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Top Apps for Beginner Investors

Working with financial markets apps for Beginners

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To pick the best stock trading app from the dozen available options can be an extremely tricky thing to do. People find it hard to separate the good apps from the bad ones. To make things easy for you, we made a list of some of the best stock trading apps.

Making a list is not the only thing that we did. Our team also evaluated this app to narrow down their pros and cons to make things even easier for you. We understand that every investor has a different set of goals, the tolerance level for taking a risk, amount to invest and knowledge about the investing.

1. one of the Best App for all Beginners: the Acorns

  1. Perfect for: Beginners
  2. Bonus: $5
  3. Difficulty level: Beginners
  4. Fee: $1 to $3 per month
  5. Required min. deposit: $0

How Does Acorns work?

Here is how this app for beginner investors work:

  • Start with opening your account in less than five minutes. You do not need to make any investment to open your account.
  • Answer basic questions regarding your age, type of investment, risk tolerance, etc.
  • You will come across different ways to deposit money in your account which includes using “spare change” option where your debit card purchases will be round up to the nearest dollar.
  • There is another option of “FoundMoney” which allows you to make the lump-sum deposits and is a cash back program.

PROS:

  • You get a signup bonus of $5 right after you signup.
  • Automatic investment of the spare charge.
  • No charges for the college student.
  • Option to reinvest dividends.
  • Cash back program that can funnel into the investments.

CONS:

  • For accounts with small balances, the fees can be a little bit too high.
  • More investment will be required in order to get meaningful results.
  • High expense ratios for ETF.

 2. Best App for Long-Term Investing: Betterment

  1. Perfect for: Beginners
  2. Fees:  0.25%
  3. Required min. deposit: None

Not another random investment app. Betterment is a special investment app that is designed to be all in one shop for the investors catering all sort of investing needs. Perfect for people who want to focus on the long-term investing plans.

How does Betterment work?

  • Start with opening your account in less than 5 minutes. You do not need to deposit a minimum amount to open your account.
  • Answer basic questions regarding your age, type of investment, your goals, etc.
  • Betterment will gather your answers and will put up a portfolio that fits all your needs. With time going on, it will rebalance your portfolio to make sure that the allocation of your asset stays intact with the goals.
  • You will be able to track all your assets even if you decide to invest outside of the Betterment.

PROS:

  • Offers low maintenance and comprehensive investing
  • Easy access to the financial experts for the custom advice
  • Low fees for management
  • Offers automatic rebalancing
  • Helpful and easy to use retirement calculators
  • Helpful tracking tools

CONS:

  • No commodities or REITs
  • Not ideal for analytical investors
  • Asset allocation not possible with the external accounts.

3. Best App for Do It Yourself Investing: Ally Invest app:

  1. Perfect for: all Stock Trading purposes.
  2. Fees: $4.95 for each trade.
  3. Minimum Required deposit: $0

For investors who want hands-on ways to invest their money.

How Ally Invest work?

  • You have to choose from each investment (bonds, ETFs, stocks, etc). There is much more flexibility since there are no themes that are pre-made.
  • You are to enter individual trades which means you are the one who has to rebalance your entire portfolio.
  • A vast collection of educational resource.

Things to be cautious about:

It is not an ideal app for people who are completely new to the investing. However, for people who are into researching investments and want to learn more about the stock market, this app might work in your best interest.

The best thing about the Ally is that it only cost $4.95 per trade or stock which ranks this app on the top of the list.

All the investors using this app have direct access to the platform that is browser based which allows quick options for trading.

PROS:

  • A huge number of options for the investment
  • Low commissions for the trading
  • High-quality platform for trading
  • Excellent customer service.

CONS:

  • No option of automatic rebalancing or investing
  • Entirely self-directed

Read Also: Best Ways to Make Extra Income on the Side

4. Best App for Ethical Investing purposes: Swell

  1. It is Perfect for All Impacts
  2. Fees as low as 0.75%.
  3. Minimum Required Deposit: $50.

This app offers a completely unique way of investing. As per the website, Swell is “an impact investing software can help you to invest in highest growing.”

How does Swell work?

  • Open your account in less than five minutes. You can go with the retirement account or the brokerage account.
  • There are 6 thematic portfolios which are as follow:
  • Healthy Living
  • Green Technology
  • Zero Waste
  • Renewable Energy
  • Clean Water
  • Disease Eradication

PROS:

  • Morally as well as socially responsible for investing
  • To the point and easy to understand the fee structure
  • No or 0 extra ratios of expense
  • 0 cost of trading

CONS:

  • High management fee as compared to its competitors.
  • High volatility since it focuses primarily on the US small cap stocks.
  • Not most tax efficient due to its quarterly rebalancing.

Read Also: 52-Weeks challegne to save $5000

5. Worth Mentioning: Stash (Beginner App)

A simple yet effective investing app Stash makes it very easy for the beginner investors to put their money to right work. It explains the investing in layman language and makes it easy for everyone to understand.

How does Stash work?

  • Start with opening your account by depositing $5.
  • More than 150 investment themes or stocks to choose from. You get a lot of options for your interests, goal, and belief.
  • Each and every theme has more than one company to go on and invest in.
  • Make a very small deposit of as low as $5 in your account in order to invest.

PROS:

  • Low minimum required
  • Allows you to buy the fractional shares
  • All investments are based on the beliefs and values.

CONS:

  • High fees on the low balances.
  • No option for management
  • High expense ratios for ETF

Start now and make the best of it:

If you still haven’t started investing then you still have the time to do so. Don’t worry about having a huge amount to invest up to your sleeve. The biggest investors today started with small money.

If you don’t know the basic of investing then you are in the same boat with a lot of people. Not everyone graduates with a finance degree. Most of the people have to do research and learn their way to the best investing options.

To make things easier, go with any of the apps that are mentioned above. Checkout all the pros and cons in order to pick the one that goes best with your requirements.

The time you invest today to grow will help you to have more when you are retired. It is a win-win situation. All you have to do now is a start.

Summary:

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Summary
Review Date
Reviewed Item
Acorn
Author Rating
51star1star1star1star1star

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