SEC Exceeded: Acorns exceeds SEC regulation, which impacts investor confidence in the platform's long-term stability and security.
Fees: Acorns charges a monthly fee for its services, which can eat into small balances. Higher-tier accounts have higher fees but offer more features.
Potential for Over-investing: The automated round-up feature can lead to frequent small investments, which might not be ideal for those who prefer to invest larger amounts less frequently.
Limited Customer Service Channels: Acorns offers limited customer service channels mainly by social media platforms, which can lead to longer response times and difficulty reaching support for assistance with account issues or inquiries.
Is It Safe?
Acorns holds an exceeded license from the U.S. Securities and Exchange Commission (SEC) numbering at CRD CRD # 165926/SEC#:801-78602, casting doubts about its compliance with industry standards, highlighting the importance of verifying the current regulatory status to ensure adherence to necessary regulations.
Acorns ensures the safety of its clients' funds through various protective measures.
Invest, Later, and Early accounts are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000, safeguarding against the loss of securities due to broker-dealer failure but not against market risk.
Additionally, Acorns checking accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000, providing protection in the event of bank failure.
Acorns employs 256-bit data encryption to ensure the highest level of security for sensitive information. Additionally, Acorns provides an all-digital card lock feature, allowing users to instantly lock their cards digitally to prevent unauthorized transactions and enhance account security.
What are Securities to Trade with Acorns?
Acorns offers a comprehensive suite of financial services designed to simplify investing and banking.
Their core offerings include Acorns Invest, which facilitates automated investing starting with spare change. This feature is complemented by tools like Round-Ups® that invest your spare change from everyday purchases.
Acorns Later provides retirement accounts (IRAs) with tax benefits, while Acorns Early offers custodial investment accounts for children, promoting long-term financial wellness from an early age.
In addition to these investment options, Acorns Checking integrates banking with investing, featuring a debit card that automatically rounds up purchases to invest spare change. The Mighty Oak card (available for US residents only), a premium offering, enhances these benefits with high Annual Percentage Yields (APYs) of 3.00% on Checking and 5.00% on Emergency Fund balances, far exceeding traditional bank rates. It includes perks like early direct deposit access and bonus investments from shopping with partner brands.
Fees Review
Acorns offers three subscription plans with different features and fees: