Investing has grown significantly over the past decade, with technology making it more accessible and easier than ever before. Investment apps are at the forefront of this revolution, offering a convenient way to grow your wealth. Whether you’re a seasoned investor or a complete beginner, these apps can help you manage your investments efficiently. In this comprehensive guide, we’ll explore the best investment apps for 2024, their features and their benefits.
Why Investment Apps Are Essential
Investment apps democratize investing, making it accessible to a wider audience. They offer low fees, educational resources, and user friendly interfaces, which have collectively contributed to a surge in their popularity. According to a 2023 survey by Statista, over 65% of millennials use investment apps, highlighting their growing importance. The convenience of managing investments on the go and the ability to start with minimal capital are key drivers behind this trend.
READ ALSO
Easy Side Hustles to Make Money Online
Top Investment Apps for 2024
Robinhood
Robinhood continues to lead the pack with its commission free trades and easy to use platform. It offers a range of investment options, including stocks, ETFs, and cryptocurrencies. Robinhood saw a 20% increase in user engagement in 2023, with an average daily trading volume of 4.3 million trades.
Robin has User Base of over 31 million users as of Q1 2023. It’s unique features includes fractional shares, cash management, and a sleek mobile interface. It’s best for beginners and casual investors.
Robinhood has become synonymous with commission free trading. Since its inception, it has disrupted the traditional brokerage model by eliminating trading fees, making investing more accessible to the masses.
Commission Free Trading Robinhood’s no-commission model has attracted millions of users who previously found trading fees prohibitive. Fractional Shares allows investors to buy portions of expensive stocks, making highvalue companies accessible. Cash Management offers a competitive APY on uninvested cash, acting like a high-yield savings account.
Acorns
Acorns rounds up your everyday purchases and invests the spare change. This micro-investing approach is perfect for those looking to start small and grow their portfolio over time. Acorns users collectively invested over $7 billion in 2023, with an average account balance of $1,000. It has a user base of 9 million users.
Unique Features: Automatic roundups, diversified portfolios, and retirement accounts.
Best For: New investors and those with little initial capital.
Acorns’ unique approach of rounding up purchases and investing the spare change has made it a popular choice among new investors.
MicroInvesting: Perfect for beginners who want to start investing without a large upfront capital.
Automated RoundUps: Every purchase made with a linked card is rounded up, and the spare change is invested.
Diversified Portfolios: Acorns automatically invests in a diversified portfolio of ETFs, reducing risk.
Betterment
Betterment is a roboadvisor that offers personalized investment advice based on your financial goals. It uses advanced algorithms to manage your portfolio, ensuring optimal performance. Betterment stands out for its personalized approach to roboadvising, using algorithms to manage investments based on individual financial goals. It has over 700,000 users. Betterment managed over $33 billion in assets as of late 2023, with an average annual return of 8%.
Unique Features: Goalbased investing, taxloss harvesting, and human advisors.
Best For: Longterm investors seeking automated, handsoff investment management.
It has Tailored investment strategies to meet specific financial goals, such as retirement or buying a house. TaxLoss Harvesting automatically sells losing investments to offset taxes on gains.
Wealthfront
Wealthfront is another top roboadvisor that provides a comprehensive suite of financial planning tools. It offers a range of investment options and automated portfolio management. Wealthfront’s users saw an average portfolio growth of 9% in 2023, with over $25 billion in managed assets. It also has a user base of 500,000 users. It has different unique features like path financial planning, college savings, and cash management accounts. It’s best for Techsavvy investors and those seeking a holistic financial solution. It has comprehensive Financial Planning. Wealthfront offers a holistic approach to financial planning, integrating various aspects of personal finance. Wealthfront also uses AI to provide personalized financial advice and planning.
M1 Finance
M1 Finance combines the best of roboadvisors and traditional brokerage services. It allows you to create custom portfolios and offers automated rebalancing. M1 Finance users invested over $5 billion in 2023, with an average account balance of $5,000.
User Base: 1 million users.
Unique Features: Customizable portfolios, fractional shares, and margin lending.
Best For: Experienced investors looking for customization and control.
M1 Finance offers a blend of robo-advising and traditional brokerage services, giving investors more control over their portfolios.
Customizable Portfolios: Allows investors to create and manage their own investment portfolios.
Automated Rebalancing: Automatically adjusts the portfolio to maintain the desired asset allocation.
Margin Lending: Offers loans against the value of the portfolio, providing liquidity without having to sell investments.
How to Choose the Right Investment App
When selecting an investment app, consider the following factors:
Fees
Low fees are crucial for maximizing returns. Apps like Robinhood and M1 Finance offer commissionfree trading, while others like Betterment and Wealthfront charge a small management fee for their roboadvisory services.
Ease of Use
A userfriendly interface is essential, especially for beginners. Acorns and Robinhood are known for their intuitive designs, making them ideal for new investors.
Investment Options
Ensure the app offers a variety of investment choices that align with your goals. For instance, if you’re interested in cryptocurrencies, Robinhood might be the best choice, while Betterment and Wealthfront excel in diversified, longterm investment strategies.
Customer Support
Reliable customer support is vital for addressing any issues or concerns. Apps like Betterment and Wealthfront offer access to human advisors, while others provide comprehensive support through FAQs and help centers.
Investment apps have revolutionized the way we invest, making it easier and more accessible for everyone. By choosing the right app, you can take control of your financial future and start growing your wealth today. Whether you’re just starting or looking to diversify your portfolio, there’s an investment app that’s right for you in 2024.
Investing is a journey, and the right tools can make all the difference. As you explore these investment apps, consider your financial goals, investment style, and the features that matter most to you. With the right app, you’ll be well on your way to smart, efficient investing in 2024 and beyond.
FREQUENTLY ASKED QUESTIONS
What’s better than investing?
In general, you should save to preserve your money and invest to grow your money. Depending on your specific goals and when you plan to reach them, you may choose to do both. “When deciding whether to save or invest your money, it is essential to prioritize determining when you will need it,” says Maizes.
