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Acorns vs Robinhood App - Battle of Stock Market Apps For Beginners - YouTube
Channel: unknown
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- Today we're comparing
the Acorns investing app
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and the Robinhood stock trading app.
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We'll break down their features,
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discuss how each app
is designed differently
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and help you decide
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which is the right investing app for you.
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Hey, welcome back guys.
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This is Erik of EverydayInvesting.com.
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And on this channel,
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I'm all about helping the
everyday investor, like you
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and I, get started saving and investing.
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So if you're new here
today, definitely be sure
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to hit that subscribe button down below
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and that bell notification
button, so you don't miss out on
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any future videos.
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Today we are comparing the Acorns app
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and the Robinhood app.
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Just to let you know, if
after the video you would like
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to learn more about either app,
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I do have full in-depth
reviews, so I'll be sure
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to link those full in-depth
reviews down below,
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as well as links to where you
can join them online as well.
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With that being said guys,
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let's now hop into today's
comparison of the Acorns app
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and the Robinhood app.
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So when it comes to the Acorns
app and the Robinhood app,
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they do have a couple of similarities.
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Firstly, both of these
are popular investing apps
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for getting started investing
in the stock market.
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And both of them are available
on iOS and Android devices.
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That's it, that's literally it.
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There are no more similarities.
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Everything else is
different from here on out,
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so let's get to that.
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So the first difference
between these two apps is the
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account minimum to get started.
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With the Acorns app, you
can get started investing
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with as little as $5, and
with the Robinhood app,
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the minimum is technically
$0, but there is a bit
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of a caveat with that.
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Because while the minimum
is technically $0,
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the real minimum with
Robinhood is the price
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of the stock you want to
invest in, or you want to buy.
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So for example, on Robinhood,
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let's say you want to buy a
share of stock that's $80,
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then your account minimum is $80
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to buy that stock and open an account.
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On the other hand, if you
want to invest in a stock
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that's only $20 in Robinhood,
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well then that's your account minimum,
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$20 to get started
investing in that stock.
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Again, on Acorns the account
minimum is a fixed $5.
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Next I want to cover some
of the differences in
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how these apps are designed.
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So, Robinhood at its core
at its heart is designed
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to be a stock trading app.
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This means it's ideal and built
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for active short-term stock trading.
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Whereas Acorns on the other
hand guys is more built
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at its core to be a
long-term investing platform.
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It's more about long-term investing,
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long-term growth of your
portfolio, whereas like I said,
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Robinhood is a lot more centered
on active stock trading.
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So those are two key differences in
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how each app is designed.
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Both do each of their jobs really well,
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depending on what you're looking for,
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and diving in even
further to the differences
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between these two apps,
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Acorns has investing automation
tools to help you automate
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and encourage that passive
investing for long-term growth,
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whereas Robinhood has a lot
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more stock trading
short-term tools built in
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that encourage stock trading
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and really help you maximize that in.
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So a lot of the tools built
into these apps guys is centered
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around their two core focuses.
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When it comes to Acorns,
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they have several
investing automation tools,
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such as their roundups feature.
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This is a cool feature on the Acorns app
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that basically allows you
to invest the spare change
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from your everyday purchases
and have that invested
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for you automatically into
your Acorns portfolio,
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helping you to grow and encourage growth
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of your portfolio passively
without really having
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to think about it.
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Another great investing automation tool
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with the Acorns app is their
recurring deposits features.
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You can set up a recurring
deposit for Acorns
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to automatically transfer
money for you that you set up,
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that you choose, from your
bank to your Acorns account
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on a either weekly,
biweekly, or monthly basis
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to really help you again encourage
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that passive long-term investing.
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Consistency, that's the key with Acorns.
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Another automation investing tool
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on Acorns guys is they're
investing your cash back.
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Acorns has a builtin cashback
portal, which is really cool.
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Really helps you earn money
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basically on your everyday
purchases from hundreds
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of major online retailers
and local merchants as well.
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And Acorns will not only
help you earn cash back
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with your Acorns account,
but actually invest
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that cashback back into
your Acorns portfolio.
