To answer that I need to provide a quick breakdown of the three:
- Acorns has a brokerage fee of $1 a month that allows unlimited transactions. It takes the spare change from your debit card transactions (or any linked card for that matter) and rounds it up to the nearest whole dollar and invests the difference in ETF’s. Automatic investing of fixed contributions and a found money program are also ways to grow the account.
- M1 is a commission free brokerage that allows you to pick a personalized basket of stocks and allots your contributions using a pie chart format. It also allows you to auto-invest and benefits from dollar cost averaging.
- Robinhood is great for low to moderately active traders. You get 2 commission free trades a day and you have access to stocks and ETFs on the NYSE, NASDAQ, and some OTC markets. It’s good for when you want to buy or sell individual companies.
So why do I use these three platforms? Mostly because I have a few different strategies that each one is best suited for. Do I need to use all 3? Probably not, but I really like the different features for different needs. Plus using all 3 only costs me $1 a month. I also update all 3 on my Yahoo Finance profile so I have a one stop shop to look at how my portfolio is doing overall.
Another shout out to my mom for another great idea for an article!
Please feel free to ask any questions you have below.