Investing doesn’t have to be complicated, and with the right tools, anyone can start building their wealth.
The following investment apps are tailored for beginners, offering user-friendly interfaces, educational resources, and features that simplify the investment process. Let’s take a closer look at each of them.
- Robinhood
Robinhood is a popular commission-free trading app that gained widespread attention for its user-friendly interface and accessibility, particularly among younger investors. It allows users to buy and sell stocks, ETFs, options, and cryptocurrencies without paying traditional trading fees. The platform has been credited with democratizing investing by making it easier for people to start investing with small amounts of money. However, it has also faced criticism and controversy, especially regarding its business practices, such as its revenue model that relies heavily on payment for order flow and concerns about its role in promoting risky trading behaviors among inexperienced investors.
Key Features:
- Commission-free trading
- No account minimums
- Fractional shares
- Cryptocurrency trading
Why It’s Great for Beginners: Robinhood’s straightforward platform makes it easy to execute trades and understand market trends without overwhelming new investors with complex tools.
- Acorns
Acorns is a micro-investment app that allows users to invest their spare change from everyday purchases into a diversified portfolio of stocks and bonds. The app works by rounding up your everyday purchases to the nearest dollar and investing the spare change into a portfolio tailored to your risk preferences and financial goals.
It’s a popular choice for people who want to start investing but might not have a lot of money to spare upfront. Acorns also offers additional features like automatic recurring investments, retirement accounts, and access to educational content on personal finance and investing. Overall, it’s a user-friendly platform designed to make investing more accessible to the general public.
Key Features:
- Automatic round-up investing
- Variety of portfolio options
- Retirement account options
- Cashback rewards from partner brands
Why It’s Great for Beginners: Acorns automates the investment process, making it effortless to grow your portfolio without needing to actively manage your investments.
- Stash
Stash combines banking and investing in one app, allowing users to start investing with just $5. It offers educational content to help beginners learn the basics of investing, along with personalized investment recommendations based on your goals and risk tolerance.
Key Features:
- Low minimum investment
- Educational resources
- Personalized recommendations
- Retirement accounts
Why It’s Great for Beginners: Stash’s educational approach and low entry barrier make it an excellent choice for those who are new to investing and want to learn as they grow their portfolio.
- Betterment
“Betterment” is the pursuit of improvement or progress, often in oneself or in a particular aspect of life. It involves striving to become better versions of ourselves, whether that be mentally, physically, emotionally, or spiritually.
Betterment can encompass a wide range of activities and behaviors, such as learning new skills, adopting healthier habits, cultivating positive relationships, and pursuing personal growth opportunities. It’s essentially the ongoing journey of self-improvement and development.
Key Features:
- Automated portfolio management
- Tax-loss harvesting
- Goal-based investing
- Retirement planning
Why It’s Great for Beginners: Betterment’s automated approach takes the guesswork out of investing, allowing beginners to benefit from a professionally managed portfolio.
- Wealthfront
Wealthfront is a financial technology company that offers automated investment services, commonly known as robo-advising.
It was founded in 2008 and is based in Palo Alto, California. Wealthfront provides a platform for users to invest in low-cost, diversified portfolios of exchange-traded funds (ETFs), tailored to their risk tolerance and financial goals.
The platform utilizes algorithms and modern portfolio theory to manage clients’ investments efficiently.
Users answer questions about their investment objectives, risk tolerance, and financial situation, and Wealthfront’s algorithms use this information to recommend a suitable portfolio allocation.
Key Features:
- Automated investment management
- Financial planning tools
- Tax-efficient investing
- High-interest cash account
Why It’s Great for Beginners: Wealthfront’s powerful planning tools and automated investing make it easy for beginners to start investing and planning for their financial future.
- E*TRADE
ETRADE is an online brokerage platform that allows users to trade stocks, options, mutual funds, exchange-traded funds (ETFs), and other financial instruments. It provides tools and resources for investors to manage their portfolios, conduct research, and stay informed about market trends.
ETRADE offers both self-directed trading accounts for independent investors and managed portfolios for those who prefer a more hands-off approach.
Additionally, it offers retirement accounts, education savings accounts, and banking services such as savings accounts and certificates of deposit (CDs). E*TRADE has been a prominent player in the online brokerage industry for many years, offering a range of services to cater to investors of all levels.
Key Features:
- Extensive investment options
- Educational resources
- Commission-free trades for stocks and ETFs
- Retirement accounts
Why It’s Great for Beginners: E*TRADE’s robust platform and educational resources make it easier for beginners to understand the investment process and make informed decisions.
- Fidelity Investments
Fidelity Investments is one of the largest and most well-known financial services companies globally. It offers a wide range of investment products and services, including mutual funds, exchange-traded funds (ETFs), retirement planning, wealth management, trading platforms, and more. Fidelity is particularly renowned for its robust online trading platform, research tools, and educational resources for investors.
The company was founded in 1946 and has since grown to become a major player in the financial industry, serving millions of individual investors, institutions, and financial advisors.
Fidelity’s reputation for reliability, innovation, and customer service has made it a popular choice for people looking to manage their investments or plan for retirement.
Key Features:
- Commission-free trading
- Wide range of investment options
- Research and educational tools
- Retirement accounts
Why It’s Great for Beginners: Fidelity’s extensive resources and user-friendly interface help beginners navigate the investment world with confidence.
- TD Ameritrade
TD Ameritrade’s app is highly regarded for its educational resources and powerful trading tools. It offers commission-free trades for stocks and ETFs, along with a variety of other investment options and 24/7 customer support.
Key Features:
- Commission-free trading
- Comprehensive educational resources
- Variety of investment options
- 24/7 customer support
Why It’s Great for Beginners: TD Ameritrade’s focus on education and support makes it a top choice for beginners who want to learn about investing and receive assistance when needed.
- SoFi Invest
SoFi Invest is part of the larger SoFi financial ecosystem, offering commission-free trades and automated investing. It also provides access to financial advisors and a range of other financial services, making it a versatile choice for beginners.
Key Features:
- Commission-free trading
- Automated investing
- Access to financial advisors
- Wide range of financial services
Why It’s Great for Beginners: SoFi Invest’s comprehensive financial services and user-friendly app make it easy for beginners to manage all aspects of their finances in one place.
- M1 Finance
M1 Finance combines the best of robo-advisors and self-directed investing. It allows users to create custom portfolios (called “pies”) and offers automated rebalancing. M1 Finance also provides a flexible and low-cost way to invest.
Key Features:
- Customizable portfolios
- Automated rebalancing
- No commission fees
- Fractional shares
Why It’s Great for Beginners: M1 Finance’s unique approach to portfolio management and its automation features make it easy for beginners to invest according to their preferences without constant oversight.
Conclusion
Choosing the right investment app can make a significant difference in your investing journey. The apps listed above offer various features tailored to beginners, from automated investing and educational resources to commission-free trades and financial planning tools.
By selecting an app that aligns with your investment goals and preferences, you can start building your wealth with confidence.
FAQs
- What is the best investment app for beginners? The best investment app for beginners depends on individual preferences, but Robinhood, Acorns, and Stash are popular choices due to their user-friendly interfaces and low entry barriers.
- Can I start investing with little money? Yes, many investment apps like Acorns and Stash allow you to start investing with as little as $5 or by rounding up your everyday purchases.
- Are investment apps safe to use? Most reputable investment apps are safe to use as they employ advanced security measures. However, it’s essential to choose apps that are regulated and have a good reputation.
- What are the benefits of using a robo-advisor? Robo-advisors like Betterment and Wealthfront offer automated portfolio management, tax-efficient investing, and financial planning tools, making investing more accessible and less time-consuming.
- Do investment apps charge fees? Some investment apps charge fees, while others offer commission-free trades. It’s important to review the fee structure of each app to understand any potential costs involved.