If one of your resolutions for 2020 was to start investing, you'd need a robust tracking solution for this purpose. Google Play and the App Store offer too many options to make a quick choice, though. That’s why we decided to make a list of the best investment apps to help you pick up the right one. Match each of them with your particular purposes, and start investing like a pro right away!
1. Acorns – Saving and Investment Companion
Acorns is the app that you will find on many top lists on the web for a good reason. It’s a straightforward saving companion app that’s designed for automating your investments. Everything you have to do is adjust the app is a few taps and let Acorns do the rest for you.
Link your main credit or debit card to the app to let it round up all the purchases you make and deposit the small difference in your accounts at BlackRock, or Vanguard exchange-traded funds. It’s a reliable method for those investors who don’t have enough time to research the compare stocks. Besides, you can create recurring deposits to let the app draw some money from your card every month. After that, you can choose a conservative or aggressive portfolio to define how the automation will work.
2. Stash – Best for Rookies
Stach is not just an investment tool but also a comprehensive online educational center. Stach Coach is a dynamic gamified educational instrument that will teach you to understand investment basics. At the same time, you can take part in challenges that will consolidate and boost your knowledge.
To start investing, you should define your financial goals and select the right exchange-traded funds and stocks. The app will help you to create a diversified portfolio and start investing from $5 via traditional brokerage, traditional, and Roth IRA accounts.
3. Robinhood – Invest Without Fees
Vlad Tenev and Baiju Bhatt founded Robinhood to provide users with the one and only commission-free tool for trading stocks, crypto, exchange-traded funds, and options. It’s a perfect way to start without being a debtor of the platform. If you’re an experienced investor, you can jump into a more serious game for $10 per month. It’s not as educationally-focused as the Stash app, so we recommend you to start investing only if you have an idea of what you want to invest in. However, the interface of Robinhood is much clearer than in any other app on our list. Apple congratulated the app for that with a Design Award in 2015, which is a prestigious award for any category.
4. Wealthfront – Beginner-Class Instrument
Wealthfront is another simple way to start investing in exchange-traded funds and individual stocks. An average portfolio in the app processes 6-8 ETFs from a massive catalog of assets. To start trading, you have to create an account, set your goals, and limit risks. The service fee is limited to 0.25%, and you can delay it until you make the first $5000 by referring a friend who will fund an account.
The entrance amount is pretty high, but still quite low for such thing as investing. You have to charge $500 on your account to enable the automated advisor to start working for you. You should also consider that you won’t be able to trade and select funds on your own.
5. Stockpile – For Micro-Investments
Stockpile is a simplified investment experience for young people who want to try themselves in investing without monthly fees. Instead, you have to pay 99 cents when you trade something successfully. It also lest you purchase fractional shares of nearly any company of the New York Stock Exchange. If you want to invite a friend, you can do it by funding a stock or a gift card.
6. Tips Dollar – Buy & earn
Tips Dollar is another beginner-level service that offers you to earn the in-app currency “Tips Dollars” by making purchases in the app. Later, you can reinvest everything you earned, withdraw your cash, or send them to another user as a gift. You can withdraw your money anytime back to your credit card or a bank account.
7. M1 Finance – For Long-term Investments
M1 Finance lets you choose between the automatic investment and manual selection of stocks. If you don’t have enough experience for the second mode, you can enable the bot suggestions or even combine both approaches to minimize risks. It makes M1 Finance supportive and flexible at the same time. You can create an account with $100 and pay taxes, or invest $500 to start an IRA account. The functionality of M1 Finance is suitable for long-term investment strategies because there are no minute-to-minute tools.
8. Betterment – Tax Efficient Investments
Back in 2008, Betterment used to be the first automated advisor on the market. It allows you to create and adjust a portfolio based on preliminary research. Similarly to other robo-advisors on our list, Betterment charges taxes automatically, but the size of taxes is smaller. In addition, the service provides after-tax returns, which is very attractive. The service fee of Betterment is 0.25%, but unlike Wealthfront, there’s no budget minimum, so you don’t have to save.
9. E-Trade – The Leader of Options
E-Trade is an excellent choice if you want to diversify your portfolio as much as possible. The list of investment options on the service includes thousands of options, stocks, mutual funds, futures, ETFs, bonds, and others. Moreover, many of them are totally commission-free, while trading fees fluctuate from $0.75 to $6.95. If you make over 30 trades during the quarter, your tax will be lowered.
Now that you know about 9 most popular and efficient investment applications, you should choose one and focus on your portfolio. Any advisor would recommend you to split the assets across classes and sectors. It will help you to diversify your portfolio and raise success probability. Have you already started investing? Tell other readers about your experience in the comments and share the article with other people who’d like to begin.