5 Best Investment Apps For Beginners

December 07, 2020

5 Best Investment Apps For Beginners

Investing can be frightening even in the best of times. Of course, you’ve presumably heard that the best time to buy is when everybody else is selling. But maybe you’re not sure what to do with that knowledge or feel like you don’t have enough money to get started with investing or maybe you’re not sure which brokerage to choose to risk your hard-earned money with. 

That’s where the best investing apps for beginners come into the picture. You can learn the ropes without the struggle of dealing with a financial adviser or the difficulty of finding reliable sources on the internet. 

Here are some of the best investment apps for beginners you could start with and the strong points for each:

M1 Finance

M1 Finance allows you to build a flexible, custom portfolio of individual stocks and funds or choose from dozens of premixed options for free. While it will likely appeal to experienced investors and has a paid option that lets you pick the time of day to trade or invest, among other things it’s also one of the best investment apps for beginners who don’t want a lot of hand-holding.

M1 Finance lets you automate your contributions and encourages fractional share investing, which is investing in expensive stocks without buying full shares. It doesn’t charge any commissions or the management fees that are common elsewhere, but the app can charge a $20 inactivity fee after 90 days for low balances. M1 Finance has a minimum account balance of $100, or $500 for retirement accounts. It offers one of the best no fee investment accounts.

Robinhood

Robinhood is an easy place to get started investing because it has no minimum balance, a simple-to-understand interface, fractional shares and doesn’t charge commissions or fees.  It offers one of the best no fee investment accounts.

Robinhood allows you to invest in cryptocurrencies like Bitcoin, in addition to individual stocks and ETFs that are exchange-traded funds, which are simply diversified portfolios of stocks, bonds, or a mix of both.

The company also offers a premium subscription called Robinhood Gold with a cost of $5 a month after a 30-day free trial. Gold offers access to investment research and data and margin trading, which involves borrowing, with interest, from Robinhood to invest. It is considered one of the best platforms, if not the best investment platform for beginners . 

Acorns

Acorns charges a flat fee of $1 to $3 per month depending on the features you want. College students can get the $1 tier for free. The higher tiers include IRA recommendations, the ability to set up recurring retirement contributions, help with rolling over an IRA, and even a checking account with no minimum balance, ATM fees, or overdraft fees. There is no minimum investment.

Acorns is one of the best investment apps for those who want to get started, even though they may not have a lot to invest in at first. Its phone app is designed to round up the price of your everyday purchases to the nearest dollar then take that change and automatically invest it in ETFs. It does this automatically after you link it to your credit card or checking account. 

Acorns have partnerships with more than 200 brands that work like cashback on a credit card except the money is reserved for investment. There’s a delay of 60 to 120 days in getting the money, which is automatically invested.  It is considered one of the best platforms, if not the best investment platform for beginners . 

Axos Invest

Axos Invest is an automated investing platform that charges no fee for investment management, trading, or rebalancing. There is no required account minimum to sign up i.e it offers investment accounts with no fees.

Axos Invest makes sure that you will like their free services enough that you’ll stick around to buy add-on services and advice. If you’re not sure where to start and are concerned about over-committing, this could be one of the best investment apps for you. This is one of the best  investment accounts with no fees

Stash

Stash lets you invest with no minimum, and monthly fees from $1 to $9 depending on account type. The beginner account allows you to invest in fractional shares of an individual stock, bond, or ETF, the $3 per month growth account allows for IRAs and the big Stash+ offering also provides monthly market research.

Its Auto-Stash feature lets you schedule regular investments, and, like Acorns, it allows you to round up purchases and invest the spare change.

Stash recommends investments to you based on the profile you build at sign-up. It’s also one of the best investment apps if you want to get digestible educational content to advance your trading knowledge. Plus, it offers personalized guidance, challenges, and quizzes through Stash Coach and also has a podcast. It is among the top investing apps for beginners.