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So another great investing
automation tool on Acorns.
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Now again, with all three
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of those investing automation
tools on the Acorns app,
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those are all great tools,
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because they again help encourage
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consistent contributions
passively without having
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to think about about it.
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This is what grows your
portfolio over time.
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These small consistent contributions
with compound interest,
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that is the key to
growing wealth over time.
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Now moving on to the Robinhood app guys,
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Robinhood does have one
automation investing tool
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and that is recurring deposits.
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So Robinhood does allow
you to set up weekly,
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biweekly or monthly recurring deposits
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to your Robinhood account if
you so choose, so that's great.
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But other than that,
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they don't have any investing
automation tools like Acorns,
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where Robinhood shines guys is
through their trading tools.
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Robin had several tools to
help you with trading stocks,
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such as advanced order
types, such as market orders,
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limit orders, stop loss
orders and stop limit orders.
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And if you don't know what those are,
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I do have a more in depth Robinhood
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tutorial video covering those order types.
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Robinhood also offers
extended hours trading,
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which means you can trade before
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and after the stock market closes.
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And neither one of those
features is available on Acorns.
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Robinhood also offers Robinhood Crypto,
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and essentially Robinhood
Crypto allows you
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to trade a few select
cryptocurrencies like Bitcoin,
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Ethereum, Litecoin, and a few others.
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Again, not available on the Acorns app.
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Lastly, Robinhood does also
have Robinhood Options,
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which allows you to
basically trade options,
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which is a more advanced
type of stock trading,
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which I won't get into right here.
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But essentially, as you
could see, all those tools
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and resources built into
the Robinhood app are a lot
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more geared towards short-term
active stock trading.
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Acorns doesn't have any of those features.
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Acorns' features are geared
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again towards long-term investing
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with those automation investing tools.
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Next up, I want to talk about
the investments offered on
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both platforms, because that
is another key difference
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between them.
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So when it comes to
the investments offered
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on the platforms, let's
first start off with Acorns.
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Acorns keeps it simple.
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They have five prebuilt
diversified portfolios
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for you to choose from.
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Based on your investment
objectives they have portfolios
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in risk ranging from ultra
conservative, to conservative,
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to moderate, to moderately
aggressive and aggressive.
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So you can choose one of those
five pre-build portfolios
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and Acorns will automatically
invest every dollar
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that you invest into that portfolio.
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They're already well-built,
well-designed and diversified.
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Now, other than that,
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Acorns doesn't have any more customization
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to your investment portfolio.
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Robinhood on the other hand
guys has offers currently
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over 5,000 individual stocks and ETFs,
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which you can invest in to
really help you customize
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and build your portfolio.
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Robinhood does also like
I said offer the ability
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to buy and sell cryptocurrency,
a few cryptocurrencies,
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which Acorns does not.
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Now, this isn't necessarily a
plus or a minus to either app,
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it's just that each app is different.
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Another key difference between
these two apps guys is the
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actual ability to buy fractional
shares versus full shares.
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Let's just say you want to
buy a share of a tech stock
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that costs $300.
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You have to pay the full $300 on Robinhood
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to buy that stock.
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Whereas with Acorns it's like I said,
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you can invest in $5 increments
into a diversified portfolio
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that may hold that stock
inside its diversified holding.
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So there is kind of a plus
and minus between the two,
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you have a lot more ability
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to invest in individual
stocks in Robinhood,
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but you have to buy full shares,
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which may cost a lot more upfront.
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Whereas on Acorns guys like I said,
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you can invest smaller amounts upfront,
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but you don't have access
to all the individual stocks
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that you'll find on Robinhood.
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The next major difference
between these two apps is the
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account types they offer
and their versatility.
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So let's first start off
straight off the bat.
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I'll say it that Acorns
is a lot more versatile
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of an app than Robinhood.
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Acorns offers a lot more than
just an investing account.
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Acorns in addition to their
Acorns Core Investing Account,
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Acorns also offers an optional
account called Acorns Later,
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which means you can open
up a retirement account,
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either a traditional or a Roth IRA.
