Growing your money through investments has become more accessible than ever, thanks to the wide array of apps available for beginners. Whether you’re aiming to build a nest egg, save for a major purchase, or achieve financial independence, investment apps provide user-friendly platforms that demystify the process. With unique features tailored to novices, these apps offer the opportunity to track, manage, and understand investments in real-time.
Acorns: Simple and Automated Investing
Acorns has garnered popularity for its simplicity and automatic saving and investing features. It operates on a “round-up” system, where it rounds up your credit or debit card purchases to the nearest dollar, investing the spare change. This feature is particularly appealing for those new to investing, as it allows funds to accrue without actively setting aside large sums of money.
Another feature is Acorns Later, which provides users with options to save for retirement. With a subscription tier, users gain access to an Individual Retirement Account (IRA), making it easy to allocate funds into Roth, Traditional, or SEP IRAs based on individual financial goals. The app’s educational component also helps users understand the value of compounding interest, making it a great choice for beginners focused on retirement savings.
Robinhood: Commission-Free Trading
Robinhood is renowned for democratizing trading by offering commission-free trades on a variety of asset classes, including stocks, ETFs, options, and cryptocurrencies. The app’s user interface is straightforward and intuitive, making it easier for beginners to navigate the complexities of stock investing. Robinhood also provides educational resources and news articles, which are instrumental for learning about market trends and investment strategies.
While Robinhood’s simple design attracts new investors, it’s important to note that with access to more sophisticated trading options comes the responsibility of informed decision-making. Robinhood is ideal for those who want to actively manage their portfolios and are willing to learn continuously. The app also offers fractional shares, allowing beginners to invest in pricey stocks without needing substantial capital.
Stash: Educational Investment Platform
Stash is an excellent app for beginners, especially those who might feel overwhelmed by the technicalities of investing. Stash focuses equally on education and investing, offering an extensive library of resources to guide novice investors through creating a diversified portfolio. It enables users to start with minimal funds, making it accessible to almost everyone.
Stash encourages users to think of investments in terms of goals. It offers personalized guidance and recommends assets based on individual risk tolerance and financial objectives. With investment options like ETFs and fractional shares, users gain exposure to various sectors of the economy, increasing diversification. Stash also offers banking services, which include a debit card that provides users with Stock-Back rewards, giving an additional dimension to its investment-oriented features.
Betterment: Robo-Advising at Its Best
Betterment is a pioneer in the robo-advisory sector, offering automated portfolio management that helps beginners grow their money steadily over time. Users can set financial goals like retirement, a safety net, or general investing, and Betterment’s algorithms allocate a diversified portfolio of ETFs to match those goals.
The platform takes the guesswork out of investing, automatically rebalancing portfolios and reinvesting dividends to maximize returns. Betterment’s personalized advice and low fees are attractive aspects, as is its socially responsible investing option, which allows users to align their investment strategies with their personal values. While it might lack the human touch of traditional advisors, Betterment compensates with its comprehensive approach to automated investing.
Wealthfront: Comprehensive Financial Planning
Wealthfront provides a holistic approach to financial planning, combining a high-quality robo-advising service with robust planning tools. Beginners benefit from Wealthfront’s user-friendly interface and personalized investment strategies developed through questions about their financial health and goals.
Wealthfront’s Path tool calculates how much you need to save monthly to stay on track for retirement, while also considering other objectives like buying a house or funding education. Its tax-loss harvesting feature is noteworthy, optimizing for after-tax returns. For beginners intrigued by comprehensive strategies and planning, Wealthfront is a go-to choice.
SoFi Invest: Social Finance Made Easy
SoFi Invest has made waves by offering a suite of financial products, including an investment app tailored for beginners. Users can engage in active or automated trading based on their comfort level. The platform boasts zero trading fees, making it accessible for those just starting.
The app’s standout feature is the ability to access SoFi’s active online community and educational events, which help enrich financial literacy. SoFi also offers free personal consultations with certified financial planners, a rare feature in free-investment apps. This hybrid of community support and professional guidance makes it a compelling option for beginners looking to grow their investment knowledge.
M1 Finance: The Power of Customization
M1 Finance stands out with its unique approach to investing called “pies.” Users create pies, or portfolio allocations, deciding the percentage of their money they want in stocks, ETFs, or other securities. This customization is ideal for beginners wanting hands-on experience in building portfolios while underlining the importance of diversification.
The app offers automated rebalancing, making it easier for novices to maintain desired asset allocations. M1 Finance provides borrowing options through a feature called M1 Borrow, allowing users to access a line of credit against their investments. This feature may suit those interested in leveraging their assets for additional financial flexibility.
Public: Investing with Community Insights
Public is an innovative investment app that combines elements of social media with brokerage to help beginners learn from a community of investors. The app encourages users to share insights, ask questions, and follow experienced investors to gain additional perspectives on market trends.
By offering fractional shares, Public ensures that users can invest in their preferred companies without a large financial commitment. The absence of commission fees is an added bonus and makes the app even more appealing to beginners. Public’s community-centric approach is particularly beneficial for those who prefer collective learning and insight-sharing as they embark on their investment journey.
Fidelity Spire: Goal-Oriented Savings and Investment
Fidelity Spire is another excellent tool designed for both saving and investing. It is tailored for those who have specific financial goals in mind, like purchasing a home, traveling, or other significant milestones. The app provides a clear plan for saving and offers investment insights via Fidelity’s rich educational content.
A key feature is integrating a live view of your savings and investments, making it easier to stay updated on your progress. Fidelity Spire facilitates direct investing through its connection to Fidelity’s robust brokerage platform, offering a wide selection of investment options for growth. It’s particularly conducive for beginners who prefer a structured goal-based approach to savings and investments.
Choosing the right app largely depends on personal financial goals, risk tolerance, and how actively one wants to engage with their investments. Each of the apps highlighted above offers unique features catering to different aspects of the investment process, from automated saving and robo-advising to commission-free trading and community insights. By leveraging these tools, beginners can confidently take the first steps toward growing their money and garnering a deeper understanding of the investment world.
