Investing Apps for Beginners
Finding the Right Investing Apps and Path
Beginners can start investing with a relatively small amount of money. You’ll have to do
your homework to determine your investment goals, risk tolerance, and the cost of
investing in stocks and mutual funds. You’ll also need to research brokers and their fees to
determine what best fits your investment style and goals. It’s important to be
knowledgeable because your knowledge and resources should determine your path. Most
successful investors start with low risk diversified portfolios and gradually learn by doing.
As you gain more knowledge over time, you become better suited to taking a more active
role.
Begin by reflecting on what you want to achieve financially. You might have short term goals
like saving for a home or a vacation or have long term objectives like securing a
comfortable retirement or funding a child’s education. Your objectives will depend on
where you are in life and ambitions. Younger investors tend to fucus more on growth and
long term wealth accumulation, while those closer to retirement typically prefer income
generation and capital preservation.
Before diving into investing apps, it’s important for beginners to consider a few key points.
This preparation will make you feel more informed and confident in your investment
decisions, setting you up for success:
Understand Your Goals
Clarify your investment objectives. Are you saving for retirement, a vacation, or a down
payment? Knowing your goals will guide your app selection.
Risk Tolerance
Assess your risk tolerance. Some apps cater to conservative investors, while others
encourage riskier strategies. Choose an app that aligns with your comfort level.
Fees and Costs
Investigate fees. Look beyond commission-free trades—consider account maintenance
fees, expense ratios, and any hidden costs.
Educational Resources
Seek apps with educational content. Learning about investing is crucial. Look for webinars,
articles, and beginner-friendly guides.
Account Types
Understand the types of accounts offered (e.g., individual, Roth IRA, 401(k)). Choose an
app that supports your preferred account structure.
Customer Support
Test customer support responsiveness. You’ll appreciate timely assistance when you
encounter issues or have questions.
Security Measures
Ensure the app prioritizes security. Look for features like two-factor authentication and encryption.
User Interface
Try out the app’s interface. Is it intuitive? Can you navigate it easily? A user-friendly design matters.
Investment Options
Explore available assets (stocks, bonds, ETFs, cryptocurrencies). Pick an app that aligns with your interest.
Long Term Commitment
Choose an app you are willing to stick with for the long haul.
Here are some popular apps suitable for beginners
1. Robinhood – offers free stock, ETF, and cryptocurrency trading with no account minimums. Easy to use and great for beginners.
2. Acorn – is a micro-investing app that rounds up everyday purchases to the nearest dollar and invests the spare change. It’s a hands-off way to start investing and particularly suits those who want a passive approach.
3. SoFi Invest – Allows fractional share investing starting at just $1. Provides free financial advice and no-account fees.
4. Wealth Front – is a robo-advisor that uses automated investing algorithms to create and manage a diversified portfolio based on your risk tolerance and financial goals. It requires minimal input from users, making it suitable for beginners.
5. Stash – is an app that helps beginners build a diversified portfolio by providing a selection of curated investment options. It also offers educational content to help users learn more about investing.
6. Betterment – is a robo-advisor that creates a personalized investment portfolio based on your financial goals and risk tolerance. It automates the investment process and rebalance your portfolio as needed.
7. M1 Finance – is a platform that allows users to create custom investment portfolios are known as “Pies.” It combines automated investing with the flexibility to choose individual stocks. No trading fees or account minimums.
8. Public – is an app that aims to make investing social. It allows users to buy fractional shares of stocks, follow other investors and discuss investments in a community setting
9. E*TRADE – is a well-established brokerage platform that offers a user-friendly app for beginners. It provides a range of investment options, research tools, and educational resources.
10. TD Ameritrade’s – think or swim platform offers a more advanced experience but their basic app is also suitable for beginners. It provides a range of investment options and education content.
10. Fidelity – is a reputable brokerage with a user-friendly app that caters to both beginners and experienced investors. It offers a variety of investment options and educational resources.
11. Webull – User-friendly trading platform with free stock/ETF trades, research tools, and virtual trading.
12. Invstr – Offers fantasy finance to practice investing with virtual money/ Allows fractional share – trading starting at $5.
13. Charles Schwab – Full-service brokerage with robust research, education resources, and no-account minimums.
The key features that make these apps beginner-friendly include low or no-account minimums, fractional share investing, educational resources, no trading commissions, and simple user interfaces. Apps like Acorn and Stash also promote regular investing in small amounts through automatic transfers.
As we wrap up our exploration of investing apps, remember this: You don’t need a fortune to start investing; you need knowledge and the right tools. When choosing an investing app, consider fees, and available investment options,
It’s also essential to start with an app that aligns with your investment goals and risk tolerance. As you gain more experience you can explore more advanced platforms if needed.
So, download, learn, and invest—because your financial journey begins today!
Suggestions:
For someone with no prior investing experience, SoFi Invest is likely the best investment app. It offers extensive educational resources and guidance tailored for beginners, including access to certified financial planners at no extra cost. SoFi has no account minimums, no trading commissions, and allows fractional share investing to get started with just $1.
Regarding educational resources for beginners, SoFi Invest stands out by providing financial advice from professionals, webinars, articles, and even one–on–one consultation to help new investors learn. Robinhood has a more basic education section focused on definitions and concepts.
Regarding fees, both Robinhood and SoFi Invest have zero commissions for stock and ETF trades. However, Robinhood charges $5 per month for access to research, data, and margin trading through its Robinhood Gold subscription. SoFi has no subscription fees, and all basic trading and research tools are free.
So, for a true beginner looking for guidance, education, and low-cost investing. SoFi
Invest is likely better than Robinhood’s more bare-bones, self-directed approach.
Getting personalized advice from financial planners at no extra cost makes SoFi particularly appealing for those starting out.