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Acorns vs Robinhood (best investment apps / software for beginners)

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Winner
User Interface
Ease of use
Educational Resources
Features and Tools
Fees and Charges
Customer Service
Security and Safety
Investment Options
Withdrawal Options
Performance
FREE / PAID
Robinhood offers free stock trades, while the premium ‘Gold’ membership costs $5/month.
Acorns offers three plans: Lite ($1/month), Personal ($3/month), and Family ($5/month).
Conclusion

Robinhood shines with commission-free trades! 💸🚫✨But beware: it lacks robust educational tools. 👩‍🎓📚⚠️

With Acorns, investing change becomes a breeze! 🌬️🍃 Its spare change investment feature is perfect for beginners. 👶💹 A bit pricey for its features though. 💸⚖️

Robinhood Pros & Cons

Top Pros
  • No Commission Trades 💸🚫

  • Fractional Shares 📊⚖️

  • Cryptocurrency Trading 💱

  • Extended Trading Hours ⏱️⏳

  • Fast Account Setup ⚡️🆕

Acorns Pros & Cons

Top Pros
  • Automatic Round-Ups 🔄⬆️

  • Cashback Rewards 📤💰

  • Recuring Investments 💹🔄

  • Family Accounts 👨‍👩‍👧‍👦

  • Educational Content 🧠📘

  • Retirement Options ✨🏖️

Top Cons
  • No Robo-Advisor 🤖❌

  • Limited Research Tools 🔍🚫

  • No Mutual Funds 🤝❌

  • No Retirement Accounts 🏖️🚫

  • Limited Customer Support 📞⏳

  • Frequent Outages 📉🚫

Top Cons
  • High Fees 💸⬆️

  • Limited Investment Options 📊🚫

  • No Direct Indexing 📈❌

  • Customer Service Complaints 📞😔

  • No Tax-Loss Harvesting 🌾💲🚫

Other best investment apps for beginners

3

Stash- where budgeting meets investing! 💰🔀💹 Offers thematic investments but charges fees for basic services. 💲🔄📊

4

Betterment stands out with its robo-advisor feature! 🤖✨ But don’t forget, there are no direct indexes or fractional shares. 📈🚫⚖️

5

Wealthfront: Taking the wheel with auto-investing! 🚗💨 Has high account minimum which might be a bummer. 😕⏫

FAQ

Investing apps that are great for beginners include Acorns and Robinhood. These apps are designed to be user-friendly and educate users about investing. They also offer affordable investing with minimal fees.

Acorns is an app that allows users to make investments using the change from their daily purchases. When you link your credit or debit cards to the app, it rounds up your purchases to the nearest dollar and invests the difference. It’s a simple and effective way to start investing, especially for beginners.

Robinhood is known for ushering in commission-free trades. It offers a straightforward platform that lets users buy and sell stocks, ETFs, options, etc., all with no account minimum. It is a go-to for first-time investors because of its easy-to-navigate interface and cost-effectiveness.

Yes, both Acorns and Robinhood are heavily secured and use high-level data encryption to protect users’ information. They also are members of the Financial Industry Regulatory Authority (FINRA), insuring users up to $500,000 in securities.

Acorns charges a monthly subscription fee ranging from $1-$5 depending on the services you use. Robinhood, on the other hand, offers commission-free trades though there are charges for premium services such as Robinhood Gold.

Yes, both Acorns and Robinhood offer educational resources designed to help beginners understand investment strategies and the stock market. They provide articles, videos, glossaries, and more that are easy to understand and informative.

Yes, Robinhood supports real-time trades. Users can place trades during the market hours as well as during pre-market and post-market hours.

Acorns uses your spare change to invest in a portfolio of ETFs and bonds. It also offers retirement accounts through Acorns Later and a checking account with a debit card through Acorns Spend.

Robinhood makes money in several ways such as through premium services like Robinhood Gold, earning rebates from market makers and trading venues, and through interest from cash and securities in Robinhood accounts.

Yes, both Acorns and Robinhood offer the option to purchase fractional shares. This feature lets investors buy portions of a company’s stock instead of an entire share, making investing more accessible for people with lower budgets.

Acorns focuses on passive, automatic investing while Robinhood gives users more control for active trading. Acorns invests your spare change in a portfolio, while Robinhood allows for direct stock, ETF, and option trades.

Yes, both Acorns and Robinhood have interfaces that allow you to track your investments, view your balance, and see your potential gains or losses in real-time.

Acorns offers an IRA option through Acorns Later. However, Robinhood currently doesn’t offer any retirement account options, but allows investing in a wide range of securities that you could use in an IRA from another broker.

