The Top 6 Apps for Beginner Investors
Most people know they should invest their money. Unfortunately, many people do not start investing until later in life because of bills, obligations, and other compiling reasons.
Regardless of when you start investing, the stock market and other financial vehicles can be confusing and intimidating. While you can take your money to brokerage houses, they typically have account minimums and significant trading fees.
When you are a beginner with little to invest, a commission-free brokerage model is typically best. Additionally, many people prefer passive trading models. If you are ready to start investing, try one of the top six apps for beginners.
SoFi is a low-cost, easy-to-use platform. There are no account minimums, and you can get started with investing with only $1. Additionally, there are no recurring account fees and no commissions for trades. Finally, the managed portfolio product is also free. SoFi is an excellent program and a fantastic resource and product for new investors.
2. TD Ameritrade
TD Ameritrade is the place to go if you want to learn how to trade and invest. The main app helps beginners learn all the essential skills to grow and manage their money with zero fees for stock and ETFs. Additionally, there are no account minimums or fees for DIY accounts. As you gain more experience, you might consider upgrading to the premier platform.
3. Ally Invest
Ally Invest is another option for uncomplicated investing. There are no account minimums for DIY portfolios, but robo-adviser accounts will require a minimum of $100. Still, there are no recurring fees, and trading stocks and ETFs do not incur commissions. However, mutual funds do include a $9.95 fee. While Ally is not as heavy on the bells and whistles as some other platforms on the list, it has everything necessary for a beginning investor.
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Public is not the best app for every beginning investor, but it is an excellent option for complete novices. By combining social network features and elements of brokerage houses, the platform takes the intimidation out of the research and learning curve of investing. As with other platforms on the list, Public has no fees or account minimums. One of the app's best features is that you can invest in fractional shares for as little as $5.
5. Acorns Invest
Acorns is an investment app for people who do not want to be bothered with investment strategies but know they should be investing. Through Acorns automated tools and spare change round-up, investors get a fully functioning portfolio without needing to mess with any fine-tuning. The platform will cost between $1 and $5 per month, but investors get a hands-off experience.
While Robinhood has had its fair share of bad publicity about downtime and risky investments with little warning, it remains a pioneer in the commission-free brokerage model. Premium accounts will cost $5 per month, but the platform still doesn't charge fees. While a decent app, because of the issues in the past, it is worth noting that any investment is a risk, so make sure you understand an investment before putting your money into it.
It is never too late to start investing. Any of the above apps and platforms are great options for beginners. Do you know of any other apps or trading platforms for investors just starting out? Comment below.