In this post, we are going to see robinhood vs stash trading apps review. Or which one is better for your trading? Investing your hard-earned money isn’t always the most straightforward endeavor. When things grow difficult, it may be beneficial to have a specialized financial advisor on your side to help you make sense of it all.
What is Robinhood?
Robinhood Markets Inc. is a fintech business that runs a commission-free online discount brokerage. It offers a financial services platform that lets users invest in trade stocks, exchange-traded funds (ETFs), options, and American depositary receipts through the web and mobile (ADRs).
It also enables users to invest in specific cryptocurrencies based on their region. Payment for order flow, premium membership fees, stock loans, interest on uninvested cash, interchange fees tied to its debit card, and other minor income sources are how the firm earns money.
What is a stash?
Stash is a tax-free investment that allows you to invest in your future by saving tiny sums of money every day using an app.
You can stash automatically from a linked bank card for as little as R5 a day, or you can stash manually at any moment with the touch of a button.
Depending on your requirements and investing goals, you may invest in either a SA Top 40 Shares portfolio or a Cash+ portfolio, or both. As the value of these portfolios rises, so will the worth of your hoard.
You have complete control over when and how much you invest with Stash. Using the app, you may pause, alter, stop, and resume when and how you invest. Do you require money? Stash provides unrestricted access to your cash directly from the app.
Let’s compare each one of them.
Robinhood is a free-trading software designed for investors who wish to trade stocks, options, exchange-traded funds, and cryptocurrencies on a low-cost platform with no commissions or fees.
The Stash app seeks to make locating and selecting assets — especially exchange-traded funds and individual stocks — simple and approachable for novices looking to grow their portfolio.
Stash also provides a managed portfolio for customers who prefer to stay hands-off.
Robinhood is best suited to:
- Mobile users.
- Individual tax-exempt accounts
- Accounts for margins.
Many people start their financial portfolios on the internet. And, with the proliferation of mobile apps that make financial brokerage services available on your phone, it might be difficult to know where to start. Stash and Robinhood are two popular mobile trading apps for newcomers.
Let’s compare prices, services, online experiences, and mobile capabilities. If you want to get more personal investment experience, a financial adviser may also assist you in developing a financial strategy that is tailored to your specific objectives and circumstances.
- Minimum $0 for brokerage account and for Robinhood Gold account.
- Stock trading costs are also a $0. Options trades are $0 cost.
- Account fees- No annual, inactivity or ACH transfer fees. $75 ACAT outgoing transfer fee. Robinhood Gold costs $5 a month.
- Tradable securities in Robinhood app.
American Depositary Receipts for over 650 global companies.
- Crypto offering – 7 coins in 48 states.
Trading platform – Web platform is simple but it can cover basic investor needs.
Mobile app – A mobile trading platform that features configurable notifications, a news feed, candlestick charts, and the option to listen to earnings calls live.
- Research and data – News from WSJ Markets, Reuters, Barron’s, CNBC Business, and Cheddar are available. For an extra $5 per month, Gold members receive access to research from Morningstar, Nasdaq, and Nasdaq Totalview level II Market Data.
- Options for customer service (includes how easy it is to find key details on the website) – Email, social media, and in-app request-to-call service available 24 hours a day, seven days a week.
Read more: packaging business ideas
How does Robinhood work?
Robinhood vs stash-In contrast to a robo-advisor, which invests for you, Robinhood, like Stash, is a brokerage that lets you to make your own investing decisions. You can use Robinhood to purchase stocks, ETFs, options, and cryptocurrency. It provides a different set of investments than Stash.
Robinhood also does not have a minimum account balance restriction and allows you to invest in fractional shares. You may acquire little parts of corporations or ETFs with fractional shares, and you don’t have to pay a fortune to buy entire shares of stock.
The elimination of costs is perhaps the most significant benefit that Robinhood provides. Unless you sign up for Robinhood Gold, there are no trading or management fees.
Gold allows you to read professional research reports, trade on margin, and make greater quick deposits than the regular account. All of these features are available for $5 per month.
Whether you choose Gold or Silver, you may purchase and sell assets without paying a fee, no matter how frequently you trade.
Four significant distinctions between Stash and Robinhood.
Although there are some similarities between Stash and Robinhood, such as no minimum balance restrictions, access to a mobile app, and the ability to trade fractional shares, there are also significant distinctions. Here are four important distinctions:
Stash has Stock-Back®, but Robinhood does not. Stash also offers innovative automatic investment alternatives, such as roundups, which allow you to invest your spare cash. However, you may invest on margin with Robinhood Gold, but Stash does not provide margin accounts.