Unless you encounter unusual market conditions, trades on Robinhood are typically executed instantly during market hours. It’s one of the features that make Robinhood very appealing to users.

Acorns offers customer support through email. On their website, there’s a Help Center containing frequently asked questions which can be helpful for users seeking immediate answers.

Robinhood offers a suite of resources under Robinhood Learn. It has free, beginner-friendly learning materials about investing, economics, and personal finance, backed up by trends, data, and easy-to-understand explanations.

Yes, you can link multiple bank accounts to your Acorns account. However, only one account can be used for round-ups at a time.

Yes, Robinhood offers a feature called Dividend Reinvestment Plan (DRIP), which automatically reinvests your dividends back into the stock or ETF. This makes it easy to put your earnings back into your investments.

Yes, investing through Acorns or Robinhood may have tax implications. Depending on the type of investing you do and the profits you make, you may have to report your earnings in your annual tax filings. It’s essential to consult with a tax advisor to understand the specific implications for your situation.

Both the Acorns and Robinhood apps are available on iOS and Android devices. They also have web versions, allowing you to manage your investments from virtually anywhere.

The common choices among beginners include Acorns and Robinhood, renowned for their user-friendly interfaces and beginner-focused investment strategies. Besides them, other suitable apps for novices include Stash, Betterment, and M1 Finance.

Acorns is considered an excellent platform for beginners in investment. It requires very low starting capital, as little as a few cents, and lets users round up daily purchases to invest the spare change automatically. It’s an effortless way to familiarize inexperienced users with the concept of investing.

Robinhood has made its mark by offering commission-free trades, a feature highly popular amongst beginning investors. Its simple layout and easy-to-understand features make the investing process less daunting for new entrants.

Both Robinhood and Acorns offer free to download apps. However, while Robinhood charges no commission for trades, Acorns has a minimal fee structure starting at $1 per month for basic investment accounts.

Acorns stands out with its automatic ’round-ups’ feature where it rounds up your purchases to the nearest dollar and invests the change. It also offers automated portfolios devised by experts, making it easy for beginners to begin their investment journey.

Robinhood introduces the feature of trading cryptocurrencies like Bitcoin, Ethereum amongst others. This function is a great way for beginners to dip their toes into the world of cryptocurrency without needing a separate platform.

Both Robinhood and Acorns are regulated by major financial entities like the Securities and Exchange Commission (SEC). They use encryption to protect user data. However, as with any investment, bear in mind that your capital is at risk, and investments can go up or down.

Yes, both Robinhood and Acorns provide a wealth of educational resources for beginners. Acorns offers ‘Money Basics’, a section on its website with articles and advice on investment, while Robinhood offers ‘Learn’, a similar resource full of educational articles.

Robinhood has no minimum deposit requirement to open an account and start investing. In contrast, an Acorns account requires a $5 initial deposit to start investing.

For both Acorns and Robinhood, the account registration is a streamlined process. Users need to download the apps, fill in personal information, and complete a short questionnaire about their financial situation and investment goals. Approval usually takes a few working days.

Yes. Both the Robinhood and Acorns apps are available for free download on both iOS and Android devices.

Acorns offers an automated portfolio created by experts, while Robinhood allows complete freedom to select and invest in different stocks, ETFs, and cryptocurrencies. Both platforms boast easy-to-understand dashboard for tracking investment progress.

Yes, both Acorns and Robinhood allow the withdrawal of funds, usually taking three business days after selling your investments. However, Robinhood offers instant access to funds up to $1,000.

Robinhood provides email support and has a comprehensive FAQ section on their website. Acorns offers phone support from Monday to Friday, besides the FAQ section on their website.

Robinhood offers investing in a selection of global companies with ADRs (American Depository Receipts), but non-U.S. stocks aren’t available. Acorns invests your money in diversified portfolios including international stocks and bonds.

Yes. Both Acorns and Robinhood are well-suited for long-term investing. Acorns’ automatic investment feature makes it easy to continuously invest, while Robinhood’s versatile investment options can align with various long-term investment strategies.

Currently, only Robinhood allows dividend reinvestment through their DRIP (Dividend Reinvestment Plan) feature. Acorns does not provide an option to reinvest dividends.

Acorns uses a strategy based on the Modern Portfolio Theory. It creates diversified portfolios of ETFs (Exchange Traded Funds) across several asset classes, optimized for varying levels of risk tolerance.

Robinhood supports options trading with no commission fees. However, Acorns does not offer options trading, focusing instead on simplified investment approaches.

Neither Robinhood nor Acorns support mutual funds. They focus on other investment avenues like stocks, ETFs, and in Robinhood’s case, cryptocurrencies and options.