Are Acorns Legitimate and Safe for Investors?

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Are Acorns Legitimate and Safe for Investors?
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Are Acorns Legitimate and Safe for Investors?

Acorns, a microinvestment app that takes your cash from your regular transaction, saves it and invests that change for you in a number of exchange-traded funds (ETFs), was launched by founder and son Walter and Jeff Krutenden in August. 2014.

Acorns CEO is now Noah Kerner. The company is very attractive to millennial and novice investors who may not have much money to put into their retirement savings. Acorns’ mission was to “make investments accessible to all.”

Today the company has more than 6 million members. This alone is proof that Acorns is legitimate.

Check it out: Are acorns worth it? Review of acorns: pros and cons

Acorns provides its members with three services. The first, Acorns Invest, tracks the purchases of your debit and credit cards and rounds them to the nearest dollar, then takes the difference and sets it aside for investing in exchange-traded funds (ETFs).

The second, Acorns Later, allows participants to create and fund IRAs. Acorns will recommend an IRA that is right for you. They will then regularly update it to suit your goals.

Another gives participants a checking account with a debit card to spend money on.

But is Acorns legal? Is it safe for investors? Here’s how to find out if Acorns is a legitimate and secure company.

Are Acorns Legal and Safe: 8 Ways to Learn:

1. Acorns are regulated by the Securities and Exchange Commission.

The best way to determine if Acorns is legal and safe is to know if it is regulated by the Securities and Exchange Commission (SEC).

Any brokerage firms that handle stocks and other securities, such as Acorns, must be regulated by the SEC. The SEC monitors the stock market to make sure of fair deals and confidentiality.

However, the SEC does not protect individual investors from losses. Instead, the SEC prosecutes companies and individuals involved in fraud or insider trading.

According to the Acorns website, “brokerage services provided to Acorns clients by Acorns Securities, LLC is a registered SEC broker-dealer.” In this way, it ensures that Acorns is legal and safe for investors.

So are acorns worth it?

Download the free app now. Once downloaded, you choose your investment portfolio based on your age, income level and goals. Acorns will take care of the rest for you.

2. Acorns’ user base is growing rapidly.

According to Forbes, the Acorns user base has grown from 4.6 million to 6.8 million in 2021. This rapid growth suggests that Acorns is legitimate.

Moreover, the company’s goal is to increase its base to 100 million customers. In a recent announcement, the company said it was collaborating with the online job market ZipRecruiter.

This will allow its participants to look for work and apply for them within the platform.

3. Several major brands and celebrities and investors invest and support Acorns.

In an effort to expand its user base, the company has attracted well-known brands such as PayPal, BlackRock, NBCUniversal, Rakuten and many more.

Acorns also attracts famous celebrities and investors such as famous basketball player Kevin Durant, actor Dwayne Johnson (Rock), Ashton Kutcher and Danny Garcia. In 2019, Jennifer Lopez and Alex Rodriguez announced they are investing in Acorns.

4. Acorns is a member of the Financial Industry Regulatory Authority (FINRA).

Another factor that testifies to the security and legitimacy of Acorns is the fact that it is a member of FINRA, a self-regulatory organization in which most brokerage firms participate voluntarily.

The SEC oversees self-regulatory organizations (SROs). And FINRA members follow the rules and regulations of the SRO. According to Acorns, the company says it is a member of FINRA.

So it is fair to say that Acorns is legal and safe for investors.

5. The Securities Investor Protection Corporation (SPIC) protects investment accounts through Acorns.

Investment accounts in Acorns are insured by SPIC. SPIC is a non-profit member corporation that protects money invested in a brokerage firm that is filing for bankruptcy or is facing financial difficulties.

It protects up to $ 500,000 for securities and cash or up to $ 250,000 for cash on account only. However, the SPIC has the power to investigate or regulate its members.

6. Core Business supports Acorns as a legitimate and secure company

For example, in 2019, according to Apple, Acorns is the “App of the Day”. What’s more, financial experts said Acorns is their favorite app because “it makes small investments easy and cheap. It’s a great way to build muscle to save money. ”

7. Read the reviews of Acorns members to find out if it is legal.

Part of your search for “whether Acorns is legal and safe” should include reading customer reviews about their experience with the company. By simply searching the web for “Acorns reviews”, you will find customers who value their experience.

These reviews can help you determine if Acorns is really legal and safe. These reviews can give you a detailed story about Acorns from customer service to performance.

However, keep in mind that happy customers are less likely to send feedback than dissatisfied ones.

So read these reviews with an open mind. Indeed, it is important to look for reviews based on facts rather than opinions.

8. Check the Acorns website.

Another way to find out if Acorns is legal and safe is to browse its website carefully. The campaign may seem real, but there are a few things that can cause a red flag. What to look for to see if Acorns is legal:

  • How long have they been in business. According to its website, LendingTree has been operating since 2014.
  • Or offers customer service? If there is no contact support, address, phone number to contact the company, it may be a red flag that the company is not legal. Fortunately, the Acorns homepage is full of this information. So don’t worry about it.
  • See if Acorns has a policy page: A legitimate company will have pages with terms of use, such as pages with privacy policies. Again, Acorns has this information, which may lead you to conclude that it is legitimate.

Is Acorns legal and safe? Frequently Asked Questions

Is my money safe with Acorns?

Investment accounts in Acorns are covered by the Securities Investors Protection Corporation (SPIC). SPIC protects accounts up to $ 500,000 for securities and cash or $ 250,000 only for cash on account. Acorns is also a member of FINRA and the SEC.

What’s more, several of the 500 Fortune companies, such as PayPal, Blackrock, Capital Group, NBCUniversal, support and invest in Acorns. In addition, several celebrities, such as Ashton Tucker, Kevin Durant, Jennifer Lopez, are investing in the company. These famous celebrities and companies would not invest in something they do not trust or consider safe.

Is it safe to enter my Social Security number in Acorns?

The Acorns security team encrypts confidential details such as social security numbers, ensuring they are safe from hackers.

The result

Is Acorns legal and safe? The answer is yes. Acorns is a member of SEC, FINRA and SPIC. In addition, the company is supported by famous brands, famous celebrities and investors such as famous basketball player Kevin Durant, actor Dwayne Johnson (Rock) and Jennifer Lopez.

Put money to work

Effective money management starts with careful planning. With SmartAsset you can come across three advisors who can give you the ability to make smart financial decisions. SmartAsset also helps unravel the mystery of retirement planning by answering some of the most frequently asked questions in a simple personalized way. Learn more about how SmartAsset can help you find the right consultant and get started now.

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