Investment apps have made investing more accessible to people by not requiring minimum deposits or charging steep commission fees.Yet, with so many apps offering similar features, choosing the best investment app for your strategy and goals can really be a tough decision to make.

The best investment apps not only let you keep track of your holdings from anywhere, but offer access to a variety of investment options. They feature advanced research tools and charting so you can analyze performance and place orders right away. They also provide educational resources to help newbies develop a strategy and get started.

Read on to learn more about investment apps, and find out which are the top picks, according to our research.

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Why we chose it: Webull is our choice for beginners and active traders because it offers extended market hours, advanced charting and enough educational resources.

Webull is a trading app that offers commission-free stocks, ETFs and options, with no minimum deposits. Additionally, it supports IRAs and allows investing in crypto and some foreign companies (ADRs).

Although Webulls research tools and charts can seem overwhelming at first, we believe its a great choice for beginners who dont mind taking some time to learn. It has a learning center full of video explainers and how-tos, alongside a training camp that can be customized based on your investing experience. In addition, it offers a trading simulator, where beginners can learn and practice how to trade using paper (or virtual) money.

Active traders can benefit from Webulls advanced charting and real-time data to place orders and do market research. Another great perk is that it offers access to extended market hours, so you can trade before and after the market closes from 4:00 a.m. to 9:30 a.m. ET, and 4:00 p.m. to 8:00 p.m.

Do note, Webull has a $5 minimum for fractional share orders. This might be a drawback for some traders, considering apps like Robinhood let you buy shares for just $1.

HIGHLIGHTS

Why we chose it: We chose Acorns as the best app for micro-investing because it can automatically invest spare change from your purchases.

Acorns is popularly known for making investing a no-brainer. The mobile app can be configured in less than 15 minutes. You just need to create an account, link a debit or credit card or add some funds using a checking or savings account.

Based on your financial information, Acorns recommends one of its five portfolios. These are designed considering risk tolerance, and range anywhere from conservative to aggressive. You can also change the portfolio at any time, if you want to undertake more or less risk.

Acorns stands out for making it easy to set money aside for investing it rounds purchase transactions up to the nearest dollar, so you can invest spare change automatically. In addition, the app offers a rewards program that invests cash back from your purchase when you shop from specific brands within the app. Some featured brands include Apple, Walmart, Uber, Nike and Chewy.

Although the app recommends making round-ups automatic, it can be done manually too. This gives you more control over the transactions you want to round up. If you want to invest more money, you can customize it to multiply that amount by two, three or ten times, or schedule one-time or monthly deposits from a checking account.

Acorns main drawback is that it charges a monthly subscription of $3 or $5, depending on the tier you choose. Although it may not sound like much at first, a flat fee structure like Acorns can add up in the long term and even exceed your returns, especially if youre just investing small amounts. Another thing to keep in mind is that Acorns doesnt make an instant deposit of your round-ups, rather it waits until youve accumulated $5.

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Why we chose it: Betterment is our choice for best robo-advisor because its algorithm lets users know how much they need to save to meet their goals and offers a tax coordination feature.

Betterment is a robo-advisor investment app and as such it automatically designs diversified portfolios based on your investment goals. Robo-advisors like Betterment and Acorns are different from trading apps like Webull because they dont let you choose the type of securities you invest in, rather they offer ready-made portfolios.

Unlike Acorns, Betterment doesnt charge a monthly fee. Instead it charges an annual management fee of 0.25% or 0.40%, depending on your account balance. This fee structure can be more cost-effective than a flat monthly subscription, especially if youre investing small amounts of money.

We liked that Betterment automatically calculates how much you need to save to reach your goals within a specific time period. You can also create multiple investment accounts for different goals. For instance, you could create a general investing account, a retirement account and education savings with different target dates, and the app would let you know how much you have to set apart for each in order to reach your goal amount.

Compared to Acorns, Betterments set-up process is a bit ambiguous and its charts are less intuitive. This may make it difficult to track your portfolios performance.

However, overall, its perks make up for it. For example, Betterments algorithm offers automated tax-saving strategies for all users, including tax loss harvesting. This means that the algorithm looks for opportunities to reduce tax exposure by selling securities that have experienced losses and offsetting gains.

Additionally, Betterment offers support from Certified Financial Planner professionals for all users, for an additional fee. (This service is included for no extra charge with the Premium account, which requires a minimum balance of $100,000.)

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Why we chose it: Public is our pick for best investment app for investing in community because it features a social platform that lets you connect with other investors using the app.

