Robinhood vs. Acorns: Which Is Best for Your Investment Style?

Robinhood vs. Acorns: Which Is Best for Your Investment Style?

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Robinhood and Acorns are two of the more democratic fiscal services platforms. They both offer on-line bank options, and they both offer entree to investment markets. They appeal to people looking for a simple border on to personal money management .
There are differences in the target markets, however. Robinhood appeals to the independent stock-picker, while Acorns offers a hands-off approach for fresh investors and for those who prefer to watch their savings grow and let the pros handle the trade.

Parallel features of Robinhood and Acorns besides differ in respective ways, and there are features present on one platform but unavailable on the other. This can make selecting a one service to suit your fiscal needs a bite of a challenge .

Trading and Investments

Robinhood was a pioneer in no-fee stock trading. The company has an easy-to-use app that allows users to buy as many or as few shares as they like, or buy fractional shares for a belittled minimum investment. Users can besides buy and sell cryptocurrencies. Stock quotes and data are available, and a news feed — from Barrons, The Wall Street Journal and other major fiscal media — keeps users abreast of the markets .
Acorns offers managed portfolios for those new to the markets or those who want to stay hands-off and take advantage of professional management. The party ’ south professionals build portfolios to suit different investment styles and hazard tolerance. Users of this service pick an investment dash, not individual investments. Cryptocurrency deal is not available, but Acorns does offer an exchange-traded store with exposure to bitcoin .
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Acorns besides emphasizes ESG investing. ESG stands for environmental, social and corporate government. The chopine welcomes investors and savers seeking to incorporate worthy causes and creditworthy business practices into their fiscal biography .

Banking Services

Robinhood is in the procedure of replacing its Cash Management program with a Cash Card that will serve as a spend account that earns livestock and cryptocurrency rewards. The account includes free in-network ATM access and check-sending privileges. While not available so far, you can join the waiting list. Robinhood users besides have access to e-pay services such as Apple Pay and Google Pay .
Acorns Checking besides offers a linked debit card, direct deposition when payday comes round and the ability to send checks. A cash swing feature rounds up charges and sends any spare part change to the investment bill. For Acorns accounts, the Smart Deposit have automatically invests an sum the drug user sets, following the teaching of money advisors everywhere to “ Pay yourself first. ”

Retirement and Family Accounts

Robinhood is all about the individual investor seeking a aboveboard manner to make personal trade decisions. The ship’s company does not offer individual retirement accounts but does give some useful data on IRAs and other fiscal FAQs via its web site ’ sulfur Learn yellow journalism .
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Acorns is geared to long-run savers for whom an IRA is essential. It ’ mho besides a family-friendly fiscal platform. It has both IRA and kin accounts available.

Acorns Early is a simple invest and saving platform for youngsters. Parents manage these accounts for the benefit of their kids. Small, recurring investments can be made into these or any other investing account. There are fiscal health programs, and Disney+, ABC Mouse and early companies offer some bonus savings features .

The Fine Print: Minimums and Fees

Is it effective to have Acorns and Robinhood ? Often, the decision comes down to fees and features .
Robinhood charges zero to open an report, there ’ s no minimum remainder prerequisite and you can start trading with merely $ 1. It charges $ 5 a calendar month for Gold accounts for investors ready to trade on gross profit and dive into higher-level stock data. The company earns concern on the cash it holds and by collecting assorted fees from marketplace makers .
Acorns collects $ 3 a month for its cortege of personal accounts — which includes investment, checking and retirement accounts. It charges $ 5 a calendar month for all that plus Family accounts. There ’ mho no minimum down payment required to open an score, but you ’ ll need at least a $ 5 libra to begin investing .

Good To Know

Both Robinhood and Acorns check services are insured for up to $ 250,000 by the Federal Deposit Insurance Corporation .

Robinhood Features

here are some of Robinhood ’ sulfur main features .

Feature Best For
Investing: Self-directed stock, option, ETF, cryptocurrency trading Do-it-yourself and independent investors
Banking: Spending account Online bankers
Cryptocurrencies: Available Cryptocurrency traders
IRAs and Family Accounts: Not available Individual, independent investors
Fees: $0 standard account; $5/month Gold level Fee-charging accounts available for more sophisticated investors

Acorns Features

here ’ s more detailed information about Acorns ’ products and services .

Feature Best For
Investing: Professionally managed portfolios geared to your long-term financial goals Hands-off and new investors
Banking: Acorns Checking Managing cash and investments through the same account
Cryptocurrencies: Not available Exposure to cryptocurrency via ETF investments instead of owning coins
IRAs and Family Accounts: Available Families and dedicated savers
Fees: $3/month Personal; $5/month Family Budget-conscious individuals and families

Which Is Better: Robinhood or Acorns?

Which chopine is the right choice for you depends on how you invest and what your long-run goals are. Robinhood is a better choice for anyone who follows the malcolm stock market closely and likes to select their own stocks. And if cryptocurrency is separate of your scheme, you ’ ll besides want to go with Robinhood to avoid having to purchase coins from a branch platform .
Acorns appeals more to set-it-and-forget-it investors who want to see their money work for them but prefer to leave lineage selections to the pros. Acorns is besides the better option for investors who want to save for retirement and families who want to help their children develop heavy fiscal habits. precisely be mindful of the fees — unless you ’ rhenium investing enough that your returns exceed your $ 3 or $ 5 monthly tip, you could wind up spending more than you earn .
editorial eminence : This contentedness is not provided by Acorns or Robinhood. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the generator alone and have not been reviewed, approved or otherwise endorsed by Acorns or Robinhood.

About the Author

Scott Jeffries

Scott Jeffries

Scott Jeffries is a seasoned technology professional based in Florida. He writes on the topics of business, technology, digital marketing and personal finance.

After earning his bachelor’s in Management Information Systems with a minor in Business, Scott spent 15 years working in technology. He’s helped startups to Fortune 100 companies bring software products to life. When he’s not writing or building software, Scott can be found reading or spending time outside with his kids.

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