Investing is an essential aspect for growing any kind of significant wealth throughout one’s life. The meaning of ‘wealth’ here is relative to each individual, and their personal financial goals. Some people have plenty of money to invest, and know exactly how to build a successful investment strategy. Others, however, feel like they don’t make enough to invest or aren’t informed enough to invest successfully over time. The good news for those who feel this way is that there are now apps to help with both of these investing concerns! We will highlight some of our favorites below to help you find the one that fits your personal situation best.
Acorns is the perfect concept for those who feel they just don’t have enough money to invest in the market. They have an automated investing feature called Round-Ups that invests money for you automatically. Every time you use your credit card, Acorns will round up to the nearest dollar and invest the difference into your account! This makes investing seamless and pain free for you because you will hardly notice it is happening. They offer various investing options, and have low monthly fees ($1, $2, and $3 monthly). Once your account grows and surpasses the $5,000 mark there is simply a flat fee of 0.25% per year. To help even further, Acorns offers free services for college students with valid .edu email addresses. They offer free services for up to 4 years.
Stash is another investment app that is built for those who feel they don’t have enough to invest. With monthly fees as little as $1 per month for the beginner package, you can learn the proper investment strategies for a small fee. Combine that with the fact you only need $5 to open your account and begin investing, this is affordable for any budget. Similar to Acorns, once your account grows beyond $5,000 they charge the same 0.25% annual fee.
Robinhood is an investment platform for those who already have a decent handle on how to invest. The benefit here is they have zero-fee transactions. Most trading platforms will charge anywhere from $2-7 per transaction. That means if you have a smaller trading account and you trade frequently, these fees can start adding up over time. Don’t forget that these fees are based on each transaction, and each trade has 2 transactions. That could add up to $14 per trade ($7 for buying then $7 for selling). Robinhood has been a growing company and now offers a wide variety of investment options, now including Bitcoin and Ethereum.
Webull is very similar to Robinhood, offering no-fee investing. They offer account opening fees of $0, account management fees of $0, and trade commissions of $0. Certain investment options within their platform will come with fees from the SEC and FINRA, which are unavoidable on any trading platform. These fees can range from $0.01-5.95 per transaction. They have a wide variety of investment options and investing tools to help you make more informed decisions with your hard earned money.
Betterment builds a personalized portfolio and uses algorithms to automatically invest for you. These algorithms are also constantly rebalancing your portfolio for you. This is as hands-off as active investing gets since everything is automated. They offer low-fee investing plans, with their digital plan having a 0.25% fixed annual fee. There is no minimum deposit for the digital plan. Potentially the biggest benefit Betterment offers is their automated tax-loss harvesting strategies. They constantly rebalance the portfolio to minimize the impact of taxes as best as possible. Betterment also offers their own high-yield savings account, offering up to 2.38% interest with Betterment Everyday.
Wealthfront is similar to Betterment by offering automated investing using algorithms to invest for you. They also programmed similar tax-loss harvesting tactics into their algorithms to minimize the blow from taxes related to investing. Wealthfront gets its edge over competitors by offering no fees on managing up to $10,000! Above this threshold, they charge a flat 0.25% management fee. Additionally, they offer a variety of specific investment plans/services for some of life’s big dollar items. They have a college tuitions savings account offering for parents and retirement planning accounts. They have some unique software services as well that provide home-buying advice to help you with the stressful task of buying a home. Wanting to take a sebatacle to travel the world, but not sure how long you can conservatively cut loose for? They have a software program that evaluates your full financial picture and helps you plan the trip of a lifetime. Take a look, you may discover you can take off far more time than you thought and still be in good financial health!