In a time where everything seems to have an app linked to it, it is no surprise that investment apps have become a thing. The only issue is there seem to be countless investment apps all with different features and functions. It can be tough to figure out which one to trust with something as important as your money. That is why Joel Anderson from the Youtube series Invested decided to delve into the three major investing apps, Stash, Acorns, and Robinhood, and weigh out their pluses and minuses to help individuals pick their favorite.
Stash lets you start investing with a minimum of $5 dollars, and you can also link it directly to your bank account and have funds deposited into the app on a recurring basis that works best for your budget. The app also comes with a feature called “robo-advisors,” which help you set up your account to invest in the companies that align with your values. For example, if you are interested in the environment, this app will only invest in green companies. The one major downfall of this app is that it charges a $1 a month service fee, so you have to make sure you are depositing in the app regularly if you start with the minimum $5.
Acorns lets you hook the app directly to your bank account, but also lets you take advantage of a feature called “round up.” This feature lets you link your debit card to the app and if you make a purchase for, say, $5.67, it rounds the purchase up to $6 and puts the 33 extra cents in your Acorn app for investing. Unfortunately, Acorn does not give you as many investing options as Stash. You can only set how aggressive you want your investments to be and the app does the rest. Acorn also has the $1 a month service fee.
Robinhood works just like a brokerage firm would. The major plus side of this app is that it has zero fees; you just pick the stocks you want to invest in. The downside to this app is it does not let you purchase fractional shares. You have to have enough funds to purchase a full share of a stock, or you can’t invest at all. This can potentially limit the stocks one is able to invest in.
