The free vs the easy

Robinhood vs Stash – The free vs the easy

Choosing an investment app is much like choosing a social media site. You have various sites offering you the opportunity to spread your social wings in different ways, depending on your taste. Just so with choosing your investment app, how are you going to send your money into the investment world? Luckily the choice between Robinhood and Stash is an easy one, the two companies offer completely different services to completely types of investors. The biggest difference lies in you, the investor. Are you new to this, or are you experienced?

If you are a newbie, Stash might be the better option for you. Think of it as training wheels. You have a limited list of places to invest your money and suggestions based on your profile of how to invest. There is also a treasure trove of information. Investing in an ETF while looking out for trends and expense rations gets complicated when you don’t even have a clue what an ETF is. You will eventually outgrow Stash and then you can go on to Robinhood that sets you free in the world of trading, stocks, and cryptocurrencies. Robinhood gives you access to the real world of investments. You will have to decide when to buy and sell and where to buy with how much.

Stash is going to make you pay for those training wheels. Even their $1/month for funds under $5000 and 0.25% for funds over $5000 is expensive in comparison to the no funds police at Robinhood. This makes Robinhood very attractive to people with a small investment.

The apps are very different too. Stash is a multi functional app that informs, suggests and guides. There are videos and FAQ’s. Robinhood’s app is straightforward vanilla ice-cream. You love it for its simplicity.

Robinhood also has a much more “grown-up” approach to investments. You have to be disciplined enough to actually sit down and invest. It’s an active approach. Stash automatically takes the change your transaction would have created and invests it for you because if it’s between a latte and investing that money, we know who will unfortunately win. Was the latte yummy?

The end of the story is this. Both of these are great ideas. You need to know yourself; you need to know what you know and how you would like to invest. Then it’s quite easy to determine if you’re a Stash recruit or a Robbinhood soldier.