Best Investment Apps for Beginners in 2024

In recent years, technology has made investing more accessible than ever, especially for beginners. Gone are the days when you needed to meet with a financial advisor or be an expert in stock picking to grow your wealth. Today, a variety of investment apps for beginners offer user-friendly platforms, low fees, and educational resources to help anyone start their investment journey. With 2024 on the horizon, it’s the perfect time to explore the best investment apps 2024 has to offer.

This article will review some of the top investment apps for beginners, covering their key features, advantages, and why they stand out. Whether you’re looking to start investing in stocks, bonds, ETFs, or cryptocurrencies, these apps will help you take the first step toward building wealth.

Why Investment Apps Are Ideal for Beginners

Before diving into the specific apps, it’s important to understand why investment apps for beginners are so beneficial. For many, the traditional world of investing can be intimidating, with jargon, complex products, and high barriers to entry. Investment apps break down these barriers by offering:

• Ease of Use: Most apps have intuitive interfaces, making it easy for beginners to navigate the world of investing without needing in-depth financial knowledge.
• Low Fees: Many investment apps offer commission-free trading or low-cost investment options, allowing you to grow your portfolio without high expenses eating into your returns.
• Educational Resources: A lot of apps provide in-app tutorials, articles, and videos that help beginners learn how to invest while they grow their portfolios.
• Fractional Shares: Apps allow users to invest in fractional shares, meaning you can buy a portion of expensive stocks like Amazon or Tesla with just a few dollars.
• Automation: Robo-advisors and automated features can help beginners invest in diversified portfolios with minimal effort.

With that said, let’s take a look at the best investment apps 2024 has to offer for beginners.

Robinhood: The Pioneer of Zero-Commission Trading

Robinhood remains one of the most popular investment apps for beginners due to its zero-commission trading model, which sparked a revolution in the financial industry. Launched in 2013, Robinhood was one of the first platforms to offer commission-free stock and ETF trading, making investing accessible to everyone.

Key Features:

• Zero-Commission Trades: Robinhood charges no fees for buying and selling stocks, ETFs, and options, making it ideal for beginners who want to trade without worrying about commissions.
• Fractional Shares: You can invest in expensive stocks with as little as $1, allowing you to build a diversified portfolio with minimal funds.
• Simple Interface: Robinhood’s minimalist design is easy to use, especially for beginners. The app shows you exactly what you need to know, without overwhelming you with unnecessary information.
• Crypto Trading: Robinhood also allows users to trade popular cryptocurrencies like Bitcoin and Ethereum without paying any commissions.

While Robinhood is great for beginners, it has faced criticism for lacking advanced tools and research options, which may not suit more experienced investors. However, for those just starting out, Robinhood’s simplicity and low-cost structure make it a solid option.

Acorns: Investing Spare Change Automatically

Acorns is one of the best investment apps for beginners who want to invest without thinking about it. Launched in 2014, Acorns rounds up your everyday purchases to the nearest dollar and invests the spare change into a diversified portfolio. This automated micro-investing strategy allows beginners to build wealth passively.

Key Features:

• Round-Ups: Acorns’ signature feature automatically rounds up your purchases to the nearest dollar and invests the difference. For example, if you spend $3.50 on coffee, Acorns rounds it up to $4 and invests the extra $0.50.
• Customizable Portfolios: Acorns offers five portfolio options ranging from conservative to aggressive, allowing you to match your risk tolerance and goals.
• Educational Content: Acorns provides educational articles and tips in the app to help beginners understand how investing works and build financial literacy.
• Retirement Accounts: Acorns also offers IRA accounts, which can help beginners save for retirement in a tax-advantaged way.

While Acorns charges a small monthly fee (starting at $3/month), it’s an excellent choice for beginners who want to invest automatically without having to monitor the market regularly.

Betterment: A Top Robo-Advisor for Automated Investing

Betterment is widely regarded as one of the best robo-advisors for beginners. If you prefer a hands-off approach to investing, Betterment will build and manage a personalized portfolio for you, based on your risk tolerance and financial goals.

Key Features:

• Automated Portfolio Management: Betterment’s robo-advisor creates a diversified portfolio of ETFs based on your preferences and automatically rebalances it as needed.
• Goal-Based Planning: Betterment helps you set financial goals, whether it’s retirement, buying a home, or building an emergency fund, and designs a custom plan to meet those objectives.
• Low Fees: Betterment charges a management fee of 0.25% per year, which is relatively low compared to traditional financial advisors.
• Tax-Efficient Strategies: For taxable accounts, Betterment offers tax-loss harvesting, a feature that can help reduce your tax bill and increase after-tax returns.
• Retirement Accounts: Betterment also offers IRAs, 401(k) rollovers, and retirement planning tools, making it an all-in-one solution for both short- and long-term goals.

Betterment is ideal for beginners who want to grow their investments passively and efficiently without needing to pick individual stocks or monitor the market.

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Stash: Learning and Investing in One Place

Stash combines investing with education, making it an excellent platform for beginners who want to learn while they invest. Launched in 2015, Stash allows users to invest with as little as $5 and offers personalized investment recommendations based on your risk tolerance.