Public is another commission-free investment app that offers access to stocks, ETFs and crypto. What sets it apart from others are its social features, which let you connect and share insight with other traders and financial advisors.

Publics community feed is like Twitter for investors. In it you can keep up with trending news and topics, see what other members are investing in and post your recent buys and sells. You can also create group chats with people youre following and participate in virtual events within the app.

Public offers access to about 900 stock and ETFs, and over 25 different crypto coins and tokens, including Bitcoin, Dogecoin, Shiba Inu and Avalanche. Additionally, it lets you buy fractional shares with a $1 minimum.

Public doesnt require you link a bank account to fund your account, you can simply use a debit card. However, you do need to link a bank in order to withdraw your money.

There are some drawbacks, however. Public doesnt offer access to a wide array of tradable assets for instance, you cant invest in options, mutual funds or bonds. Additionally, even though the app is free at the moment, Public may eventually charge a subscription fee for premium features.

HIGHLIGHTS

Why we chose it: TD Ameritrade is the best investment app for educational tools because it offers a wide range of resources, how-to videos and research tools.

If youre looking for an investment app with tons of educational resources, TD Ameritrade is a great choice. It offers traders two different apps TD Ameritrade Mobile and thinkorswim to meet all types of investors needs. In addition, it features demos, videos and advanced research tools for free.

TD Ameritrade has a wide selection of tradable assets, including options that many competitors dont offer, such as forex, mutual funds and futures. It doesnt charge any commissions for trading stocks, ETFs, options and mutual funds. However, options trades have a $0.65 fee per contract.

Apart from the educational and how-to videos available in TD Ameritrade Mobile, users have access to a wide range of online resources through TD Ameritrades website, including courses, webcasts and articles on investment strategies and analysis.

TDs thinkorswim platform also takes investing to the next level. It provides experienced traders advanced tools to place orders, create watchlists and keep track of preferred stocks. Users can create customizable charts and set time frames for analyzing stock performance and making informed market predictions. Additionally, it lets users run simulations using paper trading, so they can practice their own investment strategies without losing real money.

One thing to note is that TD Ameritrade doesnt offer fractional shares, meaning you can only buy full shares. In addition, despite the various educational resources widely available, TD Ameritrades apps can be overwhelming and difficult to navigate for beginners.

HIGHLIGHTS

Why we chose it: SoFi is our choice for best all-in-one investment app because it offers brokerage accounts, automated investing and some banking products.

SoFi is an online personal finance company that offers loans, banking and self-directed and automated investing all in one place.

SoFi Active Investing doesnt charge management fees or a commission for stocks, fractional shares and ETFs trades. In addition to these securities, users can also trade over 20 cryptocurrencies, including Ethereum, Bitcoin and Dogecoin, though at a 1.25% markup fee on all crypto transactions.

To start investing you just need to link your bank account, and place a stock order of at least $5 or $10 for cryptos. With automated investing, however, you can start with just $1 and set up daily, weekly, bi-weekly or monthly recurring deposits.

Some drawbacks: Although the app features educational resources and charts that may be good enough for beginners, it lacks advanced research tools for more experienced investors. Additionally, the apps selection of tradable securities is somewhat limited compared to competitors.

HIGHLIGHTS

Why we chose it: Charles Schwab is the best investment app for experienced traders because it offers an extensive variety of research tools and access to trade in foreign markets.

Charles Schwab is a full-service brokerage thats a great choice for experienced investors. It offers a variety of investment services and doesnt charge commissions on stocks, ETFs, mutual funds and options.

You can open accounts with no minimum balance and get access to a full range of investment products, including international stocks, annuities and crypto. You can also get access to a dedicated financial consultant if your account has $250,000 or more. In addition, Schwabs platforms (both mobile and online) offer advanced research tools and in-depth charts to analyze trade ideas and opportunities with real-time data.

Aside from self-managed accounts, Schwab offers automated investing with a dedicated expert at no extra charge, although it requires a minimum of $5,000 to get started. A premium robo-advisor service is also available for a one-time fee of $300 and a $30 monthly advisory fee. The premium subscription includes guidance from a Certified Financial Planner, a personalized roadmap and interactive planning tools.

Time in the market beats timing the market.

The brokerage you choose matters. Try Public.com, the investing platform helping people become better investors. See what makes us different.

Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/.

