Getting into investing can be a bit scary, right? Especially when you’re just starting out and have no idea where to begin. But don’t worry, there are apps out there designed just for beginners. These apps let you start investing with very little money and teach you the ropes along the way. No need to shell out a ton of cash for expensive courses. Some apps even handle the trading for you while you focus on learning. So, let’s dive into the 12 best investment apps for beginners.
Key Takeaways
- You can start investing with as little as $1 on some apps.
- These apps often include educational resources to help you learn.
- Most apps have low fees and no account minimums.
- Some apps offer automated trading options.
- User-friendly interfaces make these apps easy to navigate.
1. SoFi Active Investing
When I first dipped my toes into the world of investing, I was overwhelmed by all the options. That’s when I stumbled upon SoFi Active Investing, and let me tell you, it was a game changer. This app is tailored for beginners like me, offering a straightforward way to start investing without the usual headaches.
Why SoFi Active Investing Stands Out
- No Commissions: SoFi doesn’t charge any fees for trading stocks or ETFs, which is a huge relief for someone just starting out.
- Fractional Shares: You can buy portions of stocks, making it easier to invest in big companies without needing tons of cash.
- User-Friendly Interface: The app is super easy to navigate, even if you’re not tech-savvy.
Perks and Features
- Robo-Advisory: If you’re not sure where to start, SoFi offers robo-advisory services to help guide your investments.
- Financial Planning: They provide access to certified financial planners at no extra cost, which is pretty awesome.
- Promotions: New users can get up to $1,000 in stock when they fund their account, though the chances of hitting the jackpot are slim.
Things to Consider
- Limited Advanced Features: For more seasoned investors, the lack of tax-loss harvesting might be a downside.
- Market Orders Only: If you’re into using stop-loss orders, you might find this limiting.
Overall, SoFi Active Investing is a fantastic starting point for anyone new to investing. It’s simple, cost-effective, and offers a range of tools to help you get started without feeling overwhelmed. Whether you’re looking to buy your first stock or just want to explore the stock market, SoFi makes it easy and accessible.
2. Robinhood
When I first dipped my toes into the world of investing, Robinhood was my go-to app. It’s not just because it’s beginner-friendly, but because it makes trading feel like a breeze. Robinhood is a game-changer for anyone who wants to start trading without the fuss of high fees.
Why I Like Robinhood
- Commission-Free Trading: Robinhood lets you trade stocks, ETFs, options, and even cryptocurrencies without paying any commissions. This is huge for beginners who want to keep costs low.
- Fractional Shares: You don’t need a ton of money to start investing. With fractional shares, you can buy a piece of expensive stocks for just a few bucks.
- User-Friendly Interface: The app is clean and simple. You can easily navigate through your stocks, check out charts, and stay updated with a news feed.
Things to Consider
- Robinhood Gold: If you’re looking for more advanced features, there’s Robinhood Gold, which is a paid membership. It offers bigger instant deposits and more in-depth research tools.
- Limited Investment Options: While it’s great for stocks and crypto, Robinhood doesn’t support mutual funds or bonds. If you’re looking to diversify with these, you might need another platform.
- Basic Features: The app is straightforward, but it might be too simple for those who want more detailed investment tools.
For anyone starting out, Robinhood is a solid choice. It’s perfect for those who want to learn the ropes of trading without the pressure of extra costs. If you’re curious about how investment apps have simplified stock trading, Robinhood is a prime example of how easy it can be to manage your investments from your phone.
3. Stash
Stash is a neat app that makes investing easy for beginners. I remember the first time I downloaded it, I was a bit nervous about diving into the whole investing world. But Stash made it feel like a breeze. It’s designed to help you start small and grow your investments over time.
What I really like about Stash is its simplicity. You don’t need a lot of money to get started. In fact, there’s no account minimum, which is perfect if you’re just testing the waters. Plus, it’s got a cool feature where you can earn stock rewards when you use their debit card for purchases.
Here’s a quick breakdown of what Stash offers:
- No account minimum: You can start investing with whatever amount you feel comfortable with.
- Stock-Back® rewards: Use their debit card and earn stock as you spend.
- Educational content: Stash provides plenty of resources to help you learn as you go.
However, it’s important to note that while Stash is great for beginners, it does come with some fees. There’s a monthly subscription fee starting at $3, which might be higher compared to some other apps. But if you’re looking for an app that combines banking and investing in one place, Stash could be worth considering.
