It’s easier than ever to invest in the stock market these days with a few swipes of your finger. The use of investing apps is becoming increasingly common among investors at all levels.
There are dozens of stock trading apps available on the market today, making it difficult to distinguish the good from the bad ones.
We’ve compiled this list of the best investment apps for beginners in 2021 to assist you in choosing the right one.
In order to narrow this list down to the few we believe will be most helpful to you, our Editorial Team reviewed all of the best investing apps available.
There is no one-size-fits-all when it comes to financial situations. There are different goals, amounts to invest, tolerances for risk, and levels of knowledge about investing among each of us.
This list has something for everyone, whether you have a large amount of money to invest or just want to get started with a small amount.
Robinhood – Investment App with Free Trades
- Account minimum: $0
- Cost per trade: $0
- Free stock with a new account
Robinhood is a free mobile trading app that lets investors trade stocks, cryptocurrencies, options, and ETFs for no commissions. Besides its easy-to-use design, it does not charge annual fees, which makes it a good investment option for new investors.
Pros:
- Fee-free trading
- There is no minimum balance requirement
- An easy-to-use interface that is mobile-friendly
- Invest in a variety of securities
- Trading on margin is available
Cons:
- There are no retirement or other types of accounts
- Certain popular securities, such as bonds and mutual funds, are not available for trading
- Customers have a hard time getting support
With Robinhood, you can invest without paying any commissions or fees. As a result, you won’t be charged when trading (stocks, ETFs, options, cryptocurrency, etc.) through the platform.
Robinhood also allows you to buy fractional shares, which means you can invest as little as $1 in thousands of stocks. The interface is simple and intuitive, and users love it. In a recent Trustpilot review, one reviewer said this service was “easy to use, and I really like that they are constantly adding new features.”
Acorns – App for Automating Investments
Investing with $5 requires a minimum account balance.
Monthly Fees: Depends on the plan you choose ($1 to $5)
For new investors who are just learning the ropes, the Acorns app is perfect. A linked card is used by investors to make purchases. The extra change is invested by Acorns rounding up to the nearest dollar. It is also possible to set automatic recurring investments on a daily, weekly, or monthly basis.
Pros:
- College students can invest for free
- A fully automated process
- There is no minimum balance requirement
- Cashback is offered at specific retailers with higher-tiered plans
Cons:
- For IRAs, they charge an account fee and other fees
- Options for portfolio management are limited
- For those with smaller account balances, the monthly fee can be high
The following services are available through Acorns:
- Investment accounts that are taxable
- Accounts for retirement
- Debit card checking account
Investing with Acorns is easy no matter what your experience level is, thanks to features like automatic roundups. Your Acorns portfolio will include the difference between what was spent and what was invested from a linked account. There is a wide range of portfolios, from conservative to aggressive.
Using Acorns Later, users can also make lump-sum deposits or invest for the long term, where an individual retirement account is recommended and updated according to their financial goals.
Betterment – The Best Investment App for Access to Human Advice
Account Minimum: $0 ($100k minimum for Betterment Premium)
Annual Fee: 0.25% (0.40% for balances of $100k or more)
Investment apps and Robo advisors like Betterment have become increasingly popular in recent years. Besides offering tax-loss harvesting, simple asset management, good retirement calculators, low management fees, and the option to speak with a real person, the sign-up process is very easy.
Pros:
- A minimum account balance is not required
- Management fees that are fixed and low
- Transaction fees are not charged
- The ability to work with Certified Financial PlannersTM
- Investing with quality and without hands-on involvement
Cons:
- Stock trading is not intended for DIYers
- There are some competitors who offer better tax-loss harvesting than us
- Asset allocation and external accounts cannot be balanced
There are real financial advisors at Betterment who are available to answer questions and provide guidance. Certified Financial PlannersTM is their advisor, which means they act as fiduciaries and only provide advice that is in your best interest.
Depending on your Betterment package, the cost will vary. The cost of a Betterment call varies from $199 to $299 if you have a basic account. If you have $100,000 invested in a Betterment premium account, you’ll have unlimited access to a CFP®. You can ask to be matched with a Betterment partner advisor firm if you want more customized, hands-on support.