Robinhood is a trading app thats popular among beginners. Its game-like design is accessible and user-friendly. Like most apps, Robinhood has no minimums and no fees, offering commision-free trades on stocks, options, crypto, ETFs and IPOs. Despite its popularity, Robinhood has faced strong criticism for restricting users access to securities like GameStop during the latest meme stock swing. The app has also been involved in multiple data breaches in the past, the most recent in 2021. Additionally, it was charged by the Securities and Exchange Commission for misleading customers on how it makes money from order flows.

Fidelity is one of the few major brokerages that allows investors to trade fractional shares. It has no minimum account requirements and doesnt charge commissions on stocks, ETFs and options trades. Its mobile app gives access to a wide selection of securities and robo-investing. Fidelitys robo-advisor is free for accounts under $10,000. However, if the account balance exceeds this amount, the company charges a $3 monthly advisory fee or a 0.35% yearly fee. Additionally, Fidelity doesnt allow investors to trade cryptocurrency nor does it offer access to tax-loss harvesting tools.

E*Trade is a popular online broker that provides traders of all kinds with a large selection of investment securities. Like other online brokerages, E*Trade doesnt set an account minimum for standard accounts and offers commission-free stocks, options and ETFs. It also offers mutual funds with no transaction fees.

Aside from a web platform, E*Trade has two mobile apps E*Trade and Power E*Trade which traders can use to place orders and follow the markets movement. While E*Trade offers managed portfolios, it has a $500 minimum balance and a 0.30% annual advisory fee. Additionally, E*Trade has a higher margin rate than most brokerages and doesnt support cryptocurrency trading.

Like most robo-advisors, Ellevest designs personalized portfolios and automatically manages them based on your long- and short-term investment goals. What sets it apart from other investment tools is that its designed by women and for women (although its an option for anyone and great for beginners).

The Ellevest algorithm considers factors that affect many women such as pay gaps, career breaks and longer average lifespans and recommends initial target amounts depending on specific goals and time horizon.

Ellevest's main drawback, however, is that it only offers two types of investment portfolios, which is considerably limited compared to competitors. Additionally, it charges a monthly subscription fee of $1, $5 or $9, depending on the membership plan.

Our guide on investment apps covers key information on the types of investment apps you can use, how they work, the most common types of stock orders and how much money you should invest. Read on to learn more about investment apps and how to pick the best one for your financial goals.

Investment apps are mobile applications designed to buy and sell stocks and other tradable assets from publicly listed companies through smartphones or tablets.

These apps let users quickly access their holdings, monitor stock market performance and track new investment opportunities. Most offer educational resources and notifications on recent market trends to keep users informed while helping them develop their own investment strategy.

Types of investing apps

Investment apps typically fall in one of three categories:

First, you have to install the app on your device and create an account. Most investment apps require basic personal information like your full name, social security number and address, along with some employment and financial information. You can then choose the type of account: an individual brokerage account, individual retirement account (IRA), college savings or automated investment if the app offers robo-advisor features. Once the account is approved, you can link a bank account, transfer funds and start investing.

Many investment apps feature advanced charts that let you visualize stock price fluctuations and performance over time. Information like latest market news, historical high and lows, trading volume, dividends and price-earning ratio is also broadly available. Some apps may include stock analyst ratings as well.

Another perk is that sometimes investment apps give you a free stock when you first fund your account or when friends you recommend join the app.

Types of stock orders

As with any investment platform, you can place different types of orders on an investment app. If youre new to investing, it might be useful to familiarize yourself with the three most common types of orders and know what each one means.

A market order is an order to buy or sell a stock immediately, at or near the current market price. Investment apps that offer fractional shares will typically let you choose between buying in dollars or in shares.

Buying in dollars means youll buy the dollars equivalent in shares. For instance, if you place a $5 order for buying a stock thats currently priced at $125, you would receive about 0.04 shares.

Buying in shares, on the other hand, means that you want to buy a specific number of shares at the current price. Continuing with the previous example, if you wanted to buy two shares from the same company, then you would have to place an order for two shares at $125 each and pay a total price of $250.

A limit order is an order for a particular stock at a specified price. Note that a limit order is placed only when the desired stock reaches the price of your choosing, otherwise known as the limit price. For example, lets say you want to buy shares of a renowned company thats currently trading at $75, but you want to buy it at $74.90. You could place a limit order for this amount. Your order would then be executed only if the price of the stock ever reaches the limit price (or lower).

