Introduction
Investing your money is a smart way to grow your wealth over time. With the rise of investment platforms like Fidelity and Acorns, it’s never been easier to start investing. But which platform is right for you? In this article, we’ll compare Fidelity and Acorns to help you make an informed decision.
Fidelity
Overview
Fidelity is a well-established investment platform that offers a range of products and services. They’re known for their low fees and strong customer service. Fidelity offers a range of investment options including stocks, bonds, mutual funds, and ETFs.
Pros
One of the biggest advantages of Fidelity is their low fees. They don’t charge any account fees, and their mutual fund fees are some of the lowest in the industry. Fidelity also offers a range of resources and tools to help you make informed investment decisions.
Cons
One potential downside of Fidelity is that they require a minimum investment of $2,500 for some of their mutual funds. This can be a barrier to entry for some investors. Additionally, Fidelity doesn’t offer a robo-advisor service like Acorns does.
Acorns
Overview
Acorns is a newer investment platform that’s focused on making investing accessible to everyone. They offer a unique round-up feature that automatically invests your spare change into a portfolio of ETFs. Acorns also offers a robo-advisor service that manages your investments for you.
Pros
One of the biggest advantages of Acorns is their accessibility. With their round-up feature, you don’t need a lot of money to start investing. Additionally, their robo-advisor service makes investing even easier by managing your investments for you.
Cons
One potential downside of Acorns is their fees. While their fees are low, they can add up over time. Additionally, Acorns doesn’t offer as many investment options as Fidelity does.
Comparing Fidelity and Acorns
When it comes to choosing between Fidelity and Acorns, there are a few key factors to consider.
Fees
Fidelity is known for their low fees, while Acorns has a more unique fee structure. Fidelity doesn’t charge any account fees, while Acorns charges a monthly fee of $1, $2, or $3 depending on the plan you choose. Additionally, Acorns charges a management fee of 0.25%.
Investment Options
Fidelity offers a wider range of investment options than Acorns does. While Acorns focuses on ETFs, Fidelity offers stocks, bonds, mutual funds, and ETFs.
Minimum Investment
Fidelity requires a minimum investment of $2,500 for some of their mutual funds, while Acorns has no minimum investment.
Conclusion
Both Fidelity and Acorns are great investment platforms, but they have different strengths and weaknesses. If you’re looking for a platform with low fees and a wide range of investment options, Fidelity may be the right choice for you. If you’re looking for an accessible platform that makes investing easy, Acorns may be the better choice. Ultimately, the choice between Fidelity and Acorns comes down to your individual needs and preferences.