If you’re curious about trying it out, remember that Stash offers an easy-to-use app for beginners, though it might not be the cheapest option out there. It’s all about finding what works best for your needs and comfort level.
4. Acorns
Acorns is like that friend who always has a smart way to save money, even if it’s just a little at a time. This app makes investing as easy as pie by rounding up your everyday purchases and investing the spare change. It’s perfect for those of us who might not have a lot to invest at first but want to start somewhere.
Why I Like Acorns
- Spare Change Investing: Imagine buying a coffee for $2.75. Acorns rounds it up to $3.00, and invests that extra $0.25. It’s a small amount, but over time, it adds up!
- Cash-Back Rewards: Acorns partners with various companies to offer cash-back on purchases, which is then invested automatically. It’s like getting a bonus every time you shop.
- User-Friendly Interface: The app is simple to use, which is great if you’re like me and get overwhelmed with too many options.
The Cost
- Monthly Fees: Acorns charges between $3 and $12 per month, depending on the plan you choose. This might seem a bit high if you have a small account, but the convenience can be worth it.
Is It Worth It?
For folks just dipping their toes into investing, Acorns is a fantastic choice. It won’t make you rich overnight, but it’s a solid start. Plus, watching your spare change grow into something substantial over time is pretty satisfying.
5. Betterment
Thinking about dipping your toes into investing but not sure where to start? Betterment might just be your ticket. It’s one of the big names in robo-advisors, and honestly, it’s like having a financial expert in your pocket. Betterment organizes your investments using a mix of ETFs, tailored to how much risk you’re comfy with and when you might need your funds.
Why I Like Betterment
- No Account Minimums: You can start investing with as little as zero dollars if you choose the digital service. But if you’re feeling fancy and want the premium service, you’ll need at least $100,000.
- Low Fees: The management fee ranges from 0.25% to 0.65% of your assets each year, which is way less than what a human advisor might charge you.
- Goal Setting: Whether you’re planning for a rainy day or your dream retirement, Betterment helps you set and track your financial goals.
- Socially Responsible Options: If you care about where your money goes, you can opt for portfolios that focus on climate change or social impact.
Who Should Use Betterment?
- New Investors: If you’re new to the investing game and want a professionally managed portfolio without the hefty price tag, Betterment is a solid choice.
- Hands-off Investors: Set it up, and let the pros handle the rest. You can literally just sit back and watch your investments grow.
- Risk Takers and Safety Seekers: Whether you’re looking for high returns with a bit more risk or a safer, steadier investment, Betterment has got you covered.
Overall, Betterment is a great app if you want to start investing without all the fuss. It’s simple, straightforward, and just works. Plus, if you’re into tech, you might find it interesting how apps like Betterment integrate AI technology to make investing even more efficient. Check out how AI is changing the game.
6. Cash App Investing
When I first stumbled upon Cash App Investing, I was curious. Could something I used to split dinner bills also help me dip my toes into investing? Turns out, it can, and it’s pretty straightforward.
Cash App Investing is perfect for someone who wants to keep things simple. You can buy and sell stocks and even Bitcoin right from the app. What’s cool is you can buy fractional shares, meaning you can own a piece of a company for just $1. No need to wait until you have big bucks to start investing.
Pros of Cash App Investing
- User-Friendly Interface: The app is super easy to use. Honestly, if you can send money to a friend, you can buy a stock.
- No Commissions: That’s right, you can trade without worrying about extra fees nibbling away at your investments.
- Fractional Shares: This feature allows you to invest small amounts, which is great if you’re just starting out.
Cons of Cash App Investing
- Limited Investment Options: You won’t find mutual funds or bonds here. It’s mainly stocks, ETFs, and Bitcoin.
- Lacks Advanced Features: If you’re looking for in-depth analysis tools or retirement accounts, you might feel a bit restricted.
Getting Started
- Download the App: If you haven’t already, grab the Cash App from your app store.
- Create an Account: It’s straightforward. Just follow the prompts and fill in your info.
- Deposit Funds: Add some money to your account to start investing.
Cash App Investing is a great starting point if you’re new to investing and want to keep things simple. It’s straightforward, with no frills, but it gets the job done. If you’re interested in innovative options like Block’s Cash App, it’s worth checking out. Just remember, it’s always good to explore and see what fits your needs best.
7. Vanguard
When I first started thinking about retirement, I felt overwhelmed. But then I stumbled upon Vanguard, and things started to make sense. Vanguard is a top choice for anyone planning their retirement. It’s like having a wise old friend who knows all about growing your money for the future.
