Investment App Review: Stash, Acorns, Robinhood

Yeah, but see here’s the thing. I host an investing series on YouTube, so
if it gets out that I was taken in a Ponzi Scheme… that’s… that’s going to look real
bad, so I — Oh, hi, I’m Joel Anderson and welcome to Invested. It was actually good that I was on the phone
because today we’re talking about investing apps. So we’re going to break down probably the
big three right now and let you know what they are and who they might be best for. Stash is an app that allows you to set up
regular investments straight out of your bank account on a schedule that fits you and then
it gives you a lot of great options for how you’re going to invest that. They have robo-advisor portfolios that can
match things that you believe or things that you want, so you can make sure your investments
are only going to environmentally responsible companies or socially responsible companies
or you can say, “screw that! I just want to invest in the companies that
are going to make me the most money.” There’s a lot of options there, there are
a lot of educational resources, it’s very friendly to novice investors, so that’s actually
a great place to start. Especially because the minimum amount to open
an account is just $5. Now, there is one sort of glaring issue with
Stash and that is they charge a $1 a month in fees. You know, you might be hearing that and saying,
“That’s not a whole lot of money.” And you’re right, in a certain sense it isn’t. But if you are one of those people who just
gets started with the $5 minimum deposit, and you don’t make any recurring deposits,
that means that all of your money is going to be gone in five months. And unless you make a truly extraordinary
returns in the first five months, all of those returns will be gone at the end of the sixth
month, so you got to make sure you are continuing to build on that $5 or that $1 a month fee
winds up being way too much to be worth it. The next app we’re going to talk about is called
Acorns. Get it… because you’re like a squirrel…
saving acorns for the winter. It’s clever. Acorns is a great app because if gives you
a couple of extra ways to save. Not only can you do recurring investments
from your bank account like you could on Stash, but you can also do what’s called “round-ups.” These essentially allow you to link your debit
card or credit card to your account so that every time you make a purchase, Acorns essentially
rounds that purchase up to the next dollar and then the additional money over your purchase
gets stashed away in your investment account. So, that’s a great way to sort of take yourself
out of the investing game and have it happen sort of automatically as your spending money
and for a lot of people, that’s pretty great. A couple of issues with Acorns, now it’s definitely
not nearly as robust in terms of offering you investment options. You basically just set how aggressive you want
to be and they have the same portfolio for everyone. So, you can’t get in the nitty gritty like
you could on Stash. But then also, like Stash, even though there is a $5
minimum to get started, it’s $1 a month in fees. Again, you got to be careful. If you are one of those people who is trying
to take advantage of this chance to start very small and build very slowly, a $1 a month
will wind up being a fairly large chunk of your investments. And the last app that we’re going to talk
about is called Robin Hood. It’s essentially just like a broker that you
would find in other places like a discount brokerage, but they charge nothing. You could get away paying absolutely no fees
while you use Robin Hood. There is no per-trade commission, there’s
no fees there. You can just purchase, you know, stocks and
bonds and other investment things at the price that they’re selling at and then put them
into your portfolio there. Now, you can’t purchase fractional shares,
which is a problem because then if you do want to invest, you have to have enough money
to get at least one share of something. So, if you want to buy Amazon, you need at
least $1,200 and that’s certainly not great. And they don’t offer the sort of robo-advisor
system where you can invest in a whole bunch of stocks sort of based on a single idea. But, that said, it’s entirely possible that
Robin Hood is on the cutting edge of a huge change in the entire investing industry. Even now there is M1 Finance and SoFi Wealth,
two other options that do pretty much the same thing. They have some small fees, but you can purchase
stocks for free. No commissions. I know what you’re all thinking, “what does
this come down to?” So, let’s talk turkey. Which of these three apps is the best? The answer there is whichever one works best
for you. You got to remember in each case they have
different pluses, they have different minuses, and a lot of it has to do with you and your
budget and the way that you interact with your money. Whichever one gets you investing is going
to be the best app. Or apply for all three. There is nothing stopping you.

14 Replies to “Investment App Review: Stash, Acorns, Robinhood

  1. Acorns is well known for its system that lets you take advantage of “Round-Ups” — investing your spare change whenever you use a linked card. For example, say you spend $9.45 at your favorite lunch spot. Using Acorns, you can round up to $10 and deposit that extra 55 cents in your Acorns investing account. Now Acorns has taken Round-Ups one step further. You can elect to boost your “spare change” amount by as much as 10 times. So instead of investing 55 cents, you can invest as much as $5.50 for that single transaction. This is a great habit to get into to save more of your money every day.

  2. Robinhood is my favorite of the three! However, I do love the round-up feature on Acorns!

  3. I like robinhood than any stock app. You have more control… Ironically I lost couple of thousand bucks with this app because "IM" the one who didnt have the "control". Meaning I let myself get greedy and im suffering from it. Learned my lesson.

  4. earned my subscrption. one question though: these apps are not available on google play store in my country (switzerland). so the question is: are they only for us citizens? i'm afraid Acorns is cause i tried to register via internet/laptop and it asked me if i'm a US citizen.

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