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Acorns also offers a
mobile checking account
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inside the app that comes
with an Acorns debit card,
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which you can use to
not only earn cashback
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from online and local
retailers, but you can use that
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to actually have a mobile
free checking account
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inside your app that has no
fees, no maintenance fees,
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no ATM fees, none of those
fees, no overdraft fees.
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Robinhood on the other
hand guys only has the
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investing account, and that's it.
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Robinhood doesn't offer
a mobile checking account
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at this time.
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Robinhood also does not offer
a retirement account option
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at this time.
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Next up is pricing.
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This is another difference
between the two apps,
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Robinhood on one hand guys,
it is a 100% commission-free
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to buy and sell stocks.
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If you're looking to trade
stocks, Robinhood might
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be an ideal option for you,
because there are no commissions
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to buy or sell, no commissions
to trade, 100% free.
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Now Robinhood does offer an optional
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upgraded account option
called Robinhood Gold,
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which does actually give
you access to several more
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advanced trading features,
and that comes in
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at $5 a month for Robinhood Gold.
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Now moving on over to Acorns guys.
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Acorns does offer several
different tiers of membership.
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The first one is the Acorns
Core Investing Account.
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And Acorns Core Investing
Account is a fixed $1 per month
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on balances up to a million dollars.
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It's just a fixed $1 per month fee.
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That is for your Acorns
Core Investing Account.
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If you're looking to get the
Acorns Core Investing Account
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plus bundle that with the
Acorns Later Retirement Account,
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that'll be a fixed fee of $2 a month.
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And lastly,
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if you want to bundle the
Acorns Core Investing Account,
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plus the Acorns Later Retirement Account,
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plus the Acorns Spend
Mobile Checking Account
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with debit card, that'll be
a fixed fee of $3 per month.
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So, you have different tiers with Acorns.
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One last major thing I
forgot to mention guys,
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if you're a student, if
you're a student currently,
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you may want to consider Acorns,
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because Acorns actually
waves fees for students
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for up to four years for as
long as you're a student.
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So again, if you're a student
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and you want to open up a
Acorns Core Investing Account,
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get started investing that $1
fixed monthly fee is waived
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for up to four years.
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Definitely something to consider
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if you're a college student.
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At the end of the day guys, either app can
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be an ideal option to
get started investing
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in the stock market.
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It just really comes down to
what are your individual goals
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and objectives.
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With that being said, I do have a couple
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of pros and cons in mind to
help you decide which might
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be a more ideal investing app for you.
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So, first let's go over
some of the pros and cons
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and we'll start it off
with Acorns pros and cons.
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So the first pro for
Acorns is that I think
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if you're a new investor
who is completely new
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to the stock market, who
has no experience investing
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and wants to get started
saving and investing,
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you might want to consider Acorns,
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because Acorns is a lot less overwhelming
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than Robinhood initially
if you're a new investor.
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The reason is because Acorns,
like I said, really helps you.
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They have the prebuilt,
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six prebuilt and diversified portfolios
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for you to choose from,
and that's essentially it.
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You choose one of those,
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Acorns does all the investing for you.
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The second pro with the
Acorns app is for students.
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Again, if you're a student,
you get that student discount
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for up to four years.
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Definitely don't leave that
behind if you're a student.
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And the third pro with the Acorns app is
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that if you're an investor
who is more interested
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in long-term investing in growth,
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versus active stock trading,
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you may definitely consider the Acorns app
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as a more ideal option.
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And the last pro with the Acorns app is
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that the Acorns app has a lot more
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automation investing tools
than the Robinhood app does,
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from roundups, from
investing your spare change
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to investing your cash back,
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to setting up automatic,
recurring deposits.
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A lot of these automation tools are built
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into the Acorns app and
they're just not there
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on the Robinhood app.
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So now let's go over some of
the cons with the Acorns app.
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So, the first con with the
Acorns app is if you're a
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more experienced investor ,
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you may want to consider
the Robinhood app,
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because the Acorns app again guys,
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doesn't have the ability to
customize your portfolio beyond
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those five prebuilt and
diversified portfolios.
