Robinhood is a good investment app

The 5 best investment apps for absolute beginners

In the past, the world of investment had high barriers to entry. Many traditional brokers set minimum deposit requirements of at least $ 10,000.

After a phase of deregulation in the 1970s, discount brokerage emerged. However, trading commissions remained high.

With the online boom in the 2000s, a new class of discount brokerage was born. This process resulted in services that enable commission-free trading of various types of assets.

After all, the world of investing is open to absolute beginners. So, if you're a stock market noob, here are five investment apps that you must try today.

1. Robinhood

If you live in the United States, Robinhood should be high on your list. The app is currently also being approved for Australia. Other countries are expected to follow in the future.

The commission-free structure of the service allows you to invest in stocks, options, ETFs and cryptocurrencies without paying a fee for each trade. Instead of charging commissions, Robinhood makes money through the $ 6 per month margin and the after-hours trading service called Robinhood Gold.

(Note: When trading on margin, you take out a loan from your broker. Beginners should not use this form of investment.)

The downside of the app is the lack of technical and basic analysis tools. Aside from a simple candlestick chart, there is almost nothing available.

Thankfully, you can access extensive information about your various positions and create watch lists. Robinhood can also help you complete your annual tax returns.

Download: Robinhood for Android | iOS (free)

2. Beanstox

Beanstox isn't as well known as Robinhood, but it's perfect for new investors around the world. People can invest in US securities from almost anywhere.

In contrast to Robinhood, Beanstox charges commissions. It costs $ 0.0125 per share, with a minimum of $ 2.99 per transaction. If you want to actively trade a large number of stocks, join the Beanstox Unlimited plan. It costs $ 5.99 per month plus $ 0.01 per share traded.

Beanstox offers fewer investment vehicles than Robinhood. Shares are only available when a) The share price is more than $ 1 and b) The company either has a market capitalization of more than $ 1 billion or has a three month average daily dollar volume greater than $ 0.5 million. There are no non-leveraged ETFs and no over-the-counter (OTC) assets.

The app is pretty unique in the investment world in that you can use credit cards (for a fee) and Western Union (at no cost) to fund your account. Both methods are considerably cheaper than using wire transfers.

Download: Beanstox for Android | iOS (free)

3. Improvement

Robinhood and DriveWealth let you choose your own equipment investments, but beginners may be uncomfortable with this level of responsibility.

If you want to reap the benefits of an investment without worrying about choosing your specific holdings, improvement is your best option.

The app offers a robo-advisor model. Robots Can Manage Your Investments: What You Need To Know Robots Can Manage Your Investments: What You Need To Know Managing your finances can be intimidating. It's tempting to have someone else do the investments for you, but can you count on a robot to watch your money? Continue reading . When you create your account, you will need to inform them of your preferred level of risk, investment objectives, time frames and other relevant information. The improvement will then automatically create your portfolio.

Betterment creates all of its portfolios with stock and bond ETFs. You won't find any commodities or other volatile assets. You can invest in the US, other developed markets like the EU and Japan, and emerging markets like India, Russia and Thailand.

The app is only available to residents of the United States. It costs 0.25 percent annually (a number that includes all transaction costs). The running total of the fee is calculated daily.

Download: Improvement for Android | iOS (free)

4. WealthFront

WealthFront uses the same business model as Betterment. You answer a few questions about your goals and the app tells you about your ideal investment portfolio.

As with Betterment, your range of securities is limited compared to Robinhood and DriveWealth. WealthFront maintains a list of nine primary ETFs and nine secondary ETFs. Your portfolio always consists of a mixture of these.

On the top, the list includes popular boglehead passive mutual funds like Vanguard's Total Stock Market (VTI) and FTSE Developed Markets (VEA).

In addition to its regular investment plans, WealthFront offers a traditional IRA, Roth IRA, SEP IRA, and 401 (k) rollover for people looking to save in retirement and 529 college savings plans for people who are in their training Children think.

WeathFront charges 0.25 percent monthly. You are also exposed to the expense ratios of the ETFs.

Download: WealthFront for Android | iOS (free)

5. First trade

You might be a beginner today, but if you are serious about your financial future, you need to grapple with how markets work. It is key to clearing your debts and building your wealth later in life. How To Get Rich: The Quickest Way To Get Over Debt How To Get Rich: The Quickest Way To Get Out Of Debt No overdrafts or unpaid bills. There is a foolproof way to get out of guilt. It starts with a plan and some discipline. Let's visit the other ingredients. Continue reading .

Unfortunately, priceless investment apps like Betterment and WealthFront won't teach you anything, while services like Robinhood and DriveWealth have so few research tools that you can't learn much, even if you want to.

If you're looking for something more out of your investment app, we recommend Firstrade. The company accepts customers from all over the world and offers commission-free trading in stocks, options and mutual funds.

Firstrade offers many more investment vehicles than the other apps on this list. There are more than 11,000 funds, a large number of ETFs, and some fixed income products. One disadvantage is that you can only trade in securities that are listed on US stock exchanges. Companies on the London Stock Exchange and Tokyo Stock Exchange cannot be reached. Cryptocurrencies are also not available.

Firstrade is excellent from a learning perspective. The app provides free access to Morningstar's stock reports and daily market analysis, and Benzinga newsletters. There's even an extensive library of video training content to teach you the basics of investing and an impressive amount of text-based content.

There is no minimum deposit required to open an account.

Download: Firstrade for Android | iOS (free)

Exercise caution when investing

If you use any of the apps listed, your money is at risk. Investments in securities can go up in value as well as in value.

You should never invest more than you can afford and if you are unsure how to go about it, seek out a professional financial advisor.

If you want to stay up to date on the market news for a better chance of being a successful investor, check out the best financial websites. The 10 Best Financial Websites To Help You Stay In The Market The 10 Best Financial Websites To Help You Stay In The Market Looking for the best financial websites to keep you in the market? Here are the best sites for news, investing, and more. Continue reading . It may be worth improving your skills before using real money on a stock market game.

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