Investing can seem daunting for beginners. With the vast array of options available, it's easy to feel overwhelmed. Thankfully, the rise of user-friendly investing apps has made it easier than ever to start building your financial future.
In 2024, several apps stand out for their ease of use, educational resources, and low fees. This guide will explore the best investing apps for beginners, helping you make an informed decision on which platform to start your investment journey.
Robinhood
Overview
Robinhood has become a household name in the world of investing apps. Launched in 2013, it revolutionized the industry by offering commission-free trades. This feature alone made it a popular choice for new investors looking to dip their toes into the stock market without incurring high fees.
Features
- Commission-Free Trades: Robinhood allows users to trade stocks, ETFs, options, and cryptocurrencies without paying any commission fees.
- Fractional Shares: This feature enables users to buy a portion of a share, making it easier to invest in expensive stocks.
- User-Friendly Interface: The app is designed with simplicity in mind, making it easy for beginners to navigate.
Pros
- No Account Minimums: You can start investing with any amount of money.
- Access to Various Investment Options: From stocks to cryptocurrencies, Robinhood offers a wide range of assets.
- Instant Deposit: Users can access up to $1,000 in funds immediately after making a deposit.
Cons
- Limited Research and Educational Resources: Robinhood’s educational content is not as comprehensive as some competitors.
- History of Outages: The platform has experienced significant downtime during high trading volumes, which can be frustrating for users.
Why It’s Great for Beginners
Robinhood’s commission-free structure and easy-to-use interface make it a great starting point for new investors. Its accessibility and straightforward design allow beginners to start trading quickly without the barrier of high fees.
E*TRADE
Overview
ETRADE is a veteran in the online brokerage space, offering a wide range of investment options and tools. While it may seem more complex than some newer apps, ETRADE provides robust resources that can help beginners grow into more knowledgeable investors.
Features
- Comprehensive Research Tools: E*TRADE offers extensive research tools, including analyst reports and market analysis.
- Educational Resources: The platform provides a wealth of educational content, from articles and videos to webinars and live events.
- Commission-Free Stock and ETF Trades: Like many modern platforms, E*TRADE has eliminated commissions on stock and ETF trades.
Pros
- Robust Trading Platform: The platform offers powerful tools for more advanced trading, making it a good option for beginners looking to grow.
- Wide Range of Investment Options: Users can invest in stocks, bonds, ETFs, mutual funds, options, and futures.
- Educational Content: E*TRADE’s extensive educational resources are designed to help users become more informed investors.
Cons
- Complexity: The range of tools and information available can be overwhelming for absolute beginners.
- Fees for Some Investments: While stock and ETF trades are commission-free, there may be fees for other types of investments.
Why It’s Great for Beginners
E*TRADE combines user-friendly features with powerful tools and educational resources, making it suitable for beginners who want to deepen their investment knowledge over time.
Acorns
Overview
Acorns is an app designed to make investing simple and automatic. It’s particularly popular among those who want to invest without having to think about it too much. By rounding up everyday purchases and investing the spare change, Acorns makes it easy to start building a portfolio with minimal effort.
Features
- Automatic Investing with Spare Change: Acorns rounds up your purchases to the nearest dollar and invests the difference.
- Low Account Minimums: You can start investing with just a few dollars.
- Educational Content: Acorns offers educational articles and videos to help users learn about investing.
Pros
- Automated Micro-Investing: This feature makes it easy to start investing without a large upfront investment.
- Easy to Use: The app is designed to be simple and intuitive, perfect for beginners.
- Good for New Investors: Acorns’ approach to investing makes it accessible to those who are new to the concept.
Cons
- Monthly Fees: Acorns charges a monthly fee, which can be relatively high for small account balances.
- Limited Investment Options: Users can only invest in a limited selection of ETFs.
Why It’s Great for Beginners
Acorns’ automated investing feature is ideal for beginners who want to start investing with minimal effort. The app’s simplicity and ease of use make it a great choice for those who are just starting out.
Stash
Overview
Stash combines investing with banking, offering a unique platform that helps users save and invest their money. It provides educational content and personalized investment advice, making it a good choice for beginners looking to learn more about investing.
Features
- Fractional Shares: Stash allows users to buy fractions of shares, making it easier to invest in expensive stocks.
- Educational Content: The app offers a wealth of educational resources to help users learn about investing.
- Retirement Account Options: Stash offers options for individual retirement accounts (IRAs), helping users save for the future.
Pros
- User-Friendly: Stash is designed to be easy to use, with a focus on helping beginners.
- Personalized Investment Advice: The app provides recommendations based on your financial goals and risk tolerance.
- Banking Services: Stash also offers banking services, including a debit card that provides stock-back rewards.
Cons
- Monthly Fees: Stash charges a monthly fee, which can add up over time.
- Limited In-Depth Research Tools: While the app offers educational content, it lacks the in-depth research tools available on some other platforms.
Why It’s Great for Beginners
Stash’s combination of investing and banking services, along with its educational content and personalized advice, makes it a great choice for beginners who want a holistic approach to managing their finances.
M1 Finance
Overview
M1 Finance offers a unique blend of automated investing and customizable portfolios. It’s designed for those who want the benefits of robo-advisors with the ability to choose their investments. This hybrid approach makes it appealing to beginners who want some control over their investments.
