If you’re new to investing, the world of stocks, bonds, and funds can seem overwhelming. In recent years, however, the rise of investment apps has made it easier for beginners to enter the world of investing with minimal upfront knowledge or financial commitment. These apps allow users to buy stocks, bonds, ETFs, and other assets directly from their smartphones or computers, often with lower fees and easier-to-understand interfaces than traditional investment options. In this article, I’ll walk you through the top 10 investment apps that I’ve found most useful for beginners. I’ll also provide comparisons to help you choose the best one for your investment goals and style.
Table of Contents
What Makes a Good Investment App for Beginners?
Before diving into the specifics of each app, I want to outline the key factors that make an investment app suitable for someone just starting out. The main attributes to consider are:
- Ease of Use: An app should be easy to navigate. Beginners should be able to make trades and track investments without a steep learning curve.
- Low Fees: Investing can be expensive if you don’t watch out for fees. The best apps will have low or no commission fees, or at least provide value for the fees they charge.
- Educational Resources: Since you’re just starting, it’s important to have access to resources that can help you understand the fundamentals of investing.
- Portfolio Diversification: A good app will allow you to build a diversified portfolio with minimal effort.
- Account Types: Make sure the app offers a variety of account types, such as IRAs, taxable accounts, and custodial accounts, depending on your needs.
With that in mind, let’s look at the 10 apps that I believe are the best for beginners.
1. Robinhood
Robinhood is often the first app that comes to mind for new investors. It’s known for its simple design and zero-commission structure, which makes it an attractive option for beginners.
Key Features:
- Zero Commissions: Robinhood charges no commission on stock or ETF trades.
- Simple Interface: The app is intuitive and makes trading easy to understand for first-time investors.
- Fractional Shares: Robinhood allows you to invest in fractional shares, meaning you can start investing with as little as $1.
| Feature | Robinhood |
|---|---|
| Commission Fees | $0 |
| Minimum Investment | $1 |
| Account Types | Individual, IRA |
| Fractional Shares | Yes |
| Educational Tools | Basic |
2. Acorns
Acorns takes a different approach to investing by automating your investments. It’s an excellent choice for beginners who prefer a hands-off method of investing. With Acorns, you can invest your spare change by rounding up your purchases to the nearest dollar and investing the difference.
Key Features:
- Automatic Investing: Acorns automatically rounds up your purchases and invests the difference.
- Diversified Portfolios: Your money is invested in a portfolio of ETFs, offering instant diversification.
- Educational Content: Acorns offers articles and other educational resources to help beginners learn about investing.
| Feature | Acorns |
|---|---|
| Commission Fees | $3 – $5/month |
| Minimum Investment | $5 |
| Account Types | Individual, IRA, Trust |
| Fractional Shares | Yes |
| Educational Tools | Yes |
3. Stash
Stash is another app designed with beginners in mind. It allows you to start investing with as little as $5, and it provides personalized investment advice based on your risk tolerance.
Key Features:
- Personalized Advice: Stash provides guidance on what types of investments might suit you based on your risk profile.
- Low Fees: The fees are affordable, and there are no commissions on trades.
- Fractional Shares: You can invest in fractional shares of stocks and ETFs, which makes it easier to build a diversified portfolio.
| Feature | Stash |
|---|---|
| Commission Fees | $1 – $9/month |
| Minimum Investment | $5 |
| Account Types | Individual, IRA |
| Fractional Shares | Yes |
| Educational Tools | Yes |
4. Wealthfront
Wealthfront is a great option for beginners who are looking for a robo-advisor. This app automatically manages your investments, rebalances your portfolio, and optimizes for tax efficiency.
Key Features:
- Automated Portfolio Management: Wealthfront uses algorithms to create and manage a diversified portfolio based on your goals.
- Tax-Loss Harvesting: The app helps minimize your tax liability by selling losing investments to offset gains.
- Low Fees: The fees are relatively low, and there’s no need to worry about managing your portfolio manually.
| Feature | Wealthfront |
|---|---|
| Commission Fees | 0.25% annual |
| Minimum Investment | $500 |
| Account Types | Individual, IRA |
| Fractional Shares | Yes |
| Educational Tools | Yes |
5. Betterment
Betterment is another well-known robo-advisor that focuses on helping beginners with hands-off investing. It’s perfect for those who want a long-term, automated investment plan.
Key Features:
- Robo-Advisor: Betterment automatically invests your money in a diversified portfolio, based on your goals.
- Low Fees: Betterment charges a low fee for its services, and there are no trading fees.
