Robinhood vs Acorns vs Stash – Which one is the Best?

We are living in an epoch of digitalization. Every single piece of business is being performed on a virtual manifesto. It is indeed an era of staggering and rapid technological growth and development. We will be analyzing Robinhood vs Acorns vs Stash in depth.

To live a leisurely life in the later stages of the lifespan, it is imperative to start investing today. Investment is not an option but more of a necessity in the current state of affairs. Therefore, we are always in persistent search of a good investing platform.

Robinhood is an investing tool for people with a certain degree of wisdom and experience in the field of finance and the stock market. 

Stash focuses primarily on those consumers who are newly introduced to the subject and are keen to seek more investment information.

Acorn targets the more busy, scheduled, and patient customers who look forward to a better portfolio to invest in for a long-term duration.

But is this minuscule amount of data sufficient to determine which of the three is better for you? If not, then let us compare and explore Robinhood vs Acorns vs Stash.

Points of similarity between Robinhood, Acorns, and Stash 

We are aware that all three platforms are helpful for investment purposes, but what are the common points that remain the same in all three despite the differences?

1. Initial investment sums to get started 

All three applications are made, keeping the small-time investors in context. Thus, the money to start your initial investment is as low as $3-$5, though such an insignificant amount yields no benefit.

2. Purchasing of fractional shares 

The leverage provided by these platforms is the power to purchase just a fraction of a large share, and this edge motivates people to start investing with lower sums as well.

3. Bare minimum commissions on trade

The exorbitant sums charged by the enormous firms as commissions for trade and transfer are major de-motivators for new and small-time investors. The following applications have tackled this problem.

Robinhood vs Acorns vs Stash – In-depth Analysis

In-Depth Analysis of Robinhood –

Robinhood emerged as a neo-platform in the trading segment primarily due to its innovative policy of commission-exempted trade. Robinhood took no amount from the user on trades of stocks.

Since then, it has entrenched itself as a trustworthy platform. In the current day framework, this platform offers numerous services like Cryptocurrency trade, Options trading, Fractional Share purchase, Exchange Trade Funds (ETFs), and stock.

The Unique facility of indulging in fractional share purchases is the platform’s main attraction. So, an investor can buy a small fraction of any large share using this method with no additional fees as commission.

Pros 

1. You are able to acquire a share of any one of the free stocks on signing up.
2. You can start your investment with as low as $5.
3. Robinhood is the only platform where you can trade in cryptocurrency along with shares.

Cons 

1. The biggest stumbling block that holds down the platform is the lack of mutual funds and bonds. You can not opt for automated portfolio investment. You are required to handpick all your shares.
2. Another problem with Robinhood is the non-availability of advanced option trading choices. This has been a disheartening factor for various traders and investors.

In-Depth Analysis of Acorns – 

Acorns emerged as a revolutionary platform for those patient and newbie investors with little to no knowledge of the stock market. It is perfect for those customers who want to invest and forget about it, for the short-term, of course.

The propelling feature of Acorn comes in the form of predefined diverse portfolios of Exchange Trade Funds. Altogether a total of five such portfolios are presented to the investors.

Another astonishing feature offered by Acorn is the capability of Automatic balancing of portfolios and Round-up attributes.

Acorn offers two types of plans.

1. $3 Personal Plan for investment in IRAs for retirement and old age.
2. $5 Family Plan that offers multiple child accounts to your existing one.

Acorn will rebalance your current portfolio on the basis of the risk acceptance threshold given by you. Then, it will reallocate your assets to maintain your target, and such a distinctive feature is not visible on other platforms.

The round-up feature will sum up all your spare changes left out during the purchasing and invest in stocks when they add up to a minimum of $5-$6.

Pros 

1. Provides the user with a $5 bonus on the first investment.
2. There are no hidden charges attached to payments and trades. This has led to an increase in consumer trust.
3. Gives us exceptional characteristic facilities like Round-up and Automatic balancing.

Cons  

1. The monthly fee ranging from$1-$5 is not affordable for small investors.
2. There is no tax benefit provided for new and small-time investors. This is crucial as they are naive and unaware of taxation on stocks.

In-Depth Analysis of Stash –

When humongous competitors are already playing in the market, the best strategy is to adopt the best of both competitors. Stash has held its ground in fierce competition using the same tactic.

