As a beginner investor in 2024, you find yourself overwhelmed by the sheer number of investment apps available. With so many options to choose from, how do you know which apps are right for you? The good news is that not all apps are created equal. Some stand head and shoulders above the rest based on fees, investment choices, ease of use and educational resources. Investment Apps for Beginner Investors here.
This article will explore the top-rated investment apps in 2024 specifically geared towards beginner investors like yourself. You’ll learn key features to look for and see reviews of the most highly recommended apps to download this year. With the right guidance, you can confidently choose an excellent investment platform to meet your needs as a beginning investor.
Our Top Picks for the Best Investment Apps for Beginners in 2024
Acorns
Acorns is one of the most popular investment apps for beginner investors. It allows you to invest your spare change from everyday purchases into a diversified portfolio. Acorns offers five portfolio options based on your financial goals and risk tolerance. It charges $1, $2 or $3 per month depending on the features you want. Acorns is best for hands-free, long-term investing in the stock market.
Robinhood
Robinhood is a free stock trading app that allows you to buy and sell stocks, ETFs, options, and cryptocurrencies with zero commission fees. While Robinhood is easy to use for beginners to get started with stock trading, it lacks some advanced tools and research that more experienced investors may need. Robinhood makes money through interest on cash balances, margin lending, and rebates from market makers. It is a good choice if you want to dip your toes into stock trading with no fees.
Stash
Stash is an investment app tailored for beginning investors. It allows you to invest in curated portfolios or individual stocks and ETFs. Portfolios are tailored to different financial goals like retirement saving or building wealth. Stash charges $1, $3 or $9 per month depending on the account features. It provides financial education and guidance to help new investors learn skills for long-term success. Stash is ideal if you’re looking to start investing for important life goals with guidance.
In summary, for beginner investors in 2024, Acorns, Robinhood and Stash are three of the top, low-cost choices to easily start investing money for the future. They offer simple ways to invest in the stock market through curated portfolios, stocks, ETFs and more. Depending on whether you prefer a hands-free, do-it-yourself or guided approach, one of these three apps is likely to meet your needs as a new investor.
Key Features to Look for in an Investment App as a Beginner
Low or No Trading Fees
As a beginner investor, reducing costs is key. Look for an app that offers low or no fees for basic trades. Some apps like Robinhood and Webull offer commission-free stock, ETF, and options trading. Compare the fees across apps to find one that suits your needs and budget.
Educational Resources
The best investment apps provide resources to help you learn. Look for things like built-in courses on investing basics, video libraries, blog posts, and glossaries to help you understand financial terms. Some apps like Stash and Acorns also offer personalized guidance based on your financial goals. The more you learn, the more confident you’ll feel getting started.
Simple Yet Powerful Interface
An easy-to-use interface is essential for beginners. Look for an app with an uncluttered dashboard, simple account setup, and intuitive navigation. You should be able to quickly find stock quotes, place trades, and view your account balances and positions. However, the app should also provide access to advanced tools like stock screeners, portfolio analysis, and trading indicators as you gain experience.
24/7 Customer Support
As a beginner, you’re likely to have questions about the app and investing in general. Look for an app that provides multiple ways to access customer support, such as phone, email, and live chat. Support staff should be knowledgeable about the app’s features as well as basic investing concepts. They can help you with technical issues, walk you through the onboarding process, and point you to helpful resources.
While features, fees, resources, interface, and customer support are important, you should also consider factors like security, FDIC insurance for cash balances, and the overall reputation of the brokerage behind the app. A combination of these features will help ensure you have a positive and supported experience as you embark on your investing journey.
Pros and Cons of Using Investment Apps as a New Investor
Investment apps provide an easy way for new investors to get started in the stock market. However, there are some drawbacks to consider before diving in.
Low Fees and Minimums
Many investment apps like Robinhood, Acorns, and Stash charge little to no commission fees for stock, ETF, and options trading. They also typically have low or no account minimums, allowing you to start with just a few dollars. This makes investing accessible even if you have little money to get started.
Limited Options
While investment apps are easy to use, they provide limited investment options. You’ll typically only have access to basic stocks, ETFs, and sometimes options. If you want to invest in mutual funds, bonds, CDs, or alternative assets, you’ll need to use a traditional broker. Some apps also do not allow trading of certain complex assets like futures or forex.
Less Guidance
Investment apps are designed for DIY investors who want to manage their own portfolios. If you’re new to investing, you may feel overwhelmed by having to pick stocks and manage your portfolio without much guidance. Robo-advisors offered through some apps can help create a balanced portfolio based on your goals, but you still have to monitor and rebalance it yourself.
