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E*TRADE vs Acorns in 2024
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Overview
Acorns is aiming to attract younger investors with unique investment approaches. However, can traditional online brokers like Firstrade and E*Trade offer better options for these investors? Let’s take a look.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Firstrade
|
$0
|
$0
|
$0
|
$0
|
$0
|
|
Etrade
|
$0
|
$0
|
$0 + $0.65 per contract
|
$0
|
$0
|
|
Acorns
|
na
|
na
|
na
|
$3, $5, or $9 per month
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$3, $5, or $9 per month
|
Firstrade leads in pricing, being the only broker that offers zero commission on all stocks, ETFs, options, and mutual funds.
Promotions
Firstrade: Get up to $250 ACAT rebate and $0 commission trades.
Acorns:
Get Acorns absolutely free and a $20 bonus.
E*Trade:
At E*TRADE, get $0 trades + 65₵ per options contract.
Category One: Method of Investing
Acorns offers a single investment approach: robo-advised management with just twelve ETFs available, based on a risk questionnaire.
Acorns also provides an automatic round-up for investments from purchases. For example, if you spend $8.64 on lunch, Acorns rounds it to $9 and puts the extra $0.36 into your investment account.
Firstrade and E*Trade allow customers to set up automatic transfers from a bank account for investments and offer self-directed accounts with access to a wide range of investment options including stocks, ETFs, and options.
E*Trade also provides futures trading and managed portfolios, including a robo-advisor option.
Winner: E*Trade
Category Two: Cash Management
Firstrade offers a debit card and check writing for customers with at least $100 in assets. E*Trade, with its FDIC-insured bank, offers more sophisticated checking and savings accounts that can be linked to investment accounts, with benefits like ATM fee reimbursements under certain conditions.
Acorns provides an FDIC-insured checking account with a unique debit card and ATM rebates but lacks features like mobile check deposit, which E*Trade offers.
Winner: E*Trade
Category Three: Software
All three brokers offer mobile apps. E*Trade’s apps provide extensive trading tools and features like streaming news and Level II quotes.
Acorns’ app focuses on account management without trading capabilities. E*Trade’s websites and platforms offer advanced trading options and tools.
Winner: E*Trade
Category Four: Education & Research
Acorns provides basic educational content tailored to new investors. Firstrade offers comprehensive tools and resources, including detailed security analysis from Morningstar.
E*Trade provides a rich set of research tools and access to a wealth of third-party analyst reports and sophisticated trading tools.
Winner: E*Trade
Category Five: Portfolio Management
Acorns offers a robo-advisor for portfolio management with no human advisors. E*Trade provides a range of management services, from automated robo-advisors to more personalized human-managed accounts.
Winner: E*Trade
Category Six: Other Services
Both Firstrade and E*Trade offer a variety of additional services including DRIPs, automatic mutual fund investing, and a full range of IRA options. Acorns has limited offerings in comparison.
Winner: Tie between Firstrade and E*Trade
Our Recommendations
Beginners: E*Trade for its comprehensive resources and customer support.
Mutual Fund Traders: Firstrade for its zero transaction fees on mutual funds.
Retirement Savers and Long-Term Investors: Tie between Firstrade and E*Trade.
ETF and Stock Trading: E*Trade for its superior trading tools.
Promotions
Firstrade: Get up to $250 ACAT rebate and $0 commission trades.
Acorns:
Get Acorns absolutely free and a $20 bonus.
E*Trade:
At E*TRADE, get $0 trades + 65₵ per options contract.
Firstrade vs. Acorns vs. E*Trade: Results
While Acorns may appeal to younger investors, more comprehensive services and better resources are available at E*Trade and Firstrade.
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Updated on 7/24/2024.
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