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The Best Investment Apps For Beginners: A Definitive Guide

The Best Investment Apps For Beginners: A Definitive Guide

If you are looking for the best investment apps for beginners, you are on the right page. In this article, we are going to take a look at some of the best apps that you can help you as a beginner. Generally, these apps feature low fees and allow you to access different types of accounts and other investment products. Before you go for an app, make sure it can suit the type of investment you want to make and the type of tools you need to hit your goals.The Best Investment Apps For Beginners: A Definitive Guide

Without further ado, let’s take a look at some of the best investment apps for beginners.


SoFi

SoFi is our best pick for a number of reasons. For instance, it comes with no fee and there are no minimum account requirements. So, you can go for it if you are looking for a user-friendly platform that features rock-bottom pricing.

To get started, you can just invest $1. Plus, you don’t need to pay any commission for trades and there are no accounts fees that you need to pay every month or year. In fact, you can use the managed portfolio for free.

This application has a category of stocks and shares, which allows you to check out potential investment opportunities. Although this app does not provide deep investment research, it offers more than enough to help you to go through the process. Besides, the app offers informative articles to educate you about different types of investment.

Apart from the application, SoFi provides supplementary sessions that revolve around financial planning for every member. As a beginner, if you need help with an investment strategy, you may want to use SoFi.


Ally Invest

Ally Invest comes with no fees, and there is no account minimum either if you go for DIY portfolios. For Robo-adviser, you pay $100, though. If you are looking for a user-friendly app with top savings and checking accounts, you can give it a go.

If you are a beginner, you can earn a lot with a simple investment platform like this. Ally Invest mobile app can help you achieve your goals. There are no commissions for trading ETFs and stocks. However, there is a $9.95 commission if you trade in mutual funds. Other than these, you don’t need to worry about minimum balance or recurring fees.

The good news is that Ally Invest is used by Ally Bank as well. Unlike most trading platforms, it has no bells and whistles. But it offers all that you may need as a beginner.


Acorns

Acorns is another great app on this list. You pay a fee of between $1 and $5 monthly, but there is a $0 account minimum. If you want to enjoy a hands-free investment experience, this app is your best bet.

If you are too busy to manage your investment yourself, Acorns can solve this matter for you. All you need to do is pay only $1 per month and the app will take care of the rest of the matters. In other words, the app will invest spare change automatically via the automated investment plan, automated transfers, and transaction round-ups.

The major advantage of this app is that you will find it quite user-friendly. But the biggest downside is that the app charges no fees at all. Although the monthly fee of $1 is not much, it’s a big deal when you have a low balance in your account.

For instance, if your account has only $100 in it, the monthly fee of $1 will make over 10% per year. Besides, if you want to have extra features and accounts, be ready to pay between $3 and $5 on a monthly basis.


TD Ameritrade

TD Ameritrade is another popular app for beginners. It charges no fee for accounts, ETFs, and stocks. For managed accounts, there is a fee between 0.75% and 0.90%. For selective portfolios, the fee is between 0.60% and 0.90%.

There is no account minimum for DIY accounts. But there is a limit of $25,000 or $250,000 if you want to go for managed accounts. So, if you need to use more than one app for different goals and trading experiences, TD Ameritrade may cover your needs.

As a beginner, if you have plans to try active trading, this app can help you get started. This app won’t charge you for ETF trades or stocks, Plus, it offers several account platforms that suit your investment goals and styles.

As a beginner, you may find it easier to use the main TD Ameritrade app. This will help you avoid confusion and frustration. As you gain more experience, you can go for the Thinkorswim. This is a premier platform and offers a range of useful features for aspiring traders. The good news is that you can use the chat feature of the app to consult an expert trader at thinkorswim.

Here is an interesting note: in 2020, TD Ameritrade was acquired by Charles Schwab. He made an announcement that the future product lineup will include TD Ameritrade’s Thinkorswim.


Public

The public app charges no fees and has a $0 account minimum, which is what makes it an ideal choice for beginners. When you are just getting started in the world of the stock market, you may find it a little intimidating to dig deeper and go for stocks and other types of investments for yourself.

The good thing about Public is that it offers a combo of features from Twitter and Facebook. Plus, it also offers conventional brokerage features, which is why it’s a great app for beginners in the field of the stock market. If you have been trading for a while, this app may work better for you due to these traditional features.

Since fractional shares start at $5, you can invest in several supported companies. And there is no need to purchase a full share. Although it’s not a popular investment type, it includes ETFs and stocks. Therefore, it’s a lucrative investment opportunity for beginners. Even experienced investors can go for it if they want to develop their investment strategy.


