Introduction
When it comes to investing, there are a multitude of options available. Two popular platforms are Etrade and Acorns. Both offer unique features and have their own strengths and weaknesses. In this article, we will compare Etrade and Acorns to help you decide which one is the right fit for your investment goals.
Background
Etrade was founded in 1982 and is one of the oldest online brokerage firms. It offers a wide range of investment products including stocks, bonds, mutual funds, and options. Acorns, on the other hand, was founded in 2012 and is a robo-advisor that invests your money automatically. It is designed to help people save and invest small amounts of money.
User Interface
Etrade
Etrade’s platform is more geared towards experienced investors. Its user interface can be overwhelming for new investors, with a lot of information and options to choose from. However, it does offer a lot of customization options for advanced traders.
Acorns
Acorns, on the other hand, has a simple and user-friendly interface. It is designed to be easy to use for new investors. The platform is streamlined and presents information in a clear and concise manner.
Investment Options
Etrade
Etrade offers a wide range of investment options, including stocks, bonds, mutual funds, options, and futures. It also offers a robo-advisor service called E-Trade Core Portfolios, which is similar to Acorns but with more customization options.
Acorns
Acorns primarily invests in exchange-traded funds (ETFs). It offers five different portfolios based on risk tolerance and investment goals. The portfolio is automatically rebalanced to maintain the desired asset allocation.
Fees
Etrade
Etrade charges $0 for stock, options, and ETF trades. It charges $1 per bond trade and $1.50 per contract for options. The robo-advisor service, E-Trade Core Portfolios, charges a 0.30% annual advisory fee.
Acorns
Acorns charges a monthly fee based on the tier of service selected. The Lite plan costs $1 per month, the Personal plan costs $3 per month, and the Family plan costs $5 per month. There are no trading fees or commissions.
Minimum Investment
Etrade
Etrade does not have a minimum investment requirement. However, some mutual funds may have minimum investment requirements.
Acorns
Acorns has a minimum investment requirement of $5.
Mobile App
Etrade
Etrade’s mobile app is highly rated and offers a wide range of features, including the ability to trade stocks, options, and ETFs. It also offers real-time market data and news.
Acorns
Acorns’ mobile app is designed to be simple and easy to use. It offers all the basic features, including the ability to manage your portfolio, view account information, and deposit or withdraw funds.
Customer Support
Etrade
Etrade offers 24/7 customer support via phone, email, and live chat. It also has a large knowledge base and community forum.
Acorns
Acorns offers customer support via phone and email. It also has a comprehensive FAQ section on its website.
Security
Etrade
Etrade uses industry-standard encryption and multi-factor authentication to protect user data. It also offers a security guarantee that covers unauthorized trades and transfers.
Acorns
Acorns uses bank-level security and encryption to protect user data. It also offers a security guarantee that covers fraudulent activity.
Pros and Cons
Etrade
Pros:
- Wide range of investment options
- Robo-advisor service with customization options
- Highly rated mobile app
Cons:
- Overwhelming user interface for new investors
- 0.30% annual advisory fee for robo-advisor service
- Some mutual funds may have minimum investment requirements
Acorns
Pros:
- Simple and user-friendly interface
- Automatic investing
- No trading fees or commissions
Cons:
- Primarily invests in ETFs
- Monthly fee for service
- Minimum investment requirement of $5
Conclusion
Both Etrade and Acorns offer unique features and have their own strengths and weaknesses. Etrade is more geared towards experienced investors and offers a wide range of investment options. Acorns is designed to be simple and easy to use, and is great for new investors who want to invest small amounts of money automatically. Ultimately, the choice between the two platforms depends on your investment goals and preferences.
