The 5 Best Investment Apps For Beginners In 2021

Table of Contents

1. Introduction: All About Investment

2. What Are Investment Apps?

3. Investment App Usage Over The Years

4. Best Investment Apps for Beginner Investors in 2021

5. The Future of Investment Apps: The Fin Tech Analysis

Introduction: All About Investment

Making money comes naturally for techies: saving and investing on the other hand, can be like walking on a tightrope for some of us. This is partly because of the rising cost of daily living and also due to the many investment scams all over the globe.

Investments are assets acquired with the hope of increasing in value over a period of time or generating income. When you invest, your end goal is making a profit.

Over the years, there have been numerous forms of investment. People have been putting their money in stocks, bonds, real estate, businesses, cryptocurrency, etc.

However, with the recent advancements in technology, people do not have to physically visit financial institutions to invest: investments can be made from a tap on a mobile device app.

What Are Investment Apps?

Investment apps, otherwise known as micro investing apps, are mobile applications that enable users to save and invest their money for a given period of time. These applications are usually designed to help you make small investments by an automated saving and investment system.

These apps may require a debit or credit card linking, as well as your email address and some user verification. However, they help you invest small amounts of money that eventually round up to larger figures in the long run.

Investment apps could let you start investing from $1, $5, $20, etc and the commission fees are usually lower compared to that of the traditional financial investment platforms.

Micro investing apps also take into consideration your investment risk level and provide financial education on investing: this may come in the form of tutorials which are very helpful for beginner investors.

Investment App Usage Over The Years

People have always invested their money, however they have not always used investment apps. The development of micro investing apps was as a result of the increasing need to invest and the high cost of living that resulted in no savings for many.

A 2016 Financial Times Report from the company website showed that according to The Money Charity, about 9.61 million households in the UK had no savings. Money Box, an app designed to help young people between the ages of 18 to 35 invest as low as 20 pence was set to be launched, following the US and Australia micro investing app launches.

In 2018, the US Today disclosed that apps like Robbinhood, Acorn and Stash were blowing up in the stock market fluctuations. The beginner investors shared their worries initially, but they received enough encouragement to ride through the financial storm.

2021 has the best investment apps from Acorn to Webull and the famed TD Ameritrade. These apps offer small investment plans, automated investments, user tutorials and investment risk plans. Beginner investors, low risk investors and investors with small capital actively use these apps.

Best Investment Apps For Beginner Investors in 2021

Based on online discussions and popularity, here is a list of five best investment apps for beginner investors in 2021.

1. SoFi: The Sofi Investing and Trading App which has a 4.3 rating from over 16,000 users on the Google Playstore enables users to invest from $1 in the United States. The app offers you $10 in Bitcoin for your first crypto trade: the fees are as low as 0% for active trading and 1.25% for cryptocurrencies.

2. TD Ameritrade: TD Ameritrade offers users a clear view of the stock market. You can trade stocks, ETFs and options from your mobile device. You can view your portfolio and receive price alerts to monitor your trading. In addition, you can view up to seven years of tax documents and ten years of statements on the app.

3. Wealthbase: Wealthbase is a new app designed for trading stocks, ETFs and cryptocurrencies. There is also the option for a fantasy stock trading game and when you play with your friends, you stand the chance of winning from a pool of $100,000 of virtual cash. Although Wealthbase is not so popular, it has a lot of potential for investing in the FinTech space. 

4. Merrill Edge: Merrill Edge provides its users the opportunity to access market performance, see the most active stocks of the day and track a waitlist. You can also deposit checks into your Merrill account or Bank of America account by just snapping a picture. There are available tools designed to make the trading and investment process easier for beginners.

5. M1 Finance: M1 Finance is a popular app rated 4.5 by over 17,000 users that allows users to spend, borrow and invest with the tap of a finger. The app allows users to watch their portfolios, create new portfolio templates and access helpful automation tools that make beginner investing an enjoyable experience.

The Future of Investment Apps: The FinTech Analysis

Investment Apps are becoming very popular among young people: with time, these apps have become dominant in the FinTech Space. They are convenient to use and the financial education services they provide make usage for beginner users easier.

There have also been some controversies about the investment apps: in 2017, The Sydney Morning Review reported that Acorn was making 6.2% every year from over 50,000 micro investors. This may not seem much, but for a user with a balance of $241.13, the annual fee would be $15.

Investment apps have their benefits: they provide a platform to invest with little capital that eventually adds up to a worthwhile investment. However, the fees can add up with time and for users who have security concerns, they may not be the best option. In years to come, investment apps will be used by people of all age brackets and provide more features offered by financial institutions.

Disclaimer: This article is for informative purposes and not tantamount to financial advice. If you want to invest with a micro investing platform, do your own research, or consult a finance professional.