Investing your wealth has become a global thing now, you don’t need to be a professional from Wall Street for that anymore. With the growth in technologies, along with your smartphones now anyone can build their wealth with just a few clicks. But the tough part is choosing the best investment apps for beginners, it can get overwhelming with the range of options available in the market. Choosing the right app will provide various insights with educational resources, it also offers lower fees and multiple investment options.
In this article, we will be exploring the best investment Apps for beginners that provides many user-friendly features, and also give you some tips on how to choose the right one as per your preference.
Why Use an Investment App?
Investment apps have transformed the financial landscape by making it easier for everyday individuals to invest in stocks, ETFs, mutual funds, and even cryptocurrencies. Here are some key benefits of using an investment app:
- User-friendly interface: Most apps are designed to be simple and easy to use.
- Low or no commission fees: Many apps allow commission-free trading, reducing the cost of investing.
- Educational tools: Some apps provide free lessons, stock market insights, and risk management strategies.
- Automated investing: Robo-advisors can manage your portfolio based on your risk tolerance and goals.
Now, let’s dive into the best investment apps for beginners based on different investment needs.
1. Robinhood – Best for Commission-Free Trading
Robinhood is one of the most popular investment apps for beginners. It offers commission-free trading on stocks, ETFs, and cryptocurrencies.
Key Features:
✔️ Commission-free trading
✔️ Easy-to-use interface
✔️ No account minimum
✔️ Fractional shares for small investments
Robinhood is ideal for beginners who want to trade without worrying about high fees. However, it lacks advanced educational tools, which may not be ideal for those looking to learn in-depth investing strategies.
2. Acorns – Best for Hands-Off Investing
If you’re looking for an app that automates investing, Acorns is a great option. It rounds up your daily purchases and invests the spare change into diversified portfolios.
Key Features:
✔️ Automatic investing through round-ups
✔️ Diversified portfolios managed by experts
✔️ No investment knowledge required
✔️ Low monthly fees ($3 to $5)
Acorns are perfect for beginners who want to invest without actively managing their portfolios. However, the monthly fee may not be cost-effective for small investors.
3. Stash – Best for Learning and Investing
Stash combines investing with financial education, making it an excellent option for beginners. It allows users to start investing with as little as $5 and provides personalized investment recommendations.
Key Features:
✔️ Beginner-friendly investment options
✔️ Educational content and resources
✔️ Automatic investing feature
✔️ Access to fractional shares
Stash is best for those who want to learn while they invest. However, it charges a monthly fee, which might be a drawback for some users.
4. Webull – Best for Advanced Beginners
Webull offers a more sophisticated investing experience with advanced tools, yet it remains beginner-friendly. Unlike Robinhood, it provides more in-depth market analysis.
Key Features:
✔️ Commission-free trading on stocks and ETFs
✔️ Extended trading hours
✔️ Paper trading (virtual investing) for practice
✔️ No account minimum
Webull is a great choice for beginners who want to learn about technical analysis and advanced trading strategies. However, it lacks mutual funds, which some beginners might prefer.
5. M1 Finance – Best for Passive Investing
M1 Finance blends automated investing with customization. Users can create their investment portfolios or choose from pre-built ones.
Key Features:
✔️ Automated investing and rebalancing
✔️ Customizable investment “pies”
✔️ No commission fees
✔️ Fractional shares available
M1 Finance is ideal for beginners who prefer a more structured approach to investing. However, it does not support real-time trading, which may not appeal to active traders.
Also read: Investment Strategies for Women: A Comprehensive Guide to Building Wealth
How to Choose the Best Investment Apps for Beginners?
When selecting the best investment apps for beginners, consider the following factors:
- Ease of Use: A beginner-friendly app should have a simple and intuitive interface. Apps like Robinhood and Acorns excel in this area.
- Investment Options: Some apps offer stocks, ETFs, and cryptocurrencies, while others focus on automated investing. Choose an app that aligns with your investment goals.
- Educational Resources: If you’re new to investing, choose an app with built-in educational tools like Stash.
- Fees and Costs: Some apps charge monthly fees, while others offer commission-free trading. Make sure to choose an app that fits your budget.
- Customer Support: Good customer support is crucial, especially for beginners who might need guidance.
Conclusion
The best way to choose the best investment apps for beginners can vary according to your monetary goals and investment style. For investing, your experience can play a pivotal role but it is not an important requirement. If you are looking for commission-free trading, you should go for Robinhood. And for hands-off investing, Acorns is the best choice. But Stash is ideal for someone who wants to learn about investing and Webull is made for advanced beginners. Last but not least if you want automated portfolio management, then M1 Finance is ideal for you.
No matter what app you choose, the thing to remember is to start your investment journey early and be consistent. Along with the right tools and knowledge, anyone can excel and walk on the path of financial success today.
