Acorns and Stash are two flexible platforms to support novice investors. Both these apps are ideal for investors who want to grow financially but don’t have the expertise or time to contribute to their financial status.
These applications offer unique features such as educational content and automation to simplify the investment process. Using these applications investors can achieve their financial goals and follow an effective strategy.
Both these applications are super helpful for investors. But they have to choose a tool that perfectly fits your needs. This acorns vs. stash comparison will help you determine a perfect tool according to your needs.
What is Acorns?
Acorns are the first investment application for smartphones. It enables investors to open an account on their Smartphone and manager transactions. With the help of Acorns, you can connect your mobile phone with the bank account and invest your spare change. Furthermore, it also allows you to integrate your credit card with your investment strategy. Once you set your goals and strategies, the application will automatically invest your money.
The notable benefit of Acorns is that you can connect unlimited accounts and credit cards to your application. So, whenever you make a purchase and you are left with a change of less than a dollar, the application will immediately invest that amount. This enables you to save significant money in the long run.
Acorns consider this investment process as Round-Ups, since the app roundup your balance whenever you make a purchase. You can manually invest the amount as well. For that, you need to choose an amount and click to invest. Yes, it’s that simple. Acorns also enable you to schedule your investment deposits based on monthly, weekly, and daily strategies.
Pros
- You can invest a small amount as little as $5
- Round-ups allow you to automatically invest the spare change in your account
- You can open custodial accounts for children
- The app offers found money that gives you cash back when you purchase with your partner
- They also offer retirement options
Cons
- Offers limited investment options.
- Everything is automated and doesn’t offer human advisors.
What is Stash Invest?
Stash invest is another popular automated investment app. Like Acorns, the app doesn’t include limitations on minimum investments. That’s why you can refer to this app as a micro-savings application. Stash investment doesn’t invest on your behalf. But, it offers investment recommendations. So, you check the opportunities and invest according to your will.
This app allows you to create an investment portfolio on the platform. Furthermore, you can download investment themes and allocate your assets for consistent strategy. These themes include ETFs (exchange-traded funds) for asset allocation.
The name of the investment themes is quite interesting. The example includes Delicious Dividends and Defending America. You can download the themes on your Android and iOS devices.
Furthermore, you can connect the application to your bank account for easy transactions. But, the downside of this app is that you can only connect one application. The app is available on the web as well as desktop.
Pros
- The platform offers small investment options
- You can open a custodial account for your children
- Download different themes according to your strategies
- Offers individual stock facility
Cons
- Creating an account with Stash Invest is expensive, especially if you want to create an account on Stash+
- The platform doesn’t offer human advisors
- You can choose from limited investment options
- Stash Invest doesn’t allow you to automate your strategies
Acorns vs. Stash – What Should You Choose?
When it comes to investment, you need to consider your long-term goals. Both these accounts offer similar features and benefits. But, the ability to automate your investment makes Acorns a unique platform. Keep in mind that your goal is to save money for the future. Thus, the round-ups feature would be the perfect strategy.
Furthermore, Acorn also offers Found Money and SEP IRA investing options. Using these investing options, you can take your investments to the next level. For instance, rebate shopping multiplies your profits over time.
This doesn’t mean that Stash Invest is not a suitable option. First of it enable investors to invest in individual stocks. By choosing this platform, you get complete control over your portfolio. A wide range of investing options makes Stash a unique platform.
Conclusion
Acorns and Stash are perfect tools for investors with little or no experience. Both platforms offer three monthly pricing plans. Furthermore, they offer the same account options.
Since Acorn is an automated platform, you don’t have to repeatedly open the app to invest. Instead, the app will pick and trade your investments according to the algorithm. Acorns manage the process for you. On contrary, Stash offers automated advice and suggests optimal strategies to support you.
To conclude this Acorns vs. Stash comparison, we can say that Acorns is a perfect tool for beginner investors as it offers automated investment management. If you want to read more about Acorns, you should click here. However, for Stash, you should check this link. Even though stash doesn’t offer automated trading, it is also a good tool to get started with investment.
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