Vanguard specializes in retirement planning, offering a variety of accounts like SEP IRAs, 401(k) rollovers, and SIMPLE IRAs. You also get access to a range of ETFs, including the popular Vanguard Total Stock Market ETF and Vanguard Total Bond Market ETF. These options make it easier to diversify your investments.
One thing I appreciate about Vanguard is its holistic approach. It considers your entire financial picture when helping you plan for retirement. Plus, they offer all-in-one retirement funds, which are perfect if you want something straightforward.
Here are a few reasons why Vanguard stands out:
- Low-Cost Investing: They focus on keeping costs down, which means more money stays in your pocket.
- Automated Investing: If you’re like me and prefer a hands-off approach, Vanguard’s automated options are a lifesaver.
- Robust Tools: They provide tools and resources to help you make informed decisions.
However, there are a couple of things to keep in mind. The robo-advisor services can be a bit pricier compared to others, and if you’re into advanced trading, the options might feel limited.
Overall, Vanguard is a solid choice if you’re serious about planning for retirement. It’s like having a reliable partner on your journey to financial security.
8. Fidelity Investments
When it comes to managing all your finances in one place, Fidelity Investments shines. I mean, if you wanted, you could practically live your entire financial life through Fidelity. They offer everything from investment accounts to checking accounts, IRAs, and even credit card accounts. It’s like having a financial Swiss Army knife at your disposal.
Why do I like Fidelity? Well, for starters, they don’t charge you a dime for stock and ETF trades. That’s right—zero fees. And if you’re into options trading, it’s just 65 cents per contract. Pretty sweet deal, if you ask me.
Key Features:
- Integrated Financial Services: You can manage investment accounts, savings, and even pay bills—all under one roof.
- Research and Learning: Get access to solid research on ETFs and mutual funds, plus tons of articles and webinars on personal finance.
- Customer Support: If you ever need help, Fidelity’s got your back with friendly and helpful support reps.
Who Is It Best For?
If you’re someone who likes having all your financial accounts in one place, Fidelity is a dream come true. It’s perfect for those who appreciate being treated like a valued customer, with all the resources and support you need right at your fingertips.
Fidelity also stands out as a great alternative for those who were affected by the discontinuation of the Mint app. With its comprehensive suite of financial tools, you won’t miss a beat in managing your money effectively.
9. Wealthfront
When it comes to managing your investments with ease and efficiency, Wealthfront is a name that often pops up. This app is like having a personal financial advisor in your pocket, and it’s perfect for those who want to set it and forget it. Wealthfront is one of the largest independent robo-advisors out there.
Key Features
- Automated Portfolio Management: Wealthfront takes the hassle out of investing by automatically managing your portfolio. All you need to do is add money, and it handles the rest.
- Low Fees: With a management fee of just 0.25% annually, it’s quite affordable compared to traditional financial advisors.
- Cash Management Account: Even if you’re not ready to dive into investing, Wealthfront offers a cash management account with benefits like early paycheck access and no monthly fees.
- Tax-Loss Harvesting: This feature helps offset taxes on investment gains, which can effectively cover the annual fee for many users.
Who is it Best For?
Wealthfront is ideal for those who prefer a hands-off approach to investing. If you like the idea of automatic investments without having to constantly monitor the market, this app is for you. Plus, if you’re focused on retirement investing without the hassle, Wealthfront has you covered.
Getting Started
- Minimum Balance: You’ll need at least $500 to start investing with Wealthfront.
- Easy Setup: Setting up your account is straightforward, and the app guides you through the process.
Wealthfront makes it easy to create a solid New Year financial plan by automating your investments and helping you stick to your goals. Whether you’re saving for retirement or just want to grow your wealth, this app offers a simple and effective solution.
10. Invstr
Investing can be intimidating, especially if you’re just starting out. That’s why I was thrilled to discover Invstr, an app that combines learning with real-life investing. It’s like having a classroom and a stock market all in one place. Invstr is particularly great for those who love gaming and want to learn about investing in a fun way.
Why Invstr Stands Out
- Fantasy Finance Game: Invstr gives you $1 million in virtual money to play with. You can test out your investment strategies without any real-world risk. Plus, the top performers each month can win actual cash prizes!
- Community Learning: The app features a social network where you can see what other investors are thinking. It’s a great way to get insights and ideas from more experienced investors.
- Fractional Shares: If you want to dip your toes into real investing, Invstr allows you to buy fractional shares with just $5. It’s a low barrier to entry, making it perfect for beginners.
