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Twine vs Robinhood 2020: Best Investing App?

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Written by Ryan Scribner
Updated on May 31, 2019

Twine vs. Robinhood

We have countless choices for saving and investing platforms. It seems like every day, there is a new app being released. We created this blog, Investing Simple to provide clarity when trying to understand all of these different options you have in front of you. In this review, we’re going to compare two new investing platforms that are rising in popularity, Twine and Robinhood. Both of these platforms offer a similar service for the potential investor or saver.

What Is Twine?

Of all the many things on your to-do list, setting savings goals, and launching an investment account may not be in the top 10.

But now there’s a way to tie up both those loose ends with Twine investment and savings platforms.

Trust us, it’s easier than it sounds. Simply set your monthly savings goals for purchases ranging from small to large. Then, decide whether you want an individual savings and investment account, or something joint with a partner. Your choice. Give it some thought.

Right now, Twine is offering a starting credit of $5 for readers like you.

How Does Twine Work?

Get into it now using the Twine investment platform by opening an account here.

The next step after opening an account is to jot down your short and long-term financial goals. Give yourself a pat on the back for discovering Twine, because the savings platform carries zero fees.

But wait, there’s more! You can also invest your savings using the Twine investment platform for a 0.60% annual fee.

Twine portfolios are built for investors willing to take some financial risks or those with a more guarded approach.

Twine Savings

Now you get down to the nitty-gritty. So, you’ve opened a savings account with Twine, either individually or jointly with a partner. Next, you will need to set savings goals and give some thought to how much you want to contribute. Twine offers an easy-to-use recurring payment option so you can make those contributions effortlessly.

You can even link your bank accounts to the Twine account to make saving even more comfortable.

How much does this cost to set up? You can open Twine savings account with just $5. But there’s more! The Twine savings account yields interest rates far higher than most typical bank accounts, with a current yield 1.05% variable interest.

Along the way, Twine uses algorithms to adjust your portfolio and keep your money multiplying.

Invest With Twine

Once you’ve set up your Twine savings account, you’ll want to start investing some of that cash to move you along more quickly towards your financial goals. As your goal approaches, your Twine portfolio will automatically adjust to help you get there faster.

The Twine investment platform features a large number of different portfolios, all designed to meet your risk and goals. All you need is $100 to get started. Fees are based on 0.25% monthly for each $500 invested (0.60% annually).

Twine platform investment portfolios merge various Exchange Traded Funds (ETFs) for the best results. Popular and reputable fund companies, like Vanguard, are used in Twine portfolios, all with a goal for every client to have a solid return based on risk for their portfolios.

Conservative Portfolio

As you can guess, the conservative portfolio is made for people who are not looking for high risk in their investments and have a goal that can be reached in 5 years or less. Keep in mind, because it is less risky than other Twine portfolios, this conservative one could yield lower returns. This option is 6% stock ETFs and 94% money market and bond securities. The percentage of stocks may decrease to 4 or 5% as you near that goal.

Moderate Portfolio

The moderate portfolio generates slightly higher returns than the conservative portfolio, but also calls for more risk. This portfolio will be 10% (or less) in stocks, and 90% money market and bond funds for goals under 5 years.

If you have a longer-term goal, for example, 10-15 years, your portfolio will be 55% to 70% stocks. As your goal comes into sight, the stock allocation will be around 70%.

Aggressive Portfolio

Hello risk takers! If you want to roll the dice and are willing to risk loss, but also be in the position of yielding higher returns, the aggressive portfolio may be perfect for you.

If you have less than 5 years for your goal, this portfolio option includes 70% money market and bond funds, and 30% (or less) stocks. Similarly, if you have 10-15 years towards your financial goal, the aggressive portfolio will direct around 80% of your portfolio into stocks. As your goal becomes longer-term, this amount will rise.

Dividend Reinvestment

Watch your money grow! The many dividends you earn will be deposited into your cash savings account. Once your cash account exceeds the goal you’ve set, it will be reinvested into your Twine portfolio, where it will earn compound interest.

Account Protection

The Securities Investor Protection Corporation (SIPC), will cover the securities in your account up to $500,000, and for cash, up to $250,000. The Federal Deposit Insurance Corporation (FDIC) protects your cash up to $250,000 per account.

Twine Fees

There is no cost to open a Twine savings accounts, but you’ll need at least $100 for an investment account. Then, fees are just $0.25 monthly for each $500 invested (or 0.60% annually).

Twine Pros

  • Very user-friendly.
  • Choice of an individual or joint accounts and goals.
  • Features reputable fund companies like Vanguard.
  • Lower fees (0.60% annually) when compared to industry averages.

Twine Cons

  • Lacks an IRA or retirement account platform.
  • Although the fee is low, comparable investing platforms are cost-free.
  • No individual advice offered by financial experts.

What Is Robinhood?

Robinhood is one of the most well-known commission free trading platforms. It is easy to use and targets the beginner investor who is looking to save money by avoiding commission costs. Robinhood allows you to trade stocks, ETFs, cryptocurrencies, and options commission free. The Robinhood user interface is simple and digestible and provides a good user experience.

With Robinhood, there are no prebuilt portfolios of any kind. You are on your own when it comes to building a portfolio. For intermediate and advanced investors, this is not a problem! However, if you are a beginner, this may be a deal breaker.

Robinhood Fees

Robinhood is 100% commission free. They make money by offering Robinhood Gold.

Robinhood Pros

  • Commission-free stock trading.
  • Simple, easy to understand user interface.
  • Ability to trade stocks, ETFs, options, and even crypto.
  • Easy access to margin through Robinhood Gold.

Robinhood Cons

  • No interest paid on the brokerage account.
  • No joint account.
  • Robinhood is strictly an investing platform, not a saving platform.
  • They do not offer any prebuilt portfolios or guidance for new investors.

Twine vs. Robinhood Final Verdict

These two platforms are offering completely different experiences for the saver or investor. If you are looking to save money and invest, you have two options in front of you here with Twine and Robinhood.

With Twine, you have a completely free tool to help you save money. Twine lets you automate your savings, even with a partner through a joint account! If you choose to invest that money, you can do so and pay Twine an asset management fee of 0.60%. Within that savings account, you can earn interest, currently yielding 1.05% variable rate.

With Robinhood, you have no tools offered to help you save money and zero interest paid on the cash held within your account. It is up to you to handle the savings aspect and move money into your brokerage account each week or each month. After that, it is up to you to build your own investment portfolio as they do not offer any prebuilt portfolios. Twine provides a variety of portfolios which consist of high-quality ETFs from companies like Vanguard and Blackrock.

Overall, it comes down to what you are looking for. If you are looking to trade stocks or other assets commission free with no guidance on your savings, Robinhood is a clear choice. If you are looking for some help with the savings aspect and some advice when it comes down to what to invest in, Twine offers both of these things to the potential saver and investor.

 Twine is offering readers a $5 investing credit to start with. 
twine vs robinhood investing app comparison
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