When Acorns first launched, it was all the rage. People who had never even heard the word investing were suddenly rounding up every purchase and investing in the stock market. While Acorns is a great platform for the extremely novice investor, many have become hooked and want to try investing at a more advanced level.
Enter Robinhood. Robinhood is the classic no-fee, no-minimum balance, and easy to use investment platform. If you’ve followed this blog, you know that we talk about it a lot, and for good reason. Robinhood has gained a massive following and continues to grow to this day.
So, if you are one of the early Acorns adopters looking to enter into the world of moderate investing, how do you transfer your dough and stocks from Acorns to Robinhood? Keep reading to find out!
Read our Acorns Investing review
Check out our Robinhood full review
If you are still on the fence between these two brokerages, check out our helpful article on Acorns vs Robinhood.
Acorns limits its investors' investment options to 5 standard ETF portfolios. This limitation comes at the expense of investors’ freedom but also provides a much more diversified portfolio. On average, the retail investor like you and me loses money when they invest in individual stocks. Acorns understood this and deliberately chose to not include this functionality.
While many investors enjoy this approach for its simplicity, many are chomping at the bit to invest in their own stock picks. This is one of the reasons you might be looking to transfer from Acorns to Robinhood.
Another reason is the monthly fee that Acorns users pay to use the platform. While this is somewhat common among robo-advisors, Robinhood does not charge any monthly fees.
So, more freedom and less administrative expenses make this move seem quite desirable from the onset. However, before you make this drastic decision, it is important that you understand the steps involved and what that could mean for your investing timeline.
Maybe you are just looking to remove the cash that you have sitting in your Acorns Spend account. Or perhaps you’d like to start fresh and remove all of your investments from the platform. Overall, the steps to accomplish both are fairly similar.
Before we arrive there, however, let’s talk about cancelling your account and unsubscribing from Acorns.
Because there is a monthly fee associated with Acorns, you will need to first unsubscribe from their services.
To do this, you can simply go into the settings of your Acorns app and click ‘My Subscription’. From there you can click ‘Cancel Subscription’.
By unsubscribing, you will lose the benefits associated with the subscription tiers. This could mean that you are no longer able to make any more investments or use your Acorns spending account. Be sure you are prepared for this before cancelling your subscription.
Cancelling your subscription does not, however, cancel any pending investments you may have. These will process as normal but will be available for liquidation once the transaction has been finalized. You can check your 'Past' screen to see if there are any processing investments before unsubscribing.
Once you do request to close your account, your funds will automatically be liquidated and will arrive at your linked external checking account in 3-6 business days.
Because each investment made under your name has tax implications, Acorns will still send out a 1099 form to show your investment activity through the year. You do not need to continue to pay for your subscription in order to receive this information. This will be automatically sent to you.
To ensure there are no surprises about the timing of your transfers, Acorns has added this note to help you be as informed as possible.
‘Withdrawal requests placed before 11 am PST on a market day typically will be processed the same day. If your request was made after 11 am PST on a market day, Acorns will sell shares the following day that markets are open. It can take 3-6 business days for withdrawals to transfer to your funding source.’
Changing accounts in the investment world is normal and happens frequently. Don’t let the potential obstacles of transferring your assets make your financial priorities take the back seat. Unlike investing, transferring investment platforms is not a zero-sum game and you will be largely benefitted from transferring to a platform that meets your needs.
That being said, it is important to do adequate research before taking the steps listed above to transfer accounts. Although it seems fairly straightforward, there can always be surprises that might impact your investment horizon and cause you to miss out on opportunities.
Ultimately the decision rests with you on where to invest your money! Make the moves that will give you peace of mind and a higher chance of success and you can do no wrong. Happy investing!