Top Investment Apps for Beginners: Start Investing with as Little as $1

Investing is no longer reserved for those with significant capital or financial expertise. Thanks to the rise of user-friendly investment apps, anyone can start building wealth with as little as $1. Whether you're new to investing or looking to explore different options, there’s an investment app tailored to your needs. In this article, we'll review some of the top investment apps for beginners, highlighting their features, fees, and the types of investors they're best suited for.

1. Acorns: Micro-Investing Made Simple

Overview: Acorns is a popular micro-investing app that automatically invests your spare change by rounding up your everyday purchases to the nearest dollar and investing the difference. It’s designed to make investing effortless and accessible for beginners who may be intimidated by traditional investing.

Features:

• Automatic Round-Ups: Connect your debit or credit card, and Acorns will automatically round up your purchases and invest the spare change.

• Found Money: Acorns partners with various brands that offer cash back when you shop, which is then automatically invested in your account.

• Pre-built Portfolios: Acorns offers a range of pre-built portfolios tailored to your risk tolerance, from conservative to aggressive.

• Educational Content: Acorns provides a wealth of educational resources, including articles and videos, to help beginners learn about investing.

Fees:

• $1/month for the Lite plan, which includes the basic investing account.

• $3/month for the Personal plan, which includes additional features like retirement accounts and checking.

• $5/month for the Family plan, which includes investment accounts for kids.

Best Suited For: Acorns is ideal for beginners who want a hands-off approach to investing and are looking to start with small amounts of money. Its micro-investing model makes it easy to build an investment habit without making large contributions.

2. Robinhood: Commission-Free Trading for Everyone

Overview: Robinhood revolutionized the investing world by offering commission-free trading, making it a favorite among beginner investors. The app allows you to trade stocks, ETFs, options, and cryptocurrencies without paying any fees, making it a cost-effective way to start investing.

Features:

• Commission-Free Trading: Buy and sell stocks, ETFs, options, and cryptocurrencies without paying any commissions.

• Fractional Shares: Invest in your favorite companies with as little as $1, thanks to fractional shares.

• User-Friendly Interface: Robinhood’s simple and intuitive design makes it easy for beginners to navigate the app and execute trades.

• Cash Management: Robinhood offers a cash management account with a competitive interest rate and the ability to use your funds like a checking account.

• Educational Resources: Robinhood Learn provides articles and tutorials on various investing topics to help users build their knowledge.

Fees:

• No account minimums or commissions on trades.

• Robinhood Gold: $5/month for premium features like margin trading and in-depth market data.

Best Suited For: Robinhood is best for beginners who want to take a more active role in their investments and are interested in commission-free trading. It’s also a great option for those looking to explore different asset classes, including cryptocurrencies.

3. Stash: Personalized Investment Portfolios with Educational Support

Overview: Stash is an investment app that combines personalized portfolio recommendations with a wealth of educational content. It’s designed to help beginners make informed investment decisions by offering a curated selection of stocks and ETFs based on individual goals and preferences.

Features:

• Fractional Shares: Start investing with as little as $1 by purchasing fractional shares of stocks and ETFs.

• Smart Portfolio: Stash offers a managed portfolio option where your investments are automatically adjusted based on your risk level and goals.

• Stock-Back® Card: Earn stock rewards for everyday purchases with the Stash debit card.

• Educational Content: Stash provides a variety of educational tools, including articles, videos, and quizzes, to help users learn about investing.

Fees:

• $3/month for the Stash Beginner plan, which includes a personal brokerage account and access to educational content.

• $9/month for the Stash Growth plan, which adds features like retirement accounts and custodial accounts for kids.

• $16/month for the Stash+ plan, which includes additional investing and banking features, as well as higher rewards on the Stock-Back® Card.

Best Suited For: Stash is ideal for beginners who want personalized investment guidance and educational support. It’s particularly well-suited for those who prefer a combination of active and passive investing with the flexibility to choose their investments.

4. Betterment: Robo-Advisor for Hands-Off Investing

Overview: Betterment is a robo-advisor that offers automated investment management based on your financial goals and risk tolerance. It’s an excellent option for beginners who prefer a hands-off approach to investing, as Betterment takes care of portfolio allocation, rebalancing, and tax optimization.

Features:

• Automated Portfolio Management: Betterment automatically invests your money in a diversified portfolio of ETFs based on your goals and risk profile.

• Goal-Based Investing: Set up multiple investment goals, such as retirement, a down payment, or a vacation, and Betterment will create tailored portfolios for each.

• Tax-Loss Harvesting: Betterment uses advanced tax strategies to help minimize your tax liability and maximize after-tax returns.

• Financial Planning Tools: Access tools like retirement calculators, financial advice, and goal-setting features to plan your financial future.

Fees:

• 0.25% annual fee for the Digital plan, which includes all the core investing features.

• 0.40% annual fee for the Premium plan, which includes access to financial advisors and more personalized financial planning services.

Best Suited For: Betterment is perfect for beginners who want to invest without the hassle of managing their portfolio. Its automated approach and goal-based planning make it easy for investors to set it and forget it while still working towards their financial objectives.

5. M1 Finance: Customizable Portfolios with No Management Fees

Overview: M1 Finance is a hybrid investment platform that combines the automation of a robo-advisor with the customization of a traditional brokerage. It allows you to create personalized portfolios, known as “Pies,” and automates the investing process while giving you full control over your asset allocation.

Features:

• Customizable Pies: Build your own portfolio by selecting individual stocks and ETFs, or choose from pre-built expert portfolios.

• Automatic Rebalancing: M1 Finance automatically rebalances your portfolio to maintain your desired asset allocation.

• Fractional Shares: Invest in any stock or ETF with as little as $1 through fractional shares.

• Borrow and Spend: Access a flexible line of credit with M1 Borrow or manage your cash with M1 Spend, which offers a checking account and debit card.

Fees:

• No management fees or commissions on investments.

• M1 Plus: $125/year for premium features like higher interest rates on cash, lower borrowing rates, and additional trading windows.

Best Suited For: M1 Finance is best for beginners who want more control over their investments without paying management fees. It’s ideal for those who like the idea of customizing their portfolios but still want the convenience of automation.

Investment apps have democratized access to the stock market, making it easier than ever for beginners to start building wealth with minimal capital. Whether you’re looking for a hands-off approach with robo-advisors like Betterment, a commission-free trading experience with Robinhood, or a micro-investing strategy with Acorns, there’s an app that fits your needs.

Before choosing an investment app, consider your financial goals, risk tolerance, and preferred level of involvement in managing your investments. Each app offers unique features and fee structures, so take the time to explore your options and select the one that aligns best with your investing style.

With the right investment app, you can take the first step toward achieving your financial goals, no matter how small your starting point.