For years, to begin investing, one needed serious cash, knowledge, and likely a financial advisor. Thankfully, now, there are mobile micro-investing apps. They are a lot easier to manage and understand, and there’s no need to pay lots of money for real-life advice. With almost 70% of millennials saying that traditional investing is too complicated, its no wonder mico-investing apps are taking over!
Stash
One of the easiest and simplest micro-investing apps out there, Stash is perfect for beginners. It’s easy to see how your money is invested and learn tips to start investing on your own. “Stash is my micro-investing app of choice because of its transparency and beginner-friendly attitude,” said Freya Kuka, a personal finance blogger at Collecting Cents. “Once you select a plan, you will connect your bank account, and the app will help you place your risk level into one of three categories: conservative, moderate, or aggressive.” With three flat-fee subscription plans for $1, $3 and $9 per month, anyone with a few spare bucks can begin investing in about 400 single stocks and over 75 ETFs with Stash!
Stash also presents each member with ready-to-go schedules that anyone can use to make investing each week as easy as pie. “After that, you select the type of companies you want to invest in, and Stash does the rest for you. You can then choose companies to invest in based on Stash’s recommendations. You can also automatically invest a certain amount every week,” Kuka commented.
RobinHood
While its one of the most popular micro-investing apps since 2013, RobinHood only offers full stocks to users. While there is no mutual fund or retirement fund trading, there’s a complete list of stock options as well as cryptocurrency trading. Investors don’t have to pay a commission to use the app, and new users don’t have to deposit money into an account to open. RobinHood even features an entirely free account option!
The RobinHood app is straightforward to use and has a lot of useful features like exclusive economics podcasts and multiple daily newsletters users can sign up for. Meanwhile, the $5 paid account also includes exclusive research reports and NASDAQ trading market data. Still, regardless of what type of account you chord, referring a friend will net you a free stock! Unfortunately, the app has crashed a few times during the recent coronavirus pandemic, with so many users on at the same time. However, the company says those issues are behind them!
Acorn
Like Stash, Acron has a lot of extra features users will love. The app can help their users both save money and invest, balancing both effortlessly. Link a bank account, credit, or debit card to the Acorn app, and it will do the rest. Every time you purchase something, Acron will round up the purchase and transfer the balance into an investment savings account. That coffee cost you $4.80? Well, you just invest 20 cents into your future!
While applications can be a seamless way to invest, it’s recommended to contact a financial advisor or trading professional before starting. They will help to find main goals, create a stable plan, and overcome possible challenges along the way.
Sources: Finance101, US News