at $9 per month, building upon the “Personal” plan with personalized guidance from financial professionals.
Understanding Fidelity’s Fee Structure
Fidelity has a flexible and wide-ranging fee structure. This is great for different investors and their needs. There are no minimum account balances or monthly fees for standard brokerage accounts. However, certain trades and account types do have costs.
For example, trading fees for stocks, ETFs, and options are mostly competitive compared to others in the industry. These fees can depend on the trading platform you choose and the type of order you place. Fidelity also has many no-transaction-fee mutual funds. This gives investors good choices for diversifying their portfolios without added costs.
Retirement accounts, like Traditional IRAs, Roth IRAs, and SEP IRAs, may have different fees based on the specific plans and investments selected. Fidelity helps by providing clear fee schedules and resources. This makes it easier for investors to understand their options and make smart choices.
Conclusion
In investing, your choice between Acorns and Fidelity depends on what you want and need. Acorns is easy to use, making investing simple. On the other hand, Fidelity provides many options for those with more experience in investing. Don’t forget to look at fees and costs, as Acorns has different charges compared to Fidelity.
If you are a beginner and want a simple way to invest, Acorns could be a good fit for you. If you are looking for a platform with more features and options, then Fidelity might be better for you. Think about what you need, how you like to invest, and your long-term goals before deciding. Both platforms have their advantages and disadvantages. Choose the one that matches your financial plan best.
Frequently Asked Questions
Which platform is better for beginners?
Acorns is a great place to begin if you are new to investing. The mobile app is easy to use. The “round-up” feature lets you start investing without much work. Acorns simplifies investing, so it is perfect for beginners.
Can I switch from Acorns to Fidelity or vice versa?
Yes, you can move your assets between Acorns and Fidelity. You may need to fill out some paperwork to get started. It’s a good idea to reach out to both Acorns and Fidelity. This way, you can make sure the transfer of your accounts goes smoothly.
What are the main differences between Acorns and Fidelity investment platforms?
The main differences are in how they invest, their fees, and what they offer. Acorns uses automated investing and charges a monthly fee. On the other hand, Fidelity has more options, including options trading, and its fees depend on the services you choose.
Which platform offers better options for long-term investing, Acorns or Fidelity?
Both platforms support long-term investing. They give you different options for retirement accounts, like Roth IRAs. However, Fidelity has more investment choices available. This includes a wide range of mutual funds. These could help with long-term strategies.
How do the fees compare between Acorns and Fidelity?
Acorns has a monthly fee that goes from $3 to $12. The cost depends on the plan you pick. On the other hand, Fidelity does not charge a monthly fee. Instead, they take fees based on the services you use, like trading fees or expense ratios for some mutual funds.
Are there any specific features or tools that set Acorns apart from Fidelity for investors?
Acorns has a special feature called “round-up.” This lets users invest their spare change from daily purchases. The very easy-to-use mobile app makes Acorns unique. It is especially good for beginners or people who want automated, hands-off investing.

Reviewed and edited by Albert Fang.
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Article Title: Acorns vs Fidelity in 2024-2025: The Pros and Cons
https://fangwallet.com/2024/10/16/acorns-vs-fidelity/
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