Robinhood and Stash are two of the most popular investing apps out there. Each comes with its own sets of features and benefits, which may be appealing to some but disagreeable to others. In this article, we will compare the two applications and try to realize which one is superior of the two.
Robinhood is a brokerage firm formed on the premise of free stock trading. Yes, that’s right! For every trade order executed with Robinhood, whether it’s for bonds, stocks or exchange-traded funds (ETFs), no brokerage fee will be levied. Whether you place an order for $500 or for $1,000 of stocks of your favorite company, the brokerage fee will be $0. The only time you will be paying Robinhood is when you use their advanced version – Robinhood Gold, for features like extended trading hours and ‘Buying Power.’
However, when it comes to Stash, also known as Stash Invest, a monthly fee of $1 will be charged to accounts with deposits less than $5,000. If the account has more than $5,000, then a yearly fee of 0.25% will be charged.
Secondly, with Robinhood, you can buy stocks, bonds, ETFs, et cetera, that are listed on the U.S stock exchanges. Although, the point to remember here is that you can buy only whole shares, not fractional shares. For example, if the stock of a company costs $50 per share, then you cannot invest $5 to own a fraction of it.
When it comes to Stash, the users can invest only in ETFs. In a way, Stash Invest is well-suited for those users who want to invest their money in ETFs, without wanting to do a lot of financial analysis. This is also ideal for those who want to understand how ETFs work. However, the options are here quite limited – a factor that may prove to be disappointing for a seasoned investor. Furthermore, with Stash, it is possible to own a fraction of a share. That’s why you can start investing with Stash with as little as $5!
Needless to mention, Robinhood is a fully fledged trading application with zero brokerage fee. However, it lacks certain features that other brokerages offer – detailed market analysis, access to market metrics, et cetera. Therefore, anyone using Robinhood will need to do their own research before investing. But in the case of Stash, the users will be provided with a set of ETFs to choose from, depending on the asset class. Furthermore, Stash Invest will also help you customize your portfolio for diversification.