Webull

Webull is apparently a better suited application for traders if compared to other apps on this list. Webull has gained a reputation as a zero-fee stock trading and one of the best investment apps for beginners.

Webull is a platform that charges zero fees and commissions. The different types of accounts are Taxable, Traditional IRA, Roth IRA, and Rollover IRA accounts. Webull has more charting and technical analysis tools which at times can make things slightly more complicated for a true beginner but the tips and tools are helpful, ofcourse. Whereas other apps such as M1 and Acorns are designed for long-term, buy-and-hold investing but Webull is more suitable for short-term trading. Also, there is no checking account and no auto rebalancing or fractional shares. Webull is used by a lot of beginners and is a highly rated mobile app for both iOS and Android. It is among the best investing apps for beginners.

Features to be considered:

The modern and user-friendly best investment apps that are mentioned above have made it very easy and seamless for anyone with a smartphone to start investing in a few minutes. Even big established brokers are improving their mobile apps and mobile websites to keep up with trends and to attract younger millennials and more tech-savvy investors.

While you are selecting and comparing the best investment apps for beginners, here are some of the primary and basic features and criteria you need to keep in mind:

  • Account types

Most of the youngsters who are beginner investors only ask for a simple taxable brokerage account or a tax-advantaged account like a Roth IRA or a Traditional IRA. Some more account types that are available include Joint, Custodial, Solo 401(k), Trust. While you’re selecting your investing app, make sure you choose the one which offers the account type you need.

  • Investment products 

Several brokers enable you to invest in more products than others. These products incorporate stocks, ETFs, mutual funds, options contracts, futures, forex, OTC stocks which are also known as penny stocks, and cryptocurrency. While selecting your best free investing app, keep in mind to choose the one that offers the investment products you want. Beginners will probably only need stocks or ETFs. Options and futures are called derivatives that are only suitable for experienced investors.

  • Margin rates

Margin refers to borrowing against your investments to intensify your exposure with the hopes of magnifying returns. Though investing on margin is usually not suitable for beginners, it can be a beneficial tool once the investor fully knows the risks and potential rewards involved.

  • Commissions 

Trade commission is the fee that is paid to the broker when an order is placed to buy or sell a security. A security can be a stock, bond, options contract, etc. Commissions are also called trading fees, since they’re acquired every time you make a trade. The amount of the commission can change pretty violently among brokers so that is something to be kept in mind. 

  • Fees

Apart from trade commissions, you might also be looking at account fees and advisor fees depending on which investing platform you choose and how you plan to invest. There are quite a few brokers who are now offering commission-free and fee-free investing, making saving for retirement cheaper and more convenient than ever before. Zero-fee investing is exceptionally crucial for beginners with a small amount of capital so that you can hold on to and save every dollar possible.

  • Fractional shares

With fractional shares offered by some brokers, you’re able to buy a fraction of a single share of a stock or ETF, e.g. buying roughly 1/30th of a single expensive share with only $100. This feature is exceptionally important for beginners because it allows every penny to go to work for you as soon as possible, enabling your portfolio to grow faster.

  • Automatic rebalancing 

Diversified portfolios of varied asset types for example stocks and bonds need regular rebalancing to keep your target asset allocation on track. Some brokers can do this for you automatically, that saves a lot of your time and effort.

  • Usability

Usability regards the ease of use of a specific user interface. It is an important aspect to consider while choosing the best investment apps. Older and complicated interfaces are harder to operate and require a lot more time as well as effort.

We hope you enjoyed this article on the best investment apps for beginners.If you found this blog interesting and helpful and want to learn more about related fields, do check out our other blogs. 


MuskanWitten by Muskan The name is Muskan, so probably was destined to spread smiles wherever I go. Writing is something which has grown on me with each passing day. Follow your passion in saying is a cliché but in doing is serious fun. So here I am to engage with my passion and maybe spread some smiles along the way.
Twitter, Facebook, Instagram

imageimage