In the digital age, investing is no longer confined to brokerage firms and Wall Street professionals. Today, a multitude of mobile apps make investing accessible to anyone with a smartphone and an internet connection. If you’re new to the world of investing or looking for an easy way to get started, this guide to investing with apps like Robinhood, Acorns, and other auto-saving platforms will help pave your way to financial growth.
1. Robinhood: Robinhood is an app that offers commission-free trades. Its intuitive interface makes it particularly appealing to new investors. With Robinhood, you can invest in stocks, ETFs, options, and cryptocurrencies. It also offers fractional shares, meaning you can buy a piece of a stock even if you can’t afford a full share. However, Robinhood is primarily a self-directed platform, meaning you’re mostly on your own when it comes to making investment decisions.
2. Acorns: Acorns simplifies investing by automatically investing your spare change. The app rounds up your purchases to the nearest dollar and invests the difference in a portfolio of ETFs. Acorns offer several different portfolios based on your risk tolerance, making it an easy option for beginners. It also has a feature called “Found Money,” where certain purchases made with partnering companies will result in cash back into your Acorns account.
3. Betterment: Betterment is a robo-advisor that uses algorithms to manage your investments. After you answer some questions about your financial goals and risk tolerance, Betterment creates a diversified portfolio for you. It automatically rebalances your portfolio and reinvests your dividends. Betterment also offers tax-loss harvesting, which can help reduce your tax bill.
4. Stash: Stash is an app that allows you to build a personalized portfolio with as little as $5. It offers educational content to help you learn more about investing, making it a good option for beginners. Stash also allows for fractional shares and offers a feature where purchases with Stash’s partnered retailers can earn you stock rewards.
5. Wealthfront: Wealthfront is another robo-advisor that manages your investments for you. It offers a wide range of investment classes, including real estate and natural resources, which you might not find with other robo-advisors. Wealthfront also offers tax-loss harvesting and has a high-interest cash account option.
Investing can be a powerful way to grow your wealth over time, and these apps are making it easier than ever to get started. While each has its unique features and benefits, they all offer the convenience of investing right from your smartphone. Remember, though, that all investments carry risk, and it’s essential to do your research and consider seeking advice from a financial advisor before jumping in. Happy investing!
