So you've heard of the “revolutionary” investing app Acorns by now I'm sure. They have a vastly growing fan base, with unique features in comparison to other investing apps. The next question you are wondering about is “Is the Acorns Investment App a scam? or is it a legitimate company?”
Here is what you need to know before investing in Acorns. There are a few things to watch out for when it comes to investment scams, because you'd be surprised at how many people can easily fall for them!
Acorns Investing App: Scam or Legit?
All scams have a few similarities in common that are important to watch out for. But for those who have never done the research before, these scam signs are easy to look past.
A typical fraudulent company normally has multiple of the following red flags:
- They “guarantee” you will get high returns on investment
- You never hear about or see the owners or staffing team running the show
- They claim their fan base is large, but you see no signs of “social buzz” or word of mouth anywhere
- They only allow one form of payments such as mailing in checks, or prepaid debit cards only, etc.
- They have no proof of reputation or trust among major trusted news and review companies
- Their website and online presence is unprofessional looking and just looks a bit “off”
These are just a few to watch out for that are obvious signs of a fraudulent company. The list could be much longer, but these are more relevant and particular to an investing company that are worth discussing.
Is Your Money Safe With Acorns?
Below we will discuss each of the bullet points above, but due to the simplicity of some of the answers, they will be included in broader topics outlined below.
In Acorns own words from their security page:
“Your peace of mind is our highest priority. Acorns works to protect your information, prevent unauthorized account access, and notify you of unusual activity.”
Reputation & trustworthiness
We researched statements from trusted news organizations to determine their reputation among the industry of investing. Found on Acorns home page just below their security section are direct comments from companies that have featured Acorns investing.
Companies like ABC News, CNBC, Wired, Forbes and US News have all featured Acorns and made positive statements about Acorns. Here are a few of their comments:
- “The new millennial investing strategy.” – CNBC
- “If you set aside just $5 every couple of days you would have set aside over $1,000 in a year.” – ABC News In a discussion about Acorns.
- “Acorns simplified the often tedious and complex process of investing. But that doesn't mean the investment strategy is any less sophisticated.” – Wired
- “The app makes investing effortless.” – Forbes
- “Acorns offers a unique solution to overcoming the mental barrier: ‘I just don't have enough money to be investing.'” – U.S. News & World Report
With the above statements from credible sources, I think it's safe to say that Acorns has a positive and trustworthy reputation. After all, how many scam companies do you know get comments like that from trusted sources like those? I don't know of any!
Who are the staff and team members behind Acorns?
Another common sign of a fraudulent company is the absence of their staffing, team members and owners running the show.
On Acorns website, they list a picture, name and job role of all of their current team members, giving you the ability to do thorough research on each one of them should you choose to. This gives consumers trust and transparency of the company, making all Acorns users have the peace of mind that their money is in trusted hands.
Here is a pic of many of the top staff members of Acorns:
Acorns has also worked with Nobel Prize-winning economist, Dr. Harry Markowitz to help create their unique investment portfolios for all investment risk tolerances. Along with the help of Dr. Markowitz, they work together with two of the most well-known investment management companies, Vanguard and Blackrock.
Accessibility, payment options and website
A real fraudulent company will make access to their platform complicated to say the least. They want to gather your information and make it hard for you to get it back from them.
Acorns on the other hand, has an easy to use desktop website with clear indicators of where to find common topics and FAQs. Their mobile app is even easier for anyone to update, deposit and make changes to their investing account.
Upon account opening, they link to your bank account via debit card and/or bank account and routing number as their method of transferring money. When you come to this step, they will ask you to sign onto your bank account and grant them access to your accounts to make regular transfers with.
The peace of mind comes in knowing that you can revoke this access at any time should you wish to do so. On top of that, if your bank account appears to be low in funds, Acorns will notify you that they have paused your investments with reason to believe you may not have enough funds to transfer money.
Would a fraudulent company be that open and transparent? I don't think so.
Final Verdict: Acorns is Legit, Trustworthy & Highly Recommended
Upon our in depth research, our final verdict is that Acorns couldn't be more legit, in fact their transparency gives us every reason to believe they are the real deal.
Their ease of use, accessibility to security measures, staffing and team members, as well as their openness when integrating with your bank accounts, proves that they are there to help and not hurt.
Ready to start investing with Acorns? Open your account here in under 5 minutes.
Still looking for more details on Acorns Investing? Take a look at our detailed review of Acorns features and benefits that are unique to the industry.