![]() With that in mind, we’ve rounded up some of the leading investing apps that will put the power of the stock market in the palm of your hand □Įach of the investment apps we’ve chosen for comparison has particular strengths, and our guide will show you how to find the best investing platform for you, based on investment options like, fees, and features. That choice might seem a bit daunting at first, but don’t panic… it’s actually a good thing! We’re all for putting the ability to invest into the hands of everyday people □ Open banking paved the way for the latest wave of fintechs, meaning we’re now spoilt for choice when it comes to investing apps. If you’re thinking about whether 2021 is the right time for you to invest, or you’re just looking for a UK alternative to the Acorn investment app, then you’ve probably realised that there are lots of options available. The alternative is traditional brokerage firms, which can be intimidating and have high fees and minimum investment amounts - Acorns’ minimum is $5.Ĭurrently, Acorns charges a $1 monthly fee for accounts with a balance under $5,000, and 0.25% per year for accounts larger than that.Deciding to become an investor can be really exciting, and it’s a significant step in your personal finance journey. Acorns’ automation is what’s appealing to users, he said. When asked what he thought about similar apps for investing like Robinhood, which lets people track and invest in public stocks from their smartphones and without paying fees, Cruttenden said he doesn’t see them as competition. And an Acorns clone, Lawnmower, which invests in Bitcoin, the popular digital currency, launched last week.Īlthough Acorns is looking into offering tax-advantaged accounts and possibly more investing options eventually, it plans to stick to investing in ETFs for the time being. In recent years, other automated investment tools such as Wealthfront and Betterment have surfaced to offer investment management with little to no contact with human investment advisors. “People are really understanding that technology can help them make better investing decisions,” Cruttenden said.Īcorns’ six portfolio options are designed with different risk levels, and are regularly and automatically balanced based on their performance. The rest of the money is from users making voluntary lump-sum investments. It shows that people are drawn to this type of hands-off approach, he said. He added that of the $100 users invest monthly on average, $55 comes from through automated withdrawals using the formula involving the rounding up the value of transactions. Of Acorns’ 650,000 registered customers, 75% are under the age of 35, Cruttenden said. “What we see is that once people get started, they get in” – as in investing and using the app frequently.Īcorns’ two-pronged approach to making investing approachable by automating the process and incorporating a smartphone app is paying off with younger users. “We wanted to connect it to something you’re already doing, which is spending,” Acorns co-founder and CEO Jeff Cruttenden told Fortune. ![]() For example, if you buy a coffee for $2.40, Acorns will take an extra 60 cents and invest it in an exchange-traded fund. Users link their bank accounts to the app, which then automatically rounds up the cost of all transactions to the nearest dollar, withdraws that spare change and invests it. Acorns, a eight-month old smartphone app built for exactly that purpose, said Wednesday that it had raised $23 million in additional funding.Īcorns’ app was designed to help people, especially first-time investors, get started in investing with small automated investments into a portfolio of exchange-traded funds, or ETFs, that the company selects and balances. ![]()
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