Stash is a careful combination of Acorn and Robinhood, and it brings the cryptocurrency option of Robinhood along with the Automatic balancing of the portfolio by Acorn to the table. It is best suited for new small-time investors who want to explore the market independently.

Stash allows the user to start investing with a minuscule amount of $5 at just a $1 operations fee. Also, it provides users with Smart Portfolios and their own banking accounts. 

As soon as the user fills in the required data and amount, Stash’s advanced AI suggests the user a list of portfolios to choose from for their initial investment. But unlike Acorn, the user has the upper hand here and may also handpick his fractional shares in compliance with his budget.

Pros 

1. Stash provides its users an initial investment amount of $10 to start their investment.
2. Stash acts as a Robo advisor to the user and guides them through the investment journey. 
3. Stash gives you a choice to invest in Crypto, bonds, and Exchange Trade Funds,

Cons 

1. The cost of operation may become infeasible when investing in small amounts and on an irregular basis.
2. The growth plan and Family plan offered by Stash are costlier than that of Acorn.

Stash, Acorns, and Robinhood online and mobile experiences

Stash, Acorns, and Robinhood are all brokerage platforms focused on mobile apps, in contrast to many of the biggest competitors in the sector that have robust desktop interfaces and mobile apps. Although you can access some services by logging in from your desktop or laptop, each is intended for mobile devices, so you’ll see the most functionality.

Despite suffering from its brief stint in the news earlier in 2021, the Robinhood app has a generally positive rating. The Google Play Store gave Robinhood a rating of 3.8 stars out of 5. 4.1 stars out of 5 from millions of reviews give it a slightly higher ranking on the Apple App Store.

Mobile devices can now use the platform

By checking in on your desktop computer, you can access several Acorns features. Its smartphone app received high ratings. The Google Play Store has over 150,000 reviews for the Acorns app, with an average rating of 4.3 out of 5. Better yet, it has a rating of 4.7 out of 5 stars in the Apple App Store. The Apple version has almost 800,000 reviews.

Stash has the finest overall functionality out of the three companies because of its availability as a mobile app and primarily on your laptop. The Google Play Store has 75,000 reviews and a rating of 4.2 stars out of 5 for the Stash app. The Apple App Store has received roughly 250,000 reviews for Stash’s app, giving it a rating of 4.7 out of 5.

In general, each of these brokerage platforms offers a pleasant mobile and web experience. This is largely because they were developed in response to the demand for accessible, user-friendly online brokerage platforms.

Who Should Use Robinhood, Acorns, and Stash?

The greatest choice is Robinhood if you’re searching for a straightforward approach to investing in a variety of unique stocks, ETFs, and even cryptocurrency. There are comparatively fewer trading restrictions than in Stash or Acorns, so you can do as you wish.

If you want to focus on saving money while simultaneously making investments for your retirement, Acorns make things simple. Custodial accounts’ multiple levels of investing and savings products enable you to save for investments, retirement, or even for your children. You won’t be able to choose your investments with Acorns, so be sure you’re comfortable with that.

Stash should be seriously considered by anyone looking for a combination of savings and self-directed investing. Although you won’t have quite as much capability as either one separately, Stash is effectively a combination of Robinhood and Acorns.

Stash offers investment advice to its members, but automating savings is not that simple. Although not as many as with Robinhood, you can still invest in specific stocks and ETFs. You don’t have as much flexibility with trades because they only process at predetermined times, it’s good to be conscious.

Frequently Asked Questions 

Robinhood vs Acorns vs Stash - Which one is better?

If you are an expert and want to exercise complete control over your shares, then go for Robinhood without a doubt. But if you are an amateur, Acorn is the best bet.

Which is more beneficial for beginners?

Acorn and Stash both are beneficial for beginners. Stash offers guidance and assistance, whereas Acorn provides you with effective portfolios.

How much money should you invest in Acorn?

As a beginner, setting aside at least 15 to 20 percent of your total income is advisable. If you are not financially stable, try minimizing it to no lower than 10 percent.

Does Robinhood charge for withdrawals?

The platform charges no commission or fee for the withdrawal of money. But there may be a deduction as per your debit card fee, and this is usually 1-2%.

Conclusion

When you have a basic understanding of how to invest, choosing the finest brokerage account or investment software simply comes down to your objectives and financial strategy. Robinhood, Acorns, and Stash are all mobile applications that could let people start investing using as little money as possible.

Finally, you must determine which company’s services are a good fit for your investment objectives and personal financial requirements.