3 Best Investing Apps For Beginners
The best investing apps for beginners. We’ll go over the pros and cons of the most user-friendly apps for new investors and really help you decide, which is the best investing app for you. (upbeat music) Hey, welcome back guys. This is Erik of EverydayInvesting.com where I’m all about helping the everyday investor get started saving and investing. Today I am going over some of my top picks for new investors. Some of the best user-friendly investing apps. They give you the best mobile friendly interface, as well as the best overall user experience. Now, I completely understand if you’re new to investing, how it can be overwhelming at first. And that’s why I want to go over some of the investing apps that helped me get started. I want to share those with you, so they can maybe help you get started investing in the stock market as well.
Now, if at any point of today’s video, you do want to jump ahead or jump back to any particular investing app we’re covering today. I will be sure to include timestamps down below in the description box, as well as links to my full in-depth review on every single investing app we’re covering today. And before we hop into today’s three best investing apps for new investors, be sure to stay tuned until the end of the video where I’ll also go over the three best stock market trading apps for new stock traders as well. Now, the first investing app on our list for new investors is the Acorns investing app, and Acorns is by far the simplest investing app to get started with because of it’s user-friendly mobile interface, and they have several built in educational resources built directly into the app. The cool thing with Acorns guys is that you can get started investing in the stock market, get started investing with as little as $5.
Now, one of the things I really like about the Acorns app for new investors, is that they do have several investing automation tools built directly into the app. And these investing automation tools are really helpful for building consistent and positive investing habits. And I can tell you as a new investor, that is definitely probably the biggest challenge when it comes to a new investor to the stock market. So a couple of the automation tools available on Acorns guys are Round- Ups. Now this is an awesome feature on Acorns where basically, you can link any credit or debit card to your Acorns app, and Acorns will round up the spare change from your everyday purchases to the nearest dollar and invest that spare change for you, right into your Acorns investment portfolio.
In addition to Round-Ups, Acorns does also offer the ability to set up recurring deposits from your bank directly into your Acorns app, and help put your investment on autopilot by allowing you to set up weekly, buy weekly or even monthly, recurring investments with again as low as $5. Another cool feature with the Acorns app guys, is they do have another feature called Found Money. And this is a really a unique feature to Acorns because it’s a very robust cash-back portal built directly into the Acorns app. But the unique thing about this cash-back portal is that you can not only earn generous amounts of cash back from hundreds of major retailers they partner with, online partners, but, you can also then have Acorns automatically invest that cash-back you earn, directly back into your Acorns portfolio.
Now the way Acorns works is when you first sign up, we’ll have you take a brief survey to help you choose from one of their five pre-built diversified portfolios, which really do help give you that instant diversification and these portfolios range from conservative to moderate, to more aggressive and a couple places in between. Now, the great thing about these pre-built portfolios on Acorns is that, not only are they well-diversified, but because they’re well-diversified, they’re composed of hundreds of stocks in major companies in both the U.S. and foreign. And because of that, they do help like I said, give you that instant diversification, which can help reduce risk compared to investing in individual stocks solely, solely, solely.
And furthermore, because Acorns portfolios are already well built and diversified for you, you don’t have to worry about actively managing your portfolio, actively trading stocks or researching companies. You just simply invest and Acorns already has that diversification for you in place. And another great reason why I think the Acorns app is definitely worth considering for new investors is because not only do they have that core investing account built into the app, but they also do offer a lot of other value as well. In addition to the core investment account, like I said, they do have that very massive cashback portal called Found Money. They also do even offer you the option to save for retirement.
You can open up either a Roth, a Traditional or a SEP IRA, individual retirement account with Acorns. And, they do also offer a mobile banking checking account called Acorn spin, which does also come with a Visa debit card. Now, in terms of pricing on Acorns, they don’t charge any commissions or fees to buy or sell any investments. However, they do have different subscription levels with plans starting as low as $1 per month. So who would I recommend the Acorns app for versus who would I not recommend the Acorns app for? Well, for starters on the pro side, I would definitely recommend Acorns app for new investors. Again, you can get started investing with as low as $5. They have very easy to understand terminology and educational resources built directly into the app. I would also secondly recommend Acorns, for passive investing, because of their different array of investing automation tools.
It really does help encourage passive investing, which means you can invest without really having to worry or even think about it. And thirdly, I would definitely recommend Acorns for those new investors who really want to get a lot of value out of a single app. Because again, not only can you have the core investing account, but you also have the option to save for retirement with a separate account, even open up a mobile banking checking account with a debit card as well, plus that robust cash-back portal where you can not only earn, but you can also invest your cash back. Now on the con side, who would I not recommend the Acorns app for? So the first type of investor I would not recommend the Acorns app for would be for active stock traders.
