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Robinhood vs Acorns cs Stash | Who is for What?

There has been a significant change in the way people make their investment decisions in the last few years, especially after the coronavirus pandemic wreaked havoc all over the world. The constant disruption of established investment procedures has forced people to look for alternatives. Online investment has increased, leading to a spurt in apps catering to the requirements of users. Stash, Acorns and Robinhood are the top priorities for online investors now. The purpose of each of them is to make life easy for retail investors while making online transactions. All these apps are user-friendly and easy for ordinary people to handle. Though there are very big players operating in the brokerage sector, these three companies have caught the imagination of young investors who aspire to make money through online transactions in stocks and other investment options. Although all these three companies basically help people to invest their money, there are certain differences in the way all of them operate. One of the differences is that only two companies allow people to buy individual stocks. Let’s understand the way all three companies work and some of the features being offered by them.

Unique platforms

Considering that major companies such as Vanguard, Fidelity and Charles Schwab have been operating in the sector for a long time, the impact made by these three online brokerage platforms was immense and unique. All you need is a mobile phone and you can open an account in three of them very easily. As we have mentioned earlier, each of them offers different services.

Robinhood

Robinhood is the most popular online investment platform and you can open an account with Robinhood for free. One big advantage is that Robinhood won’t take trading commissions. You can buy stocks, exchange-traded funds (ETFs), options and even cryptocurrencies by using the Robinhood platform.

Acorns

Acorns, on the other hand, won’t allow their users to invest in individual stocks. They have an accumulation method and the platform invests for the user here. It has two types of accounts. Acorns Personal is a combination of three accounts: a basic taxable investing account, a SEP, Roth or traditional IRA and a checking account. Meanwhile Acorns Family has all the above options coming along with an Acorns Early account, which is an investment account for children. Acrons offers their service at a relatively low cost. The users can set up recurring deposits, roundups from card purchases, etc.

Stash

Stash can be basically explained as a combination of both Robinhood and Acorns. It offers service packages and the same investment options being provided by Robinhood. Through Stash, one can go for taxable brokerage accounts, retirement accounts and a banking account that comes with a debit card. It will also allow users to invest in ETFs and individual stocks. It has three types of investment plans: Beginner, Growth and Stash+

Fee structure

Considering the fees of other brokerages, Stash, Acorns and Robinhood take nominal fees only. In the case of Robinhood, users can open an account and trade without any fees. Even while closing the account also, you don’t have to pay anything. Amazing, isn’t it?

However, FINRA and the SEC charge fees for certain transaction types.

On the other hand, you have to pay for opening an account with Acorns or Stash. You have to pay $3 per month for the Acorns Personal plan while the monthly charge of Acorns Family plan is $5.

A Stash user will have to pay $1 per month for Stash Beginner, $3 per month for Stash Growth and $9 per month for Stash+.

When it comes to straightforward trading Robinhood is considered the best by several experts in the field. However, it is not possible for a person to open IRAs, savings accounts or checking accounts with Robinhood. A disadvantage indeed.

Stash, Acorns and Robinhood are mobile app-centric brokerage platforms. A user will have to download the apps on the Apple App Store or Google Play Store. In short, these platforms are designed to give the user an investment experience via mobile. They are not very keen to develop their desktop options.

Our analysis suggests that all the platforms are good with each of them having their own features to lure the investor.

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