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For new investors, there is no shortage of options available when looking for a micro-broker and a robo-advisor to begin their investing journey. Some of these services, the majority of which are accessible via mobile applications, provide a wide range of services and financial tools, are all designed to assist the novice investor in growing wealth. Nearly every week a new service comes online, making it difficult to know which one to select. Some of these services, like SoFi, Wealthfront, and Acorns, all offer various financial services, but the one you select will depend upon your personal needs. In this article, we compare Wealthfront vs SoFi Invest and SoFi Invest vs Acorns App in hopes of helping the new investor select the best service.
In this comparison, let us look at three of the most popular stand-alone micro-investing and robo-advisor apps currently available.
Wealthfront is a well-known independent digital investment service that is automated to the point of operating nearly completely hands-off. Users have the option to invest in trusts, IRAs, 529 college accounts, cryptocurrency and many others. Wealthfront also offers portfolio reviews, a high yield checking account, and loans, which makes this service very useful as its own financial services provider.
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Acorns is a small investing app that works by linking a financial account, either a credit card or checking account, and rounding up everyday purchases to the next whole number, which then goes into an investment account with Acorns. Take, for example, a purchase of a $3.75 drink somewhere. This is rounded up to $4, with the extra $0.25 going into the investment account. This method is perfect for the new investor who does not have much to start with initially, but knows that small amounts here and there add up over time. Acorns allows extra rewards for shopping with partner retailers, and cryptocurrency investment. Acorns also offers a checking account and a debit card.
This service is a variety of services wrapped into one, with robo-advisor services and investing services. SoFi users can invest in cryptocurrency, ETFs, fractional stocks, IPOs, and it offers automated investing. There are no investment or management fees with SoFi, and only $1 is needed to open an account, making it an attractive option for those who want to get started but do not have much extra to invest. The company also offers loans, goal planning, and a variety of different portfolios based on risk tolerance.
Both Acorns and Wealthfront are perfect for new investors with not much money to invest initially who also want to keep all of their financial dealings in one place, with both investments and checking and savings. Wealthfront is good for investors who don’t mind picking their own ETFs, but this service requires an initial $500 deposit, whereas Acorns does not. SoFi offers free financial advisors, and free investment management services. When looking into robo-advisors, Wealthfront vs SoFi Invest tend to come out equally, with Acorns being a somewhat different investing service. All three services have decent customer support, and offer both web access and mobile app access.
1. Which service is best for parents trying to save for college?
Wealthfront offers a traditional 529 Plan, one of the few micro-brokers who do. On the other hand, Acorns has family plans that allow parents to create accounts for their children that can function as 529 plans.
2. How “safe” are these services?
In terms of cybersecurity, all three services make use of the latest encryption technology and identity verification methods. When it comes to investing, there is always a risk of losing money when investing in stocks, so investors should always educate themselves about the stocks in which they invest.
3. How much does each of these services require to get started?
SoFi only requires $1 to open an account, while Wealthfront requires $500. Acorns does not require a minimum to open an account, but does require a minimum of $5 to begin investing.
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