Robinhood vs stash review
Let’s see Robinhood vs stash review one by one.
Fees and pricing:
Stash charges a monthly fee of at least $1.1 per account. Robinhood offers fee-free accounts and may be a more cost-effective choice if you prioritise low-cost investing.
Stash makes it simple to speak with financial specialists about investing, but Robinhood does not provide this type of assistance. Both Robinhood and Stash have instructional resources available online.
Stash enables you to invest in stocks, bonds, or ETFs;5 Robinhood allows you to invest in stocks, ETFs, options, and cryptocurrencies.
Stash is best for these features:
- Beginners who wish to learn how to invest should use Stash.
- Investors interested in purchasing fractional shares.
- Investors who wish to pick their own assets and have automated portfolios created for them.
- Account minimum-$5.
- For automatic investment, there is a monthly account maintenance cost of $3. There are also $1 and $9-per-month options available.
- Investment expense ratios – For Smart Portfolios, the average is less than 0.06 percent.
- Account fees (annual, transfer, and closure) – There is no regular transfer cost, although there is a 1% fee for instant transactions. The incoming ACAT complete transfer charge is $75.
- Portfolio mix- Smart Portfolio’s asset allocation is well-balanced, but it lacks exposure to non-market linked assets such as REITs and commodities.
- The DIY individual brokerage account (available for $1 per month) has over 4,000 individual stocks and ETFs.
- Socially responsible portfolio option – There is no automated portfolio of socially responsible investments.
The DIY individual brokerage account offers themed ETFs, including socially conscious ETFs.
- Accounts supported –
Individual brokerage accounts
ROTH and Traditional IRAs
- Please keep in mind that Smart Portfolios can only handle individual brokerage accounts. IRA and UTMA/UMGA accounts are exclusively accessible for self-management.
- Tax strategy – Not available.
- Automated rebalancing – The Smart Portfolios option includes automatic rebalancing in response to withdrawals or contributions, as well as quarterly rebalancing.
- Human advisor option – Not available.
- Stash provides access to an online banking account together with a stock-back rewards debit card, but the account does not pay interest.
- Options for customer service (includes how easy it is to find key details on the website)
- Telephone and email assistance Monday through Friday, 8:30 a.m. to 6:30 p.m. Eastern time. Weekend email help is accessible from 9 a.m. to 5 p.m. Eastern time.
Stash promises to make investing accessible to newcomers. The service has a $5 account minimum and monthly fees ranging from $1 to $9, depending on the services and account types you want.
Stash may be a good choice if you want a little help putting together a portfolio of equities and ETFs. If all you want is automated management, you should seek elsewhere.
Stash, on the other hand, restricts you to investing in stocks, bonds, or ETFs5. You also have the option of selecting your own investments. Don’t be scared, though. Stash’s website contains a plethora of instructional content, and you can obtain guidance from a real person if you need it.
Investors who select the Growth or Stash+ levels will be able to invest in Stash’s Smart Portfolios. These meticulously crafted portfolios allow you to diversify and invest in your portfolio on a regular basis without having to make all of your own investing decisions. Stash will also rebalance your portfolio and reinvest your dividends for you.
Stash also provides options for automatic investment. You may set up automated transfers from your bank; round up debit card purchases to the closest dollar so you can invest your change; or send money when an algorithm deems you can afford it based on your spending habits.
The most significant disadvantage of Stash is that it is not free to use. You may open a Beginner account for $1 per month, a Growth account for $3 per month, or a Stash+ account for $9.1 per month. The beginning account allows you to open a taxable investing account. If you wish to invest in a tax-advantaged retirement plan, such as a regular or Roth IRA2, you must pay a higher monthly cost.
If you also bank with Stash, you’ll have access to a great feature called Stock-Back® incentives. 4 When you use your Stash debit card at over 11 million qualified firms, including Amazon and Starbucks, you will earn stock share parts. If you shop at a firm that does not participate, you will get Stock-Back® benefits in the form of an ETF.
Which investment app should you use: Stash or Robinhood?
Stash is perhaps a better option if you want to earn Stock-Back® rewards4, as Robinhood does not have something equivalent. Stash is also a better alternative if you want to invest in bonds, which Robinhood does not provide.
Robinhood vs stash-
Stash, on the other hand, provides tailored advice from investing pros, whereas Robinhood does not.
