In modern times, new technologies have arrived – and with new technologies, we have new ways of investing. Nowadays, it is no longer strange that people invest through the Internet and mobile applications. The popularity of platforms such as Acorn and RobinHood speaks volumes about how much it has taken off. So today we will try to draw a parallel between these two ways of investing – and help you decide if you have a dilemma. Take a look at our – 2023 Comparison Guide and try to find out which one is better for you Acorns or Robinhood.
What Are The Internet And Mobile Trading?
There are more platforms on the Internet that can offer the possibility of trading stocks, currencies, oil, gold, etc. Traders can buy or sell a big number of financial instruments in just a few clicks. Online Trading involves participating in financial markets via the Internet. Traders and investors buy and sell financial instruments through a trading platform – provided by their broker. Trading decisions are made by the traders themselves, then applied to the trading platform, and thus sent to the broker.
Therefore, trading activity is based on speculation about financial markets – and also, it’s a method of trying to take advantage of a change in the cost of a particular asset for a profit. Mobile trading refers to the use of wireless technology. It allows investors to use these platforms from their phones and is not limited to traditional computer trading methods. Such technology allows smartphone users to more easily access their accounts – even when they are not on the desktop/laptop.
What Are Acorns Robinhood?
Platforms such as Acorns or Robinhood are among the most used tools when we speak about online investing. These two platforms are somewhat more targeted at the younger population – and new people who are entering the world of investing. However, although they have a somewhat similar target group – the method of operation and functioning of these two platforms differs significantly.
First, we have Acorn, which is primarily an advisory tool. In what way does it work? It is very simple since the investors can enter money by removing the surplus – when changing during their online purchases. This is then invested following the recommendations provided by the platform itself.
Speaking of Robinhood it is an advanced, modern platform – that makes your investment easier and much more understandable. Such a platform offers users their estimates. Therefore, when the user confirms a purchase or sale – the application searches for offers on the market, to find out the one that is the most favorable. To control the volatile value, this service, in case it cannot find an offer that suits you – waits until it appears, and then informs the user about it.
And now we will try to draw a parallel between these two platforms – to help you see what suits you best.
This is by far one of the most relevant things you need to pay attention to – no matter which investment platform you use. In this sense, you should pay attention to several forms of different fees.
● Fees for Trading
This type of payment may come as a flat fee – or the broker company will ask you to pay for what we call the expansion. This is primarily the distinction between the buy/sell prices.
This is what your broker is asking you to charge. You pay a percentage for trading based on the amount of each transaction.
Fees you have to pay for inactivity
Although it sounds like a kind of penalty payment – it is about paying the levy for keeping the money in your account.
● Other fees
This category includes all other business fees not mentioned above. So, it can be about collecting a deposit when opening a brokerage account – or withdrawing money from an account, etc.
According to Loved.com, considering these factors – the Robinhood trader’s platform has an absolute lead as it does not charge almost any fees. However, you should expect a 5% charge if you’re doing trading on the margin – meaning, with the money that you have borrowed. However, looking at this issue, Robinhood has some other faults. Namely, they have strangely high amounts of paying for their services. That is not the situation with Acorns that will charge only 1$ a month for their basic package.
Acorns is a relatively new thing and their service function as your automatic investing assistant. It is linked to your bank accounts or your cards – and any surplus up to a certain amount is placed on your Acorns account. For example, you can buy an orange juice for $ 1.80, your account will display a $ 2 bill – while the surplus will be transferred to your account. Of course, you can do these investments manually – but this is a big help for users. When we talk about investing – this platform offers you 5 pre-selected options that it offers you. They are mostly based on their risk assessment – as well as the desired growth rate. On the other hand, Robinhood is somewhat limited in features – because it relies primarily on the simplicity of use. It has a modest fund of investment managing tools but includes several tradable items – including cryptocurrencies.
What To Opt For Ultimately?
If you want to choose between these two platforms, the basis for the choice will certainly be your experience in investing. Consequently, you will decide what kind of account you need – as well as what you want to invest in, and in what way. All new investors who are just starting in this business may feel more comfortable if they opt for Acorns – primarily because they are insufficiently versed in investing – and this platform can do that for you. For those who are a little more experienced – Robinhood will probably be a slightly more suitable option. For all those who want to link their investment to a retirement account – Acorns is the right choice. However, those who want control over their trading ETFs, stocks, or cryptocurrencies – will opt for Robinhood. In any case, the final choice is up to you.