Investing is one of the many means through which people aim to increase their earnings. At the onset of the pandemic, many investment markets faced a downturn in financial fortunes.
Thankfully, a steady recovery is in process. This affected many observers and investors adversely, and people who were new to investing at the time were discouraged. In this article, we will show you some of the best apps to help you grow from a newbie to an investment expert.
How Do Investing Apps Work?
In the not-too-distant past, investing and trading stocks was a cumbersome process. In fact, it required the services of a human broker. But with investing Apps, the story is different.
With a few clicks on your phone or PC, you can purchase stocks without any human interface. Many investing apps have made It easy to access information about stocks through the creation of a user-friendly interface. This ease in accessibility can also be a problem, as it may lead to rash decisions which can bring financial loss.
For this reason, you must understand how these apps work. A proper understanding involves knowing the rate of risk, and the best ways to put these apps to optimum use.
Why Are Investment Apps Useful?
Investment apps can be useful for a variety of reasons, some of which are:
- Manage investments independently
- Buy and sell stocks
- If you’re looking to go out on a limb and position yourself for more returns, get on a premium subscription into mutual funds
- Contribute to tax-advantaged retirement accounts
There are many apps all over the market that cater to the needs of users, but there are two major categories namely:
These apps allow you to invest in funds. With these apps, you can focus on long-term growth. It can also allow you to diversify your investment.
These apps allow you to trade stocks. With these apps, you can buy or sell individual stocks and make a quick profit.
Once you download the investment app of your choice, setting up the app is relatively easy. To set up the app, you will need to provide the following information — your name, address and phone number. Upon a successful setup, you can now continue to use the app to solve your investment problems.
Why Should You Use an Investment App?
Investment app users derive a lot of benefits. Some of the benefits include:
Accessibility: Regardless of your position in society and your financial status, investment apps are accessible to you. You can invest as much money as you can afford, and you stand a chance to reap manifold benefits.
Cheap and Affordable: With very little fees, you can set up your apps and invest your money. If the app you use is a spare change investment app, this also applies to you. These apps charge $1 to $2 monthly in basic service charges. If however, you want to take a high leap and position yourself for more returns, subscribe to a premium plan. Typically, premium subscriptions cost from $3 to $10, depending on the app you use.
How Do You Use Investment Apps?
Many investment apps have basic instructional materials that you can use to update your knowledge.
Before downloading the app, make sure that you have an idea of the kind of investment you want to make. When you have a specific investment plan in mind, you’ll have proper knowledge of what app suits you the most.
But if you’re looking to maximize profit with little money, then a spare change investment app is for you. A spare change investment app will allow you to operate with as little risk as possible. If you’re experienced to a large extent, consider using apps that allow you to trade stocks individually.
How Much Money Do I Need to Start Investing?
Straight answer: Not much. You do not need a bag full of cash to begin your investment journey. If you’re using a micro trade app or a spare change trading app, this works for you.
However, your expenditure depends on the number of stocks, bonds, futures, and assets you intend to buy. If you’re looking to buy stocks, they could cost you from a couple of dollars to thousands. Of course, these depend on the assets you are intent on buying.
Main Features to Look Out for
Many Investment Apps share a lot of generic features. Many of these features are basic, without which the app cannot function as expected. Here are some of them.
An account minimum is the least amount a user can have in their app account for investment or trading. If a user does not have up to the account minimum in their account, then they cannot trade or invest with that app.
Every app has an account minimum which is reflective of the type of trade or investment the app allows you to carry out.
No trading app functions without the ‘Fees’ feature. The app and its developers generate income through this means. As you would pay brokerage fees with human brokers, you’re to also pay a token on the app. Paying the required fees grants you access to the app features and the services it offers.
Tradable assets are securities or stocks held on by users to resell at a profit. Many apps have this feature which allows users to hold on to assets and securities acquired, and to sell them at a profit.
There is a provision for more than one account type in an investment app. This way, people with different financial backgrounds can use the same app for different investment needs.
If you have a micro trade account, a spare change trading account, or a premium trading account, you’re still covered. Many apps provide for different account types so that everyone can invest and make a profit at their own pace.
7 Best Investing Apps for Beginners
There are different investing apps out on the market. We shall look at some of them, and you can benefit from their use.
