Are you trying to decide if Acorns or Robinhood is the broker you should use to start investing?
When it comes to investing, it’s natural to want to compare Acorns Vs Robinhood, two of the easiest platforms to begin investing.
Both are geared towards beginner investors and are user friendly.
We want to make you aware of the similarities and differences that exists between the two brokers so that you are able to make an informed choice.
We’ve compared Acorns vs Robinhood for you to help you decide which is best for your investing style and goals.
Acorn vs Robinhood Unique Features and Offers
Jump Ahead To
Both Acorns and Robinhood offer an investment app and an online investment platform.
To make trading as easy as possible each broker has a mobile app with full functionality that you access from your phone.
Each broker offers commission-free trades which is a good option if you are concerned about fees taking away money from your investments.
The commission-free trades have prompted the more traditional brokers like Charles Schwab and Fidelity to remove trading fees from for most of their products.
To entice their ideal customer to choose between Acorns vs Robinhood, each broker has unique offers.
Acorns offers
There are many unique offers Acorns use as promotions to entice new users. They are related to opening an acorns checking account, referrals, and sign up bonuses.
Checking Account Bonus
Acorns runs different promotions when you open an Acorns checking account. You can be eligible for a cash reward if you set up direct deposit with you employer to your Acorns account.
Referral Offer
When it comes to friend referrals the bonus is different between Acorns vs Robinhood. Instead of giving you 1 share of stock, Acorns gives you and your referral a monetary investment.
Currently, you and your referral can receive a $5 investment into your Acorns Invest account as an offer.
Additionally, for a limited time if you refer 5 friends, you can be eligible to receive $1000 in investments into your Acorns Invest account.
It seems that instead of having a static referral bonus like Robinhood, Acorns changes it’s referral bonus on an almost weekly basis.
Sign up Bonuses
Acorns gives you a $10 investment sign up bonus after you make your first $5 investment.
Personal Finances
Acorns acquired a company called Harvest that hopes to help everyday Americans improve their net worth.
For a small fee, you can get access to tools that will help you manage your debt, negotiate banking fees to get them reimbursed, uncover monthly subscription fees that you are not fully aware that you are paying.
Robinhood Offers
Cash management
When you have a Robinhood brokerage account, you can sign up for a cash management account.
With a cash management account, the cash that you have in your brokerage account is moved overnight, to a participating bank.
Additionally, you receive a debit card from Sutton bank and can use this card as you would any other debit card.
Just be aware that the money on the debit card is based on what you have as cash in your brokerage account. Not for the amount of your investments.
Free Stock
When you open a Robinhood account you can be rewarded with 1 share of free stock that is valued between $3-$225. However, 98% of the time, the stock that you will receive will be valued between $2.00-$10.00
In order to receive the stock you will have to link your bank account to your Robinhood Account.
You can also receive 5 free shares of stock when you refer a friend to Robinhood. Your friend will receive 1 share of stock.
This offer is not available for everyone, there are eligibility requirements before this offer appears in your Robinhood account.
Cryptocurrency
Robinhood allows you to buy cryptocurrency in your Robinhood Instant Account and in the Robinhood gold account.
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Funding Your Account Acorns Vs Robinhood
When funding your account, there are different options that exists between Acorns vs Robinhood.
With Acorns you link a bank account, debit card, a credit card to you account so that you can use their round up and spare change feature.
The round up feature takes your spare change from a purchase a rounds to the nearest dollar.
There is no minimum deposit, but to start investing you need your spare change to add up to $5 before it is automatically invested.
Additionally, you can choose any amount you want to invest from a linked personal checking or savings account.
With Robinhood, you can link a personal bank account and begin moving money into your Robinhood brokerage account.
Acorns vs Robinhood Investment Accounts
When you look at the types of offered through Acorns vs Robinhood there are many differences. Acorns gives you more investment account options to fit your needs.
Acorns Investment Account Options
Acorns has 3 investing accounts you can choose from. They have Acorns Invest, Acorns Later, and Acorns Early.
Acorns Invest is the taxable brokerage account that Acorns offers which is similar to Robinhood Instant account.
Acorns Later is the retirement accounts that Acorns provides. With Acorns Later you can invest in a IRA or a Roth IRA account.
Acorns Early is the custodial accounts that Acorns offers. Acorns Early allows you to start investing for your children.
Robinhood Account
Robinhood offers you two taxable brokerage accounts. When you first open your Robinhood account, you are given a Robinhood Instant Account.
Once you have an instant account, you can apply for a Robinhood gold account.
A Robinhood gold account allows you to trade on margin.
Robinhood does not offer any retirement accounts. This means that you cannot open a Roth IRA or an IRA with Robinhood.
Additionally, Robinhood does not offer custodial accounts. This means you cannot open an account for minors on the Robinhood app or on the Robinhood website.
Building Your Investment Portfolio
The types of investments you are able to buy and how differ on Acorns vs Robinhood. Through the Robinhood app you are able to choose and buy individual stocks, options, cryptocurrency, and ETFs.
Additionally, you can invest in fractional shares through Robinhood and Acorns. Instead of paying for a full share, you can pay a fraction of the price and own a fraction of a share.
If you are just getting started with trading and want to start off small you can begin with micro investments which is small amounts of money.
Both platforms allow you to purchase fractional shares when you invest $5 or less.
Fractional shares are a great option for new investors and young investors who don’t want to start investing with too much money.
They allow you to start investing right away and understand how the stock market works first hand without risking too much money.
Acorns and Robinhood are not the only brokers to offer this investment option.
Charles Schwab offers fractional shares under its Stock Slice program. To find out how you can buy fractions of a share with as little as $5 dollar, read our article here.
You are not able to buy any mutual funds, fixed income securities, and bonds.
On Acorns app and platform you are not able to pick your individual investments since it is a limited trading authority account.
You cannot choose what to invest in, Acorns chooses your investments for you. You can choose from 5 Acorns Investment portfolios that are based on different risk levels.
Acorns vs Robinhood Fees
There is no account minimum when it comes to accounts at both Acorns and Robinhood however, Acorns charges a subscription fee.
Acorns charges a monthly subscription fee of either $3 or $5 depending on the plan that you choose.
You have a choice between the Personal account which is $3 a month or the Family account that is $5 a month which includes the early account to start investing for kids.
Conclusion
When using these apps it is possible to begin building your investment portfolio without the need for a financial advisor.
When it comes down to Acorns vs Robinhood they both have convenient features that allow to manage and see your own investments from your phone.
If you want to choose what companies you invest in and do not need retirement accounts or a custodial account, then Robinhood may be a good option for you.
If you want more guidance and less decision making with more investment account options, then Acorns may be a better option.
Let us know if this article helped you make a decision. We would love to hear from you.
Acorns Vs Robinhood – Which Is The Best Broker For You
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Nadia is a Financial Independence Coach from New York City. She holds a B.A from Columbia University and worked 13+ years in Investment Banking and Financial Services. She is an entrepreneur, investor, and partner at Wealth Twins LLC. She reached Financial Independence in her 30’s and is passionate about showing others how to achieve the same.
