Investing as a young adult can help you prepare for a more financially sound future.You can start investing as early as 18 years old, but many people wait until they feel more financially stable with a well-paid salary and lower college debt. However, the sooner you can start investing your money – making your money work for you – the more funds you’ll have available for your bigger saving goals such as expensive vacations, buying a home, starting a family, and of course, your future retirement.
A common misconception that young people have when it comes to investing in stocks is that you have to have a lot of money or a financial adviser to get started. Beginning your investment journey is actually a lot easier than you may think, and it can be done right from your phone with whatever amount of money you may have saved. Investing is all about compounded growth, so even investing a small amount now can lead to large savings down the road.
Here are the best investing apps that can help you start planning for your future today.
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Best App For Beginners: Acorns
With easy round-ups, Acorns is one of the best apps to get started in your investment journey. The app connects to your debit card or PayPal account, and will round up purchases to the nearest dollar and invest the difference. Acorns also partners with 350+ brands to allow you to earn investments while you online shop. There is no minimum to open account, however, the app does have a monthly fee of $1 to $5 depending on the plan you select.
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Best Women-Run Investing App: Ellevest
If you love an investment app led by women, Ellevest is sure to please. The app was built with women investors in mind, taking into consideration women’s longer lifespans as well as the wage gap. There are no minimum account balances to get started. The app has three pricing tiers that start as low as $1 per month for basic investing and education, up to $9 per month for multigoal investing.
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Best New Investor Education App: TD Ameritrade
If you are just learning about investing or want to learn how to become a better investor, TD Ameritrade is perfect for you. TD Ameritrade offers stock market research and stock data, so you can keep an eye on the market and gain a better understanding of how it impacts you and your investments. There are no fees or minimums to get started.
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Best No Bullsh*t Investing App: Stash
Stash is the app for people who don’t want to talk shop, they just want to start earning money on investments now. Although it is a monthly subscription, there are three different pricing plans depending on what specifically you’re looking for. Additionally, Stash makes the concept of ETFs easy to understand and allows users to buy whole or fractional shares of big-name stocks like Amazon and Apple.
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Best Basic Investing App: Ally
If you’re looking to invest and receive rewards, Ally Invest is the way to go. It is a very simple investment app that gives you the option to either go the more “self-directed” route of investing with no commissions, or you can have a robo-portfolio where they will do all of the work for you, though with a minimum cost of $100 and a cash buffer.
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Best OG Investing App: E*Trade
E*Trade has been around for quite a while, which explains why it’s one of the most commonly talked about investment apps. With no fees or minimums, E*Trade has the widest selection of investments on any mobile app. It’s great for both newbies and advanced investors alike, and allows for hands-off investments as well as hands-on, and you can make your account as personalized as possible. E*Trade also has tons of information on their app to help answer any of your investment questions.
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Best For the First Time Trader: Fidelity
Fidelity has been around since the 1940s, but this beginner-friendly app for investors proves that the company is anything but outdated. Fidelity allows you to invest for free and offers a $0 commission stock option as well as commission-free ETFs. Like many of the other beginner apps, it also offers fractional share investing so you can invest only as many dollars as you’d like to the stocks you’re interested in.
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Best Investing App For Community: Public.com
Sometimes it is nice to see what investments other people are buying. This can help you figure out what stocks you may (or may not) want to buy. Public.com connects investors in a community-oriented platform that functions as a social media platform would. You can engage with other members and even create chats with friends and family to discuss investments. There are no fees and no account minimums and you can get started with as little as $1.
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Best Goal-Based Investing App: Wealthfront
Wealthfront is one of the best apps when it comes to goal-based investing. If you are saving up for a long-term goal (like a wedding or first house), Wealthfront is the app to use. It builds your portfolio based on low-cost index funds around your risk tolerance. This app aims to work in your best interest and help you stay on track to your goals, but not without a price. There is a $500 account minimum and an additional 0.25% advisory fee per year. Though it is a bit more advanced, it could be worth the spend knowing that you are in safe hands when it comes to hitting your financial goals.
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Best App For Starting Small: SoFi
Another great app to help get you started with investing is SoFi. You only need $5 to get started, and you can invest in fractional shares of stocks, so that $5 will help you test the waters when it comes to investing. Although the app is limited on investment options, you can still create an automated portfolio, get commission-free stock and ETF trades, and you can invest in cryptocurrency at a cost. There are also no account minimums.
