Entering the world of investing can be quite intimidating, especially for those who are new to the stock market. However, there has been a surge of fintech investing apps that make this journey more manageable, thanks to beginner-friendly features such as no account minimum, educational resources, and simplified interfaces. Acorns is one such app that caters to novice investors, aiming to make investing less daunting and more accessible.
Acorns provides a robo-advisor platform, tax-advantaged IRAs, and a checking account, along with its notable micro-investing feature. This feature enables users to invest their spare change from everyday purchases into the stock market. By rounding up the purchase amounts to the nearest dollar, Acorns initiates a slow but steady accumulation of investments, which is an ideal approach for new investors who wish to test the waters.
- Acorns is a beginner-friendly investing app with a robo-advisor platform and micro-investing features.
- The app helps users invest their spare change from everyday purchases, gradually building their investment portfolio.
- Acorns offers additional features like tax-advantaged IRAs and a checking account to enhance users’ financial growth.
Want to try Acorns out? Click here.
Minimum Deposit and Balance
There isn’t a minimum deposit required to open an Acorns account, but you’ll need at least $5 to start investing.
Acorns offers monthly plans, such as Personal at $3 per month and Family at $5 per month. Keep in mind that fees may vary depending on the investment vehicle you choose.
Currently, Acorns doesn’t offer a bonus.
Acorns lets you invest in diversified ETFs, which include over 7,000 stocks and bonds.
The app provides access to educational articles and videos, helping you learn more about investing.
- $0 minimum deposit to open an account
- Invests your spare change from everyday purchases
- Customizes your portfolio based on financial goals, timeline, and risk tolerance
- Automatically rebalances the portfolio
- Offers Acorns Sustainable Portfolios for ESG investing
- Access to educational articles and videos
- Monthly fee can be steep if you don’t invest much
- Limited investment options
Acorns is a user-friendly robo-advisor that makes it convenient for you to invest your spare change and additional contributions into a diverse range of ETFs, comprising more than 7,000 stocks and bonds. Funding your account is made easy through manual deposits, automatic recurring deposits, or Acorns’ Round-Ups®, which accumulate from rounded-up purchases on your linked credit and debit cards.
To tailor your investments, Acorns takes into account your financial goals, risk tolerance, and investment timeline by having you complete a survey. Your age, income, and net worth play a part in determining your portfolio. The selection of ETFs in your Acorns portfolio may feature options such as the Vanguard S&P 500 ETF, reflecting the well-known S&P 500 stock index, or the iShares Core U.S. Aggregate Bond ETF, offering extensive exposure to U.S. investment-grade bonds.
Currently, purchasing or selling individual stocks through Acorns is not available, although the company plans to introduce this feature in 2022. If you’re looking to venture into trading on your own, consider trying a free stock trading platform like Charles Schwab, Vanguard, or Robinhood.
Apart from Acorns Invest, a taxable brokerage account, the platform also offers Acorns Later, which allows you to open and manage various types of IRAs and even handle a 401(k) Rollover. For your children’s investment needs, Acorns Early serves as an appropriate choice.
Acorns offers a hands-off managed portfolio with a unique Round-Ups feature, enabling you to effortlessly grow your money in the market. You’ll find that Acorns takes care of rebalancing your portfolio, ensuring your investments stay on track. The Round-Ups tool makes investing easy and accessible for almost anyone, as it allows you to contribute even small amounts.
With Acorns, you have the option to create an ESG (Environmental, Social, and Governance) portfolio comprised of ETFs focused on sustainable companies. Additionally, Acorns provides a checking account with features similar to a traditional bank account, including direct deposit, mobile check deposit, and a debit card. Plus, you’ll get fee-free withdrawals from over 55,000 Allpoint ATMs worldwide.
To help you learn more about stock market investing, Acorns offers educational resources such as a “Money Basics” blog and the Grow + CNBC website. These tools are designed to increase your financial literacy on the go.
Acorns’ user-friendly app is available for free download on both the App Store (for iOS) and Google Play (for Android), boasting high ratings of 4.7/5 stars and 4.6/5 stars, respectively. In summary, Acorns combines automated investing, savings, and learning tools to provide a well-rounded financial experience.
Acorns provides two membership options for you to choose from. The Personal plan, at $3 per month, offers a checking account, investment account, and retirement account. If you’d like to include your children’s investment accounts, the Family plan costs $5 per month and covers three accounts, in addition to your children’s investment accounts.
However, bear in mind that the monthly fee could impact your returns if you’re only investing small amounts. To make the most of Acorns, consider setting up a more substantial recurring deposit in your investment account besides the spare change contributions.
In comparison, platforms like Robinhood offer fee-free trading of stocks and require no monthly maintenance fees but lack robo-advisor services. If you’re after a fee-free robo-advisor and cash management combination, SoFi’s Automated Investing service could be an alternative choice to explore, as it doesn’t charge any management fees or account fees.
If you’re new to investing and looking for a user-friendly platform, Acorns is a great choice. Its simple interface and micro-investing feature automatically invest your spare change in low-cost, diversified funds, making the process easy and hassle-free.
For those seeking a slightly more advanced option while still enjoying a hands-off approach, Betterment might be a better fit. With this robo-advisor, you can opt for flexible portfolios, providing more customization options for your investments.
Remember, it’s essential to stay informed on personal finance, tech tools, and wellness to make the most of your investment journey. Don’t forget to follow reliable sources on social media platforms like Facebook, Instagram, and Twitter to stay in the know. Happy investing!
Discover various investment platforms such as Wealthfront and Betterment to help find the best fit for your risk tolerance. Explore alternative options like Robinhood and SoFi Automated Investing to diversify your choices and make informed decisions. Happy investing!
Get started with Acorns by clicking here.
Frequently Asked Questions
Is Acorns a good fit for beginners?
Yes, Acorns is a user-friendly app for beginners. It simplifies the investing process by automatically investing your spare change, making it easy to start building an investment portfolio without needing extensive knowledge or a large initial deposit.
What fees can you expect with Acorns?
Acorns offers three account tiers with different fees. Acorns Lite costs $1 per month, Acorns Personal is $3 per month, and Acorns Family is $5 per month. These monthly fees cover the use of the app and its features.
Pros and cons of using Acorns
- Easy for beginners to start investing
- Automatic round-up feature for saving and investing
- Diversified portfolios built with low-cost ETFs
- Cashback rewards from partner companies
- Monthly fees, regardless of the account balance
- Limited investment options compared to other platforms
- Not ideal for advanced investors seeking full control over investments
Acorns vs. Robinhood: How do they compare?
Acorns focuses on micro-investing and automatic savings, primarily targeting beginners. It allows users to invest their spare change into diversified portfolios.
Robinhood, on the other hand, is a commission-free trading app that offers more investment options, including individual stocks, options, and cryptocurrencies. It’s a better fit for investors with some experience and those who want more control over their investments.
Can you trust Acorns with your investments?
Yes, Acorns is a reputable, regulated, and secure platform for investing your spare change. It is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), providing protection for users’ investments up to $500,000.
What are some alternatives to Acorns for micro-investing?
Some alternative apps for micro-investing include:
- Stash: Offers customized investment recommendations based on your financial goals
- Betterment: A robo-advisor with automated portfolio management and additional financial planning tools
- Wealthfront: Another popular robo-advisor focusing on low-fee, diversified portfolios