As a beginner investor, you may be wondering where to start investing and how to get the best return on your money. With so many investment apps available, it can be overwhelming to choose the right one. NerdWallet has researched and tested the best investment apps for beginners and more experienced investors. In this article, we'll discuss what to look for in an investment app and reveal our top picks for 2022.
What to Look for in an Investment App
Before diving into our top picks, let's take a look at what features to consider when choosing an investment app.
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Account minimums: Some investment apps require a minimum deposit to open an account. Look for apps with low or no minimums if you're just starting out.
Investment offerings: Different apps offer different types of investments, such as stocks, bonds, and ETFs. Make sure the app you choose offers the investments you're interested in.
Fees: Some investment apps charge fees for trades, account management, or other services. Look for apps with low or no fees to keep your costs down.
Mobile app ratings: Check the app's ratings and reviews in the app store to ensure it has a user-friendly interface and reliable performance.
Now that you know what to look for, let's dive into our top picks for investment apps.
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Robinhood
Ticker: HOOD
Robinhood is a popular investment app for DIY traders who value low fees and flexible investment options. The app charges no fees for stock, ETF, or options trades and has no account minimums. Robinhood also offers cryptocurrency trading and a cash management account with a 0.30% APY.
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Betterment
Ticker: N/A (Betterment is a robo-advisor, not a publicly traded company)
Betterment is a robo-advisor that uses algorithms to manage your investments for you. The app charges an annual fee of 0.25% for its digital plan, which includes portfolio management and automatic rebalancing. Betterment also offers socially responsible investing and tax-loss harvesting.
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TD Ameritrade
Ticker: AMTD
TD Ameritrade is a full-service investment app that offers a wide range of investment options, including stocks, bonds, ETFs, and mutual funds. The app charges no fees for stock, ETF, or options trades and has no account minimums. TD Ameritrade also offers educational resources and a robust trading platform.
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Webull
Ticker: WEBL
Webull is a commission-free investment app that offers trading in stocks, ETFs, options, and cryptocurrencies. The app has no account minimums and offers extended trading hours. Webull also offers research tools and a paper trading feature for beginners to practice trading without risking real money.
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Acorns
Ticker: N/A (Acorns is a private company)
Acorns is an investment app that rounds up your purchases and invests the spare change. The app charges a monthly fee of $1 to $5, depending on the plan you choose. Acorns also offers retirement and checking accounts and a cashback program for purchases at select retailers.
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Stash
Ticker: N/A (Stash is a private company)
Stash is an investment app that offers personalized investment recommendations based on your financial goals and risk tolerance. The app charges a monthly fee of $1 to $9, depending on the plan you choose. Stash also offers a debit card and cashback rewards for purchases at select retailers.
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Wealthfront
Ticker: N/A (Wealthfront is a robo-advisor, not a publicly traded company)
Wealthfront is a robo-advisor that offers portfolio management and financial planning services. The app charges an annual fee of 0.25% for its digital plan, which includes tax-loss harvesting and automatic rebalancing. Wealthfront also offers high-yield cash accounts and a college savings plan.
Conclusion
Investing apps make it easy for beginners to get started with investing and manage their portfolios on the go. When choosing an investment app, consider account minimums, investment offerings, fees, and mobile app ratings. NerdWallet's top picks for investment apps for beginners are Robinhood, Betterment, TD Ameritrade, Webull, Acorns, Stash, and Wealthfront. Happy investing!