TD Ameritrade – Short-Term Trading App of the Year
Cost per trade: $0
Account minimum: $0
TD Ameritrade is a large brokerage firm that offers a variety of accounts, stocks, ETFs, and mutual funds. A brick-and-mortar office is located in Tucson, AZ, and they also have many online educational resources and tools. Known for its wide range of offerings and positive reputation, they are a well-known brokerage firm.
Pros:
- Options available in a wide range
- The ability to trade on a variety of platforms
- There are many trading tools, education, and research resources available
- There are no maintenance fees
- Support from the customer is good
Cons:
- Compared to some competitors, trades are more expensive
- There are some short-term trading fees (be sure to read the fine print when you sell).
In addition to their desktop trading platform, Thinkorswim, TD Ameritrade offers a variety of investing tools and resources. With market heat maps, real-time news, backtesting capabilities, technical analysis tools, studies, and all the other features the platform offers, active traders can make the most out of the platform.
Additionally, TD Ameritrade Mobile Trader offers tools for advanced traders, including complex option ordering capabilities and forex and futures trading.
Blooom – An App That Makes Managing Your 401(K) Easy
Account minimum: $0
Fee per year: $120
In addition to employer-sponsored retirement plans like 401(k)s, 403(b)s, and some IRAs, Blooom also offers portfolio management services. A minimum balance is not required to open an account, and the pricing is straightforward. With Blooom’s free tool for 401(k) analyses, new users can also test out the software.
Pros:
- With an annual payment, you will receive a 10% discount (otherwise, you will need to pay $30 each quarter).
- There is no minimum balance requirement
- Analyze your 401(k) for free
- Having access to human advisors
- A fee structure that is simple and transparent
- The interface is easy to use
- A new 401(k) account does not need to be opened or moved
- Monitoring of fraud
Cons:
- In the case of smaller account balances, flat-fee pricing may be too high
- Other accounts are not taken into account when allocating assets
Its focus on optimizing existing employer-sponsored retirement accounts, such as your 401(k) or IRA, sets it apart from other Robo advisors. Our free personal investment strategy will be customized to your goals and risk tolerance if you have a 401(k) at your current employer but aren’t sure how you should invest the money. An employer-sponsored retirement plan, it’s best for hands-off investors.
Wealthfront – The Best Long-Term Investing App
Account Minimum: $500
Fees: 0.25%
Hands-off investors seeking a low-cost Robo advisory service will find Wealthfront’s Robo advisory services appealing. No fees are charged for opening or closing an account, making trades, withdrawing funds, or transferring funds. As well as minimizing fees, Wealthfront manages investment risk with its custom-built portfolios and lowers taxes.
Pros:
- Assistance with financial planning and goal setting
- A tax-loss harvesting method
- ETFs with low expense ratios
- Rebalancing automatically
Cons:
- Customer service is limited
- A fractional share purchase option is not available
The Wealthfront approach is not to chase the market; it is to invest for the long term. There are IRAs, 401(k) rollovers, and 529 college savings accounts available through the platform. For new and advanced investors who prefer a more hands-off experience, Wealthfront’s automated investment approach, diversified portfolios, and tax-optimization strategies are ideal.
Fundrise – An App You Must Have If You Invest in Real Estate
Account minimum: $500
Management Fee: 0.85%
Fundrise is a platform exclusively designed for crowdsourced real estate investing. With it, you can diversify your investment portfolio, ask questions to experts, and choose between balanced investments, long-term growth investments, or supplemental income investments. Investors with and without accreditation are welcome to participate.
Pros:
- Investors who are not accredited are welcome to participate
- The minimum investment amount is low
- Returns that have historically been strong
Cons:
- Liquidity constraints
- The fee structure isn’t entirely clear
- A strong market downturn has not yet tested the methodology
By allowing users to invest in real estate investment trusts or REITs, Fundrise lowers the barrier to entry for real estate investors. eREITs, which invest in income-producing real estate, and eFunds, which develop and sell housing, are offered by the company.
Limited liability companies perform the deals through these eREITs and eFunds. eREITs and eFunds are purchased through a Fundrise Core plan: Starter, Supplemental Income, Balanced Investing, or Long-Term Growth. Investing in Starter requires a minimum of $500 while investing in the other three requires at least $1,000.
