There are numerous apps that allow users to invest online, offering a range of features from stock trading to cryptocurrency investments, robo-advisors, and more. Here’s a list of some of the best apps to invest online.
Robinhood (Best for Commission-Free Stock Trading)
Features: Robinhood is popular for its commission-free trading on stocks, ETFs, options, and cryptocurrencies. It’s known for its simple, easy-to-navigate interface, which makes it ideal for beginners.
Pros:
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- No fees for stock trading.
- Access to crypto investments.
- Easy-to-use mobile app.
Cons: Limited research tools compared to other platforms.
Acorns (Best for Micro-Investing)
Features: Acorns rounds up your everyday purchases to the nearest dollar and invests the difference. It’s an excellent app for beginners who want to start investing without needing large sums of money.
Pros:
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- Automated micro-investing.
- Offers a range of portfolios based on risk tolerance.
- Savings features for retirement and family.
Cons: Monthly fee ($3-$5), which may feel expensive for small accounts.
Wealthfront (Best for Robo-Advising)
Features: Wealthfront is a robo-advisor that builds and manages a diversified portfolio for you. It’s great for hands-off investors who want automated portfolio management and low-cost investing.
Pros:
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- Low fees (0.25% annually).
- Automatic rebalancing.
- Tax-loss harvesting.
Cons: Limited access to individual stocks, as it focuses on diversified ETFs.
Betterment (Best for Long-Term, Goal-Based Investing)
Features: Another popular robo-advisor, Betterment helps investors build personalized portfolios based on their financial goals, such as retirement or saving for a house.
Pros:
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- Low management fees (0.25%-0.40% annually).
- Goal-oriented approach.
- Automated rebalancing and tax-loss harvesting.
Cons: No access to individual stock trading.
E*TRADE (Best for Active Traders)
Features: E*TRADE is a full-service platform that offers robust research tools, a wide range of assets (stocks, ETFs, mutual funds, options), and an intuitive mobile app. It’s best suited for more experienced traders.
Pros:
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- Advanced trading tools.
- Large selection of investment options.
- No commission for stock and ETF trading.
Cons: May be overwhelming for beginners due to the abundance of features.
Fidelity (Best for Long-Term Investors)
Features: Fidelity offers a wide variety of investment options, including stocks, bonds, ETFs, and mutual funds. It also provides great research tools and educational resources, making it suitable for long-term investors.
Pros:
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- No fees for trading stocks and ETFs.
- Retirement account options.
- Comprehensive research tools.
Cons: Some mutual funds have higher fees.
M1 Finance (Best for Custom Portfolios)
Features: M1 Finance blends robo-advisor features with DIY investing, allowing users to create and customize their own portfolios (“pies”) while automating the investment process.
Pros:
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- No trading fees.
- Automatic rebalancing.
- Customizable portfolios.
Cons: No access to mutual funds or advanced trading tools.
SoFi Invest (Best for Beginners and Community-Oriented Investors)
Features: SoFi offers commission-free investing in stocks, ETFs, and cryptocurrency, along with robo-advisor services. It also provides a lot of financial education and community support for new investors.
Pros:
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- No fees for stock trading.
- Access to financial planning services.
- Includes fractional shares (for buying smaller portions of expensive stocks).
Cons: Limited research tools for experienced traders.
Stash (Best for Beginner Investors)
Features: Stash offers fractional shares and micro-investing, with additional features like educational content to help novice investors understand the market better.
Pros:
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- Low minimum investment ($5).
- Educational resources.
- Focus on building long-term wealth.
Cons: Monthly fee (starts at $1), which can add up for small balances.
Coinbase (Best for Cryptocurrency Investing)
Features: Coinbase is one of the most popular apps for investing in cryptocurrencies like Bitcoin, Ethereum, and many altcoins. It’s designed for beginners and experienced investors alike.
Pros:
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- Easy-to-use interface.
- Wide selection of cryptocurrencies.
- Educational content for new crypto investors.
Cons: Higher fees compared to other platforms.
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