Platform Comparison

Acorns vs M1 Finance

Compare Acorns and M1 Finance on fees, DRIP, fractional shares and research for dividend investing.

AC

Acorns

★4.1

The micro-investing app that turns your spare change into investments through Round-Ups—perfect for beginners who struggle to save consistently.

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Higher Rated
M1

M1 Finance

★4.7

The ultimate set-it-and-forget-it platform with pie-based portfolios, automatic rebalancing, and free dividend reinvestment.

Full Review

Acorns vs M1 Finance: Fees, Minimums & DRIP Compared

FeatureAcornsM1 Finance
Our Rating4.1/54.7/5
Trading CommissionsN/A$0
Account Minimum$0$100
Fractional SharesN/AYes
DRIPAutomaticFree + Smart
Research ToolsBasicBasic
Best ForBeginner SaversHands-Off Dividend Investors

Acorns vs M1 Finance: Pros and Cons

Acorns

Pros

  • + Round-Ups automatically invest spare change from purchases
  • + No account minimum—start investing with $5
  • + Automatic dividend reinvestment included
  • + Diversified portfolios using Vanguard and iShares ETFs
  • + Free for college students with .edu email

Cons

  • - Flat monthly fee is expensive for small balances
  • - No tax-loss harvesting (unlike Betterment/Wealthfront)
  • - Cannot choose individual stocks or ETFs
  • - Limited customization of portfolios

M1 Finance

Pros

  • + Commission-free trading on stocks and ETFs
  • + Unique pie-based portfolio system for easy allocation management
  • + Dynamic rebalancing automatically invests new deposits into underweight positions
  • + Fractional shares let you invest any dollar amount
  • + Three dividend reinvestment options including true DRIP

Cons

  • - Limited trading window (9:30 AM EST only, 3 PM with premium)
  • - $3/month platform fee if account balance under $10,000
  • - No options, mutual funds, bonds, or forex trading
  • - Customer service limited to weekday market hours only

Which Is Better for Dividend Investors: Acorns or M1 Finance?

Choose Acorns if you...

  • Are in Acorns's core audience: beginner savers
  • Need automatic dividend reinvestment

Choose M1 Finance if you...

  • Are in M1 Finance's core audience: hands-off dividend investors
  • Prefer a higher-rated overall platform

Want the full breakdown of fees, DRIP, and research tools? Read our Acorns review and M1 Finance review.

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Investment Disclaimer

Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice.