If you’re just starting your investment journey and are looking for a convenient way to grow your wealth, you might be wondering: what are the best investment apps for beginners? With the rise of technology, there are a plethora of options available at your fingertips. From user-friendly interfaces to educational tools, these apps cater specifically to those who are new to the world of investing. In this article, we will explore some of the top investment apps that can help you kickstart your financial goals with ease and confidence. So, let’s dive in and discover the perfect app to guide you towards financial success.
1. Robinhood
Investing can seem intimidating, especially if you’re new to the world of finance. But with the rise of investment apps, it’s never been easier for beginners to dip their toes into the world of investing. One app that stands out for its user-friendly interface is Robinhood.
User-friendly interface
Robinhood’s interface is designed with simplicity in mind, making it an excellent choice for beginners. The app’s clean and intuitive design allows you to navigate the different features and options with ease. Whether you’re looking to buy stocks, ETFs, or even cryptocurrency, Robinhood’s interface makes it simple to find what you’re looking for.
Commission-free trades
One of the standout features of Robinhood is its commission-free trades. Unlike traditional brokerage firms, Robinhood allows you to buy and sell stocks and other assets without paying any fees. This can make a significant difference, especially for beginners who may not have a large amount of capital to invest. By eliminating trading fees, Robinhood makes it easier and more affordable for beginners to start building their investment portfolio.
Wide range of investment options
Robinhood offers a wide range of investment options, allowing you to diversify your portfolio based on your preferences and risk tolerance. From individual stocks to ETFs and even cryptocurrency, Robinhood gives you the flexibility to invest in different asset classes. This variety of options can be especially appealing to beginners who want to explore different investment opportunities without a high level of complexity.
2. Acorns
If you’re new to investing and want a hands-off approach, Acorns could be the perfect investment app for you.
Automated investing
Acorns takes the guesswork out of investing by offering automated investment features. The app allows you to connect your debit or credit cards and automatically rounds up your everyday purchases to the nearest dollar. The spare change is then invested into a diversified portfolio tailored to your objectives. This approach can make investing effortless and help you start building wealth without much effort.
Round-up feature
The round-up feature in Acorns is a game-changer for beginners. Every time you make a purchase, Acorns automatically rounds up the amount and invests the change. This “spare change investing” method allows you to gradually grow your investment portfolio without even thinking about it. By making investing a part of your everyday spending habits, Acorns makes it easy for beginners to start investing with minimal effort.
Diverse portfolio options
Acorns offers a range of portfolio options suited for different investment goals and risk tolerances. Whether you’re looking for conservative options with lower returns or more aggressive portfolios to maximize growth, Acorns has you covered. The app’s expertly managed portfolios provide beginners with diversified investment options, reducing the risks associated with investing in a single asset class.
3. Stash
If you’re a beginner looking to learn more about investing while building your portfolio, Stash is an investment app worth considering.
Educational content
Stash stands out for its educational content, making it an excellent choice for beginners who want to learn the ins and outs of investing. The app provides articles, videos, and interactive quizzes that cover various topics related to investing. Whether you’re curious about the basics, like how stocks work, or more advanced concepts, Stash’s educational content is a valuable resource for beginners.
Fractional shares
Stash offers fractional shares, which means you can invest in stocks and ETFs with as little as $5. This feature is particularly helpful for beginners who want to start investing with a small amount of money. Fractional shares allow you to own a portion of a stock or ETF, making it more accessible for beginners with limited funds to build a diversified portfolio.
Automated saving features
In addition to investing, Stash offers automated saving features that can help beginners develop good financial habits. The “Auto-Stash” feature allows you to set up recurring deposits into your investment account, making it easy to save and invest on a regular basis. This combination of automated saving and investing can help beginners grow their wealth over time while establishing a disciplined approach to their finances.
4. Betterment
Betterment is a popular investment app that combines the benefits of professional advice with a user-friendly platform.
Robo-advisor service
One of the standout features of Betterment is its robo-advisor service. The app uses advanced algorithms to provide personalized investment recommendations based on your financial goals, timeframe, and risk tolerance. This can be incredibly helpful for beginners who may not know where to start when it comes to investing. With Betterment’s robo-advisor, you can have peace of mind knowing that your investment strategy is tailored to your specific needs.
Portfolio customization
Betterment allows you to customize your investment portfolio based on your preferences and risk tolerance. The app offers a range of portfolio options, from conservative to aggressive, allowing beginners to choose an investment strategy that aligns with their goals. Additionally, Betterment provides a helpful tool called the “Portfolio Review” that evaluates your existing investments outside of Betterment and provides recommendations to optimize your overall portfolio.
Tax-loss harvesting
Tax-loss harvesting is a feature offered by Betterment that can help beginners minimize their tax liability. The app automatically looks for opportunities to sell investments that have experienced losses and replace them with similar investments. By strategically realizing losses, Betterment can help you reduce your taxable income, potentially resulting in lower tax obligations. This feature is particularly useful for beginners who want to maximize their investment returns while minimizing taxes.
5. Wealthfront
Wealthfront is a popular investment app for beginners looking for a passive and hands-off investment approach.
Passive investing
One of the key features of Wealthfront is its approach to passive investing. With a focus on low-cost index funds, Wealthfront aims to deliver long-term growth by mirroring the performance of the overall market. This passive investment strategy allows beginners to invest in a diversified portfolio without the need for active management or complicated decision-making.
Automated rebalancing
Wealthfront handles portfolio rebalancing for you. As your investments fluctuate over time, Wealthfront automatically adjusts your portfolio to maintain your desired asset allocation. This ensures that your portfolio remains on track despite market movements. Automated rebalancing is particularly beneficial for beginners who may not have the time or knowledge to regularly review and adjust their investment allocations.
Tax-efficient strategies
Wealthfront also employs tax-efficient investment strategies to help investors minimize the impact of taxes on their returns. The app uses a strategy called “tax-loss harvesting” to offset gains with losses, reducing your overall tax liability. Additionally, Wealthfront offers a feature called “Stock-level Tax-Loss Harvesting” that can further optimize your tax efficiency. These tax-efficient strategies make Wealthfront an attractive option for beginners who want to maximize their investment returns while minimizing taxes.
6. M1 Finance
M1 Finance is an investment app that offers customizable portfolios and automated investing features, making it a great choice for beginners.
Customizable portfolios
M1 Finance empowers beginners with the ability to create and customize their own investment portfolios. The app allows you to choose from a wide variety of stocks and ETFs to build a portfolio that aligns with your investment goals and preferences. This level of customization gives beginners the flexibility to invest in companies and sectors they believe in, creating a portfolio that reflects their values.
Fractional shares
Like other investment apps on this list, M1 Finance offers fractional shares. This means you can invest in stocks and ETFs with as little as $1, making it accessible to beginners with limited funds. Fractional shares allow you to diversify your investment portfolio even with a small amount of capital, enabling beginners to invest in a variety of securities without needing to purchase full shares.
Automated investing
M1 Finance automates the investment process for beginners through its “Pie” system. You can create a “Pie” that specifies the percentage allocation you want for each stock or ETF in your portfolio. Once set up, M1 Finance will automatically invest your funds according to your specified allocations. This automated investing feature eliminates the need for constant monitoring and adjustment, making it easier for beginners to stay invested and stick to their investment plan.
7. TD Ameritrade
TD Ameritrade is a well-known brokerage firm that offers a comprehensive investment app for beginners.
Educational resources
TD Ameritrade provides a wealth of educational resources, making it an excellent choice for beginners who want to learn more about investing. The app offers a range of educational materials, including articles, videos, webinars, and even in-person events. Whether you’re a beginner or looking to expand your knowledge, TD Ameritrade provides extensive resources to help you better understand the world of investing.
Multi-platform access
TD Ameritrade’s investment app allows you to access your account and trade stocks, ETFs, and other assets from various platforms. Whether you prefer using your smartphone, tablet, or computer, TD Ameritrade provides a seamless user experience across multiple devices. This accessibility makes it easy for beginners to manage their investments and make trades on the go, without being tied to a specific device.
