Acorns is a US-based financial technology company that functions as a robo-advisor by providing automated and algorithm-driven investment services. It is most recognized for its micro-investing feature that allows users to round up their purchases to the nearest dollar and invest the spare change in the market. Investments are made into different portfolios with varying levels of risk.
The app is designed to make investing simple and available to everybody, especially those who may not have large amounts of money to invest. Acorns is a helpful tool for anyone wishing to enter the investing world because it also provides goal-based saving options and educational materials.
In this article, we will uncover Acorns’ availability and expansion plans in the Philippines, as well as provide alternative solutions.
Is Acorns available in the Philippines?
Unfortunately, Acorns is not yet available in the Philippines and it’s currently available exclusively for US residents. According to their website, Acorns “is only available to US citizens or legal residents currently residing in the United States. Exceptions are made for active Armed Services personnel that maintain US addresses and are temporarily overseas”:
Although the robo-advisory market is not currently well developed in the Philippines, an increasing number of investors are turning to automated investment platforms. In the Philippines, you can find many Acorns alternatives available, each with its own special features and chances to assist in navigating the road to financial achievement.
Keep reading this article as we attempt to shed light on some of the top Acorns alternatives accessible for investors in the Philippines wishing to take advantage of the benefits offered by robo-advisors.
Acorns Alternatives in the Philippines
In this section, we will be discussing 4 alternatives that share comparable features with Acorns in the Philippines:
Founded in 2016, Seedbox is the first 100% digital investing platform in the Philippines. The company allows Filipinos to invest in mutual funds, PERA products and UITFs at their convenience. Seedbox is powered by ATR Asset Management, a leading investment company adviser, the Indivara Group of Indonesia, one of the largest IT and software companies in the Asia Pacific region, and SBI Holdings, a Japanese fintech listed in the Tokyo Stock Exchange.
Key Features
Fees: Seedbox and ATRAM Trust Corporation do not charge investors with account or sales fees. They do, however, charge trust fees which range from 0.50% p.a. to 1.5% p.a. depending on the UITFs. There is also a relatively high redemption fee of 5.60% for the Conservative, Moderately Aggressive, and Moderately Conservative portfolios. This fee drops to 1.12% for the Moderate Investor, the Moderate Investor 2, and the Aggressive Portfolios.
Minimum Deposits: With Seedbox, a minimum initial investment of Php1,000 is required with a minimum top up of Php500. No monthly investments are required.
Portfolio types: You can choose between 6 portfolio options with Seedbox depending on your financial goals and risk tolerance: Moderate Investor: This fund invests in listed and non-listed fixed income and equity securities of Filipino companies and governmental debt obligations. Moderate Investor 2: This is an actively managed fund that invests in selected domestic fixed-income and stocks.Aggressive Investor: This fund invests in listed securities of local companies in the Philippines. Conservative Investor: This fund aims to achieve stable returns by investing in fixed-income securities issued by selected local companies. Moderately Conservative: This fund consists of a combination of ATRAM Corporate Bond Fund and ATRAM Philippine Balanced Fund. Moderately Aggressive: This fund is a combination of ATRAM Corporate Bond fund and ATRAM Equity Opportunity Fund.
Asset Classes: Seedbox invests in Bonds, Equities, Mutual Funds and UITFs..
Spare change Investing: Unlike Acorns, Seedbox does not provide any roundup feature allowing customers to invest their spare change in the market.
PERA accounts: With Seedbox you can open a Personal Equity and Retirement Account (PERA) that allows you to access funds accredited by the Central Bank of the Philippines and is eligible for tax exemptions from the BIR.
Trading Platform: Easy to navigate and user-friendly platform that helps you manage your investments and monitor their effectiveness.
Security: Seedbox is regulated by the BSP (Central Bank of the Philippines) and the Securities and Exchange Commission (SEC) of the Philippines. All funds offered by Seedbox are regulated, however, investment in UITFs is not insured by the Philippine Deposit Insurance Corporation (PDIC).
Trading 212 is an online brokerage platform that allows individuals to trade a variety of financial instruments. It offers a commission-free investment solution called Trading 212 AutoInvest & Pies* that allows investors to create customized portfolios called "Pies" that consist of a selection of stocks and ETFs.
Key features
Management Fees: Trading 212 does not charge any fees for auto-investing or creating Pies. There are no management or account maintenance fees.
Minimum Deposits: The minimum amount required to start trading is as low as $1. No monthly contributions and deposits are required.
Trading 212 Autoinvest & Pies: Pies are customized portfolios that consist of a selection of stocks and ETFs. You have the option to choose your desired securities and set target allocations for each asset within your Pie with the ability to hold up to 50 securities within each pie. Each security is represented as a slice of the pie. After creating your pies, you can set your desired contribution amount and investing frequency, and AutoInvest will ensure that your portfolio stays diversified and your contributions are allocated appropriately.
Asset Classes: You can invest in Stocks, and ETFs.
Funding Options: You can fund your account with Trading 212 from the Philippines through bank transfers, credit / debit card payments or via OnlineBanking apps.
Additional Costs: Trading 212 charges a 0.15% foreign exchange fee for buying assets in a currency different from the account's base currency. No commission on trading or exit fees.
Rebalancing: Rebalancing is done manually. When the investments in your Pie deviate from their target allocations, you can rebalance the Pie at any time, simply by selecting the ‘Rebalance’ button.
