8 equity investing apps for young investors

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[Editor’s note: This story was updated on Aug. 8, 2019, to update Stash’s pricing to its new model.]

The fintech industry continues to grow in leaps and bounds and with this growth, many new investment applications have emerged for investors young and old to use in their quest for returns on their investment.

In 2018, FinTech companies in the United States received funding of $ 12.4 billion, 43% higher than a year earlier. Many of these fintech companies use the funding to develop applications to make investing and personal finance more accessible and rewarding.

According to CB Insights, there are something like 39 fintechs worth $ 1 billion or more. Together these 39 companies are worth an estimate $ 147.4 billion.

Consumers love to use apps to manage their finances. Data from 2016 suggests that the average person uses between 1 and 3 apps to get the job done. As fintechs continue to create new apps to manage different aspects of our financial life, I’m sure more and more young investors will be drawn to them.

With that in mind, here are 10 investing apps for young investors to consider as they put their hard-earned money to work.

Tassels

The problem for most young investors is that they don’t have a lot of money to invest because of student loans, high rents, low salaries, etc. Tassels The app allows you to invest your spare currency to start the process.

Another exciting service developed by Acorns is Money found, which uses brand loyalty to create your investment account. So every time you buy something from one of Found Money’s partners, that company credits your Acorns account with the applicable savings.

The only thing to know are the fees. Until you get a bigger account balance, the monthly fee varies between $ 1 to $ 3. This will seem hhigh.

For example, he charges $ 2 per month for an IRA account. If you have $ 1,000 in this account, the annual fee is 2.4%. If you have $ 10,000, this fee drops to 0.24%.

E-commerce

NASDAQ e-commerce: ETFCIf you are planning to buy stocks, ETFs, or even mutual funds, you will need a discount brokerage account to purchase the investments.

E-commerce isn’t that the cbiggest discount broker. it’s charging $ 6.95 a business, but gets a 4.5 out of 5 rating from NerdWallet, mostly because of its great mobile app, great customer support, and wide selection of investments.

The discount broker has two mobile apps available on iOS and Android.

The E-Trade mobile investing app offers options like stock picking that help you find the right stocks to buy. It is even accessible on Apple Watch. The second mobile app is OptionsHouse, the company’s options specialist, which allows you to trade options on the go.

It doesn’t hurt that the parent of E-Trade is Financial E-Commerce (NASDAQ:ETFC), a company with a market capitalization of $ 11.4 billion.

The only downside: you’ll pay more per trade if you’re not an active trader.

mint

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If you can’t save money, you won’t be able to invest. It’s there that Currency.com join the game.

Mint is a free personal finance app from Intuit (NASDAQ:INTU) this aid users track their spending, create a budget, and generally allow you to better manage your money. It even lets you know when bills are due and what you can afford to pay.

More 15 million people use Mint in the United States and Canada to keep their finances in order. Intuit uses this free app to let you know about its other products like Turbo Tax which cost money to use and are also very helpful in saving money.

It’s a great lead-in product. It will put you on a stronger financial footing if you use it on an ongoing basis.

Pattern investment

Young investors interested in investing apps might want to take a look at Pattern investment, the Californian tech startup that uses data science and automation to create thematic portfolios that its 350,000 customers can buy with one click.

CEO Hardeep Walia has found a way to use data science to find the best investment themes and the companies benefiting from those themes.

If you want to bet on the next big biotech value, Motif has a portfolio called Feel better about biotechnology, a basket of up to 30 biotech stocks and ETFs that gives you appropriate exposure to the industry.

For as little as $ 300 in your trading account, you can own this portfolio of stocks. Motif also has an Impact account. For as little as $ 1,000 in your account, you can get a fully automated portfolio that matches your financial goals and values.

The Impact account charges 0.25% per year, while the trading account ranges from free if you use a next open trade in the market up to $ 19.95 per trade depending on the type of portfolio you are building.

If you want to own one or two stocks, Motif is probably not for you.

Robin Hood

Among the applications listed in this article, Robin Hood is the most likely investment app followed and used by millennials. Robinhood officially launched in December 2014. It allows commission-free investing in stocks, options and cryptocurrencies.

Since its inception, Robinhood has grown to a client base of over four millions active users, many of them young investors; its average user is 32. Estimates suggest that Robinhood, who counts Snoop dog as an investor, could be valued up to $ 10 billion.

Robinhood came under scrutiny in 2018 when it attempted to launch a checking account for its clients that would pay 3%, charge no fees, and be covered by the Securities Investor Protection Corporation. The program never took off. He is currently working with regulators to create a cash management plan that will kick off.

Meanwhile, the commission-free trading service continues to gain popularity with investors.

SoFi

Source: Shutterstock

Its official name when it was founded in 2011 was Social Finance Inc. It provided student loans. Eight years later, it still provides student loans, but has expanded into other areas of financial services, including personal loans, mortgages, bank accounts, and investment products and services.

On July 8, SoFi launched Stock Bits, a new service that allows investors to buy fractions of popular stocks. If you want to own 50 stocks for a dollar, you can now. It is specially designed for those new to investing.

“People are told to ‘buy what they like’, but when what they like costs more than $ 100 or $ 1,000 a share, first-time investors are overpriced. ” noted Anthony Noto, CEO of SoFi. “Investing is a financial requirement to achieve financial independence, and our goal is to remove barriers to getting started by providing features like Stock Bits for SoFi Invest. “

SoFi had a tough year in 2018 Laying off over 7% of its staff due to weak mortgage products, I think Stock Bits could be an innovation that takes the San Francisco financial services firm to new heights .

Hideout

Shares to buy

Source: Shutterstock

The Stash investment app was spear in October 2015. Its premise was simple: to provide Americans with the tools, advice and confidence they need to grow their savings. Almost four years later, Stash has over 3.5 million people saving and investing using its investing app.

For as little as $ 5, you can own fractional shares in companies you support and believe in. However, we are not done yet. It also allows you to invest in equity portfolios through ETFs for as little as $ 5. This means that you can own some of the most popular ETFs for a fraction of what you would pay to own them yourself.

The Money Under 30 site recently examined Stash investment app, suggesting it is well done and well designed. Competing with Acorns for the attention of young investors, Stash offers three monthly subscriptions that charge $ 1, $ 3, or $ 9 per month depending on which plan you choose.

Stash switched to a subscription model, removing the 0.25% annual management fee. However, you will pay the ETF management fee in your account, in addition to the monthly subscription fee. There is no minimum balance for the three plans.

Simple wealth

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Source: Shutterstock

Simple wealth is a Toronto-based robo-advisor that provides ready-to-use investment portfolios to people in Canada, the United States and the United Kingdom. Founded in 2014, it now controls 70% of digital advisory space in Canada and is slowly making inroads into the United States where it spear early 2017.

At the end of March, Wealthsimple had 4.3 billion Canadian dollars assets under management and more than 100,000 clients in the three countries where it is established.

In March, the company launched Wealthsimple Trade, which offers commission-free investments in Canada for stocks and ETFs. It is the first company in Canada to do what Robinhood does in the United States

It managed to attract 25,000 users in the first four months of operation; the average age of its users is 31 years old. Like Robinhood, many of its users buy cannabis stocks. Banks are also popular, as are some of the big tech companies like Apple (NASDAQ:AAPL) and You’re here (NASDAQ:TSLA).

With an attractive and easy-to-use mobile app, expect Wealthsimple to make waves in the US market over the next two years.

As of this writing, Will Ashworth does not hold a position in any of the aforementioned securities.


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