If you’re seeking for a brokerage account with no monthly fees, Robinhood is a better option. You do not need to sign up for Robinhood Gold to invest your money with Robinhood.
If you’re wondering how to buy bitcoin, want to invest in cryptocurrencies, or want to buy options, Robinhood is a better alternative than Stash. And, although you can trade on margin with Robinhood, you can’t with Stash.
Is Stash a trustworthy investment app?
Stash is a trustworthy investing app. It was formed in 2015 by co-founders with extensive experience in the finance business, and it today has over 4 million customers. Apex Clearing, a broker-dealer authorised with the Financial Industry Regulatory Authority, manages stashed accounts.
Stash is also a member of the Securities Investor Protection Corporation (SIPC), which means that equities in your Stash account are protected up to $500,000 if the brokerage goes bankrupt.
Stash is suitable for new investors since it provides advice for developing your ideal portfolio (similar to a Robo adviser) while allowing you to pick any supported investment. The platform accepts both regular and one-time contributions.
I don’t use Stash, although it normally receives positive feedback from clients. One of the most notable aspects is the ability to invest in sectors that you believe in – more on that in a moment.
Is Robinhood a trustworthy investment app?
Robinhood is a reputable investing app. It was created in 2013, and as of the end of 2019, it has over 10 million members. It is also a broker-dealer registered with the Securities and Exchange Commission and a member of the Securities Investor Protection Corporation (SIPC).
In the event that Robinhood goes bankrupt, you will get up to $500,000 in protection for the stocks and options in your account.
Is Robinhood suitable for newcomers?
Robinhood is ideal for new investors since there are no minimum deposits, no fees, and free stock trading. You can also purchase and sell fractional shares, which are less expensive than purchasing an entire share of stock.
However, unlike a robo adviser, you must choose your own assets. Robinhood offers online learning tools, but you’ll need to educate yourself before making your own financial decisions.
Stash allows you to invest in stocks, bonds, and exchange-traded funds (ETFs). 5 You might profit if your investments perform well. You may lose money if your investments do not perform adequately.
When investing, there is always the danger of loss, but a well-diversified portfolio of quality assets may produce a decent return over time. Make it a practise to review your asset allocation to ensure you have a well-diversified portfolio.
Is Robinhood superior to Stash?
Robinhood vs stash – which one is best? Robinhood has various capabilities that Stash does not, such as the ability to open an account with no fees, trade cryptocurrencies and options, and undertake margin trading with Robinhood Gold.
Stash, on the other hand, provides capabilities that Robinhood does not. If you have a Stash debit card, you may earn Stock-Back®,4 access many automatic investment options, and obtain assistance from financial specialists.
Consider your personal money demands while selecting an investing or trading app for the greatest outcomes.
As a beginner investor, it’s critical to locate a low-cost broker or online brokerage that offers a diverse range of suitable investing possibilities.
And, while entering the stock market and learning how to invest money might be scary, both Stash and Robinhood are terrific solutions if you want to choose your own stocks and acquire fractional shares.
Betterment and Wealthfront, on the other hand, may be superior investing applications for you if you like a bit more hands-on assistance.
If you’re looking to create a custodial account, Acorns is a good place to start. These are just a few of the services on our list of the top investment apps.
Robinhood vs stash. What Makes Them the Same?
- All Two of them services provide a plethora of features. Let’s start by looking at how they’re comparable.
- Minimum Investment – To begin, none of the services require a minimum investment.
- Investment Account Types — Each of the three provides a taxable account.
- Investment Types — You may invest in ETFs through all three services.
- Mobile Apps – Each of the three businesses emphasizes the importance of investing with an Android or Apple mobile device.
How Do They Differ?
Let’s look at the differences between Stash, Robinhood, and Acorns.
For its basic account, Robinhood charges no commissions or account fees.
Stash charges a monthly fee of $1 for accounts under $5,000 and a yearly fee of 0.25 percent for accounts over $5,000.
Socially Responsible Investing –
If you want to invest in SRI (socially responsible investing) portfolios, Stash is a good place to start.
Individual Stocks –
You can invest in individual stocks with Robinhood and Stash, but not with Acorns.
Robinhood Specific Features
- Robinhood’s basic account is free to use, and there are no trading commissions. There are no costs to purchase a wide choice of stocks, ETFs, and other products. It does not provide substantial advice or educational materials, thus it is best suited for those who are eager to learn elsewhere.
- It is unique in its provision for free cryptocurrency and options trading, although most investors should avoid them.
