11 Great Alternatives to Acorns

Micro-investing apps have revolutionized the way people approach investing, making it accessible even to those living paycheck-to-paycheck. While Acorns is a popular choice in this category, there are several alternatives that offer unique benefits. These apps allow users to invest small increments, often less than a dollar, making it effortless to save and invest their spare change. In this article, we’ll explore the best Acorns alternatives, highlighting their features and benefits, helping you choose the one that aligns with your financial goals.

What is micro investing?

Micro-investing apps are your gateway to investing, even if you’re starting with just a small amount, sometimes less than a dollar.

Here’s how it works: Most micro-investing apps allow you to connect your debit card to the app. They then round up your everyday purchases to the nearest dollar. When these rounded-up amounts reach around $5, the app takes that spare change and invests it for you.

The beauty of micro-investing lies in its simplicity. You don’t have to worry about the nitty-gritty of investing because the app does the heavy lifting. It automates the process by rounding up your purchases and putting that extra money to work for you.

Another fantastic feature is that most micro-investing apps don’t demand a hefty initial deposit. So, whether you have a little or a lot, you can easily kickstart your investment journey. It’s a user-friendly way to begin building your financial future.

Discover Acorns: Your Easy Way into Micro-Investing

Acorns, a leading micro-investing app, simplifies investing by turning your everyday purchases into opportunities. Connect your primary debit card, and Acorns will automatically round up your transactions to the nearest dollar, using that spare change to start your investment journey.

How Acorns Works:

Upon signing up, Acorns assesses your risk tolerance, financial goals, and timeline. Armed with this knowledge, it crafts a personalized portfolio, investing in Exchange-Traded Funds (ETFs) and periodically rebalancing to keep you on track.

Key Features:

– Seamless, automatic investing via purchase round-ups

– Configure recurring contributions

– Expertly designed portfolios by top investment firms

– Access to retirement and custodial accounts

– Enjoy fee-free banking with perks like early direct deposit

– Bonus investments when shopping at partner retailers

Pros:

– Invest with as little as a few cents

– Professionally managed portfolios aligned with your risk profile

– Hassle-free, ‘set it and forget it’ approach

– User-friendly interface with abundant educational resources

Cons:

– Potentially high fees for low balances

– Lack of access to human advisors

– Bank account lacks interest earnings

Cost:

Acorns offers two tiers:

1. Personal ($3/month) – includes personal investment and retirement accounts, banking features, and cash-back investments.

2. Family ($5/month) – encompasses everything in the Personal tier, plus custodial investment accounts for children.

Getting started is a breeze: Click ‘Get Started,’ provide your email, password, and personal information, and link your funding account. 

Sign up for Acorns by clicking here

Discover 11 Great Alternatives to Acorns

Just like Acorns, the best apps out there provide a friendly entry point with low minimum investment requirements and a range of investment options. These apps are loaded with the features that savvy investors seek when selecting an investment platform.

Much like Acorns, keep an eye out for apps that offer low fees while giving you the chance to invest in the assets you desire. Whether it’s ETFs akin to Acorns or a broader spectrum like cryptocurrencies or options, these alternatives have got you covered.

• Robinhood: Robinhood, the pioneer of commission-free trading, offers a user-friendly way to invest, much like Acorns. You can start with just $1 and even purchase fractional shares, making it accessible to everyone. Robinhood provides investments in stocks, options, ETFs, and cryptocurrencies. You can also explore features like IPO access, automatic investments, options trading, and investing on margin through Robinhood Gold for $5/month.
• Public.com: Similar to Acorns, Public.com offers commission-free trading without requiring a minimum investment. What sets it apart is its social aspect, allowing users to follow and learn from other investors. Public.com offers a wide range of investment options, including stocks, ETFs, and cryptocurrencies. You can also set up recurring investments and gain access to company-specific analyses.
• Stash: Stash is a user-friendly personal finance app similar to Acorns. It offers automated investing in ETFs, stocks, and crypto, as well as custodial accounts for kids. Stash allows you to invest with fractional stock shares and offers features like automated round-ups and cash-back investments.
• M1 Finance: Dubbed the “super app,” M1 Finance combines investing, borrowing, and spending. It offers automated portfolios, known as “pies,” but also allows DIY investing, giving you control over your investments. M1 Finance provides access to retirement and custodial accounts, making it a versatile choice.
• Betterment: Betterment is an all-in-one personal finance app offering banking, investing, and retirement planning. It uses low-cost ETFs to create customized portfolios based on your goals and risk tolerance. Betterment also offers checking and savings accounts, making it a comprehensive financial solution.
• SoFi: SoFi is a micro-investing and personal finance app with a low $5 minimum investment requirement. It offers both DIY and automated investing options, along with access to fractional shares. SoFi also provides cryptocurrency trading, retirement accounts, and a high-yield checking account.
• Qapital: Qapital is a set-it-and-forget-it personal finance app that helps you save and invest effortlessly. It offers autopilot investing, portfolio recommendations, creative rules for saving, and goal tracking. Qapital has plans starting at $3 per month.
• Webull: Webull is an excellent choice for both beginners and experts, offering commission-free trading with no minimum investment requirement. It provides access to stocks, ETFs, options, and cryptocurrencies. Webull’s platform includes extended trading hours and paper trading for practice.
• Plynk: Plynk is designed to make investing accessible with as little as $1. It simplifies the investment process by guiding you through risk assessment and offering educational content. Plynk lets you invest in stocks, ETFs, mutual funds, and cryptocurrencies.
• Chime: While not an investment app, Chime offers a high-yield savings account, early direct deposit, and fee-free banking. Chime is a valuable tool for managing your finances and saving money efficiently.
• Greenlight: Greenlight is an investment app for kids, allowing them to start investing with parental supervision. Kids can invest as little as $1 in stocks and ETFs while parents oversee their investments. Greenlight offers educational tools and hands-on financial learning.

Choosing an Alternative to Acorns: Conclusion

When selecting an alternative to Acorns, consider factors like fees, available investment options, minimum requirements, and customer support. Each of these alternatives offers unique features to suit different financial goals and preferences.

Micro-investing apps, including Acorns and its alternatives, offer accessible ways to start saving and investing, even with small amounts of money. Each app has its unique features and benefits, catering to various investment preferences and goals. Whether you’re a beginner looking for a hands-off approach or an experienced investor seeking more customization, there’s an app among these alternatives that can help you take the first step toward building your financial future. Remember, the key is consistency and starting early to maximize your investment growth over time.

Note: Please perform your research and consider your financial circumstances before making any investment decisions.