Now, Acorns does have several great investing automation tools, but again, these features are more geared towards passive investing. Now, the second type of person I would not recommend the Acorns app for would be those who want to invest in individual stocks. Now don’t get me wrong. Acorns does give you well pre-built and diversified portfolios already composed of hundreds of individual stocks, but you don’t have the control to individually pick certain stocks that you want. And that’s not a problem for new investors if you’re just getting started and you really just want to get started investing, and not have to worry about picking your stocks, researching companies, trading stocks, that’s not a problem.
But if you want a little more customization and control over your investment portfolio, and you want to invest in specific individual stocks, we’re going to go over to investing apps coming up next that allow you to do just that. Now the second investing app I recommend for new investors to consider is the Stash app. And I really liked Stash a lot because it’s very user friendly, much like Acorns. The app is very easy to use. They use very easy to understand terminology for new investors, and just like Acorns, with stash you can get started investing with as little as $5. Now, what does separate Stash from Acorns is that Stash does give you access to investing in hundreds of individual stocks and ETFs.
Now, exchange traded funds are essentially diversified investments, because they’re composed of sometimes hundreds of individual stocks related stocks bundled together in one single investment. So, ETFs can be a great way to get started as a new investor. And again, on Stash, you do have access to investing in hundreds of individual stocks and ETFs. Now, another thing I really like with the Stash app, guys, is something called fractional shares. And this is a great feature on the Stash app. With fractional shares that allows you to invest in pieces of companies without having to buy the whole share of that stock. So let’s just say, for example, guys, on Stash, you want to buy a stock that may cost hundreds of dollars. And that’s very common for major companies, stocks to cost hundreds of dollars, but you can’t afford that as a new investor on Stash, On Stash you can buy a fraction of that stock with again, as low as $5.
Another interesting feature to consider on Stash, is a feature they have called Stock-Back. With Stock-Back, instead of earning cash back on your everyday purchases, you earn actual stock back in real companies, real stock from everyday purchases when making transactions with your Stash debit card. In addition to Stock-Back, Stash does also offer a couple different investing automation tools guys. So just Round-Ups where again, you can have Stash roundup the spare change from everyday purchases have the auto invested in your Stash account. They also offer another tool called Smart-Stash, which really helps you save passively and save some extra money into your Stash account.
And when it comes down to it guys, another reason to really consider Stash as a new investor is it’s a very versatile app, much like Acorns. Because much like Acorns and Stash, not only do you have access to that personal investment account, but they do also give you the option to save for retirement by opening up an individual retirement account, they also do offer a mobile banking checking account. Again, that does come with a Visa debit card as well. And Stash does also offers something unique called Custodial account, where you can open an account for a young person in your life under 18. And when they turn 18, that investment account can transfer to them. Now, let’s get to the pricing with the Stash app. Much like the Acorns app, Stash does not charge any commissions or trading fees to buy or sell any investments on the app.
However, Stash does have different accounts subscription levels, again, with different features, and they do have plans starting as low as $1 per month. So now let’s briefly discuss who I would recommend the Stash app for versus who I would not recommend the Stash app for. So for starters guys, I would definitely recommend the Stash app for new investors. Because again, with Stash, you can get started investing with as low as $5. And secondly, they do use very easy to understand terminology all throughout the app and all throughout their investments, much like Acorns. Secondly, I would say the Stash app is ideal for those who want to invest passively, but maybe you want a little more control or customization over their investment portfolio.
Because again, with Stash, you do have those investing automation tools, but you also have the ability to invest in hundreds of individual stocks and ETFs, and even greater, you can invest in fractional shares in pieces of these major companies on Stash. And thirdly, I would say the Stash app is definitely ideal for those who want to get a lot of value out of a single app, because again, stash is very versatile guys, you get the personal investment account, but you also have the option to open up a mobile banking checking account again, with a Visa debit card. You also have the ability to save for retirement by opening up a Stash individual retirement account. And they do also offer custodial accounts. If you want to open up one of those as well. Now let’s discuss who I would say the Stash app is not as ideal for.
Firstly, I would say the Stash app is not as ideal for active stock traders, because while Stash does give you access to investing in hundreds of individual stocks and ETFs, most of the investing automation tools available on Stash, guys, are more geared towards passive investing. The second type of person I would say Stash is not as ideal for, would be for those investors who want to invest passively, but they want to invest in more specific smaller less known companies. Because again, Stash does give you access to hundreds of individual stocks and ETFs, but if you want to invest in thousands of individual stocks and ETFs, and have access to thousands of companies, we’re going to go over an investing up coming up right now that allows you to do just that. Now the third investing app, I would recommend new investors to consider would be the M1 Finance app. Because much like Acorn and Stash. M1 Finance can be a great platform to help you invest passively.