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The second con with the Acorns
app is that it's just not
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as ideal for active stock traders.
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Again, the Acorns app does an amazing job
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at getting you started for
long-term investing and growth,
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but if you're looking to
actively trade stocks,
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you're just not going to have
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that functionality on the Acorns app.
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It's not a stock trading app,
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it's a long-term investing app.
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And the third con with the Acorns app is
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that if you're looking to invest
or trade individual stocks,
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specific stocks, Tesla,
Facebook, Walmart, Starbucks,
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specific individual stocks, you don't have
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that ability on Acorns.
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Acorns again has those
five prebuilt portfolios
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and they're composed of
hundreds of stocks inside,
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hundreds of major companies like that,
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like Amazon and others, but
you don't have the ability
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to invest solely in specific
individual stocks on Acorns.
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So now let's hop on over
back to the Robinhood app
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and go over some of the pros and cons.
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Firstly with the Robinhood pros.
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So the first pro with the Robinhood app,
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it's definitely a more
ideal option for investors
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who are a little more experienced,
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maybe a little more intermediate even,
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who want to have a lot
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more customization over their portfolio.
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If you want to invest in
specific individual stocks,
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really customize your portfolio,
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Robinhood might be a more
ideal option for you.
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And going into that even further,
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again with the Robinhood
app another pro is
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that you have access to
investing in over 5,000 ETFs
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and individual stocks,
which you just don't have
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that access to on the Acorns app.
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The third pro with the Robinhood app is
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that it does give you access
to trading cryptocurrency,
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a few major cryptocurrencies like Bitcoin,
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Litecoin, and others.
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And you don't have that
functionality on the Acorns app.
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And the fourth pro with
the Robinhood app is
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that it has a lot more stock trading tools
[791]
and resources built into
the app than Acorns does.
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Because again, Robinhood
guys, is a stock trading app.
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So it's going to have a lot more tools
[798]
and features geared towards
active stock trading.
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So let's lastly cover some of the cons
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with the Robinhood app.
[804]
So the first con with the Robinhood app is
[806]
that if you're a new
investor who is again,
[808]
completely new to the stock market,
[810]
you may consider the Robinhood app a
[812]
little bit overwhelming, because again,
[814]
the responsibility is on you to customize
[816]
and build your own portfolio.
[818]
Whereas on Acorns, they
already do that for you
[820]
and you just get started investing.
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The second con with the
Robinhood app guys is
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that it may require more funds upfront
[827]
to get started investing.
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The reason is because whereas in Acorns,
[830]
you can get started
investing with as low as $5.
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On Robinhood the minimum is the price
[835]
of the stock you want to buy.
[836]
And the final column
with the Robinhood app is
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that it just doesn't
offer as much versatility
[840]
as the Acorns app.
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Again, the Robinhood app is
a great stock trading app,
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but that's all it offers.
[845]
The Acorns app offers
the investment account
[847]
like Robinhood,
[848]
but it also offers a
optional retirement account,
[850]
an optional cashback portal,
[853]
and also a mobile banking checking account
[855]
with a debit card as well.
[856]
So for versatility that
is a con for Robinhood.
[860]
So let me know down below in the comments
[861]
which app you prefer, are
you a team Robinhood player?
[864]
Are you a team Acorns player?
[865]
Let me know down below.
[866]
I want to hear what's your
take, what's the consensus
[869]
from the Everyday Investing community?
[871]
If you guys like to try out
either one of these apps,
[873]
I'll link down below,
you can join them online,
[875]
as well as links to my full
ends up individual review videos
[878]
on both of these apps.
[879]
I have my YouTube channel.
[880]
Each video goes more in depth on each app
[882]
in case you're interested in
which app is right for you
[885]
if you're still not sure.
[886]
Anyways guys, as always,
if you have any questions,
[888]
leave your questions down below.
[889]
Always happy to answer those for you.
[891]
And thank you again for being a part
[892]
of the Everyday Investor community.
[893]
I'll catch you on the next
episode of Everyday Investing.
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