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Stash vs Acorns vs Robinhood. Which One Is Better?

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Stash vs Acorns vs Robinhood. The digital revolution has changed things around. We have to know the online brokerage firms to create accounts to manage our equity portfolio. Especially for a new geek in the market. The virtual brokerage offers online and mobile account management, which is relatively easy to handle and get used to.

The most popular and well-designed brokerage firms such as Robinhood, Acorns, and Stash make it easy for anyone to access the market. They do not require a high amount of capital in hand and experience. With little investments, you can begin your career as an investor from these investment firms and explore the market. 

So, let’s dip a bit deeper and see which one comes up on top; Stash vs Acorns vs Robinhood. 

"Acorns%20is%20serious%20about%20security,an%20account%20and%20use%20Acorns.&text=Securities%20in%20your%20Acorns%20Invest,are%20protected%20up%20to%20%24500%2C000.it’s very serious about security. The trading platform has taken every possible step to ensure proper check and balance. Acorns use SSL encryption for the website and application to keep it secure with 256-bit encryption. This means that users’ personal and financial data is accelerable only to the user itself and Acorns. 

Moreover, Acorns provides account alerts to the users when it detects any unusual and abnormal activity. It also has bank-level security with multiple layers to protect your information which includes secure servers.

For instance, for the users of SPIC Protected Investment Accounts, the securities in the user’s Acorns Invest and Later accounts are protected up to $500,000. 

For example, you can buy zoom stock and NIO stock with the help of these 3 platforms.

Stash

Stash is an investment app just like Acorns, but it has its significance. Stash targets beginners to initiate their investing and trading career with ease of mind. The service has a zero account minimum to open a personal portfolio (Stash also has retirement and custodial portfolios) and charges $1 to $9 a month, depending on account types. 

Users can the option of hand-holding while they build a portfolio of stocks and ETFs. Stash supports a wide range of accounts to diversify user’s investment portfolios, including taxable brokerage accounts, retirement accounts, and custodial accounts. 

How does Stash work?

Stash has a working system quite similar to Acorns. Every time customers spend, Stash will round-up the purchases to the nearest dollar. For instance, whenever the round-up total reaches $5, Stash will transfer the spare change to the customer’s investment account. 

Stash also offers its users a cashback opportunity on everyday purchases to earn up to 10% cashback. 

Is Stash legitimate?

Stash is a relatively new player in the financial service market compared to Robinhood vs Acorn. Stash offers brokerage services to its users, excluding investments that the FDIC federally insures.

This somehow causes a risk of losing principal as with any other brokerage. Stash provides its users with Apex Clearing Corporation, an SEC-registered broker-dealer and member FINRA/SIPC.

 So, what Stash does is noted by the Securities Exchange Commission (SEC), as it’s registered with the SEC. The brokerage firm also has the Securities Investor Protection Corporation (SIPC) and Financial Industry Regulatory Authority (FINRA). This makes Stash all legitimate to go with.

robinhood vs acorn
Which one is better Stash vs Acorn vs Robinhood?

What are standard features among them?

Although each brokerage application has its unique and distinct features, there are some standard features among them—setting aside Stash vs Acorns vs Robinhood—which make them similar.  

  1. Exchange-traded funds: All three brokerage firms allow you to invest in ETFs.
  2. Taxable accounts: All three offer taxable investing accounts.
  3. No minimum investment: None of the three apps requires a minimum investment to open an account.
  4. Phone-friendly, web-ready: Stash, Acorns, and Robinhood apps are designed in a manner that supports both Apple or Android mobile devices but can also be accessed through your computer browser.

How are they different from each other?

Robinhood is the most established among Acorns and Stash. It offers a free basic account with zero trading fees. Robinhood has the broadest range of investment options that cover different areas of trading.

This allows users to have a much-diversified platform to seek the best possible investment options, including stocks, ETFs, options, futures, and cryptocurrencies. However, it provides the least amount of guidance than Acorns and Stash.

Acorns’ best part is that it’s fully automated, making the investor more reliable about the investing—without worrying about the complexities of the market. Acorns offers an automatic recurring investment option helping in growing your money with the hands-off method. 

Stash is a new platform that’s much more like for beginners and provides the best opportunity to learn as you go.

It provides complete guidance while creating your portfolio.

Also, it gives you complete freedom to decide on your own. Users can use a unique Stock-Back debit card, which helps them earn fractional shares from participating retailers, similar to earning the cashback rewards. 

Pros and Cons of Stash vs Acorns vs Robinhood 

Each brokerage app has its benefits and drawbacks. It depends on what kind of investor you are and how long you have been in the market. So, let’s have a look at the pros and cons of Stash vs Acorns vs Robinhood.

Stash Pros 

  • Educational content and support.
  • Fractional shares.
  • Values-based investment offerings.

Stash cons

  • Intelligent Portfolios don’t offer tax-loss harvesting.
  • High ETF expense ratios.

Acorns Pros

  • Automatically invests the spare change.
  • Cashback at select retailers.
  • Educational content available.

Acorns cons

  • Small investment portfolio.
  • High fee on small account balances.

Robinhood Pros

  • No account minimum.
  • Streamlined interface.
  • Cryptocurrency trading.

Robinhood cons

  • No retirement accounts.
  • No mutual funds or bonds.
  • Limited customer support.

Frequently asked Questions

Here are some of the frequently asked questions about these trading platforms.

Can you make money on Stash?

Stash is an investment app, which means it helps you in making money. It is a tool that guides you to understand the market and have specific options for investment and get earnings and profit upon your invested money. 

It depends on which securities you want to invest in. Stash helps you in risk management and understand the investing trends in the market. Also helps you to guide towards the investment option as per your stature and mood.

If you aren’t in volatile investments, then you can go the low-risk route and bypass that problem with Stash.

What about Stash vs Acorns and Stash vs RobinhoodStash is best for new investors who want to learn. Its hybrid of self-directed and automated investing options can teach you a lot about how investing works.

Is Betterment better than Acorns?

Betterment is a brokerage app and an automated investing tool that has been around for more than a decade. It carries the distinction of being the first-ever Robo-advisor. 

Betterment is more straightforward and does not offer Acorns’ automatic investment feature. Similarly, Betterment focuses more on growing more extensive portfolios and this service generally offers better ways to target your money.

Where Acorns is best for people who don’t want to be bothered with investing. You can set it and forget it. This is hands-off investing for the long term.

Which one is better, Stash, acorn or Robinhood?

Each one of them has there own significance based on their services and the level of trust people put in them. Let’s check about between Stash vs Acorns, Stash vs Robinhood, and Robinhood vs acorns.

  • Stash vs Acorns: Stash is better for new investors who want to learn and gradually develop their portfolios. Where as Acorns is best for those who don’t want to give much time to invest. 
  • Stash vs Robinhood: While Robinhood is the best choice for active traders who are experienced and looking for low-cost and much variety.
  • Robinhood vs Acorns: Acorns, in comparison to Robinhood, comes first for newbies, which provides hands-off investing for the long term.

 

Conclusion

Investing is a very sacred practice in your financial life cycle. If you want to invest your savings, you need to be risk-averse and understand the market altogether.

For this, you need to choose the best possible and most situated brokerage firm for you. In today’s digital world, investment platforms like Robinhood, Stash, and Acorns have become necessary for an investor. 

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