7 Best Investing Apps For Beginners: A Comprehensive Guide

Investing can seem like a daunting task, especially for beginners. The jargon, the risks, and the sheer number of options can be overwhelming. But thanks to technology, getting started with investing has never been easier. There are now numerous apps designed specifically for beginners, offering user-friendly interfaces, educational resources, and low barriers to entry. In this article, we’ll explore the 7 best investing apps for beginners, breaking down their features, pros, and cons to help you make an informed decision.

Why Use an Investing App?

Before diving into the list, let’s address why investing apps are a great starting point for beginners:

1. Accessibility: Most apps allow you to start investing with as little as $1.
2. Ease of Use: They simplify complex investing concepts with intuitive interfaces.
3. Educational Resources: Many apps offer tutorials, articles, and even gamified learning experiences.
4. Low Fees: Compared to traditional brokers, many apps have minimal or no fees.
5. Automation: Features like robo-advisors help you invest without needing to micromanage your portfolio.

Now, let’s explore the top 7 apps that cater to beginners.

1. Robinhood

The Zero-Commission Pioneer

Robinhood revolutionized the investing world by introducing commission-free trading. It’s perfect for beginners who want to dip their toes into the stock market without worrying about fees.

Key Features:

• Commission-Free Trading: Buy and sell stocks, ETFs, options, and even cryptocurrencies without paying fees.
• User-Friendly Interface: Clean and simple design makes it easy to navigate.
• Fractional Shares: Invest in expensive stocks like Amazon or Tesla with just a few dollars.

Pros	Cons:
No account minimums.	Limited research tools.
Great for learning the basics of trading.	No retirement accounts (e.g., IRAs).
Offers a free stock for signing up.

Best For: Beginners who want a no-frills, commission-free trading experience.

2. Acorns

Investing Spare Change

Acorns takes a unique approach by rounding up your everyday purchases and investing the spare change. It’s ideal for those who want to invest passively.

Key Features:

• Round-Ups: Automatically invests the difference when you make a purchase.
• Robo-Advisor: Builds and manages a diversified portfolio based on your goals.
• Found Money: Earn cashback from partner brands that gets invested into your account.

Pros	Cons:
Hands-off investing.	Monthly fees can be high for small balances.
Great for building savings habits.	Limited control over individual investments.
Low minimum investment ($5).

Best For: Beginners who want to invest small amounts without much effort.

Learn While You Invest

Stash combines investing with education, making it a great choice for beginners who want to learn as they go.

Key Features:

• Themed Investments: Choose from pre-built portfolios based on your interests (e.g., tech, green energy).
• Educational Content: Articles and tips to help you understand investing.
• Fractional Shares: Invest in stocks and ETFs with as little as $5.

Pros:

• Customizable portfolios.
• Educational resources tailored for beginners.
• Low minimum investment.

Cons:

• Monthly fees can add up.
• Limited advanced trading options.

Best For: Beginners who want to learn about investing while building a portfolio.

The Robo-Advisor Leader

Betterment is one of the most popular robo-advisors, offering automated portfolio management with a focus on long-term goals.

Key Features:

• Goal-Based Investing: Set goals like retirement or buying a home, and Betterment will create a plan for you.
• Tax-Loss Harvesting: Automatically minimizes taxes on your investments.
• Low Fees: Charges a competitive 0.25% annual management fee.

Pros:

• Hands-off, automated investing.
• Great for retirement planning.
• No minimum balance for the basic plan.

Cons:

• Limited customization for advanced investors.
• Higher fees compared to some competitors.

Best For: Beginners who prefer a set-it-and-forget-it approach.

5. Wealthfront

Advanced Features for the Curious Beginner

Wealthfront is another top robo-advisor that offers a mix of automation and advanced features.

Key Features:

• Portfolio Line of Credit: Borrow against your portfolio at low interest rates.
• Financial Planning Tools: Includes tools for retirement, college savings, and more.
• Low Fees: Charges 0.25% annually.

Pros	Cons
High account maximums for tax-loss harvesting. Robust financial planning tools. No fees for the first $5,000 managed.	$500 minimum investment. Less personalized than human advisors.

Best For: Beginners who want a mix of automation and advanced tools.

6. Ellevest

Investing with a Focus on Women

Ellevest is designed with women in mind, addressing unique financial challenges like the gender pay gap and longer life expectancy.

Key Features:

• Gender-Specific Planning: Tailors portfolios to women’s financial needs.
• Career Coaching: Offers resources to help women grow their careers and income.
• Impact Investing: Options to invest in companies that support social and environmental causes.

Pros	Cons
Focused on empowering women. Low fees and no minimum balance for the basic plan. Includes retirement and savings goals.	Limited appeal to non-female users. Higher fees for premium plans.

Best For: Women who want a personalized, goal-oriented investing experience.

7. Public

Social Investing Made Simple

Public combines investing with social networking, allowing users to share insights and learn from others.

Key Features:

• Social Feed: Follow other investors and see their portfolios.
• Fractional Shares: Invest in stocks and ETFs with as little as $1.
• Thematic Investing: Choose from themes like clean energy or AI.

Pros	Cons
Great for learning from a community. No commission fees. Transparent and easy to use.	Limited research tools. Social aspect may not appeal to everyone.

Best For: Beginners who enjoy a community-driven approach to investing.

How to Choose the Right App for You

With so many options, how do you pick the best app for your needs? Here are a few factors to consider:

1. Your Goals: Are you saving for retirement, building wealth, or just learning?
2. Fees: Look for apps with low or no fees, especially if you’re starting small.
3. Ease of Use: Choose an app with an interface you find intuitive.
4. Educational Resources: If you’re a beginner, prioritize apps that offer learning tools.
5. Account Types: Make sure the app supports the type of account you need (e.g., IRA, taxable account).

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Final Thoughts

Investing doesn’t have to be complicated or intimidating. With the right app, you can start building wealth with just a few dollars and a smartphone. Whether you prefer a hands-off robo-advisor like Betterment, a social experience with Public, or a learning-focused platform like Stash, there’s an app out there for you.

Remember, the key to successful investing is consistency and patience. Start small, keep learning, and don’t be afraid to ask questions. The apps listed above are excellent tools to help you on your journey to financial growth. Happy investing!