Key Features:

• Fractional Shares: Stash lets you invest in fractional shares, meaning you can buy small portions of expensive stocks and ETFs with just a few dollars.
• Educational Tools: Stash offers an extensive range of educational content, including articles and tutorials designed to teach beginners the basics of investing.
• Personalized Investment Guidance: The app recommends investments based on your risk profile and financial goals, helping you build a portfolio suited to your needs.
• Banking Services: Stash also offers banking services, including a checking account with no hidden fees and a Stash Stock-Back® Card, which rewards you with stocks when you make everyday purchases.

While Stash has a small monthly fee (starting at $3/month), its combination of education, personalized guidance, and low barrier to entry makes it a strong contender for beginner investors.

Webull: Advanced Tools for the Aspiring Trader

Webull is another zero-commission trading app, but it stands out for offering more advanced tools and features than Robinhood, making it ideal for beginners who want to learn how to trade like a pro.

Key Features:

• Zero-Commission Trading: Webull offers commission-free trading on stocks, ETFs, options, and cryptocurrencies, making it affordable for beginners.
• Advanced Tools: Unlike many beginner investment apps, Webull offers more advanced charting tools, research, and data analysis, helping users make more informed trading decisions.
• Paper Trading: For beginners who want to practice without risking real money, Webull offers a paper trading feature where you can simulate trades and learn how the market works.
• Extended Hours Trading: Webull allows users to trade during pre-market and after-hours sessions, which is uncommon for most apps designed for beginners.

While Webull’s interface may feel overwhelming for complete novices, it’s an excellent app for those who want to advance their trading skills and access in-depth market research as they grow.

M1 Finance: The Best for Building a Customized Portfolio

M1 Finance is a hybrid between a robo-advisor and a traditional brokerage, offering the flexibility to build your own portfolio while automating much of the management. For beginners who want to create a personalized investment strategy, M1 Finance is a great option.

Key Features:

• Customizable Portfolios: M1 Finance allows you to build “pies,” which are customized portfolios made up of different investments, such as stocks, ETFs, or even pre-built expert portfolios.
• Fractional Shares: You can invest in fractional shares, allowing you to own expensive stocks like Google or Amazon without needing large sums of money.
• No Fees: M1 Finance offers commission-free trading and charges no management fees, making it a cost-effective option for long-term investors.
• Automated Rebalancing: Once you create your portfolio, M1 Finance automatically rebalances it, ensuring that your investments stay aligned with your target allocations.

M1 Finance is perfect for beginners who want the freedom to build their portfolios while enjoying the benefits of automation. It’s best suited for those who prefer long-term investing over day trading.

Public: Investing with a Social Twist

Public is an innovative investment app that combines commission-free trading with social networking. Launched in 2019, Public allows users to see what others are investing in, follow their trades, and even discuss market trends within the app.

Key Features:

• Zero-Commission Trading: Like many apps on this list, Public offers commission-free trading on stocks and ETFs.
• Fractional Shares: You can invest in fractional shares, making it easy to start investing with as little as $5.
• Social Investing: Public’s social platform lets you follow other investors, see their portfolios (without specific amounts), and learn from the community. This feature makes investing more interactive and educational for beginners.
• No Payment for Order Flow: Unlike other free trading platforms, Public doesn’t engage in payment for order flow (PFOF), ensuring transparency in how your trades are executed.

Public is great for beginners who want to learn from others in the investing community, offering a unique social experience that most other investment apps lack.

Conclusion: Finding the Best Investment App for You

As we move into 2024, beginners have more options than ever when it comes to choosing an investment app. Each platform has its strengths, from the simplicity and automation of Acorns and Betterment to the advanced tools offered by Webull and M1 Finance. The best investment app for you depends on your financial goals, risk tolerance, and how hands-on you want to be with your investments.

If you’re looking to start small and build your investment knowledge, platforms like Robinhood, Acorns, and Stash are excellent choices. If you want more personalized guidance or advanced features, Betterment, Webull, and M1 Finance offer powerful tools for both beginners and more experienced investors.

The most important thing is to start. By choosing the right app and taking small, consistent steps, you can begin your journey toward building long-term wealth.

Frequently Asked Questions (FAQs)

1. What are the best investment apps for beginners in 2024?
   Some of the best apps include Robinhood, Acorns, Betterment, Webull, Stash, M1 Finance, and Public.
2. Do investment apps charge fees?
   Many apps, like Robinhood and Webull, offer commission-free trades, but some apps like Acorns and Stash charge small monthly fees for additional services.
3. Are investment apps safe?
   Most reputable investment apps are regulated and provide encryption to protect your data. It’s important to use trusted apps and enable two-factor authentication.
4. Can I start investing with just a small amount of money?
   Yes, many apps offer fractional shares, allowing you to invest in stocks or ETFs with as little as $1 or $5.
5. What’s the difference between robo-advisors and self-directed investing apps?
   Robo-advisors like Betterment automate your investment decisions based on your risk tolerance, while self-directed apps like Robinhood and Webull let you choose and trade individual stocks or assets.