TD Ameritrade Mobile
TD Ameritrade Mobile is a comfortable fit for users who are new to trading and investing. If you’re looking to trade actively, this app is for you. Since you’re just starting, the app will ease you into active trading with zero charges. This applies to stock and ETF trading so that you’ll explore options without worries.
This app is suitable for people with a wide variety of investments who are desirous of a new trading goal.
- Zero trade fees for stock and ETF trading
- No account fees
- Zero account minimum for new, DIY traders
- $500 for Essential Portfolios, which is quite affordable.
- It allows for too much disclosure of information.
- It does not allow for the purchase and ownership of fractional shares.
TD Ameritrade Mobile costs zero fees for trading. It also has a payment percentage of 0.30% for automated financial advisory services.
4.5 stars out of 5
The Fidelity Investment app is an app that shows market and trading data in real-time. This allows you to stay abreast of developments in major global markets. Its scope however is limited, as it does not allow for futures trading.
Fidelity investment app is best for passive investors and traders looking to buy and hold assets available on the market.
- Optimum completion of trade transactions
- Diversion of spare cash into a money market fund
- An effective system for asset research and screening
- No futures or commodities trading available
- Users cannot access the data on the site in real-time without refreshing data
- Not available to people outside the United States.
The Fidelity Investment app charges zero fees for stock trading.
4.0 out of 5
Webull is an investing app (Google or Apple) for people who see investing as a pastime. If you’re an experienced trader, this app will also meet your needs. There is limited information however, that will help beginners maximize their opportunities.
This app is best for Hobby Investors, and experienced hands.
- Accessibility in the use of the app
- It supports cryptocurrency
- The cost of accessing and using the app is low.
- Scanty instructional materials
- It does not allow for mutual funds
Webull takes zero fees and zero account minimum
4.0 out of 5
SoFi is an investment app that is suitable for beginner investors. Investors who do not want to go hands-on will find the app beneficial. The app also offers access to a group of financial experts. This ranks as the most important feature.
The app is a good fit for investors who are beginners. It is also a good fit for experienced traders and investors. If you also need financial guidance in the course of your trade, then this is for you.
- Full range tech and financial support
- Freedom of asset management
- Width for low-cost investments
- Scanty Track Records do not assure investors
- No benefits to reap from tax-loss
- Few account types mean that not all users will be accommodated.
SoFi takes zero management fees and zero rates for account minimum.
4.5 of 5
Tastyworks as an investment app (Google and Apple) is openly interested in experienced investors. It has a wide variety of trading alternatives since its user investment is derivative-based. Watchlists are a major feature of this app. With the use of watchlists, you can position yourself to make informed decisions regarding the possibility of trade profit.
This app is best for hands-on traders who want to focus on options, futures, and other derivatives.
- Real-time access to trading and market information
- Flexible trading platform
- Options-based chart analysis enables you to know the possibility of making a profit.
- It is not easily understood by newbies
- Little instructional materials available
- No access to Portfolio appraisal on the site
Zero rates for account minimum, Zero amount for stock trades, $1.00 to begin options trading, and $0.00 to end.
3.5 stars out of 5
Robinhood is a solid app for beginners to make their trades with zero commission. It is one of the first investments to adopt the zero-commission brokerage system. Premium accounts pay a fee of $5 monthly to gain access to more relevant information and make better-informed decisions.
This app is best suited for investors who are looking to expand their investment portfolios. By putting their money in a wide range of stocks and ETFs, they are better served using Robinhood.
- Conducive to cryptocurrency trade.
- Zero account minimum.
- Inadequate customer support
- Zero mutual funds
- No accounts for retirement benefits
Zero fees, Zero minimum account, $5 monthly for a premium subscription.
3.5 out of 5
The Ally app (Google and Apple) makes for no stress and an easily understood platform and process for beginners. It is highly navigable, even for newbies. Passive investors also benefit from apps set up like this as well.
This investing app is best suited for investors who want navigable investing apps to be linked to their bank accounts. Active Traders, Options Investors, and Forex investors can benefit from the use of this app.
- Automated Investment Portfolios make investing easy
- Wide range of investment options
- It has a protection system against an unstable market
- Payment will always be made whenever a mutual fund is traded.
- $0.50 for options contracts
- $9.95 per mutual trade
4.5 out of 5
Investing Made Simple
With this new system of accessing the investment markets, you can take advantage of these investment apps to maximize profit. However, it is easy to lose money in this investment model.