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These days, everyone has trading applications on their mobile phones. They can trade anywhere they are, be it their homes, offices, a party, or someplace else. But do you know who initiated building the first few mobile investment platforms? Acorn, Stash, and Robinhood are the powerful platforms that decided to bring investment to smartphones, and to this date, they’re all affordable options with excellent user interfaces.
But, despite so much being perfect in their services, are they worth the hype? Check out a Stash vs. Acorns vs. Robinhood comparison right here in this article.
Robinhood vs. Stash vs. Acorns
- Robinhood is free to use. No commission, while Stash and Acorns have fees.
- Acorns and Stash offer managed accounts, while in the Robinhood platform, you trade on your own.
- At Stash, you have three accounts, ranging at $1, $3, and $9. Also, a 0.25% charge is levied per year on amounts above $5,000.
- At Acorns, you find three packages, varying at $1, $3, and $5.
- Individual Stock Investment: You’ll be able to do so with Stash and Robinhood, but not with Acorns.
- Socially Responsible Investment: Stash works on Socially Responsible Investment, but neither Robinhood nor Acorns do the same.
Brief differences
- User Rating: Out of a maximum of 10, all three have an excellent rating of 8.5.
- The minimum deposit for account opening: The minimum deposit in all is $0.
- Fee structure: Robinhood has no fee at all; meanwhile, Stash has a beginner plan for $1, a growth plan for $3, whereas a stash+plan is available at $9 per month. On the other hand, Acorn has a lite plan for $1, a personal plan for $3, and a family plan for $5. The prices for both platforms are the same for the first two packs. However, the last packs have a $4 difference.
- Tax on accounts: Accounts, be it Robinhood, Stash, or Acorns, will be implied on all.
- Exchange-Traded Funds: Yes, you’ll find ETFs on all of these to trade with.
- Socially responsible investing: Stash does take care of this, but Robinhood and Acorn don’t. Therefore if you think which is better, Robinhood or Acorn, neither are in this case.
- Advice: You get advice on both Stash and Acorn, whereas no such feature exists in Robinhood.
- Individual Stocks: Trade in individual stocks with Robinhood and Stash, but you can’t do the same with Acorns.
What is Robinhood all about?
The name doesn’t similarize it with its literal meaning; in fact, they’re quite the opposite. You get zero-fee accounts and are charged no fee when it comes to trading, and can invest in stocks, ETFs, cryptocurrencies, and options too. You will find the average market fee to be around $4.95, and on the same part, you won’t find Robinhood charging anything. With this step, you get free to make investments without worrying about the losses incurred via fees.
Robinhood also has a fantastic market reputation, and users believe they’ve very well delivered their promises.
What about Stash?
Stash helps you begin investing with as little as you want, and it is straightforward to use with good features. Stash is also suitable for teenagers who wish to have custodial accounts and retirement accounts. Tax brokerage accounts are available as well. For example, if you have $5,000 in your account, you are charged $1 as tax, and if the amount is higher than that, then the tax will be 0.25%. Both kinds of IRAs, Traditional and Roth, are available.
As a beginner, Stash might be the best option since they also help new investors learn the technique behind building a good portfolio and choose any investment accordingly.
Acorns: All you need to know about it
At first, with Acorns, you could begin investing with as little as $1 per month, and to date, there are different kinds of investment options present, with the opportunity to put your money into something for your children too. If you wish to be a hassle-free investor with all solutions in your hand, then Acorns is the perfect option since you can manage all your finances here. Though not available for free, the charges are minimal and highly affordable as a new investor.
With Acorns, you could also set up recurring investments and receive additional benefits too.
- Types of investment accounts: With all three, you’ll witness taxable accounts.
- Mobile applications Are they Apple or Android? Find these applications everywhere.
- Minimum investment: No such specific amount is mentioned by either of the three.
- Types of investments: Find ETFs on all three trading platforms.
Features: What helps them stand out?
Robinhood:
- Their free-to-use basic account and no charges levied on trading is what helps them stand out. Be it ETFs, Stocks, or any other form of investment, trade it for free over here.
- You can also invest in options as well as for cryptocurrencies via them.
Stash:
- Based on your different values, Stash helps you manage your portfolio and enables you to place your money into a variety of investments.
- Find over 100 options on this platform and follow their resources to learn more about the investment procedure.
- Get banking solutions available right in front of you with Stash, whereas Robinhood doesn’t. Therefore, if it compares which is better, Stash or Robinhood, then without a doubt, Stash wins the race.
Acorns:
- Acorns is a one-stop for all for your finances, and their pricing is highly in competition to Stash; in fact, it even goes lower to it at a certain point.
- You’ll find all sorts of fun and different investing options at Acorns and also help you manage your investments. So you don’t need to worry about what to choose with them.
Is Acorns better than Robinhood?
Robinhood is better for swing and day traders that like to manually trade without fees while Acorns is better for long-term traders that like to use managed accounts and invest the money as position traders.
Customer Service and Security
If a user of Stash, a person ever finds an issue, they can always contact them via phone and email. But, if a user of Robinhood or Acorns faces problems, they can only get via email. In terms of security, users of all three platforms are safe since all of them use industry-standard security and encryption techniques. Furthermore, they’re all financial companies under regulations and laws. So, all you need is a solid password from your end.
What do they do in the best manner?
Be it any one of these platforms, all of them are good with their services. It just depends on what your needs are.
- Robinhood is excellent if you’re into trading actively. However, if you have a particular knowledge set, this low-cost platform is perfect for investing in various ETFs, stocks, cryptocurrencies, and options.
- Stash is the right option for all those who are new to investing, and their investment options that are self-directed help you learn a lot about the nitty-gritty of the procedure.
- Acorns are the one for you when you want hassle-free investing and financial management, and if you wish to leave it aside after setting it up, you can freely do the same.
Which one should you go for?
Stash vs. Acorns vs. Robinhood, this discussion has been going on in the article for quite a while now, so finally, which one should you go for? One thing you need to consider between Acorns and Stash is their respective prices. So here’s what you should analyze before choosing the final one:
- As a beginner, it will be a significant decision to place a dollar every month since, at the start, this amount is a substantial chunk of your profits.
- If such a situation occurs, the opportunity for your account to grow is very minimal, and that’s something you really wouldn’t want as a beginner.
But just in case, if you’re going for either of these two platforms just for their services, know that you can get the same at an offer price from a broker without monthly and annual charges, though the only thing missing would be portfolio management. As Robinhood is a free platform, you could always prioritize it for your usage. To sum up, here’s what you need to know:
- If you can work without portfolio management and consultation, Robinhood is the one for you.
- Whereas, if you have absolutely no idea and think you need help, Stash and Acorns are the way to go. But, keep the $1 in mind, and know that it will always add up ahead.
Last but not the least
Seeing where we have come in the past few years, it is unbelievable that trading is right on our phones. It was all a dream that got visualized in no time, and now you’re online, with a mobile in hand and the opportunity for automated investments. With this, we conclude the article and hope you’ve got every little detail on these three!
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He is an expert in financial niche, long-term trading, and weekly technical levels.
The primary field of Igor's research is the application of machine learning in algorithmic trading.
Education: Computer Engineering and Ph.D. in machine learning.
Igor regularly publishes trading-related videos on the Fxigor Youtube channel.
To contact Igor write on:
igor@forex.in.rs
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