- Financial Planning Tools: The app provides tools to help you set goals and track your progress.
| Feature | Betterment |
|---|---|
| Commission Fees | 0.25% – 0.40% |
| Minimum Investment | $0 |
| Account Types | Individual, IRA |
| Fractional Shares | Yes |
| Educational Tools | Yes |
6. Fidelity Investments
Fidelity is one of the most reputable investment firms in the world, and its app provides a lot of features for beginner investors. It offers a range of investment options, from stocks and bonds to mutual funds.
Key Features:
- Comprehensive Investment Options: You can invest in a wide range of assets, including stocks, ETFs, mutual funds, and bonds.
- Educational Resources: Fidelity offers a wealth of educational tools and guides to help you learn more about investing.
- Zero Commission on Trades: Fidelity charges no commissions on online stock and ETF trades.
| Feature | Fidelity |
|---|---|
| Commission Fees | $0 |
| Minimum Investment | $0 |
| Account Types | Individual, IRA, 401(k) |
| Fractional Shares | Yes |
| Educational Tools | Yes |
7. Charles Schwab
Charles Schwab offers a user-friendly app with a full suite of investment options. Whether you’re looking to trade stocks or invest in mutual funds, Schwab has a robust platform for beginners.
Key Features:
- Full Range of Investment Options: Schwab offers a wide selection of investments, including stocks, ETFs, mutual funds, and bonds.
- No Commissions: There are no commissions on stock and ETF trades.
- Retirement Accounts: Schwab offers retirement accounts, such as IRAs, to help you save for the future.
| Feature | Charles Schwab |
|---|---|
| Commission Fees | $0 |
| Minimum Investment | $0 |
| Account Types | Individual, IRA, 401(k) |
| Fractional Shares | Yes |
| Educational Tools | Yes |
8. SoFi Invest
SoFi Invest is a great app for beginners who want a simple and intuitive platform to buy stocks, ETFs, and cryptocurrencies. It’s part of SoFi’s larger financial services ecosystem, which includes student loans and personal finance tools.
Key Features:
- Commission-Free Trades: SoFi allows you to trade stocks and ETFs without paying any commissions.
- Crypto Investing: You can also buy and sell cryptocurrencies, which is a feature not available on all investment apps.
- Automated Investing: SoFi offers automated portfolios for those who prefer a hands-off approach to investing.
| Feature | SoFi Invest |
|---|---|
| Commission Fees | $0 |
| Minimum Investment | $1 |
| Account Types | Individual, IRA |
| Fractional Shares | Yes |
| Educational Tools | Yes |
9. Merrill Edge
Merrill Edge is a solid option for beginners who want to invest with the backing of Bank of America. It provides both self-directed and guided investing options.
Key Features:
- Comprehensive Investment Options: Merrill Edge offers a full range of investment products, including stocks, ETFs, and mutual funds.
- Research Tools: The app provides access to a range of research tools to help you make informed decisions.
- No Minimum Investment: You can start investing with no minimum deposit required.
| Feature | Merrill Edge |
|---|---|
| Commission Fees | $0 |
| Minimum Investment | $0 |
| Account Types | Individual, IRA |
| Fractional Shares | Yes |
| Educational Tools | Yes |
10. E*TRADE
E*TRADE is another well-established name in the investment world. The app is perfect for beginners looking to trade stocks, bonds, or ETFs.
Key Features:
- Wide Range of Investment Options: E*TRADE provides access to stocks, bonds, options, and ETFs.
- No Commissions on Trades: E*TRADE does not charge commissions for online stock and ETF trades.
- Retirement Accounts: E*TRADE offers retirement accounts, including IRAs.
| Feature | E*TRADE |
|---|---|
| Commission Fees | $0 |
| Minimum Investment | $0 |
| Account Types | Individual, IRA |
| Fractional Shares | Yes |
| Educational Tools | Yes |
Conclusion
Choosing the right investment app can be overwhelming, especially when you’re just starting. However, the apps mentioned above stand out as the top choices for beginners, each offering a unique set of features designed to make investing easier and more accessible. Whether you’re looking for a robo-advisor, a commission-free trading platform, or educational tools to help you along the way, there’s an app here for you.
I recommend starting with an app that aligns with your financial goals and investing style. If you’re unsure, many of these apps offer low or no minimum investment requirements, so you can experiment with small amounts of money to see which one feels most comfortable for you.
Remember, investing is a long-term game, and the key is to start. The best time to start investing is now, and with the right tools, you can confidently take the first step toward building your financial future.