Coinbase – The Best Cryptocurrency Investment App
Account minimum: $2
Fee: 1.49% (3.99% for debit card buys)
Bitcoin, Ethereum, Litecoin, and over 25 other cryptocurrencies can be purchased and traded using Coinbase. You can even earn free crypto shares if you schedule recurring contributions. For Coinbase users with an account, Coinbase Pro offers additional features, lower fees, and is free to use.
Pros:
- User interface that is intuitive
- Cash is highly liquid (you can access it quickly)
- Fees are relatively low
- Options for cryptocurrencies
Cons:
- Customer service is inadequate
- With fewer tools than Coinbase Pro, there are higher fees
- The private keys of users are not under their control
- Depending on location, market price, and payment method, fees aren’t entirely transparent
Users can buy and sell popular cryptocurrencies such as Bitcoin, Ethereum, and Litecoin through Coinbase, which touts itself as “the easiest place to buy, sell, and manage your cryptocurrency portfolio.” Also available for Android and iOS devices, Coinbase Wallet lets users view all their tokens in one place and pay other users directly from the app.
By taking Coinbase’s free courses on specific cryptocurrencies, you can earn free cryptocurrency to add to your wallet. With Coinbase Pro, advanced traders can take advantage of lower trading fees and additional features.
Ellevest – One of the Best Apps Designed Specifically for Women
Account Minimum: $0
Fee: $1-9/mo
The Ellevest Robo advisor was built by women, for women. They claim that the financial world was built for men, so Ellevest provides financial planning services for women. Because of this, their algorithm takes into account financial factors that are specific to women, such as the gender pay gap. Rather than charging based on assets under management, the platform charges a standard monthly fee.
Pros:
- Minimum account balances and low fees
- Women’s financial needs are specifically met by Portfolios
- Clients can select additional services (budget coaching, career coaching, financial planning, etc.) at an additional cost.
Cons:
- Having to pay extra to access a financial planner or career coach
- The monthly fee remains the same no matter how much money you have in your account
- Getting help rolling over an account requires a higher-tier subscription
- An IRA cannot be opened by members of the Essential plan
- Tax-loss harvesting is not allowed
Ellevest welcomes men as clients, but the Robo advisor focuses specifically on women’s investing needs. It is the only algorithm that considers the pay gap, career breaks, and longer lifespans for women. There are three levels of service offered on the platform: Essential, Plus, and Executive. There is a flat fee of $1, $5, and $9 per month for each service.
Aside from Core investing options, Impact portfolios are also available. In addition to creating positive social impact, these programs advance women on senior leadership teams and boards. Ellevest members receive up to a 50% discount on career coaching and financial planning services based on their membership plan, but non-members pay a flat fee.
You Invest by J.P. Morgan – The Best Option for Chase Clients and Cardholders
Account Minimum: $0 ($500 for You Invest Portfolios)
Fee: $0 per trade (0.35% mgmt. fee for Portfolios)
You Invest by J.P. Morgan offers two options: Trade and Portfolio. DIY investors should consider trade as an option. There is no account minimum, no commissions, and no commissions. The portfolio is a hands-off investment option for those who are more comfortable having their account managed by someone else. With both options, Chase customers can invest directly from their existing accounts.
Pros:
- Chase accounts can be accessed through both apps
- Platforms that are easy to use
- Trade offers no commissions and no minimum account size
- Portfolios with low expense ratios
Cons:
- Portfolios have a $500 minimum account balance and a higher-than-average management fee
- Access to research and tools is limited
- Customer support is limited (only by phone)
Your Chase account and mobile banking app will sync with You Invest if you’re already a Chase customer. You Invest Portfolios, a Robo advisor option, offers $0 commissions and comes with a DIY trading platform that offers no commissions.
In spite of the higher management fee of 0.35%, the You Invest Portfolios may be an attractive option for Chase customers who want to start investing quickly and don’t want to manage their own investments.
Our Rating System for Investing Apps
When rating investing apps, our editorial team considers a number of factors. These are the most important factors we consider when rating:
- An easy-to-use interface
- Reviews of mobile apps
- Website reviews from third parties
- Each trade costs
- ETFs with no commissions are available
- Research accessibility
- Integration with other financial apps
- A user’s likelihood of incurring fees
- Balance requirements for accounts
- The customer service department
Besides rating brokers 1 to 5, we also aim to find the best broker for certain types of investors, such as:
- Newbies
- Traders with active accounts
- Investors in cryptocurrency
- Various other examples.
