In today’s modern era, investment apps have revolutionized how individuals manage their finances and pursue their goals. These 10 best free Investing apps offer a convenient and accessible platform for users to invest, save, learn, and manage their portfolios from their smartphones.
This article will explore the top 10 best free investing apps available, highlighting their features, benefits, and focus areas to help readers make informed decisions about their financial journey.
Importance of Investing Apps in the Modern Era
Investment apps have become increasingly important due to their ability to democratize investing and provide opportunities for individuals to grow their wealth. They offer a range of benefits, such as ease of access, affordability, automation, and educational resources. These 10 best free investing apps have empowered users, irrespective of their financial knowledge or experience, to participate in the financial markets and work towards their financial goals.
Overview of Investing Apps
This section briefly overviews the 10 best free investing apps, discussing their definition, purpose, and advantages over traditional investment methods.
The critical advantages highlighted are the convenience of managing investments anytime, anywhere, the ability to access a wide range of financial instruments, and the cost-effectiveness of these best free investing apps.
Top 10 Best Free Investing Apps
1. Betterment – Best app for automated investing
- Betterment is a leading investment app renowned for its automated investing services.
- The platform provides professionally managed portfolios tailored to each user’s risk tolerance and time horizon.
- Betterment also offers socially responsible investment portfolios, focusing on climate change and social impact.
- With no minimum balance requirement for its digital service, Betterment charges a management fee ranging from 0.25% to 0.40% of assets annually.
- Professionally managed portfolios based on your risk tolerance
- Option to create socially responsible portfolios
- No minimum balance is required for digital service
- Higher management fees compared to some other apps (0.25 – 0.40% of assets annually)
- Limited customization options for advanced investors.
2. Invstr – Best app for education
- Invstr combines learning, real-life investing, and a supportive community within its app.
- Through a fantasy stock game, users can manage virtual portfolios and gain insights from other investors.
- Invstr has no minimum balance requirement.
- It offers commission-free trading for stocks, cryptocurrencies, and ETFs, with a minimum investment of $5.
- The app also provides a Pro version for a fee of $3.99, offering additional features and tools.
- Combination of learning, real-life investing, and community.
- Access to investors’ thoughts on stocks and investments.
- Fantasy stock game for hands-on experience.
- Limited investment options beyond stocks, crypto, and ETFs.
- The pro version requires a $3.99 monthly fee.
3. Acorns – Best app for saving
- Acorns has gained popularity as a user-friendly app focused on saving and micro-investing.
- The app automatically invests spare change from everyday purchases by rounding up transactions to the nearest dollar.
- It also offers automated portfolio management based on users’ financial goals and risk tolerance.
- With no minimum balance requirement for its savings account.
- Acorns charges a monthly fee of $3 or $5, depending on the service tier.
- Easy to use and automate savings
- The round-up feature helps users save spare change
- Diversified portfolios based on risk tolerance
- Monthly fees of $3 or $5, depending on the service tier
- Limited investment options compared to other apps
4. Wealthbase – Best app for trading games and contests
- Wealthbase distinguishes itself as an investment app that combines financial education with entertainment.
- It provides a user-friendly platform for virtual stock market competitions.
- It allows users to set up games and contests to engage with friends or other participants.
- Wealthbase has no minimum balance requirement and offers different pricing structures.
- It includes a free option for games with up to five players.
- There is a $20 game fee plus five cents per player per day for more giant games.
- User-friendly interface for fun stock market games
- Option to set up games with friends
- Engaging and educational way to learn about investing
- Additional fees for more giant games with more players
- Limited focus on actual portfolio management and investing
5. Fidelity Investments – Best app for managing money all-in-one
- Fidelity Investments offers a comprehensive suite of financial services within a single app.
- This makes it an all-in-one solution for managing money.
- The platform enables users to open investment accounts, checking accounts, IRAs, and business retirement accounts.
- Fidelity Investments provides extensive research and educational resources.
- It is suitable for both novice and experienced investors.
- The app features $0 fees for stock and ETF trades, with options trading at $0.65 per contract.
- A comprehensive range of financial services in one app
- Access to various account types and investment options
- No fees for stock/ETF trades and low options contract fees
- Requires an account with Fidelity Investments to access all features
- Limited focus on advanced trading tools and features
6. Wealthfront – Best app for portfolio management
- Wealthfront ranks among the largest independent robo-advisors.
- Providing portfolio management services at a reasonable cost.
- The app caters to users with a minimum balance requirement of $500.
- It charges a management fee of 0.25% of assets annually.
- Wealthfront offers a range of investment options, including ETFs and tax-efficient strategies.
