Manage your portfolio and trade stocks while making other investments with a few taps on your phone.
Are you new to the world of investing? Do you want to start investing for the future but don’t know where to start? If you answered yes to these questions, then micro-investment applications are ideal for you. This is certainly relevant if you don’t have a lot of money to start investing with, but you still want alternatives that help you put money down for the future.
By micro-investing, you simply invest little sums of money, say US$5, in the market on a regular basis, and your contributions pile up over time. It’s a wonderful approach for beginner investors who want to dip their toe into the investment pool before jumping in headfirst. So, what are you waiting for? Here is a list of the best micro-investing apps which take no commission and require no minimum deposit. Choose the ideal one for yourself and begin investing right now!
Grow your oak with “Acorns”
Being a robo-advisor, Acorns allows users to manage portfolios made up of various Exchange Traded Funds (ETFs) based on their risk levels. A robo-advisor is an online financial consultant that offers automated financial advice or investment management with little to no human intervention. For those who are unfamiliar with ETFs, they are a collection of securities whose shares are traded on a stock market. ETFs are optimal for beginner investors because they are cheaper to buy and less risky than, for instance, stocks.
Minimum deposit and balance requirements may vary depending on the investment plan selected. There is no minimum amount necessary to establish an account; however, a US$5 minimum amount is required to begin investing.
Pros
- Invest your spare change from daily purchases with Acorns’ Round-Ups® feature.
- Access to educational articles and videos to learn about investing.
- Users’ portfolios are tailored to their financial objectives, timetable, and risk tolerance.
- Offers Acorns Sustainable Portfolios for Environmental, Social, and Governance (ESG) investing.
- Users can earn cash backs.
Cons
- Does not offer a tax strategy.
- Limited investment options.
- If you don’t invest much, the monthly charges (from US$3 or US$5) might be rather high.
Achieve financial independence with “SoFi Invest”
By using SoFi Invest, you can realize your dreams of becoming financially free. Their solutions for borrowing, saving, spending, investing and protecting provide over three million members with quick access to tools to help them manage their money.
SoFi membership offers the basics for accumulating wealth going forward in your career. For instance, you can connect with counselors and access a growing network of like-minded and ambitious individuals on the app. The app is available to download for free in both the App Store (for iOS), and on Google Play (for Android). Users can also use the desktop version to access it on their PC.
Pros
- Access to professional financial advisers is provided at no extra cost.
- Cryptocurrency trading is available.
Cons
- Only available to U.S. residents currently.
- There is no possibility for stop-loss orders when actively trading; SoFi’s active investing account exclusively uses market orders.
“Stash” makes investing effortless
Stash offers many functionality with the smallest packaging, giving total value to micro-investors. It provides three low-cost subscription plans: beginner, growth and stash+. The app is designed largely for hands-off investors who want to automate their investments, but users may also actively choose companies to trade.
Stash charges a recurring monthly subscription fee, but it provides a full-service personal financial platform, including access to a bank account and debit card. It also does not charge trading fees on your investment assets.
Pros
- Fractional shares (where investors can buy less than a full share at one time) are available.
- Values-based investment offerings.
- Helpful automatic investing tool.
Cons
- A monthly subscription fee applies.
- Tax-loss harvesting is not available in Smart Portfolios.
- No wealth management services.
- No automated Individual Retirement Account (IRA) management.
Have fun investing with “Webull”
This micro-investment app provides free stock trading as well as free transactions in ETFs, options (strategic alternatives to equity investment) and cryptocurrency.
Webull surged to fame in 2018 when it began competing for market supremacy with Robinhood, a financial services platform that introduced commission-free stock trading and fractional share trading, and there has been no going back since.
Pros
- Fractional shares are available.
- Free stock welcome bonus.
- Cryptocurrency trading is available.
- Active traders have a plethora of investing alternatives.
- Access to a number of advanced tools for in-depth trading analysis.
Cons
- Users rely on their own knowledge when building their portfolios.
- Limited product portfolio
With “Public.com”, invest in stocks, funds and crypto
This is a micro-investing app that aims at socially savvy millennials and Gen-Zers. It makes money from securities lending, interest on cash balances, markups on cryptocurrency transactions and an optional “tipping” system with which their customers can add a tip to their trade.
Pros
- Easy to use.
- Transparency in the portfolios of the investors.
Cons
- Day-trading is discouraged.
- Investment options are limited.
- No tools for investment research and analysis.
So, if you want to make a few more dollars each month, micro-investing is a great way to get started!
Header image courtesy of Pixabay.
