Acorns is based in Irvine, an American-based financial service and financial technology company launched in 2012 by Walter Wemple Cruttenden III and Jeffrey James Cruttenden, who are father and son. Acorns launched its mobile application for both iOS and Android devices in 2014. It specializes in Robo-investing and micro-investing. In 2020, it will already have 8.2 million users and over $3 billion in assets under its management. Let’s read further to find which is better among Acorns Vs Robinhood.
Robinhood was founded in 2013 by Baiju Bhatt and Vladimir Tenev, and its headquarters is in Menlo Park, California. It is an American financial company with a mission to provide everyone with access to the financial market. They saw a need for those who aren’t so rich to also partake in the financial market. They facilitate commission-free trading on stocks, cryptocurrency, and exchange-traded, which can be done on their mobile application, launched in March 2015. Robinhood had over 22 million funded accounts and more than 25 million active users. It’s April 2022.
What Are the Differences Between Acorns and Robinhood?
Acorns and Robinhood offer financial services. There is a clear difference between them. Some features on Robinhood aren’t present in Acorns and vice versa. This is part of why one might find it difficult to stick to a particular financial platform.
Below are some of the differences between Acorns and Robinhood.
Which Of The Platforms Charges More Fees?
Acorns do charge a monthly fee of $3 to $5 depending on which of their services you choose, which can be a personal or family account. The fees you are charged on Acorns are used to help you easily move your money into your investment account, giving you automatic portfolio rebalancing, pre-built portfolios, and many more services. Robinhood does not charge its users a monthly fee unless they choose the Robinhood Gold Service.
In this case, you’d be the one to take charge of your investments without paying any fee. This means you’d have to spend time researching and managing your investments yourself, but you’d save $3-$5 monthly, and this gives you the chance of earning higher rewards since you can decide to focus on a single asset rather than spreading your money.
Which Investment Does Acorn And Robinhood Offer?
Robinhood allows users to choose what they want to invest in and gives them access to various investments. Users have the right to invest in ETFs, stocks, options and even cryptocurrency using the Robinhood cryptocurrency. Robinhood is known to be one of the best options trading platforms due to its no-fee policy, which other brokers charge. The beauty of Robinhood is that you can trade fractions, which means no matter how little your money might be, you can also buy some fractions of shares, and this is one of the reasons why it is a good platform for beginners who don’t have much money.
On the other hand, Acorns help build a portfolio for specific investors. Your money is invested in several ETFs (exchange-traded funds). Depending on your risk tolerance, your investment allocation changes as this helps reduce your risk since they control your investment. You don’t have any control over your investment, and you can’t buy any shares you wish to own or cryptocurrency.
What Kind Of Accounts Do Acorns And Robinhood Provide?
The platform is mainly for long-term savers who need an individual retirement account (IRA). It is also a platform that is family-friendly. This means they have an account for individuals who might want an IRA and a family account. With Acorns, there is also an account called Acorns Early, which is for young ones. Their parents will be in charge of the account for their children’s benefit. You can also make small investments in any of these accounts.
Robinhood is more of a platform for individuals who want to invest and make their own trading decisions. Robinhood does not offer individual retirement accounts, but you can always learn and get useful information about IRAs on their platform.
Conclusion
In conclusion, Acorns should be called an automatic investment platform that helps users invest their money automatically and gives them financial advice. You will need to link your debit or credit card to Acorn, and anytime you make a purchase, the purchase is rounded up to the nearest dollar, and the overage is invested on your behalf in your Acorns account. You can also invest manually.
Robinhood gives users an easy-to-use platform for trading, giving them full authority over their financial decisions. It gives users access to the market’s popular assets, including ETFs, cryptocurrency, stocks, options, and many more. Acorns and Robinhood are both unique in their ways, offering various features to users, but they are both financial service platforms, where one helps you invest, and the other gives you total control.
If you are looking for control over your investment Robinhood is a good bet but if you are looking for who to manage your investment for you, Acorns is a good option.