Robinhood

Robinhood has an account minimum of $0 for the majority of investors. But if you need a premium account, you will pay $5 or more per month. So, if you need to put your money in a number of ETFs and stocks, Robinhood can help you get started.

If you like a no-commission brokerage approach, Robinhood is your ideal choice. For beginners, it’s a great choice as they can put their small amount of money in ETFs and stocks without paying commissions. This can save you a lot of money.

Generally, ETF and stock investors can try Robinhood without paying any fee. But you can also choose to pay $5 per month for premium accounts. This will allow you to access more features of the app for the best experience.

Many controversies are surrounding Robinhood due to downtime. Besides, some of the uses of the app made extremely risky trades without understanding the complications.

Just like with any other investment app, inexperienced traders should have a pretty good idea of the risk associated with the goals they want to achieve. This can help them avoid unexpected losses.


Stockpile

Stockpile is another great name on the list of investment apps. This app charges 99 cents against each trade and has a $0 account minimum. Unlike other apps on this list, you will have to pay commission for ETF and stock trades. However, it has some unique features, which is why the commission per trade is worth it.

With Stockpile, you can go for fractional share investment.  Plus, it comes with gift cards. Therefore, it’s an ideal choice for young investors like you. Apart from this, if you want your kids or siblings to get into the stock market, this is an ideal app to get them started.

So, if you want to gift stock and monitor the account of a minor, Stockpile allows you to do so. Plus, it makes it easier for you to navigate through a list of supported stocks.


Other apps that you may consider

Other apps that you may considerWebull: This is a recently launched investment platform that charges no commission. Although it may be a little hard for beginners to use, it does offer a great pricing structure and a set of useful tools.

Firstrade: Although the desktop version is not that impressive, the mobile app is quite user-friendly. The pricing structure is excellent, which includes mutual fund trades that are free of commission.

Stash: As a new investor, if you want to learn the art of investing in stocks and developing the right mindset, Stash is for you. However, the monthly fee of $1 to $9 may put you off.

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FAQs


How can you go for the best investment app?

If you are just getting started, make sure you go for an investment app that comes with all the important features but does not cost much. Therefore, whether you want to put together an investment strategy or you want to develop a great portfolio of stocks or funds, there is a great investment app to cover your needs.

Before creating this list of investment apps, we considered a lot of important factors, such as user-friendly features, availability of investment products, types of accounts, features, fees, and other costs.


What are brokerage accounts?

Basically, if you have a brokerage account, you can store your investment and cash. If you want to use an investment app, the first thing you need to do is look for a good brokerage account. Once you create a brokerage account, you can deposit funds to purchase and sell different types of investments including funds, bonds, and stocks.

Each brokerage offers its own set of pricing and features. Therefore, you can consider your needs and goals when looking for the best brokerage.


How do these accounts function?

There is not much difference between checking accounts and brokerage accounts.  As a matter of fact, most brokerages provide checkbooks as well. Just like a bank account, you can deposit and withdraw funds. But there are some specific rules about making a withdrawal when it comes to some types of tax-advantaged accounts.

In the United States, the Securities and Exchange Commission and the Financial Industry Regulatory Authority regulate brokerage. Over time, brokerage accounts main go down in value, but all of the assets will be safe as they are insured by SIPC. So, you will be on the safe side even if your brokerage goes bankrupt.


Who should use a brokerage account?

In the United States, anyone can create a brokerage account. If you have paid your high-interest debts, you can invest part of your income in the stock market as this would be a wise long-term decision.

On this list, most of the brokers don’t have any minimum balance limits or recurring fees. Afternoon, you just need $5 to invest in your desired ETF or stock.


What is the cost of a brokerage account?

As far as the cost of a brokerage account is concerned, you can create an account with no minimum balance limit and no monthly service fee. Apart from this, most brokerages don’t charge any fee if you want to trade ETFs or stocks. Therefore, there is no need to pay any commission if you want to engage in this type of trades.


How can you choose an online brokerage?

If you want to choose an online brokerage, the first thing you need to do is consider your investment goals. In other words, if you want to engage in active investing, make sure you don’t go for a platform that is designed for passive investors. But you may want to review fees to ensure you are only paying for what you are getting.

Long story short, if you are looking for the best investment apps for beginners, we suggest that you choose one of the apps reviewed in this article. Hopefully, this will help you make an informed decision.