Acorns vs. Vanguard and Schwab: Highlights
• Acorns, Vanguard, and Schwab provide investment-advisory accounts. Schwab and Vanguard also have brokerage services.
• Schwab and Acorns offer banking tools; Vanguard does not.
• Schwab has the most advanced trading software among the three.
Acorns vs. Vanguard and Schwab Introduction
Are you interested in a brokerage that can help you invest and manage your money simultaneously? If so, Acorns, Vanguard, and Schwab are all worth exploring.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
|
$0
|
|
Vanguard
|
$0
|
$20
|
$1.00 per contract
|
$20*
|
$20*
|
|
Acorns
|
na
|
na
|
na
|
$3, $6, or $12 per month
|
$3, $6, or $12 per month
|
Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Acorns:
Get $20 when you open an Acorns account with this referral link.
Vanguard: none.
Investing Services
You can open a managed (advisory) account at Acorns, Schwab, or Vanguard. Acorns only offers a robo account, while the other two have automated and traditional management options.
Each firm charges a fee for its guidance. Acorns has a flat monthly price of $3, $5, or $9. Schwab’s robo program is free, and human-managed plans cost under 1% yearly. Vanguard’s robo service is 0.35%, with other plans charging different rates. Both Schwab and Vanguard have different minimums. Acorns requires no minimum.
Moving on to self-directed trading, Acorns drops out, but Schwab and Vanguard remain. Both let you invest in stocks, options, mutual funds, ETFs, closed-end funds, and bonds. Schwab also has forex, OTC stocks, foreign equities, and futures, which Vanguard does not.
Every asset must go into some type of account, and all three brokers in this comparison support different tax-advantaged accounts, including IRAs and custodial accounts. Schwab and Vanguard, but not Acorns, also offer 529 plans, trusts, and 401k services.
Winner: Schwab
Banking Services
Vanguard no longer provides a cash-management program, but Acorns and Schwab do more than just investing. Both have debit cards with FDIC insurance and ATM rebates. Acorns covers about 55,000 ATMs fee-free, while Schwab offers worldwide reimbursements.
Acorns’ service is a checking account with no overdraft charges, real-time round ups, early payday, an emergency fund, and free fractional shares from selected shops. The regular Acorns checking account currently pays 2.47% APY, while the emergency fund pays
4.04% APY. These rates apply if you pay at least $3 monthly. Schwab has lower interest on its checking and savings services but doesn’t charge monthly fees.
Winner: Schwab
Margin Accounts
Acorns is robo-only and doesn’t let customers trade on margin. The other two permit margin in brokerage accounts. Schwab’s website (unlike Vanguard’s) shows margin requirements for each ticker symbol. Both have interest ranges from 12.75% down to 10.75% for larger loans, and both can negotiate rates beyond $500,000.
Winner: Schwab
Customer Service
Because all three companies provide financial services, they must also deliver customer support. Acorns can help you on the phone and online. Vanguard primarily relies on phone support, while Schwab has more channels. Schwab’s website and mobile app both include a virtual assistant that handles many questions, and there’s an option to switch to a live rep if needed.
Schwab also runs many offices across the country, giving you a place for face-to-face help. Additionally, it offers 24/7 phone support, which Vanguard and Acorns do not.
Winner: Schwab
Mobile Apps
All three firms provide mobile apps, but Schwab has two. One is its standard app, and the other is thinkorswim, which specializes in advanced trading features, including robust charting and order placements at preset times. The regular Schwab app has lots of market news and mobile check deposit.
Acorns has a single app without mobile check deposit or much market news, though it does include educational content. Because Acorns is robo-only, there are no trading tools or detailed charts. You’ll find links to the checking account and other Acorns services instead.
Vanguard has one basic app with limited trading features, though the order ticket covers buy to cover and sell short. Charts are very simple.
Winner: Schwab
Websites
Acorns.com is the simplest site of the three. Since it doesn’t have self-directed accounts, there are no trading resources to speak of. We did notice a shopping portal for bonus investments and other perks like GoHenry by Acorns (a children’s debit card).
Vanguard’s site goes a step above with charts and trading functions. Its software has a few neat charting tools (like event markers), and the trade form has four order types.
Schwab’s site has an actual trading platform (thinkorswim) with seven order types and even more on the main website. Despite these complex features, Schwab’s site is easier to navigate than Vanguard’s and contains more research tools.
Winner: Schwab
Desktop Software
Lastly, Schwab is the only one with a desktop trading platform. It’s also named thinkorswim and has professional-grade features at no extra cost. We suggest trying paperMoney, a simulated mode, to learn the system first.
Winner: Schwab
Additional Services
Individual Retirement Accounts: SEP, Traditional, and Roth IRAs can be found at all three. Vanguard and Schwab also have SIMPLE IRAs. Schwab has a Custodial IRA.
Fully-Paid Lending Income Program: Vanguard and Schwab provide this.
Extended Hours: Vanguard has an after-hours session. Schwab has before- and after-hours, plus overnight trading.
Dividend Reinvestment Plans: All three firms let you reinvest dividends automatically.
Autopilot Mutual Fund Purchases: Vanguard and Schwab both support recurring mutual fund buys (Vanguard restricts this to its own funds).
IPOs: Schwab offers IPO access.
Fractional Shares: Vanguard and Schwab do not let you buy fractional ETF shares through their robo programs, but Acorns does. Self-directed Schwab accounts can buy fractional shares of S&P 500 stocks, while Vanguard allows fractional purchases of its own ETFs.
Winner: Schwab
Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Acorns:
Get $20 when you open an Acorns account with this referral link.
Vanguard: none.
Our Recommendations
Small Accounts: Acorns only needs $5 to start robo investing, which is less than the minimums at Schwab and Vanguard. But the monthly fee makes Acorns a bad deal for small balances. Brokerage accounts at Schwab and Vanguard have no fees or minimums, though Vanguard requires e-delivery of statements and might charge fees for certain business IRAs.
Long-Term Investors & Retirement Savers: Schwab has more tools than its rivals.
Mutual Funds: Vanguard has a bigger fund lineup, while Schwab has stronger resources.
Active Stock and ETF Trading: We suggest Schwab with its thinkorswim desktop or mobile app.
Beginning Investors: We recommend an advisory account at any of these three (ideally Schwab or Vanguard with a human advisor).
Acorns vs Vanguard and Schwab Outcome
While Vanguard and Acorns each shine in certain areas, Schwab is the clear winner overall.
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Updated on 2/23/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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