A stop-loss order is an order to sell or buy stocks thats triggered when a specified stock price is met. Stop-loss orders are designed to help reduce potential losses. For instance, you could set up a stop-loss order to limit the loss of a $125 stock to 10%. In this case, if the stocks price dropped by 10%, the stop order would be automatically triggered, reducing the risk of further losses.

While most financial experts recommend dedicating between 5% to 20% of your paycheck to savings and investing, it will all depend on your financial situation, goals and how much you can actually set aside for investing without compromising other responsibilities. For instance, if youre currently paying multiple credit cards and loans, it would be best to temporarily allocate more money towards paying off those debts first.

The good thing about investment apps, however, is that most dont have minimum requirements on how much money you need to start investing. This means that you can literally start investing with as little as $1. While this may sound like too small of an investment, keep in mind that you can keep adding to your account and investing regularly, so you can build wealth over time.

If youre new to investing or aren't sure where to start, a financial advisor can help you set up a plan and identify the best investment opportunities for your objectives. We also recommend checking out our guides on how to invest and how to buy stocks.

Not all investment apps give access to the same securities and financial products, which is why your experience and financial goals may play a key role in determining whether a particular investing app offers the features you need. When looking for the best investment app for you, keep the following factors in mind:

Consider your investment experience

Your experience and the type of investor you are (or want to be) are two important factors when choosing the best investment app for you.

Beginners and passive investors may benefit from a good robo-advisor, which generally offers straightforward app design and automated investing and portfolio management. But those who want to learn and have more control over the type of investments they can make, should look for investing apps that let them place their own trades and that feature a variety of educational tools and resources, including simulators to practice trades.

More experienced and active traders, however, may prefer apps with access to a wider selection of financial products and advanced trading tools to execute more complex strategies.

Assess your financial goals

Are you investing to save for retirement? For a short-term goal like buying a home? Or do you want to do it as a hobby, or even become a professional trader over time? Knowing the answer to these and similar questions may give you a clearer picture of what type of investment app to choose.

Remember that investing apps offer a wide array of investment options. These include stocks, bonds, ETFs, options and cryptocurrency. Before choosing an app, make sure it offers the type of investments you want to buy at the lowest possible cost.

If its only crypto youre investing in, consider getting a crypto exchange instead. While some investment apps let you buy popular digital currencies like Bitcoin, their offering is oftentimes limited. However, the best crypto exchanges not only let you trade and convert different cryptocurrencies, but offer competitive prices and comprehensive features.

Verify the app fees

Although most investment apps offer low costs or commission-free trading, there are some apps that charge annual management fees or monthly subscription fees that, when added up, can end up taking more than what they give you in return.

One important factor to keep in mind when evaluating investing apps fees is the expense ratio. This ratio determines the percentage of your investment that goes toward paying annual fees. It divides the total annual fee by the total amount invested.

Let's compare Acorns and Betterment fee structure, as an example.

Acorns has plans that cost $3 and $5 a month. If you were to choose its $3 monthly subscription and only invest $100 in a year, you would pay a flat rate of $36 a year, the equivalent to a 36% expense ratio. This means that 36% of your investment would go towards paying management fees. If you were to invest the same $100 using Betterment, which charges a 0.25% annual fee for the total asset balance of your account, you would pay roughly $0.25.

Depending on your investment, asset-based pricing, like Betterments, may be more cost-effective than paying a flat monthly fee, especially if youre planning to invest small amounts of money. On the other hand, if youre investing a greater amount of money, a flat fee structure may be more convenient than asset-based pricing.

Check the brokers background

Investment apps should be trustworthy, and take an active role in protecting your money.

Most trustworthy investing apps are transparent about their fee structure, and are registered with regulatory agencies like the Securities Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), which ensure brokerages abide by certain fiduciary regulations.

Additionally, investing apps should be insured by the Securities Investor Protection Corporation (SIPC), a private nonprofit organization that protects investors against the loss of securities and cash in case of the brokerage firms insolvency.

If background information is not easily available in the apps or their websites, you can do a search using tools like FINRAs BrokerCheck and the SECs Investment Adviser Public Disclosure websites.

What is the best investment app for beginners?

Robo-advisors are generally a great option for beginners. Apps like Acorns and Betterment, use algorithms that can automatically build and manage portfolios for you based on financial information and goals.

However, if you want to choose your own investments and actively buy individual stocks, ETFs and other trading opportunities, there are investment apps (such as Webull) that offer interactive and intuitive interfaces.

Originally posted here:
7 Best Investment Apps of 2022 - Money