However, M1 Finance does give you access to investing in thousands of individual stocks and ETFs. One of the great things I really like with M1 Finance guys, is that they do allow you to invest in fractional shares. So you have access to thousands of individual stocks and ETFs, and you can also invest in fractional shares of those stocks and ETFs, really giving you the best of both worlds. Now, probably one of my favorite features on the M1 Finance app guys is the fact that they allow you to create and invest in multiple “Pies.” They call them, which are basically investment portfolios. You can have multiple Pies in a single M1 Finance app. So you can have one and M1 Finance app, but you can have multiple investment portfolios in that app. Each one consisting of different investments, different stocks.
You can have a more long-term portfolio, a more short-term portfolio. M1 Finance does allow that with multiple “Pies” as they call them, but they’re really multiple investment portfolios. Another cool feature on the M1 Finance app guys is a feature they have called smart rebalancing. With smart rebalancing, you can easily rebalance your portfolio with the click of a button. How cool is that? The way this works is, if you have some particular stocks in your portfolio that are performing really well over a period of time, and others that are not performing so well. M1 Finance can automatically sell some of those investments for you to bring your portfolio more rebalanced.
Now, one thing that does separate M1 Finance from Acorns and Stash for new investors that’s worth considering, is with M1 Finance, it is a $100 minimum investment to start investing on the app, whereas on Acorns and Stash, you can get started investing with as low as $5. So, just something to consider. If you’re looking at one of these three apps. Now, in terms of the different accounts available on M1 Finance, they don’t offer as many account types as on Acorns and Stash, but they do give you a little flexibility in the different accounts you can open. You can open up a personal investing account on M1 Finance. They also have give you the option to open up an individual retirement account if you so choose.
They also do offer a feature called M1 Spend, which again is a mobile banking checking account with a Visa debit card, just like Acorns and Stash. However they don’t offer any cash-back portal or any custodial account at this time. Now, when it comes to the pricing on M1 Finance, it’s a 100% commission free platform, they don’t charge any commissions, or trading fees for buying or selling your investments, nor do they charge any account subscriptions on a monthly basis. There’s no monthly account maintenance fees. It’s 100% free. Although they do offer an upgraded account called M1 Plus, the regular M1 Finance account, does not charge any monthly fees. So, who would I say the M1 Finance app is ideal for, versus who is it not as ideal for? So for starters, I would definitely say M1 Finance is ideal for new investors, because again, there are no commissions or fees to buy or sell investments on M1 Finance.
You have access to investing in thousands of individual stocks and ETFs. You can invest in fractional shares of these companies. And of course, if you don’t want to pick individual stocks, they do also offer several pre-built and diversified portfolios that you can invest in just the same. Secondly, I would say, M1 Finance app is ideal for investors who want to invest more passively, but they want access to thousands of individual stocks and ETFs, and they want access to customizing and a little more controlled customizing their investments in their portfolio. And thirdly, I would say M1 Finance is ideal for investors who want access to smart rebalancing, because again, with M1 Financing, you do have that feature, where you can easily rebalance your portfolio with the click of a button.
Again, guys, just be aware that every time you do that a taxable event does occur, but nonetheless, the feature is available to you. Now, who would I say M1 Finance is not as ideal for? Firstly, M1 Finance just like Acorns and Stash, is not as ideal for active stock traders. M1 Finance guys, while they do give you access to thousands of individual stocks and ETFs, pretty much all the companies you could want to invest in. Most of the features on the finance app are not stock trading features. They’re more geared towards passive investing and building a diversified portfolio. Secondly, I would say, M1 Finance is not as ideal, if you’re a new investor who wants some more investing automation tool. Now, don’t get me wrong.
M1 Finance is a great app for new investors, but they don’t have as many investing automation tools as Acorns and Stash do, such as Round-Ups and cash-back portals, and things like that. And Acorns and Stash gives you a lot more investing automation tools to really help you if you’re just getting started. M1 Finance isn’t there yet, but they do give you access to more customization of your portfolio, with thousands of stocks and ETFs. So, it’s just pros and cons of each depends really on what you’re looking for. Now, if you enjoyed this video on my top three stock market investing apps for new investors, and you want to compare them to my top three stock trading apps for new stock traders, I encourage you to check out this video right here on my top three stock market trading apps for new stock traders. This video right here, will compare them to these three investing apps and really help you decide, which is the best investing or stock trading app for you based on your investment goals.