- It helps users build diversified portfolios aligned with their financial objectives.
- Large and reputable robo-advisor with automated portfolio management
- Tax-loss harvesting feature for optimizing tax efficiency
- Free financial planning tools and investment advice
- Minimum balance requirement of $500
- Management fee of 0.25% of assets annually
7. Robinhood – Best app for active trading
- Robinhood has gained immense popularity for its seamless interface and commission-free trading across various asset classes.
- Users can trade stocks, ETFs, options, and cryptocurrencies without paying any commissions.
- The app also offers fractional investing.
- They allow users to purchase fractional shares for as little as $1.
- Robinhood has no minimum balance requirement.
- Commission-free trades for stocks, ETFs, options, and crypto
- User-friendly interface and smooth trading experience
- Accessible to beginner investors
- Limited research and educational resources
- Controversies around order execution and customer support
8. Charles Schwab – Best app for beginners
- Charles Schwab is not only a reputable brokerage firm.
- It offers a user-friendly app that caters to beginners in the investing world.
- The platform provides a wealth of resources and educational materials.
- It helps new investors understand investing and personal finance concepts.
- Charles Schwab offers a $0 minimum balance requirement and charges no fees for trading.
- It also provides access to various investment options, including stocks, ETFs, mutual funds, etc.
- User-friendly platform with extensive educational resources
- Access to a wide range of investment options
- No minimum balance requirement and no fees for trades
- Research and analysis tools may be overwhelming for some beginners.
- Limited customization options for advanced investors.
9. Ellevest – Best app for socially responsible investing
- Ellevest stands out as a top-ranked robo-advisor that focuses on empowering women investors and promoting socially responsible investing.
- The app helps clients make intelligent investment decisions aligned with their values and financial goals.
- While Ellevest’s mission primarily targets women, anyone can become a client.
- The platform requires no minimum balance and charges a monthly fee of $5 or $9, with discounted annual options available.
- Focus on empowering women investors and socially responsible investing
- No minimum balance requirement
- Customized portfolios based on personal values and goals
- Monthly fees of $5 or $9, depending on the service tier
- It may offer fewer investment options compared to other apps.
10. Fundrise – Best app for direct investment in real estate
- Fundrise allows individual investors to invest in commercial real estate with minimal amounts of money.
- The app offers information about potential real estate deals.
- It will enable users to select investments that align with their preferences and risk appetite.
- Fundrise has a minimum balance requirement of $10 and charges an annual advisory fee of 0.15%.
- Along with a yearly asset management fee of up to 0.85%.
- The Innovation fund carries a higher cost of 1.85%.
- Access to commercial real estate investments with small amounts of money
- Diversification across multiple properties and locations
- Option to reinvest dividends for potential growth
- Minimum balance requirement of $10
- An annual advisory fee of 0.15% and an additional yearly asset management fee of up to 0.85% (higher for the Innovation fund)
- Limited liquidity, as real estate investments, typically have longer holding periods.
What to consider when evaluating the best free investing apps
When evaluating the best free investing apps, consider your specific needs and preferences. Some key factors to consider include:
- Purpose: Determine whether you seek an app for automated investing, education, saving, active trading, or other specific objectives.
- Fees: Take note of any management fees, transaction fees, or account minimums that may impact your returns.
- Investment options: Please ensure the app offers the investment options you are interested in, such as stocks, ETFs, mutual funds, cryptocurrencies, or socially responsible portfolios.
- User experience: Consider the app’s interface, ease of use, customer support, and additional features like educational resources and community engagement.
The availability of free investing apps has democratized the world of investing, making it accessible to individuals of all backgrounds. The 10 best free investing apps discussed in this article offer a range of features, from automated investing and education to saving, trading games, and portfolio management.
By understanding your investment goals and considering the features and benefits of each app, you can choose the one that best aligns with your financial aspirations and empowers you to take control of your financial future.
Q. Are investment apps safe and secure?
A. Reputable investment apps prioritize user security through encryption, two-factor authentication, and secure data storage.
Q. Can investment apps help with retirement planning?
A. Many investment apps offer retirement planning features like IRAs and calculators to track progress toward retirement goals.
Q. What are the tax implications of using investment apps?
Tax implications vary based on investments and account types. You can consult a tax professional or use tax software for guidance.
Q. Can investment apps provide financial advice?
A. While some apps offer educational resources, personalized financial advice may require a human advisor’s assistance.
Q. Are investment apps suitable for beginner investors?
A. Yes, many apps cater to beginners with user-friendly interfaces, educational materials, and simplified investment options.