Today we're breaking down the best investing apps for beginners to the stock market. We will explore the most user-friendly mobile apps and discuss how new investors can use them to easily start investing in real companies.
Whether you are interested in pre-built investment portfolios or customizing your own, we'll break down the pros and cons of the best investing apps for beginners so you can start growing your money today.
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So How Do I Actually Get Started?
If you’re just getting started investing in the stock market, I completely understand how it can seem overwhelming at first. We all have the same questions: How do we get started and which are the right investing platforms for us?
While there are more traditional investment brokerages out there such as Fidelity, Etrade, and Charles Schwab, they are not very user-friendly for new investors to the stock market.
Instead we're going to focus on more modern and innovative investing apps that are much easier to use and simpler to get started with.
To be specific, there are two types of investing apps for beginners:
The main difference between stock marketing investing apps and stock market trading apps is the following:
Investing Apps: (i.e. less potential risk / more passive management)
More designed for passive investing and sustainable growth of your investment portfolio.
Often times, offer more diversified portfolios and offer less risk
More stable and steady growth
Trading Apps: (i.e., higher potential risk/ more active management)
More geared towards shorter-term trading and require much more active involvement in researching and picking individual stocks
Often times, offer less diversified portfolios and offer more risk.
More potential profit but also more potential loss
One caveat with trading apps is that while their features are more geared towards active stock trading, they can also be used for passive investing if treated like an investing app.
In this article we are focusing on the top investing apps for passive investing. Alternatively, if you'd like to compare these apps to the best stock trading apps for more active stock trading, feel free to check out the best stock trading apps here.
How Much Money Do I Need To Get Started Investing?
The best part is, you don’t need as much money as you think to actually get started investing in real companies. You no longer need hundreds or thousands of dollars to get started investing, like you needed to have in the past.
Today, there are beginner-friendly investing apps that let you get started investing in stocks with as little as $1.
Should I Invest in Stocks?
With both investing apps and trading apps you will usually have access to a selection of individual stocks and ETFs:
Individual Stocks: buying shares in individual companies such as Amazon, Google, Starbucks, Walmart, etc.
ETF stands for Exchange Traded Fund - a group / theme of related stocks bundled together. (i.e., tech stocks ETF, financial stocks ETF, retail stocks ETF)
Tip: ETFs are an easy way to diversify your investment portfolio and often times offer less risk than investing in individual stocks.
With that in mind, we are now going to break down the best stock market investing apps for beginners. If you’d like to learn more about any of today's investing apps I encourage you to read my more full in-depth reviews on each one (linked below).
Their investments use easy terminology that make them easy to understand.
They also have an area inside the app, called Stash Learn, which provides plenty of easy to read articles on saving, investing, and personal finance.
Ideal for passive investing with a little more control over customizing your portfolio
Stash provides you several tools to help automate your saving and investing, which helps encourage consistent contributions and may help grow your investments over time.
No add-on trading commissions. Just a set monthly fee which can be as low as $1 per month.
You can invest in fractional shares of expensive stocks that cost hundreds of dollars when buying a full share on other platforms.
Those looking to get a lot of value out of a single finance app
Again, Stash is a versatile platform. You have access to an investing account, a mobile banking account, a debit card with reward features, and even the option to save for retirement.
Who would I not recommend the Stash app for?
Not as ideal for active stock traders
Stash’s set of features are more geared towards passive investing and growth of your portfolio.
If you're instead looking for a stock trading platform with features more designed for active stock trading, you may want to consider Public, Robinhood, or Webull.
Not as ideal if you want to invest in smaller/ less known companies
While Stash currently offers access to over 288 individual stocks, including major companies such as Amazon, Walmart, Netflix, Google, Starbucks, etc., they may not offer access to smaller/ less known companies.
The good news is that Stash continues to grow this list by adding new stocks over time.
However, if you're looking to have access to investing in thousands of individual stocks and ETFs you may want to compare Stash with M1 Finance.
When you invest in the stock market, your money will grow as the value of the stocks you invest in grow, but your investments can also decrease in value as the stock market fluctuates.
This is why investing is always best for the long term. In the short term, the stock market may fluctuate up or down but over the long term the stock market has a history of increasing in value.
How To Grow Your Money ?
At the end of the day, the most important piece of advice I can give you as a new investor, is to realize the greatest contributors to building wealth are time and compound interest.
Essentially, compound interest means that not only does your initial investment earn interest, but you also begin to earn interest on the interest. This powerful snowball effect is the key to creating true wealth over time.
And the best way to grow your money through compound interest is by establishing consistent investing habits and actually giving your money the time needed to compound and grow.
It’s never too early or too late to start investing. Whether you are in your 20’s, 30’s, 40’s, 50’s, or beyond, the best time to start investing is now.
There’s never been a time in history where investing has been as accessible to new investors as there is now. Whether you are interested in pre-built investment portfolios or customizing your own, there is an ideal financial platform for you.
If you’re still unsure which is the right investing app for you, I encourage you to check out my full in-depth individual reviews of each of these apps.
Likewise, you can also compare any of these apps to today's top stock trading appsfor more active stock trading.
Need help with investing? We can help you find the right investing platform for your financial goals.
👉 I help connect the everyday investor with financial technology so they can get started saving and investing. Together, we'll find you the right apps and platforms to help you reach your financial goals!