Who Should Use Invstr?
- Beginners who want to learn the ropes of investing without risking real money.
- Those who enjoy the gamification of learning and investing.
- Anyone looking to be part of a community that shares investment insights.
Costs and Fees
- Basic Plan: Free to use.
- Invstr Pro: $3.99 per month, which offers additional features like unlimited trades and more in-depth insights.
If you’re someone who likes to learn by doing, Invstr might just be the app for you. It’s a blend of education and real-world application, making it a unique tool in the world of investment apps. And if you’re like me, trying to juggle different workplace apps to boost productivity, Invstr’s straightforward approach is a breath of fresh air.
11. Public
Public is a pretty cool app if you’re just dipping your toes into investing. It’s got this whole social vibe, which makes it stand out from other investment apps. What I love most about Public is that it’s not just about numbers and graphs—it’s about learning and sharing experiences with others.
Why Public is Great for Beginners
- No Minimum Balance: You don’t need a ton of cash to get started. With Public, you can start investing with as little as you have, even if it’s just a few bucks.
- Commission-Free Trading: Yep, you heard that right. You can trade stocks and ETFs without paying any commissions. That’s a big deal if you’re trying to keep costs low.
- Fractional Shares: Ever wanted to own a piece of a big company but couldn’t afford it? With Public, you can buy fractional shares, which means you can invest in big names without breaking the bank.
Social and Educational Features
- Community Feed: This is where Public shines. You can follow other investors, see what they’re up to, and maybe even learn a thing or two from their strategies.
- Live Events and Podcasts: Public offers live events and podcasts, which are a great way to learn about investing directly from experts and business leaders.
- Group Chats: You can join group chats to discuss investment ideas and get insights from others. It’s like having a study group, but for investing!
Things to Keep in Mind
- Crypto Trading Fees: While trading stocks and ETFs is commission-free, crypto trading comes with a small fee. It’s something to be aware of if you’re planning to dive into cryptocurrencies.
- No Mutual Funds: If mutual funds are your thing, you might need to look elsewhere, as Public doesn’t offer them.
Overall, Public is a fantastic choice if you’re looking for a fast and user-friendly mobile trading experience that’s not just about trading but also about learning and connecting with others. Whether you’re just starting out or have been investing for a while, Public offers a unique blend of features that make investing more engaging and less intimidating.
12. Fundrise
If you’re like me and always wanted to dabble in real estate but found it intimidating, Fundrise might be just the app for you. It’s like having a secret door into the world of real estate without needing a mountain of cash.
Why I Like Fundrise
- Low Entry Barrier: You can start investing with as little as $10. That’s probably less than what I spend on coffee in a week!
- Diverse Opportunities: Fundrise lets you invest in commercial real estate, which is usually off-limits for regular folks like us.
- Reinvestment Options: You can reinvest your dividends, which is a neat way to grow your investment over time.
Things to Consider
- Fees: Fundrise charges a 0.15% annual advisory fee and a 0.85% annual asset management fee. It’s not too steep, but something to keep in mind.
- Liquidity: Real estate isn’t like stocks. You might not be able to sell your investment quickly if you need cash fast.
Who Should Use Fundrise?
- If you’re interested in real estate but don’t want to deal with the hassle of buying and managing properties, Fundrise is a solid choice.
- It’s great for people who want to diversify their investment portfolio without a massive financial commitment.
Fundrise simplifies real estate investing, allowing individuals to participate in the market. However, investors should conduct their own research to fully understand the opportunities and risks involved. Fundrise simplifies real estate investing, making it accessible to everyone, but remember to do your homework before diving in!
Frequently Asked Questions
What makes an investment app good for beginners?
A good investment app for beginners is easy to use and doesn’t charge high fees. It should help you learn with videos and articles and let you start investing with little money.
Are investment apps safe to use?
Yes, investment apps are safe if they are insured by the SIPC and FDIC. This insurance protects your money up to a certain amount if the app goes bankrupt.
How much money do I need to start investing with an app?
Some investment apps let you start with as little as $1, making it easy for beginners to start investing without needing a lot of money.
Can investment apps help me learn about investing?
Yes, many investment apps offer learning tools like videos and articles to help you understand investing basics while you use the app.
Do investment apps charge fees?
Many investment apps have low fees and some even offer commission-free trades, which is great for beginners who want to keep costs down.
Can I trust online reviews of investment apps?
Online reviews can be helpful, but it’s important to also consider your own needs and do some research to find the best app for you.
