Investing can be a difficult subject for many to understand. The thought of risking hundreds of dollars is unappealing to most. However, for the uneducated and those unwilling to risk it all, there are a number of apps that exist specifically to cater to you. Read on to find out how you can start investing with as little as $5.
The first app, and one of the easiest to grasp, is Acorns. This app is great for those who want to take more of a “set it and forget it” approach, or those who would rather someone else decide what they should invest in. After taking a short survey about your needs and wants, Acorns suggests one of five portfolios for you to invest your money in. The choice is ultimately left up to you, and you can switch at any time, but this app is meant for a more hands-off clientele.
One key feature to point out is the recurring investment (which you can set to your own amount and time-frame). Another, and one that sets them apart, is round-ups. With round-ups, you hook up your bank account and any debit/credit cards you have and Acorns will round each purchase you make up to the next dollar and invest the difference. This is an easy way to invest small amounts of money without thinking about it. The third main feature is found money, where companies will invest a small amount of money in your portfolio when you use them. Some large retailers, such as Walmart, partake, but there are often caveats to the purchase.
Also, with 0 fees for students and people under 25, Acorns is an easy choice for the Millennial population, which makes up most of its user-base.
Robinhood is an app for people who would like to learn more about the stock market, or who have more free time and money on their hands. Although you can start your account with $5, Robinhood works by allowing its users to trade in the stock market – a feature that involves paying full price for stocks. However, with easy to use charts, a customizable list of stocks you want to watch, and instant buying power, Robinhood remains one of the top investment apps for first-time buyers.
Some key components to point out are: instant buying power once you initiate a money transfer, a news section to keep you up-to-date on all the latest news regarding your stocks, and a referral program that gives you (and the person you referred) one free stock for using your referral link.
Betterment works similarly to Acorns in that it is less time-consuming to work with. Betterment uses a computer algorithm to determine the best stocks to invest in, and does all the work for you behind-the-scenes. The upside to this app over Acorns is that there are no set portfolios, so there is a better chance of outperforming other investment avenues, but the downside is it is not customizable like Robinhood.
Investing in the digital age is easier than it once was, and we have many companies to thank for that. Although financial concerns have caused many to hold tightly to their funds, investing a few dollars using one of these apps can lead to great returns. Nothing in the stock market is certain, but what is certain is you can begin to invest with just a few swipes and taps.