Best Investment Apps for Beginners

Investing can seem intimidating, especially for beginners who are just starting to explore the world of stocks, bonds, and other financial assets. Fortunately, there are several user-friendly investment apps designed to make the process easier, more accessible, and more educational. These apps help beginners learn the basics of investing, build portfolios, and start growing their wealth over time.

Here’s a list of some of the best investment apps for beginners:

1. Acorns

Overview:

Acorns is an excellent investment app for beginners who want to start investing with small amounts of money. It works by rounding up your everyday purchases to the nearest dollar and investing the change in a diversified portfolio of stocks and bonds.

Key Features:

Round-ups: Automatically invests spare change from your daily purchases by rounding up to the nearest dollar.
Automatic Portfolio: Choose from various portfolios based on your risk tolerance.
Low Fees: Acorns charges a small monthly fee, which is waived for college students.
Educational Resources: Offers articles and videos that help you understand investing better.

Best For:

Beginners who want to start investing without making large initial investments.
Those who like the idea of “micro-investing” and prefer automatic investment strategies.

2. Robinhood

Overview:

Robinhood is a popular investing app known for commission-free trades. It allows users to invest in stocks, ETFs, options, and even cryptocurrency with no fees, which makes it a great option for beginner investors.

Key Features:

Zero Commission Fees: Invest in stocks and ETFs without paying commissions.
Fractional Shares: Allows beginners to buy fractional shares of expensive stocks with as little as $1.
Cryptocurrency: Offers the option to buy, sell, and hold popular cryptocurrencies like Bitcoin and Ethereum.
User-Friendly Interface: Simple, easy-to-use app designed for beginners.

Best For:

Beginners looking for an easy way to trade stocks, ETFs, and cryptocurrencies.
Those who want to minimize fees and learn the basics of investing.

3. Stash

Overview:

Stash is another beginner-friendly investment app that offers both guided learning and hands-on investing. It provides educational content and a straightforward approach to building your portfolio with small investments.

Key Features:

Personalized Portfolios: Choose from personalized portfolios based on your financial goals and risk tolerance.
Educational Tools: Stash has a wealth of articles, videos, and lessons to help beginners understand investing and the market.
Fractional Shares: Allows you to invest in fractional shares, making it easy to diversify with smaller amounts of money.
Automatic Investing: Stash offers an automatic investing option that automatically invests your money into a diversified portfolio.

Best For:

Beginners who want educational resources while building their investment portfolios.
Those who prefer a more hands-on approach to managing their investments.

4. Betterment

Overview:

Betterment is one of the leading robo-advisors that automatically manages your investments based on your financial goals and risk tolerance. It’s a great app for beginners who want a set-it-and-forget-it investment approach.

Key Features:

Robo-Advisor: Betterment automatically builds and manages a portfolio for you based on your risk level and financial goals.
Diversified Portfolio: Invest in a mix of low-cost ETFs that provide diversification across stocks and bonds.
Tax Optimization: Features like tax-loss harvesting help you reduce your tax liabilities.
Goal-Oriented: Allows you to set specific financial goals, such as retirement, buying a home, or building an emergency fund.

Best For:

Beginners who want a hands-off investment approach with professional guidance.
Those interested in building long-term wealth through automated portfolio management.

5. Wealthfront

Overview:

Wealthfront is another top robo-advisor that is well-suited for beginners who want automated investing with minimal effort. It offers personalized financial planning and portfolio management, making it an excellent option for those new to investing.

Key Features:

Automated Portfolio: Wealthfront creates a personalized portfolio based on your goals and risk tolerance.
Low Fees: Offers low management fees, typically lower than traditional financial advisors.
Financial Planning Tools: Provides access to financial planning tools, such as retirement planning and tax optimization.
Tax-Loss Harvesting: This feature helps reduce your taxable income by offsetting capital gains.

Best For:

Beginners who want a robo-advisor with automated investing and access to financial planning tools.
Investors looking for a simple, hands-off approach to wealth building.

6. SoFi Invest

Overview:

SoFi Invest is an investing app that makes it easy to get started with stocks, ETFs, and cryptocurrencies. It’s beginner-friendly and offers various tools and resources to help you understand investing and build your portfolio.

Key Features:

Commission-Free Trades: SoFi Invest offers commission-free trading for stocks, ETFs, and cryptocurrencies.
Fractional Shares: Invest in fractional shares of stocks, so you don’t need to buy an entire share of expensive stocks like Amazon.
Automated Investing: You can set up automated investing through SoFi’s robo-advisor service, which builds and manages your portfolio.
Educational Resources: SoFi provides access to articles, webinars, and other educational resources for beginner investors.

Best For:

Beginners looking for a commission-free platform to trade stocks, ETFs, and cryptocurrencies.
Those who want access to both automated and hands-on investing options.

7. M1 Finance

Overview:

M1 Finance is a versatile app that allows beginners to invest in pre-built portfolios or customize their own. It’s great for those who want to take a more hands-on approach to their investments but still enjoy the ease of automation.

Key Features:

Customizable Portfolios: Choose from pre-built portfolios or create your own based on your preferences.
Fractional Shares: Invest in fractional shares, so you can diversify with smaller amounts of money.
Automated Rebalancing: M1 Finance automatically rebalances your portfolio to maintain your desired asset allocation.
Zero Fees: No trading fees or commissions, which helps maximize returns.

Best For:

Beginners who want a customizable investment strategy while enjoying the benefits of automation.
Investors who prefer a hands-on approach but want the option of automatic rebalancing.

8. Charles Schwab

Overview:

Charles Schwab offers a range of tools for both beginners and experienced investors. Their mobile app allows for easy access to a variety of investment options, including stocks, bonds, ETFs, and mutual funds.

Key Features:

No Minimums: Charles Schwab allows beginners to get started with no minimum deposit, making it easy to begin investing.
Research Tools: Provides access to in-depth research and analysis tools to help you make informed investment decisions.
Low Fees: Low-cost commission structure for stocks and ETFs.
Robo-Advisor: Offers a robo-advisor service that helps beginners automate their investments.

Best For:

Beginners looking for a comprehensive investment platform with a wide range of investment options.
Those who want access to detailed research and analysis tools.

Conclusion

For beginners, the best investment apps are those that offer simplicity, educational resources, and a low barrier to entry. Apps like Acorns, Stash, and Robinhood are great for those just starting out, while apps like Betterment and Wealthfront are ideal for those who want a more hands-off, automated investing experience. No matter which app you choose, the key is to start investing, keep learning, and stay consistent over time to grow your wealth.

Each of these apps provides a user-friendly way for beginners to start investing, and the right one for you will depend on your goals, risk tolerance, and level of involvement you want in managing your investments.