Investing has never been as accessible as it is today. Thanks to a plethora of innovative investing apps, almost anyone, anywhere, can start investing with as little as $5. The surge of interest in financial markets, from the United States to international investors, has been met with an equally robust response in terms of platforms that cater to various investment preferences and geographical limitations. But with so many options at your fingertips, how do you decide which app is best suited for your investing journey?
This comprehensive guide aims to answer all those queries by highlighting the essential features you should consider before diving into an investing app. Additionally, this article offers a rundown of some of the best investing apps for both U.S. and international investors. Buckle up, because we’re about to demystify the world of investing apps for you!
Must-Have Features in an Investing App
Before you download that flashy new investing app you’ve heard so much about, it’s essential to consider specific features that can significantly impact your investing experience. Let’s break down these features into digestible categories:
1. Commission-Free Trades
Trading fees can quickly erode your profits, especially if you are a frequent trader or if you’re working with a small initial investment. Commission-free trading is almost a must-have feature in any investing app you consider.
2. Fractional Shares
The advent of fractional shares has democratized investing by making it possible to invest in companies or funds with high share prices, even if you don’t have hundreds or thousands of dollars to invest. This feature lets you buy a portion of a share, which can be as low as $1 or $5, depending on the app’s minimum requirements.
3. No Monthly Service Fees
While some apps might lure you in with the promise of no trading fees, they may still charge you a monthly or annual service fee, which can be counterproductive to your goal of saving and growing your wealth. Opt for apps that do not charge these kinds of fees whenever possible.
4. User-Friendly Interface
Let’s face it; not everyone is a finance whiz. An investing app with an easy-to-navigate interface can make all the difference in your investing journey. Especially if you are new to investing, you want an app that guides you through the process seamlessly.
Now that we have covered the key features to look out for, let’s move on to some of the best apps that embody these characteristics.
Top 3 U.S. Based Investing Apps for 2023
If you’re a U.S. resident, you’re in luck! The United States has some of the best investing apps in the world. Here’s a list of our top three picks for the best investing apps based in the U.S. But, these investing apps can also be available for other areas as noted:
1. WeBull
WeBull stands out for its versatility. Not only does it offer commission-free trades, but it also allows you to invest in fractional shares. The app offers recurring investments, which means you can easily set up your $5-a-day investment challenge. Its robust set of tools makes it a suitable choice for both beginners and experienced traders. WeBull is also available in UK, Hong Kong, Singapore, Japan, and Australia. Get Webull Today!
2. Public
Public has all the must-have features of an excellent investing app, but what sets it apart is its social media component. Users can share their trades, follow others, and even join discussions about various stocks or investment strategies. It’s the perfect marriage between social networking and investing. Public is available in U.S. and U.K. Get Public Today!
3. Robinhood
Robinhood pioneered the commission-free trading model and remains one of the most popular investing apps in the U.S. Its easy-to-use interface makes it perfect for beginners, while its variety of investment options makes it a strong contender for more experienced traders. The app is also famous for its $5 a day investing challenge, making it an excellent choice for those who want a structured approach to investing. Get Robinhood Today!
Best International Investing Apps for Non-U.S. Residents
While the U.S. has an extensive selection of investing apps, residents of other countries need not despair. There’s a growing number of high-quality apps that cater to international investors. These apps offer a robust set of features, market access, and ease of use for those residing outside the United States. Here are some top picks for international investors:
1. eToro
Arguably one of the most well-known platforms for international traders, eToro offers a wide array of financial instruments ranging from stocks to cryptocurrencies. What sets eToro apart is its “CopyTrading” feature, which allows users to automatically replicate the trades made by successful traders. This can be a game-changer for beginners or those who don’t have the time to monitor the markets actively.
2. Trading 212
Based in the UK, Trading 212 offers a straightforward, zero-commission trading experience. It provides a wide range of financial instruments, including stocks, forex, and commodities. One of the standout features is its user-friendly interface, which even allows for customizing your dashboard. It’s a great option for EU residents, but it also supports various other countries.
3. IQ Option
Designed for the more experienced trader, IQ Option offers a range of assets from stocks and ETFs to forex and options. The platform is known for its advanced charting tools and indicators, making it suitable for traders who wish to undertake in-depth market analysis. While it offers a free demo account, this is an app best suited for those who already have some trading experience.
Honorable Mentions for Niche Markets
While the above-listed apps serve the broad spectrum of investors, some niche markets might require specialized platforms. Here are a few apps that are designed to meet specific investing needs:
1. Acorns for Micro-Investing
Acorns is an excellent option for those who wish to get into the habit of saving and investing but find it hard to set aside large sums of money. The app rounds up your everyday transactions to the nearest dollar and invests the change in a diversified portfolio.
2. Stash for Thematic Investing
Interested in ESG (Environmental, Social, Governance) investing or want to invest in specific themes like tech or healthcare? Stash allows you to do just that. With as little as $5, you can start investing in thematic portfolios that align with your interests or values.
3. M1 Finance for Portfolio Customization
If you’re someone who likes to have complete control over your investment choices, M1 Finance is the app for you. It allows you to create a customized portfolio, or “Pie,” consisting of stocks and ETFs of your choosing. You can then automate investments into your Pie, ensuring that you stay disciplined in your investment approach.
Even More Detail on the Best Investing Apps
Check out today’s video where I guide you through some other apps such as Scalable Capital (Germany) and Interntional Brokers:
Conclusion
Investing apps have revolutionized the way we interact with financial markets, making it easier than ever to invest, whether you’re in the United States or anywhere else in the world. These apps offer various features, from commission-free trading and fractional share buying to social networking aspects that make investing more collaborative and less daunting.
When choosing an app, it’s crucial to consider your investment goals, experience level, and the features that are most important to you. Take advantage of demo accounts, read user reviews, and perhaps start small until you’re comfortable with the app’s interface and capabilities.
Remember, the best investing app for you is one that meets your needs and helps you effectively achieve your long-term financial goals. With so many quality options available, there’s undoubtedly an app out there that’s perfect for you. Happy investing!