- Stash is unusual in that it may direct your money into different themes based on your beliefs. You have numerous alternatives with Stash if you want to avoid placing your money into a specific business or if you want to focus on a specific area.
- Stash provides more than 100 investing options, which are comprised of a select group of prominent stocks and ETFs. It is ideal for someone who doesn’t know much about investing but wants to learn more and get some advice while creating a portfolio.
- Stash provides a banking alternative that Robinhood does not yet provide. As a result, if you like, you can keep all of your money in this account.
Fees for each year
Stash offers three membership options for $1, $3, and $9 each month. If you wish to open a retirement account, you must purchase at least the $3 plan.
For its basic account, Robinhood charges no commissions and no fees. It provides a Gold account for $5 per month, which includes additional capabilities such as margin trading.
Many investors may find Stash intriguing since it enables them to benefit from automatic investing when they just want to set it and forget it. Clients, on the other hand, have complete authority over their accounts if they so want.
Robinhood stands out as a full-service stock broker that is essentially free to use. You may trade stocks, funds, options, and anything else without paying any fees.
Robinhood vs stash -Who Are They Most Appropriate For?
Depending on your requirements, one of these two options is an excellent fit.
Stash is ideal for new investors who wish to learn the ropes. Its combination of self-directed and automatic investment alternatives can teach you a lot about how to invest.
Robinhood is best suited to aggressive traders. If you have some expertise and are seeking for low-cost, self-directed stock, ETF, options, and cryptocurrency trading, here is the place to be.
Robinhood vs stash- Which Is the Most Effective?
Stash and Acorns have one huge flaw in my opinion, and that is their price.
If you begin with a very modest portfolio, that $1 each month ($12 per year) might take a sizable chunk out of your portfolio growth.
That’s why my Acorns account has grown so slowly in comparison to the S&P 500. I pay $2 every month, which comes from my investment gains.
However, I am aware that you are paying for services using Acorns and Stash. The monthly charge of a few dollars is for financial guidance. If you don’t need the counselling, you may self-direct your portfolio at a cheap brokerage for no monthly or yearly costs elsewhere.
Because Robinhood is primarily free to use and doesn’t provide any portfolio advice, I’d put it in a distinct category than the rest. There may be reasons to use both Robinhood and Acorns, but Stash accomplishes essentially the same thing as the other two together, assuming you don’t require any of the stocks or other investments that Robinhood provides but Stash does not.
So, which is the most effective? That is determined by your objectives and fee tolerance.
Robinhood is fantastic if you can do it yourself.
Stash and Acorns are both good options if you can’t and want to pay someone for assistance. However, keep in mind that the cost is deducted from your investment earnings, and $1 each month in fees is a cost that adds up over time.
Robinhood vs stash vs acorns
Stash, Acorns, and Robinhood are all mobile app-centric brokerage systems, as opposed to many of the larger competitors in the brokerage sector, which offer sophisticated mobile applications and desktop interfaces.
You may get the app for each brokerage from the Apple App Store or the Google Play Store. Each is built as a mobile experience, so you’ll see the most functionality there, even if you can access specific features by signing in from your desktop or laptop.
The Robinhood app is generally well-rated, however it most likely suffered a setback with its brief appearance in the news earlier in 2021. Robinhood has a rating of 3.8 stars out of 5 on the Google Play Store as of this writing.
It has a somewhat higher rating on the Apple App Store, with 4.1 stars out of 5 from millions of reviews.
Certain Acorns features may be accessed by signing in on a desktop computer, although the platform is intended to be used on a mobile device. Its mobile app receives high marks as well.
The Acorns app has a 4.3 out of 5 star rating from over 150,000 reviews on the Google Play Store as of this writing. The Apple App Store rates it even higher, with 4.7 stars out of 5. There are almost 800,000 reviews for the Apple version.
Stash is available as a mobile app as well as largely on your laptop, providing it the best overall capabilities of the three companies. Stash’s app has a comparable high rating on Google Play, with 4.2 stars out of 5 based on 75,000 reviews.
Stash’s app has a rating of 4.7 out of 5 stars and around 250,000 reviews on the Apple App Store.
Now we have seen all the comparison between Robinhood vs stash.
It does not have to be difficult to locate a skilled financial counselor. SmartAsset’s free tool connects you with up to three financial advisers in your region, and you may interview your advisor matches for free to choose which one is best for you.
Get started now if you’re ready to locate an adviser who can help you reach your financial objectives.