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Best Trading & Investment Apps For Beginners

Starting an investment culture can be confusing if you don't know the best method to use, the most suitable tokens to invest in, how to do it, and the best tools to help you.

Posted: 17th February 2022 by
Finance Monthly
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There is also an influx of investment apps. As a digital generation, it's hard to tell the genuine ones from the ingenuine ones. Fortunately, many online trading platforms act as brokers, guiding you through flexible interfaces in a beginner-friendly mode. The list compiled in this article shows the best software packages and trading apps that you can use to make investments without paying any commission.

If you are a beginner, these apps aim at giving you a good user experience so that you can focus on creating and nurturing your wealth on a long-term basis. This requires you to channel your money in index funds of low costs, held for a relatively long period to generate a substantial yield.

1. SoFi Invest

This app has gained popularity due to its variety of investment options. It offers a chance to place your money in cryptocurrency, ETF trades, and stock.

SoFi Invest creates a conducive space for personal finance, with free cryptos, ETFs, and stocks trades. However, the platform lacks options for mutual funds or trading funds. You can decide to be an active trader or dormant investor and let Robo-advisors and other automated tools perform the task. It is a suitable platform to create an account and select the investment option you prefer.

Pros

  • It does not charge commissions or fees for you to trade.
  • It has no minimum amount restrictions.
  • You can invest in fractional shares, also called Stock Bits.
  • There are vast choices on what you can trade or invest in.
  • The app has automated tools for passive investments.

Cons

  • It doesn't offer tax-loss opportunities, an investment approach that gives you tax benefits after selling a mutual fund or stock at a loss.
  • It's not available to investors outside the US.

2. Webull

Webull is a commission-free trading app, offering you investment options on cryptocurrencies, ETFs and stocks. You can invest any amount of money from your savings or seek guaranteed instalment loans for bad credit direct lenders only.

This comes in handy if your credit score does not qualify you for loans from other financial institutions.  This user-friendly application is accessible from your desktop, tablet, or smartphone. It enables you to access trading analysis through powerful tools to make your trading experience smooth.

The research done using these tools helps you make more informed decisions on what to invest in and the right time to do it. Another reason for this app's popularity is that it doesn't place a compulsory minimum amount for your account. You can also take advantage of the occasional promotional free stocks to de-risk your account.

Pros

  • It has trading tools, powerful enough for in-depth analysis.
  • The app doesn't require a minimum amount.
  • User-friendly site.
  • The application process is fast.

Cons

  • Webull partners with the Apex Crypto account for cryptocurrency trading, a platform that's not registered under FINRA or any broker-dealer association. This leaves your cryptocurrency investments uninsured under SIPC or FDIC.
  • Newer users may take time before learning how to navigate the site.

3. Public.com

This app helps you invest in ETF trades and stocks on a commission-free basis. Its main target is the Gen-Z and Millennials who spend time on social media and would like to join the stock market investments.After abandoning the Payment for Order Flow monetisation programme, the app uses the "tipping" system and other revenue streams. 

Pros

  • It doesn't charge any commission for investors to trade their ETFs or stocks.
  • It has a social feed for users to interact and discuss investment trends, companies worth investing in, and those that aren't worth it.
  • You can buy stocks or ETFs and gain values and interests.

Cons

  • Its investment options are limited.
  • It lacks analysis or research tools to guide your investment decisions.

4. Robinhood

Robinhood investment was the market pacesetter for zero-commission trading. It influenced other platforms to adopt the trend to keep up with the competition. You can trade ETF, cryptocurrency, options trading, and stocks without charges. However, the desktop site or mobile app restricts mutual funds trading.

The site has a user-friendly design suitable for you as a beginner. It does not take long to learn the system, enabling you to gain returns seamlessly. Additionally, the platform does not set a minimum amount requirement for its users.

Pros

  • You can invest any amount since there are no minimum requirements.
  • It offers you various trading options and tokens to choose from.
  • It's the pioneer of the zero-commission trading practice.

Cons

  • The platform is controversial as users engage in risky trades beyond their understanding.
  • It does not support the trading of mutual funds.

5. Stash

Stash is another trading and investment app to consider when planning to place your money in an all-around financial site. It is user-friendly, and it offers low-cost services to its users.

This platform is primarily designed for passive income generation using automated tools, though you can use a hands-on approach to choose the stocks you prefer to trade. The returns accumulate in your account, which you can spend or maintain for further trades. Young investors below 18 years old can create custodial accounts with the help of their guardians, making long-term investments for compounded returns.

Unlike other applications on this list, Stash charges a monthly fee due to the personal-finance services offered on a full-time basis. However, you don't need to have a minimum amount in your account or pay commission to trade on the app.

Pros

  • It simplifies your investment decisions with a commendable user experience.
  • It is easy to navigate and trade on.
  • The platform supports custodial investments for young investors below 18 years.

Cons

  • You'll have to pay a monthly fee to enjoy the personal finance services offered on Stash.

Conclusion

Making investment decisions for beginners can be challenging and confusing, given the vast array of unclear details. In-depth research is recommended before you invest in any site: this will help you evade common risks and mistakes that can cost you money.

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