Investment apps make it easy for beginners to learn the tricks of the trade, while also allowing seasoned investors to do business on the go. We’ve narrowed down the wide array of options and have chosen the four best investing apps available to consumers.
The 4 best investment apps of 2020
- Robinhood: Best for commission-free investments
- Acorns: Best for automated investments
- Stash: Best for investing novices
- Wealthfront: Best for financial planning
|App||Fees||Apple App Store Rating||Google Play Store Rating|
|Robinhood||$0 or $5/month||4.8/5||4.4/5|
|Stash||$1, $3, or $9/month||4.7/5||4.1/5|
The 4 best apps for investing of 2020
Robinhood: Best for commission-free investments
Currently sitting at the No. 1 spot for investment apps in the Apple App Store, Robinhood — through Robinhood Financial — has made its name by offering investment options with no commission fees for trading. This app also sweetens the deal by having no minimum requirements to start the investment journey. Consumers who may be a little more experienced in the investing world can sign up for the Gold membership, where they are granted access to over 1,700 Morningstar stock research reports, level II market data and much more. This extra information makes for a more informed investment decision. While consumers don’t have to pay any fees for a basic Robinhood membership, the Gold membership does require a monthly fee and it starts at $5.
Acorns: Best for automated investments
Acorns provides a stress-free and low-maintenance way to invest. With Round-Ups, Acorns automatically invests your spare change from debit card transactions. Clients can sign up with Acorns for $1 a month. For $2 a month, they can also open up a Later account, which is an individual retirement account (IRA). Finally, for $3 a month clients can upgrade to Acorns Spend, a checking account that automatically saves and invests. Spend comes with the standard investment features with Round-Up, plus a Later account, as well as a checking account and debit card that links it all together. Another benefit of Spend is that the checking account comes with no overdraft fees or minimum balance fees.
Stash: Best for investing novices
For those who may be new to the investing realm, Stash is a great option. Stash Beginner costs $1 per month and includes an investment account with bank account access. For $3 a month, Stash Growth can land clients a Beginner account, plus an individual retirement account. Lastly, for $9 a month, Stash+ provides all of the features from Beginning and Growth, accompanied by additional features like investing accounts for up to two kids, monthly market insight reports and more. Each of these accounts comes with the ability to earn Stock-Back, Stash’s rewards program that allows you to earn stock with purchases from your Stash debit card. Another benefit to this app is it provides free financial education. From blogs to podcasts, clients can benefit from various media forms to learn about smart investing. Clients also have the option to begin with one plan and switch to another as their financial needs change, offering flexibility and personalized options.
Wealthfront: Best for financial planning
With Wealthfront, investors have access to more than just investment opportunities. On top of having your investment accounts all in one place, investors can also use their free Path tool, which allows them to plan for big financial events like buying a home, college savings and retirement.
Wealthfront also has low management fees of 0.25% for investments, but Path is completely free to users and available even before consumers begin their investment journey. This service also provides tax efficiency. If a client does their taxes with TurboTax, they can input their Wealthfront log in information to TurboTax to automatically generate assets and tax-loss harvesting data without having to manually enter it in.
What is an investment app?
An investment app is a mobile application that can be downloaded onto any eligible smartphone. These apps allow individuals to get information on publicly traded companies. Consumers who use these applications can check out stock quotes, company information and much more. This shared information allows investors to make educated decisions on the companies they choose to invest in. The convenience of having a mobile application allows individuals to make investment decisions on the go instead of having to meet with a broker. It also allows novice investors to learn more about the markets and gives them immediate access to information.
How should I choose the right investment app?
Choosing an investment app may require a lot of research to find a solution that fits your needs the best. According to Cory Triolo, consumer investments digital solutions & experience executive at Bank of America, “When searching for an investment app, look for a platform that streamlines investing and gives you access to research and insights, flexible tools and step-by-step guidance when needed.”
The right app is primarily dependent upon individual financial situations. Those in the market for an investment app should examine their finances closely to decide which tool is right for them.
“Determining your investing goals, such as building a diversified portfolio or setting up a retirement fund, will help you pick the right investment tool for your needs,” says Triolo.
The bottom line
While investments may seem intimidating to a novice, they can be extremely beneficial in the long run. The right investment app is whichever one best fits someone’s financial situation. Examining one’s own financial needs is where they should start, and, when needed, they can seek out a professional opinion.
As Triolo puts it: “Whether you want digital or in-person advice or a combination of both, there are several solutions available depending on the complexity of your financial needs.”