Trading Platform: Fast and easy to use platform with great trading tools.
Security: Trading 212 accepts customers based in the Philippines but it is not licensed by the Securities and Exchange Commission of the Philippines. The company is registered in England, authorized and regulated by the Financial Conduct Authority, FCA.
*Pies & Autoinvest is an execution only service, following your own investment decisions. Not investment advice or portfolio management.
InbestMe is a Spanish fintech company that offers robo-advisory services. InbestMe provides an online platform that allows individuals to invest their money in a diversified portfolio of exchange-traded funds (ETFs) and other investment instruments based on their financial goals and risk tolerance.
Key features
Management Fees: The management fee charged on your trading account ranges between 0.13% p.a. and 0.41% depending on the portfolio you chose.
Minimum Deposits: A minimum deposit of $5,000 is required for non Spanish users. No monthly contributions or deposits are required. However a minimum balance should be maintained depending on your portfolio strategy.
Portfolio types: Investors from the Philippines can only invest in ETFs portfolios. Pension plans and Index Funds Portfolios are exclusive for Spanish investors.Four available ETF investment styles are available :InbestMe ETF : invests in a selection of listed index funds that replicate the performance of the world's best indexes.InbestMe ETFs Dynamic: actively managed and combines long-term strategies with short-term tactics.InbestMe ETFs Value: favors Value ETFs, and is made up of between 6 and 13 ETFs. Socially Responsible Investing ETF.
Asset Classes: InbestMe invests in ETFs, Stocks, Bonds and Index Funds.
Funding Options: You can only fund your account through bank transfers.
Additional Costs: In addition to the management fee, you will be charged a 0.11% trading cost and a 0.23% on average built-in costs. There are no additional fees associated with deposits or withdrawals but free withdrawals are limited to once per month.
Rebalancing: InbestMe automatically rebalances your portfolio by buying and/or selling assets to maintain your initial weight allocation to each asset class, and ensure that the portfolio is always in line with your risk profile.
Trading Platform: The platform is available through their website or Mobile app. Both interfaces are user-friendly and give you access to your investment dashboard, where you can check your investment performance across different plans.
Security: InbestMe accepts customers based in the Philippines but it is not licensed by the Securities and Exchange Commission of the Philippines. The company is regulated and supervised by the CNMV (National Securities Market Commission), the body in charge of supervising and inspecting the Spanish securities markets.
Sarwa is a financial technology firm based in Dubai, UAE. It provides robo-advisory services that allows investors to build and manage diversified investment portfolios. Based on investors’ financial objectives and risk tolerance, the platform uses algorithms to select and manage a variety of exchange-traded funds (ETFs) and other investment products.
Key features
Management Fees: Sarwa charges 0.85% yearly for account maintenance and management. This fee is partially collected at the end of every month.
Minimum Deposits: The minimum required investment to start investing in a globally diversified portfolio is $5. However, the minimum required investment could change based on your portfolio type of choice: $500 for the Halal Portfolio, $2,500 for the Socially Responsible Portfolio, $2,500 for the Conventional Crypto Portfolio, and $2,500 for the Socially Responsible Crypto Portfolio.
Portfolio types: With Sarwa you can choose between 5 types of portfolios depending on your financial goals and risk tolerance. The portfolios available are as follows: Conventional Portfolios, Socially Responsible Investment Portfolios, Halal Portfolios, Crypto- Conventional Portfolios, and Crypto- Socially Responsible Investment Portfolios. After choosing your portfolio you can choose the risk level that suits you between these 6 levels: Very Conservative, Conservative, Moderate Conservative, Balanced, Moderate Growth and Growth.
Asset Classes: Sarwa invests in U.S. Stocks, Foreign Developed Market Stocks, Emerging Market Equities, Government Bonds, Corporate Bonds, Emerging Market Bonds, Real Estate, Crypto, Mutual Funds and ETFs.
Funding Options: When funding your account from the Philippines, you must transfer the funds using your online banking/banking mobile app, and notify Sarwa that you've made the transfer.
Additional Costs: There are no hidden costs with Sarwa. No trading or custody or rebalancing fees are charged. However, you have to pay a fund expense ratio of 0.1% on average for selected ETFs and 2% on average for mutual funds.
Rebalancing: Sarwa automatically rebalances your portfolio by buying and/or selling assets to keep the desired or recommended level of asset allocation in your portfolio. The rebalancing is done on an ongoing basis by ensuring that a total portfolio drift greater than 12% does not occur across your portfolio of ETFs.
Trading Platform: Easy to navigate trading platform and mobile app that offers hands-off investing, real-time trading, and high-yield savings.
Security: Sarwa is available for customers based in the Philippines but it is not licensed by the Securities and Exchange Commission of the Philippines. It is regulated by the Dubai Financial Services Authority (DFSA) and the Financial Services Regulatory Authority (FSRA). Your money is kept entirely separate from Sarwa's finances and is held at our custodian banks whether it's in cash or securities.
Final Thoughts
Although Acorns is not accessible in the Philippines, there are still plenty of other options available to assist people in achieving their financial objectives. There are local and global solutions available, each catering to a different desire and set of financial goals.
Having said so, always remember that choosing the best fintech or robo-advisor depends on your personal goals and financial situation, so it's essential to stay informed about the latest developments and explore the ever-expanding range of financial tools available.
We hope we helped you in your search for the Best Alternatives for Acorns in the Philippines.
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