For novice investors, investment apps make a good way to start learning the basics of trading and building a small starter portfolio. However, as your knowledge and account balance grow, you may find the limited options and lack of guidance too restrictive. In that case, you can always transfer your holdings to a traditional broker that offers more advanced platforms and tools for investors. The low or no fees to get started with most investment apps mean you have little to lose by trying one, even as a beginner. But go slowly, do your research, and don’t invest more than you can afford to lose as you learn the ropes of trading.
Getting Started With Investment Apps – Tips for Beginners
As a beginner investor in 2024, investment apps provide an easy way to get started in the stock market. However, there are a few tips to keep in mind before funding your first investment account.
Do Your Research
Before choosing an investment app, research the available options to find one that suits your needs. Compare fees, account minimums, investment options, and user reviews. Some top-rated apps for beginners include Robinhood, Acorns, Stash, and Betterment. Select an app that offers guidance and educational resources to help you learn the basics.
Start with a Small Amount
As you’re learning, begin by funding your account with an amount you can afford to lose, such as $500 to $1,000. This allows you to get experience with the app and the stock market with less risk. You can always add more money once you become more comfortable and confident.
Choose Conservative Investments
Initially, focus on more stable investment options with less volatility like ETFs, blue-chip stocks, or index funds. These provide growth over time with lower risk. As you gain knowledge and experience, you can diversify into other investments. An investment app aimed at beginners will provide guidance on appropriate options for your risk tolerance.
Review and Revise
Regularly check in on your investments to see how they’re performing. Look for any that are underperforming and consider selling or adjusting your positions. An investment app’s dashboard provides an easy way to view your portfolio and track returns over time. You can then use this information to determine if you need to rebalance your investments or modify your investment strategy going forward based on your financial goals.
With the right strategy and guidance, investment apps provide beginner investors an easy way to get started in the stock market. Do your research, start small, focus on conservative investments, and regularly review and revise your portfolio. Following these tips will help set you up for success as you embark on your investing journey.
FAQs: Answering Common Questions About Using Investment Apps as a Beginner in 2024
What exactly are investment apps and how do they work?
Investment apps, also known as trading apps or brokerage apps, are applications that allow you to buy and sell investments like stocks, bonds, exchange-traded funds (ETFs), and cryptocurrencies directly on your smartphone. These apps connect to an online broker that executes your trades. Many leading brokers like Vanguard, Fidelity, and Charles Schwab offer investment apps. These apps make it easy to check on your portfolio, get stock quotes, monitor the markets, and make trades whenever and wherever you want.
Are investment apps safe to use?
Investment apps offered by reputable brokers are very safe to use. Your investments and funds are protected by the Securities Investor Protection Corporation (SIPC) for up to $500,000. However, there are some risks to be aware of:
•Cybersecurity risks: As with any app, there is a small risk of hacking or data breaches. Reputable brokers employ strong security measures, but be cautious of phishing emails or messages asking for your login credentials.
•Volatile investments: Some investments offered on the apps like cryptocurrencies, options, and leveraged ETFs can be very risky and volatile. Only invest money that you can afford to lose.
•Fees: Some trades or inactive accounts may incur fees. Check with your broker for their fee schedule to avoid any surprise charges.
•Scams: Watch out for investment scams promoted on social media or in questionable newsletters. Only use investment apps from reputable, regulated brokers.
•FOMO (fear of missing out): The ease of trading on apps can lead to emotion-driven investing and the temptation to buy speculative stocks or cryptocurrencies that you see others making huge profits on. Always do your own research and invest based on fundamentals.
How do I get started with an investment app?
The first step is to choose a broker and download their investment app on your iOS or Android device. Major brokers like Vanguard, Fidelity, and Charles Schwab offer free apps with no account minimums. You’ll need to create an account, link a bank account to fund it, and deposit money to get started. Then you can use the app to research investments, build a portfolio, and make your first trade. Most apps have educational resources and tools to help beginners learn the ropes. Take it slow and start with a small amount of money until you get comfortable. With time and experience, investment apps can become a useful tool for building wealth.
Conclusion
As a beginner investor in 2024, the world of investing may seem daunting. With so many options, it can be challenging to know where to start. The good news is that there are now excellent investment apps tailored for first-time investors like you. With intuitive interfaces, educational tools, and automated investing capabilities, these top-rated apps make taking those first investment steps simple and accessible.
By starting small, learning as you go, and leveraging the power of an app designed for beginners, you’ll be on your way to building wealth for your future. Investing is within your reach in 2024. Choose an app that aligns with your needs and take control of your financial journey.