The 2020 economy has been shaky for the first half of the year, but that does not mean it isn’t a great time for beginners to start investing. Investing in a market downturn means that the stocks, bonds, and ETF’s you invest in have more room to gain value when the stock market enters another upward trajectory. If you are unfamiliar with an investment strategy, or the best ways to let your money earn money for you in the long-run, an investing app can help you start investing your money right away. The best investment apps also provide tools to help you learn about investing as you grow your portfolio.
The three best investing apps for beginners
M1 Finance—one of the best features of the M1 Finance app is the pre-built portfolios. These portfolios make it easy for beginners to get started on the fly by choosing the portfolio that fits their goals.
There are no management, commission, or trading fees to worry about, so you are free to invest without worry that hidden fees will eat away at your gains. M1 also offers a tax-efficient selling strategy that is great for those new to investing. When you withdraw money, your holdings are sold in accordance with a pre-set tax savings strategy. M1 Finance also offers a nice mix between a robo-advisor, and traditional investing. You can follow the automated prompts and let the app make your investment decisions for you after answering a series of questions, or you can explore and invest on your own as you feel more comfortable. M1 uses pie charts to help you clearly understand your overall portfolio, assisting the beginners in learning how a balanced portfolio should look.
1. Webull App—Webull is built for those looking to actively manage their portfolios, with tons of information available for those ready to jump into the learning process of investing. Webull does not offer automated strategies but gives new investors the tools to research each investment they are considering. Webull consistently ranks among the top investing apps for those who want in-depth learning about investing in the stock market.
The Webull app offers a virtual trading simulator that gives you one million dollars in fake money to create a virtual portfolio where you can try out your investment strategies before investing real money. For those who are looking to learn on the fly, the simulator works great for those who learn better from hands-on experiences than dry technical jargon.
2. Robinhood —Robinhood’s design is tailored for beginners to learn at their own pace with zero account minimum and no hidden fees. The app supports fractional shares, allows you to invest in cryptocurrency, and has an easy to use interface that means you can download and start investing immediately. Robinhood reduces the learning curve to almost zero for first-time investors and provides tools to help you learn about things like risk tolerance, ETFs, cryptocurrency, and how to invest during a recession.
Technology makes learning on the fly easier than ever
Investing your money can seem risky and overwhelming. Still, technology has made it simple for those with no previous experience to start the practice of saving and investing while learning along the way. The top apps are those with built-in learning tools to help individuals explore the world of investing at their own pace. The advanced financial metrics, analysis, and reports have their place, but those new to investing shouldn’t be overwhelmed with too much information. The low and no minimum investing apps are great for those wanting to slowly start building a portfolio that grows along with their knowledge. Tools and calculators that show you the power compounding interest when you invest consistently over time are potent motivators to start saving and investing. Even small sums of money, like five or ten dollars, invested weekly for years, can turn into a nice nest egg when dividends and interest earned are reinvested.