Top 10 Acorns Competitors and Alternatives

Top 10 Acorns Competitors and Alternatives

Acorns is an American financial technology and financial services company. The company currently operates from California, US. Furthermore, it specializes in micro-investing and robo-investing. Founded in 2012, the company has become one of the most prominent companies in the online financial services market. The company also lists among the top names in various lists.

In 2020, Acorns reported over 8.2 million customers and $3 billion in assets under management. The company has experienced significant growth over the past due to its impeccable services. Consequently, Acorns has also announced its intention to go public through a merger with Pioneer Merger Corp. Acorns has also received several rounds of investments from well-known celebrities and companies.

Acorns operates in an industry where the competition is high. While it creates more options and alternatives for users, it can also impact Acorns’ business. Despite its environment, though, Acorns has been operational for almost a decade. Nonetheless, the top 10 Acorns competitors and alternatives include the following names.

1.    Stash

Stash is an American financial technology and financial services company. The company operates from New York, US. Currently, it has a web platform and mobile apps on both prevalent app stores. These platforms allow users to invest small amounts incrementally. The company started its operations in 2015 under Brandon King, Ed Robinson and David Ronick.

Stash initially started in the iOS app store only. However, it launched an Android app soon after. In 2018, the company generated funds through Series D funding. In 2020, it also raised more investment through Series F funding. Stash is one of the most prominent competitors and alternatives to Acorn. Most users praise its user-friendliness and automation features as its primary advantages.

2.    Betterment

Betterment is an American financial advisory company. The company specializes in robo-advising and cash management services. Currently, Betterment operates from New York City and holds registration with the Securities and Exchange Commission. On top of that, it is also a member of the Financial Industry Regulatory Authority. Betterment is a registered investment advisor and broker-dealer.

Betterment started its operations in 2008 under Jon Stein and Eli Broverman. The company’s primary service includes its automated goal-based investing. Through this feature, the platform manages a portfolio of passive index-tracking equity. Similarly, it also handles fixed income exchange-traded funds. The platform also offers taxable and tax-advantaged investment accounts.

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3.    Qapital

Qapital is a personal finance mobile application that works on the iOS and Android platforms. The company started its operations in 2013 and was primarily Sweden-based. In 2015, the company also expanded its operations to the US. However, it moved away from the Sweden market to focus on the latter. Qapital seeks to motivate users to save money by gamifying their spending behaviours.

Similarly, it moves money from a user’s checking account to a separate Qapital account. This account has various restrictions to help users control their spending. Qapital also uses its database to study consumer behaviours. The platform allows users to set savings goals and automatically transfers money into their checking accounts. The app also integrates with over 180 other apps.

4.    Robinhood

Robinhood is an American financial services company that operates from California, US. The company has established a name for itself for pioneering commission-free trades. Similarly, it allows users to buy and sell stocks, exchange-traded funds and cryptocurrencies. The platform operates apps on both the iOS and Android app stores. Robinhood is a FINRA-regulated broker-dealer and registered with the US Securities and Exchange Commission.

Robinhood started its operations in 2013. At the time, not many options existed to allow users to trade securities without commission. However, Robinhood changed that and made a name for itself in the market. Since then, many companies have followed suit and allowed users to trade online without any commission. Robinhood is one of the Acorns’ top competitors and also an alternative.

5.    Public.com

Public.com develops and maintains an investing app that unlocks greater access to the stock market. However, it adds a twist by allowing users to trade socially. The app also seeks to provide access to a much higher and broader audience of investors. Public.com enables users to own fractional shares of stocks and exchange-traded funds. Like some other names, Public.com is FINRA-registered.

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Apart from fractional shares, Public.com also allows users to follow interest-based themes. The app also helps users learn from a community of subject-matter experts and friends without commission. This way, it motivates users to invest without any obstructions. Users can also follow others’ trade activities and make their transactions public.

6.    SigFig

SigFig is a financial technology company that operates in San Francisco, US. The company specializes in robo-advisory and customer engagement software. Formerly known as Wikinvest, the company got renamed SigFig over time. SigFig started its operations in 2006 under Parker Conrad and Michael Sha. However, it wasn’t until 2012 when Wikinvest launched its portfolio tracking and investment adviser referral service.

SigFig specializes in providing high-quality investment advice to investors of all levels. While it does not offer free trades, SigFig has comparatively lower management fees. On top of that, it also provides robust goal-based tools. SigFig also features unlimited access to financial advisors. However, the platform requires users to have a minimum of $2,000 in their account.

7.    M1 Finance

M1 Finance is an American financial services company. The company started its operations in 2015 under Brian Barnes, also its current CEO. Currently, it operates from Chicago, Illinois. M1 Finance provides a range of financial services. These include robo-advisory investment with brokerage accounts, digital checking accounts and lines of credit.

M1 Finance provides its services through its website and mobile apps. The company allows users to trade financial assets, such as common stocks, preferred stocks, exchange-traded funds. Similarly, it offers them fractional-share ownership. M1 Finance also provides margin lending, automatic rebalancing, automatic dividend reinvestment and cash management services. In 2021, the company reported over 500,000 members.

8.    SoFi

SoFi technologies is an American online personal finance company. The company holds the SoFi brand and is also the parent company of Social Finance, Inc. Currently, the company operates from San Francisco, California. The company provides financial products, including student loan refinancing, mortgages, personal loans, investing and banking. These features are available through its website and mobile apps.

SoFi started its operations in 2011 under four founders who met at the Stanford Graduate School of Business. At the time, they hoped to provide more affordable options to students. Since then, the company has increased its financial services to many areas. One of these includes its investing services, which SoFi introduced in 2018. The company offers commission and fee-free trades for various securities.

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9.    WeBull

Webull Financial is a US-based electronic trading platform. This platform is available through its mobile app or website version. Founded in 2017, Webull offers users the ability to invest in stocks, exchange-traded funds, options, margins and cryptocurrencies. Like some other names on this list, Webull boasts a commission-free trading feature, which attracts many users.

Webull has attracted significant attention in a relatively short amount of time. The company started as a Delaware limited liability company. While it began operations in 2017, the company launched its apps in 2018. Moreover, it received SEC approval to launch a robo-advisor. In the first three years of its operations, Webull attracted millions of users worldwide.

10. Fidelity

Fidelity Investments is an American multinational financial services company. The company is well-known for its services and is one of the oldest names in the market. Founded in 1946, Fidelity has significant experience in the financial services industry. Furthermore, it ranks among one of the largest asset managers in the world with over $4.9 trillion in assets under management.

Fidelity offers commission-free online trading to its users. The company has been active in the market for decades. However, it was only in 1995 when it entered the online world. The company has evolved into a juggernaut in the financial services industry over the years. Fidelity provides excellent trade executions are relatively lower costs. Similarly, Fidelity’s substantial expertise in the field is one of its primary attractions.

Conclusion

Acorns is a well-known financial technology and financial services company. It specializes in micro-investing and robo-investing. Over the years, Acorns has made a name for its specialized services. However, it has also garnered some attention and attracted competition. Some of the top Acorns competitors and alternatives include the companies listed above.

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