Investing your money online can seem risky and quite puzzling for those of us who have absolutely no prior experience. It’s a good thing to keep in mind that every successful investor had to start somewhere, and with little initial capital. Fortunately, nowadays, digital technology allows anyone with a smartphone and some cash to invest their money and turn a profit at their own convenience.
We’ve compiled some of the most popular investing apps for newbies. With this guide, you’ll familiarize yourself with how they operate, their benefits, and what they cost. These easy-to-navigate tools are a great starting point for newcomers to acquire the necessary knowledge and skills to become expert investors.
Just remember, making money takes time and requires perseverance.
Acorn is a micro-investment platform that works by collecting spare change rounded up from your everyday debit and credit banking transactions and automatically investing it for you. This is done once $5 of spare change has been collected. Acorns also have other portfolio opportunities such as recurring and one-time investments. It’s a superb entryway for would-be investors that requires little effort and monitoring on your end, with a price tag set at just $1 per month for account balances under $5,000. Other advantages include:
- Benefiting from a 4-year monthly fee waiver if you’re a university student registering with a ‘.edu’ email address
- Shopping at Acorn’s partners, which include Walmart and Macy’s, will earn and save you extra thanks to their ‘Found Money’ feature.
With its intuitive app design, Robinhood is a must for those interested in buying and selling stocks, as well as trading with more complex financial instruments. It’s a US-based, zero-commission platform that lets you place your money freely and at your own risk. As a newbie, if you’re uncertain whether Acorn or Robinhood is the best choice by comparing these popular apps and decide which one is better suited for your needs. Robinhood is convenient in certain areas such as:
- Requires no fees or minimum deposit
- Offers the ability to trade in cryptocurrencies
- It provides you with valuable stock market data and real-time monitoring on your investments.
This starter-friendly, educational mobile app gives you tailored investment recommendations depending on your profile and preferences. Stash lets you begin investing with as little as $5. Like Acorns, it’s an automated investing system, so no need to devote a lot of time to it. The platform has several subscription plans starting at just $1 per month for beginners (up to $9 for Stash+). Benefits include:
- A subscription fee waiver for your first month as a member
- Tips and tricks on how to effectively place your money and manage current investments
- A smart categorization of financial instruments and solutions for a better overview of your investment preferences.
This innovative platform invests your money in different asset-owning funds that are called ETFs, with the help of both human and software financial advisers. When you first sign up for an account, Betterment will build you a personalized portfolio based on your investment goals and tolerance for risk. For beginners, you can choose a digital plan with $0 minimum deposit that will cost you 0.25% on your balance per annum. Betterment’s many advantages are:
- Request advice from expert financial advisers who are available to answer all your questions.
- A Smart Deposit feature that will automatically invest surplus funds from your bank account
- A Socially Responsible Investing feature that allows you to place your capital in the companies you prefer to support.
Unfortunately, not everyone has access to a 401k. For self-employed individuals and freelancers who have to ensure their own retirement, this is one of the best and safest options. Vault allows you to set up an Individual Retirement Account (IRA) and each time you get paid, a portion of your earnings –set at your convenience– will go toward that retirement plan to make your money grow. No financial wisdom required; Vault takes care of everything by investing it in a variety of profitable portfolios for you.
All things considered, online investments are an efficient and convenient manner for you to start building wealth and securing your financial future. Don’t let yourself be taken aback by your lack of finance and trading expertise. Today’s global economy is full of accessible investment opportunities. Taking advantage of these investing apps is an affordable way to turn a profit and maximize your earnings over time. All platforms mentioned above have a proven record of success and strict policies that guarantee both transparency and privacy.