Advanced trading tools
In addition to its educational resources, TD Ameritrade offers advanced trading tools that can be especially useful for more experienced beginners. The app provides features like real-time market data, technical analysis tools, and customizable charts. These tools can help beginners make informed investment decisions and gain a deeper understanding of market trends and patterns.
8. Fidelity
Fidelity is a reputable brokerage firm that offers a wide range of investment options and comprehensive resources for beginners.
Wide range of investment options
Fidelity stands out for its extensive range of investment options, catering to beginners with different investment goals and risk appetites. Whether you want to invest in stocks, bonds, ETFs, or mutual funds, Fidelity gives you access to a broad selection of investment opportunities. This allows beginners to choose investments that align with their preferences and diversify their portfolios based on their risk tolerance.
Educational resources
Fidelity provides a wealth of educational resources to help beginners learn about investing. The app offers educational articles, videos, webinars, and even in-person workshops to improve your knowledge and confidence in managing your investments. Whether you’re a beginner looking for basic information or want to delve deeper into advanced concepts, Fidelity’s educational resources are a valuable asset.
Robo-advisor service
For beginners who want a more hands-off approach, Fidelity offers a robo-advisor service called Fidelity Go. The service uses an algorithm to create and manage a personalized investment portfolio based on your financial goals and risk tolerance. This can be particularly helpful for beginners who want a professional touch without the need to actively manage their investments. With Fidelity Go, you can have peace of mind knowing that your investments are being managed by experienced professionals.
9. E*TRADE
E*TRADE is another well-established brokerage firm that offers a range of investment options and tools for beginners.
Variety of account types
ETRADE provides a variety of account types tailored to different investor needs. Whether you’re looking for a retirement account like an IRA or a taxable brokerage account, ETRADE offers flexibility and choice. This variety of account types can be especially helpful for beginners who have specific investment objectives and want to take advantage of tax-efficient strategies.
Research and analysis tools
E*TRADE provides beginner-friendly research and analysis tools to help you make informed investment decisions. The app offers market research, real-time quotes, and customizable charts to analyze stocks, ETFs, and other assets. These tools can help beginners gain insights into market trends, understand company fundamentals, and make more confident investment choices.
Mobile trading app
E*TRADE’s mobile trading app allows beginners to manage their investments and make trades from the convenience of their smartphones. The app provides a user-friendly interface and intuitive navigation, making it easy for beginners to monitor their portfolio, track market movements, and execute trades on the go. This mobile accessibility ensures that you can stay connected to your investments wherever you are.
10. Charles Schwab
Charles Schwab is a full-service brokerage firm that offers a range of investment services, making it a comprehensive option for beginners.
Full-service brokerage
As a full-service brokerage, Charles Schwab offers a wide range of investment services beyond just the investment app. Whether you’re looking for retirement planning, access to financial advisors, or even banking services, Charles Schwab has you covered. This comprehensive approach provides beginners with the resources and support they need to make informed investment decisions and plan for their financial future.
Robo-advisor service
For beginners who prefer a more automated approach, Charles Schwab offers a robo-advisor service called Schwab Intelligent Portfolios. This service creates and manages a diversified investment portfolio based on your financial goals and risk tolerance. The robo-advisor uses advanced algorithms to monitor and rebalance your portfolio, ensuring that it remains aligned with your investment objectives. With Schwab Intelligent Portfolios, beginners can have confidence in their investment strategy, knowing that it’s backed by professional expertise.
Great customer service
Charles Schwab is well-known for its excellent customer service. The firm offers 24/7 support through various channels, including phone, email, and live chat. This can be particularly reassuring for beginners who may have questions or need assistance navigating the investment app. With Charles Schwab, you can feel confident that you’ll receive the support you need throughout your investment journey.
In conclusion, there are many investment apps available for beginners, each offering unique features and benefits. Whether you’re looking for a user-friendly interface, automated investing, educational resources, or advanced trading tools, there’s an investment app that caters to your needs. By utilizing these apps, beginners can start their investing journey with confidence, gradually building wealth and achieving their financial goals.
