Investing has become more accessible than ever with the rise of user-friendly investing apps. Within the past decade, a plethora of investing apps have emerged, designed to cater specifically to beginners. These apps offer user-friendly interfaces, educational resources, and simplified investment options. In this article, we'll explore the 8 best investing apps for beginners, providing an in-depth analysis of each.
These are the eight and why, not their current fee schedules. Pricing, account minimums and which features sit behind a paid tier all move, and this page is not re-checked every time they do. Confirm the numbers on the broker's own site before you open anything.
The Robinhood link here is a referral link and carries my code. I am not in any affiliate programme and earn no commission from this page; a Robinhood referral pays in shares of stock, and it pays you as well as me. The other seven links are plain links and earn me nothing at all.
1. Robinhood
Overview:
Robinhood is a pioneer in commission-free investing, making it a favorite among beginners. The platform offers a straightforward interface and is known for its user-friendly design.
Features:
- Commission-free trading of stocks, ETFs, options, and cryptocurrencies.
- Intuitive and easy-to-use mobile app.
- Fractional shares, so a high share price does not put a company out of reach.
- A paid tier that adds margin and extra features.
Pros:
- No trading commissions.
- Simple interface suitable for beginners.
- Access to a wide range of investment options, including cryptocurrencies.
Cons:
- Limited research and analysis tools.
- Customer support may lack responsiveness during high demand.
2. Acorns
Overview:
Acorns takes a unique approach to investing by rounding up your everyday purchases to the nearest dollar and investing the spare change. This "micro-investing" strategy is ideal for those who want to invest without actively thinking about it.
Features:
- Automated round-up investing from linked debit or credit cards
- Portfolio options based on risk tolerance.
- Cashback from partner brands, invested into your account rather than paid out.
- Educational content to help users understand investing.
Pros:
- Hands-off investing with automatic contributions.
- Low entry barrier for beginner investors.
- Educational resources for financial literacy.
Cons:
- Monthly fees for certain account types.
- Limited control over specific investment choices.
3. Stash
Overview:
Stash aims to make investing approachable by offering thematic investing options. Users can choose portfolios based on their interests and values, making it an engaging platform for beginners.
Features:
- Personalized investment themes (e.g., technology, sustainability).
- Educational content built into the app.
- Automatic investing with recurring deposits.
Pros:
- Customizable portfolios aligned with personal interests.
- Fractional shares enable diversified investment with small amounts.
- Educational resources for beginners.
Cons:
- Monthly fees for certain account types.
- Limited research and analysis tools.
4. SoFi Invest
Overview:
SoFi Invest combines investment and financial planning, offering a holistic approach to managing money. It provides commission-free trading along with additional features like career counseling and loan products.
Features:
- Commission-free stock and ETF trading.
- Automated investing with a robo-advisor.
- Access to financial planning tools.
- SoFi Money account for cash management.
Pros:
- Integrated financial planning tools.
- Commission-free trades.
- Member benefits include career counseling and discounts on other SoFi products.
Cons:
- Limited investment options compared to some competitors.
- Access to advanced features may require a SoFi membership.
5. M1 Finance
Overview:
M1 Finance offers a unique blend of robo-advisory features and customizable portfolios. Users can create "Pies," which are portfolios of stocks and ETFs, allowing for a personalized investment strategy.
Features:
- Customizable "Pies" for personalized portfolios.
- Automated rebalancing for maintaining portfolio allocations.
- Fractional shares for efficient diversification.
- No trading commissions.
Pros:
- Customizable and automated investing.
- Fractional shares for diversified portfolios.
- No trading fees.
Cons:
- Learning curve for users new to the "Pie" concept.
- Limited advanced research tools.
6. Ally Invest
Overview:
Ally Invest is the brokerage arm of Ally Bank, offering a full suite of financial services. It provides a blend of self-directed and managed investment options.
Features:
- Commission-free stock and ETF trades.
- Options trading for more advanced investors.
- Managed portfolios with automated rebalancing.
- Access to Ally's banking services.
Pros:
- Integration with Ally Bank for seamless banking and investing.
- Options trading for advanced strategies.
- No commission fees for stock and ETF trades.
Cons:
- Limited educational resources compared to some competitors.
- Managed portfolios may have higher fees.
7. Fidelity
Overview:
Fidelity is a well-established brokerage with a comprehensive range of investment options. It caters to both beginners and experienced investors, offering a user-friendly platform with advanced features.
Features:
- Commission-free stock, ETF, and options trades.
- Robo-advisory services with Fidelity Go.
- Extensive research tools and educational resources.
- Access to a wide range of investment products.
Pros:
- Robust research and analysis tools.
- Commission-free trades for stocks, ETFs, and options.
- Fidelity Go for hands-off investing.
Cons:
- Some advanced features may be overwhelming for beginners.
- Certain mutual funds may have fees.
8. Vanguard
Overview:
Vanguard is renowned for its low-cost index funds and a focus on long-term investing. It's an excellent choice for beginners looking for a straightforward approach to building a diversified portfolio. Their website and app is pretty bare-bones but it's by design because they want you to to have a "set it and forget it" approach when it comes to investing. They pioneered low-cost index fund investing and is what I use for my Traditional and Roth IRAs.
Features:
- Low-cost index funds and ETFs.
- Commission-free Vanguard ETF trades.
- Robo-advisory service with Vanguard Digital Advisor.
- Investor education resources.
Pros:
- Emphasis on low-cost index fund investing.
- Investor-owned structure aligns with clients' interests.
- Long-term investment focus.
Cons:
- Limited selection of commission-free non-Vanguard ETFs.
- Digital Advisor may have higher account minimums.
- Website and app is pretty basic
Conclusion
Choosing the right investing app depends on your preferences, financial goals, and level of comfort with risk. Whether you prefer the simplicity of micro-investing, the customization of portfolios, or the comprehensive services of a traditional brokerage, these eight investing apps cater to a variety of needs. Remember to consider fees, available features, and the overall user experience when making your decision. Happy investing!
Once you have picked one and you are pricing an actual trade, there are two free tools here: an options profit calculator and a futures calculator. Neither one earns me anything.
