Your investing app is just as important as the assets in your portfolio. Thanks to financial applications, you can buy and sell holdings, get financial advice, and budget using your mobile phone. As a beginner, you want an application that allows you to build wealth while studying the market.
What Makes a Good Investing App?
Profitable investing starts with choosing the right financial platform. But with countless business apps in operation, finding something that matches your goals and investment style might be challenging. Don’t worry, however, there are several factors to consider when picking an investing app.
The first one is fees. Although investment platforms must charge commissions to stay in business, you don’t want the fees eating into your profits. Investing apps have different pricing structures. While some have flat fees, others take a percentage of your profits while the rest charge per trade. The lower the rates the better.
Another factor is customer service. Since you’re entrusting the platform with your money, the least they can do is enhance the customer experience. For starters, support agents should be easy to reach. Unanswered calls, emails, and social media messages can be frustrating when you have an urgent query. This goes together with the agents’ resourcefulness. You shouldn’t struggle with the same problem after contacting support staff.
Usability also matters. Besides compatibility with various devices, investing apps should offer seamless navigation. The platform may promise amazing features but it’s all useless if you cannot find your way around the app. Most importantly, ensure the app offers your preferred investing tools, for example, stocks, bonds, and exchange-traded funds (ETFs).
A Few Good Investing Apps For Beginners
Financial apps are available for all investing levels. Here are our top picks for beginners. (Note: Money Vehicle has no relationship with any of these companies or applications, we simply think that an objective look at them could be beneficial for new investors!
1. SoFi Invest
Abbreviation for “social finance”, SoFi began as a personal loan and student debt refinancing platform. It has since graduated to personal finance, offering investment, savings, and checking accounts. Investors love SoFi for various reasons. For starters, the app has no minimum investment; you can open an account with only $1.
Additionally, traders don’t pay commissions or recurring account fees. Though the platform doesn’t have every financial tool, you can trade in cryptocurrency using coins like Bitcoin, Ethereum, and many more. Moreover, SoFi lists ETFs and stocks by category, allowing easy browsing of available offerings.
Not forgetting the app’s financial articles that guide your investment decisions. SoFi’s investment research may not be the most detailed, but it’s still enough to kickstart your trading journey. Furthermore, SoFi offers investment sessions outside the app. This way, you can reach your investment goals with the help of a certified financial planner.
Why It’s Good for Beginners
- No investment minimum
- Investment advice from certified financial planners
- Supports crypto trading
- Zero trading fees
- Low fund fees
Drawbacks
- Doesn’t operate outside the US
- No stop-loss orders.
- Few tradable securities
2. Stash
This is a budgeting app dedicated to beginner investors. It supports various financial assets, for example, single stocks, ETFs, and fractional shares. You can buy fractional shares for $5 and below since you don’t have to wait until you have money for the whole stock. Rather than charging commissions, Stash fees depend on three investment plans:
- Stash Beginner: $12 per year and $1 monthly
- Stash Growth: $36 per year and $3 monthly
- Stash+: $108 per year and $9 monthly
Another benefit is the Stock-Back feature that rewards user spending. You receive a percentage of your purchase as stock when you pay using the Stash debit card. Not forgetting the automated investing services. Though you can build the allocation on your own, the Smart Portfolio feature weights your holdings after a withdrawal or contribution. Stash also reviews the account quarterly for rebalancing signals.
Why It’s Good for Beginners
- Fractional shares
- Bonus stocks after debit card transactions
- Low investment minimum
- Both automated and DIY investing
Drawbacks
- No wealth management programs
- No human investment advisors
3. Public
This trading app aims at creating a safe space for investors. Besides scrapping commissions and offering fractional shares, the app offers educational content to guide beginner investors. Public also has a social feed to facilitate interactions among investors. You can follow the conversations of other investors, start group chats, or join live events. Although you can invest in crypto, stocks, and ETFs, the app doesn’t support options, mutual funds, or bonds trading.
Why It’s Good for Beginners
- Fractional shares
- Social feed
- Commission-free
- User-friendly app
Drawbacks
- Doesn’t allow stock day trading
- Limited asset selection
Though the best investing apps give you an upper hand in the market, they don’t guarantee financial success. As such, study the market before picking a financial vehicle. You should also diversify your portfolio for minimum risk.
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