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Acorns
Micro-investing roboadvisor platform that allows investors to save and invest small amounts of money (think round-ups with everyday purchases). They make the investing process super easy and simple. It's popular with families since they offer custodial accounts for kids.
Why we like Acorns:
Easy to use
Intuitive and easy to use platform - based on your responses to questions on your financial risk profile, Acorns will recommend a portfolio for you. You don’t have to pick your own investments or make your own trades. Set up automatic recurring investments and invest your spare change through round-ups.
Round-up Feature
Acorns will round-up your everyday purchases and invest it automatically. For example, when you buy coffee for $4.50, Acorns will round up to $5 and invest the $0.50 difference. You can also “boost” your round-up by applying a multiplier you determine.
Cash Back Investing
If you enjoy using cash back sites on everyday shopping, Acorns earns you cash back from certain merchants and automatically invests the cash back into your investment account.
Account features
Fees
Acorns does charge a monthly fee of $3. This fee may be high as a % of your portfolio when your investment balance is lower. However, if Acorn’s offerings encourage you to continue investing, we think the monthly fee is well worth it.
Account Minimum + Insurance
$1 required to start investing. SIPC insured.
Great for Families
For $2 extra per month, you can open up custodial investment accounts for your kids. This can be a great way to put a little away for each kid (i.e., $5 per week) and teach them about the power of investing and compounding interest.
Things to consider
Tax loss harvesting
Doesn’t offer tax loss harvesting.
Fees for small balances
High fee on small account balances.
Account Types
Limited types of accounts compared to competitors.
