2020 has proven to be a tough year for the stock market, and many investors have pulled their money out of stocks in a desperate bid for lower risks investments. Like any financial downturn, those who are purchasing stocks on the downhill slide will be the ones to make money when the market rebounds. An easy way to start managing your investments is with an investment app. Investment apps work well for those without the economic savvy to build a balanced portfolio from scratch. When deciding to invest, watch out for unexpected fees that can deplete your returns. Fees from investment firms once made it difficult for small investors to access the market, but today’s technology has made it possible to start investing with as little as $5.00.
The top free investment apps
1.Fidelity—Fidelity has a clean and easy to use app that makes it easy for first-time investors to explore their options. Fidelity also offers a broad range of commission-free ETF’s, which are great for investors who aren’t starting with a large amount of money. The best part about Fidelity is that they offer no minimum balance IRA’s, meaning you can start saving for retirement with as little as $5.00. The investment app also has a learning tool that can help you understand the basics of building a portfolio.
2.Stash—The Stash app is free, but does come with a small monthly fee no higher than $1.99. Stash is one of the simplest ways to get started in investing, and it encourages you to use a tool to determine your investment goals based on a series of questions.
Best of all, Stash has no minimum to start investing and allows fractional shares. Fractional shares are exactly as the name states. If you want to purchase a high-value stock that is priced at $100 per share, you can use $5.00 to buy a fractional share, and you then own 1/20 of a share. The Stash app makes it easy to see, at a glance, how your investments are performing and makes setting up automatic deposits easy. Stash also offers a way to earn money, as you can receive an extra $5.00 for every new member who uses your code to join.
3. Vanguard—Vanguard was at the forefront of offering free and low-cost investing. When you buy and sell Vanguard ETF’s, you don’t pay any commissions. You also do not pay any account fees if you sign up for online account statements.
The Vanguard app is free and offers a wealth of information. It is almost too much information, as it is a bit more challenging to navigate than the other investment apps. Once you spend some time using the app, the extra swipe or two to access the information you want is less cumbersome.
4. TD Ameritrade—This investment app is best known for free options trading. They also have commission-free pricing for stocks and ETF’s. TD Ameritrade also offers zero-fee and no minimum balance for IRA accounts, and it was one of the first industry giants to lead the way to lure in those wishing to invest with lower sums of money.
The app itself is easy to use but does not offer full investment services from the app. To invest in mutual funds and certain other products, you have to use the website. However, once you have made your investment, you can track changes with the app.
5. Acorns—Acorns is an older investment app that is still unbeatable in the ease of use category. Acorns make saving and investing simple. One of the best features is the spare-change feature, which allows every purchase you make with your linked debit card to be rounded up to the nearest dollar amount. The spare change from each purchase is then rolled into your Acorns account. Acorns app allows you to roll existing IRA’s into an Acorns IRA, making it easy to manage everything from one simple and free app.
The top reasons for using an investment app in 2020
These apps help make getting started in investing less stressful. The low minimums make it easier for those new to investing. New investors can begin with a small sum of money and learn as they slowly build a portfolio. We are also a society that is addicted to ease, and convenience and these five apps make it easier than ever to save and invest without a significant learning curve. In these uncertain financial times, it is comforting to be able to see your portfolio at a glance and make changes with incurring fees.