If you do some digging online, you’ll see that most brokerage platforms offer online account management, however, a few have decided to go completely mobile, which means that you access and manage investments by utilizing your smartphone. Though there are various options on the exchange, the two, most popular smartphone trading apps are Robinhood, as well as Acorns.
However, if you’re just starting out, you may not know which option is more suitable for you, which is why you may be wondering – what are the differences between the 2 options, and which of the options is more suitable for me? Luckily for all individuals, this article might shed some light on the answer you’re looking for. Let’s take a closer look at a detailed comparison between the 2 platforms:
Information on Both Platforms
Acorns: this particular app began as an automated investment platform that costs 1 dollar every month, but nowadays, it has evolved and it supports bank and retirement accounts. If you wish to hold all your investments in one place, this platform may be suitable for you. With it, you could adjust automated continuous purchases and you could get bonus funds when you buy from a partnering brand. Keep in mind, it’s not free, which is why it might not be suitable for individuals that are just beginning.
Robinhood: this application will allow individuals from any walk of life to start trading in the stock exchange. It’ll enable you to open a free account, and you won’t need to spend money on the deals you make. It supports various things including assets, ETFs, stocks, and cryptocurrencies. So, while some other apps charge approximately 5 dollars for transactions, Robinhood won’t take a single cent from it, which means that you can make smaller purchases, without losing a huge percentage on the fees.
There Are Similarities
As you might have guessed by now, both of these apps offer a wide range of features. Although there are more differences than similarities, they still do offer some of the same functions that are worth mentioning. For starters, both platforms won’t demand a minimum investment, which indicates that you could start trading right away.
Additionally, both of these options offer a taxable account and they’ll also provide you with a method for spending your money in ETFs. Last and most obvious, you can utilize both of them on your smartphone – no matter if it is an iPhone or Android – hence, all you’ll require for accessing the platforms is your phone.
They’re Not Both Free
Acorns: by now, you understand that this platform charges from one to nine dollars per month, but this will rely on the account type you opt for. By choosing this app, you won’t be capable of investing your cash into individual stocks, so, if this is something you wish to do, it might be best to opt for a different platform that will suit your needs.
Robinhood: as we already mentioned at the beginning of this article, Robinhood won’t require a commission fee, nor will it require a beginning fee if you want to open the basic account. When compared to Acorns, this app will enable you to purchase individual stocks, however, there are additional platforms such as the ones featured on Loved.com that will do the same thing.
The Features Are Different as Well
Acorns: if you opt for this platform, you’ll be capable of funding your account in a unique way and it’ll also automate all the investments instead of you. Though you won’t be capable of purchasing individual assets or ETFs, it’ll make it simpler for you to pick what you should invest in since you won’t need to bother deciding which one suits you best. It provides 3 account types, all of which will require you to spend money on a permission fee.
Robinhood: on the contrary, this app is entirely free, but only if you opt for using the basic option, also you won’t be required to pay any commission charges when you finish the exchanges. With it, you could buy various ETFs, stocks, and other things as well. Keep in mind, it doesn’t provide any guides or learning resources, so if you’re a beginner, a different application may be better. The most unique feature? You can trade cryptocurrencies with it.
The Annual Fees
Acorns: when you download and install this platform, you’ll notice that there are three plans that you could opt for, coming at different prices of one, three, and five dollars a month. Hence, the annual fees would amass to 12, 36, and 60 dollars. Of course, this will rely on the account type you prefer to use.
Robinhood: throughout this article, you were capable of learning that this app doesn’t require a commission fee, nor any transaction expenses for your trades. However, if you wish to, you could pay for the Golden account that is 5 dollars per month – 60 dollars per year – something that will allow you to make margin trades.
Customer Support Options
You would think that both of these options offer a wide range of customer support services, however, they don’t. Both applications only offer customer support by email, which means that you might end up waiting for a response for quite some time. There is no telephone number that you can call, which is a problem if you need to solve an issue right away.
Both of these platforms offer amazing encryption and security features. What does this mean for you? Well, as long as you’re utilizing a secure, reliable password, your account will be safe on either app. Additionally, both of them are governed financial organizations and they comply with all the laws and regulations.
Although there are various similarities between Acorns and Robinhood, there are more differences between the 2 apps, which is why you must carefully research and determine which app is suitable for you. Keep in mind, both offer different things, hence, consider your investment skills and knowledge before choosing an option.
So, now that you’re aware of what both of these applications can provide you with, you shouldn’t lose any more of your time. Instead, you should go back to the begging of this article, go through it once more, and then determine which options might suit your requirements and needs best.