Features
- Automated Investing: M1 Finance automates the investment process, handling the buying and selling of assets based on your portfolio preferences.
- No Trading Fees: The platform doesn’t charge commissions or account management fees.
- Customizable Portfolios: Users can create their own portfolios or choose from pre-built ones.
Pros
- No Commissions or Management Fees: M1 Finance’s fee structure is highly attractive.
- Fractional Shares: The ability to invest in fractional shares makes it easier to build a diversified portfolio.
- Automation: The platform handles the management of your portfolio, making it easy to invest without constant oversight.
Cons
- Limited Customer Support: Some users have reported difficulties in reaching customer support.
- No Direct Indexing: Unlike some robo-advisors, M1 Finance does not offer direct indexing.
Why It’s Great for Beginners
M1 Finance’s combination of automation and customization makes it a great choice for beginners who want some control over their investments without having to manage every detail.
Wealthfront
Overview
Wealthfront is a robo-advisor that provides automated investment management and financial planning tools. It’s designed to help users achieve their financial goals through a hands-off approach to investing.
Features
- Automated Investing: Wealthfront uses algorithms to manage your portfolio, optimizing for your financial goals.
- Tax-Loss Harvesting: This feature helps reduce your tax liability by offsetting gains with losses.
- Financial Planning Tools: Wealthfront offers tools to help you plan for retirement, buying a home, and other financial goals.
Pros
- Low Fees: Wealthfront charges a low annual fee for its services.
- Comprehensive Financial Planning: The platform offers a range of tools to help you plan your financial future.
- Educational Content: Wealthfront provides educational resources to help users understand investing.
Cons
- Limited Direct Control: Users have less control over individual investments compared to other platforms.
- Minimum Investment Required: Wealthfront requires a minimum investment of $500 to start.
Why It’s Great for Beginners
Wealthfront’s automated approach and comprehensive financial planning tools make it an excellent choice for beginners who want a hands-off investment experience with professional management.
Fidelity
Overview
Fidelity is one of the largest and most respected brokerage firms in the world. It offers a range of investment options and tools, making it a solid choice for both beginners and experienced investors.
Features
- Extensive Research Tools: Fidelity provides a wealth of research and analysis tools to help users make informed decisions.
- Educational Resources: The platform offers extensive educational content, including articles, videos, and webinars.
- Zero-Fee Index Funds: Fidelity offers a range of zero-fee index funds, making it easier to build a diversified portfolio at a low cost.
Pros
- No Commission Fees: Fidelity has eliminated commissions on stock and ETF trades.
- Excellent Customer Support: The platform is known for its strong customer service.
- Robust Research Tools: Fidelity’s research tools are among the best in the industry.
Cons
- Complexity: The platform’s range of tools and information can be overwhelming for beginners.
- Fees for Mutual Funds: Some mutual funds come with fees, although Fidelity offers a selection of no-fee options.
Why It’s Great for Beginners
Fidelity’s combination of no-fee trading, extensive research tools, and strong customer support makes it a great choice for beginners who want to learn and grow as investors.
Charles Schwab
Overview
Charles Schwab is another well-established brokerage firm that offers a wide range of investment options and tools. Known for its excellent customer service and educational resources, Schwab is a great choice for beginners.
Features
- Commission-Free Trades: Schwab offers commission-free trades on stocks and ETFs.
- Extensive Research and Educational Resources: The platform provides a wealth of resources to help users learn about investing.
- Wide Range of Investment Options: Users can invest in stocks, bonds, ETFs, mutual funds, options, and futures.
Pros
- User-Friendly for Beginners: Schwab’s platform is designed to be easy to use, with resources tailored to beginners.
- Strong Customer Service: Schwab is known for its excellent customer support.
- No Minimum Balance Requirement: Users can start investing with any amount of money.
Cons
- Overwhelming for Beginners: The range of tools and information available can be overwhelming for new investors.
- Fees for Some Investments: While stock and ETF trades are commission-free, there may be fees for other types of investments.
Why It’s Great for Beginners
Charles Schwab’s combination of user-friendly features, extensive educational resources, and strong customer service makes it a great choice for beginners who want to start investing with confidence.
Conclusion
Choosing the right investing app is crucial for beginners. Each of the apps listed above offers unique features and benefits, catering to different needs and preferences. Whether you prefer a hands-off approach with automated investing or want to take a more active role in managing your portfolio, there’s an app that’s right for you.
- Robinhood is ideal for those looking for commission-free trading with a simple, easy-to-use interface.
- E*TRADE offers robust tools and educational resources for beginners who want to grow into more knowledgeable investors.
- Acorns is perfect for those who want to start investing with spare change and minimal effort.
- Stash combines investing with banking, offering personalized advice and educational content.
- M1 Finance provides a hybrid approach with automated investing and customizable portfolios.
- Wealthfront offers automated investment management and comprehensive financial planning tools.
- Fidelity is a great choice for those who want extensive research tools and no-fee trading.
- Charles Schwab combines user-friendly features with strong customer service and educational resources.
By considering your individual needs and preferences, you can choose the app that best suits your investing goals and start building your financial future today.