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This guide will explore our pick for the three best investing apps for beginners. It will delve into the platforms’ features, fees, investment options, and safety, as well as the pros and cons of each and any controversies they might have suffered.
Investing can seem time-consuming and daunting, but with today’s investing apps, just about anyone can access the stock market from their smartphone. Investment apps let you manage your portfolio and buy or sell assets via mobile app and are a particularly accessible and affordable way for beginners to start building wealth.
The best beginner-friendly investment apps offer low fees, no account minimums, easily navigatable interfaces, and various financial instruments. Ultimately, the platform you decide on should suit your investment style and provide the tools you need (e.g., educational resources, analysis instruments, and solid customer support) to reach your financial goals.
There are investing apps directed to almost every investment method and skill level, from beginners ready to start their investing journey to seasoned traders looking to access the market on the go. The right app will have your finances organized and invested, so don’t immediately go after the one making headlines, but explore your options and figure out what kind of investor you are.
Here are our top three picks for investing apps for beginners. Let’s get started.
Beginners’ corner:
Revolut is a globally recognized fintech company with over 15 million users worldwide, which is well-known for its innovative approach to digital finance and mobile banking. However, in recent years, the platform has expanded to offer stock, commodity, and cryptocurrency trading.
Facilitated by Revolut Trading Ltd, the company launched its first commission-free stock trading service in 2019. Initially available only to premium clients, it is now open to all account holders.
The Revolut trading platform is part of its existing mobile banking app, though a web version is also available. The platform is relatively basic but easy to navigate and provides valuable analytical information covering news, companies’ financials, and the analysts’ average target price for a particular stock. The following are the main features Revolut offers to its users:
Revolut supports a limited range of financial products:
Note: Non-American stocks, options, CFDs, Forex trading, and ETFs are not offered.
Revolut offers commission-free stock trading on an allowance basis based on your account type:
Cryptocurrency trading commission rate:
Commodity trading commission charge:
There are no charges for depositing or withdrawing funds. In addition, there is also no requirement to trade regularly as the platform does not charge inactivity fees. However, all clients must pay an annual custody fee of 0.12%, i.e., if your portfolio holds $1,000 worth of securities, the yearly custody fee will be $0.12.
Note: An additional fee is charged outside the monthly allowance.
To start trading, you must be at least 18 years old and already have a Revolut account. Opening an account is positively straightforward and only requires you to have a smartphone, a few personal details at hand, and a selfie. Again, this is thoroughly detailed in our Revolut card and app review.
Example: For a step-by-step guide on buying stock through the Revolut platform, refer to our guide ‘How to buy Tesla (TSLA) stock with Revolut?‘
Revolut offers 24/7 customer service via in-app live chat. To contact support, go to the ‘Dashboard’ and click on ‘Chat’ at the top right of the screen, and you will be automatically connected to the interactive system. Waiting times are generally short; you can expect to get an answer within 2 minutes.
For learning resources, you can discover the Revolut Bolg, an informative portal where you can find informational articles about the world of finance. In addition, check out Revolut Academy, a section entirely dedicated to economic education, including various topics such as finance, IT security, and cryptocurrencies.
Revolut is regulated and licensed by several top-tier bodies, including the US Financial Industry Regulatory Authority (FINRA), the US Securities and Exchange Commission (SEC), plus the UK Financial Authority (FCA).
The company isn’t considered a bank in the traditional sense and doesn’t currently hold a UK banking license. As a result, any funds held by Revolut are not protected by the Financial Services Compensation Scheme (FSCS). However, funds are held in segregated accounts, meaning traders get their money back even if the company were to go bust.
Revolut employs several security measures to counteract fraud and online crime, such as:
Note: Find our comprehensive guide on Revolut’s security here.
To sum up, the Revolut trading platform, an addition to the company’s personal and business banking solutions, offers a convenient one-stop-shop for all your unique finance needs. As well as commission-free stock trading, investors can speculate on precious metals and popular cryptocurrencies.
The trading experience on the Revolut app is intuitive and beginner-friendly, offering flexible trading plans and a straightforward mobile interface. And while its basic nature is appealing to some, the limited range of financial assets might turn other investors away.
Robinhood was established by Vladimir Tenev and Baiju Bhatt in 2013 and is currently headquartered in Menlo Park, California.
The platform is a true pioneer in the no-commission brokerage model and is a solid choice for beginner investors. The app offers a stripped-down mobile interface while providing commission-free stocks, exchange-traded funds (ETFs), options, and cryptocurrency trading. Unfortunately, however, Robinhood has had its reputation smeared by controversies over service downtime and restrictions.
As with any investment app, Robinhood traders need to understand the risks of what they’re doing to invest in line with their goals and avoid unexpected losses.
Robinhood is optimized for beginner investors and is straightforward to set up and use. Though investors can also operate on the web-based interface, Robinhood is a mobile-first company, so its most recognizable investing platform is the mobile app.
The app is streamlined, without the bells and whistles of a typical online stock broker, making it easy to navigate, particularly once you understand how the app’s icons function.
Robinhood’s user experience is enjoyable, and the app functions seamlessly. However, there is little you can do to customize the app to your preferred trading experience. Some of the tools Robinhood offers to simplify your trading experience:
Robinhood does not support mutual funds or fixed income securities such as bonds, and you can’t trade forex, commodities, or futures. However, if you choose Robinhood, you can invest commission-free in:
There is no account minimum for your brokerage account at Robinhood (also gold subscription), no account opening, maintenance, inactivity fees, or ACH fees. In addition, all equity trades (stocks and ETFs) and options trading are commission-free. However, some other costs unrelated to trading are as follows:
Robinhood Gold is the premium subscription offered by Robinhood for a $5 monthly fee. However, you can try Robinhood Gold for free for your first 30 days. The premium subscription comes with:
Note: The margin interest rate was changed to a floating rate starting June 14, 2022, and may change at any time without notice and at Robinhood Financial’s Financial’s discretion.
Robinhood will reward you with one share of stock to your brokerage account when you link your bank account and fulfill the conditions in your promotion.
The Fractional Stock Reward Offer is only valid for new customers of Robinhood and existing qualifying brokerage clients who successfully refer eligible new customers.
Once you are signed up, approved, and link your bank account, you’ll earn a specified dollar amount and be able to choose your gift stock from a list of 18 of America’s leading companies. The cash value is then used toward fractional shares of the offered companies (the list is selected by market cap for their respective sectors).
To sign up for a Robinhood account, you’ll need to meet the following criteria:
Robinhood is available on iOS, Android, and most web browsers.
Robinhood has made noticeable improvements to clean up its reputation for poor customer service. While they say they can serve customers best via email, they have now added live phone support available to answer your questions 24/7.
The 24/7 phone support works by requesting a call in the Robinhood app. You will then be sent a notification when you’re next in line for a call. If you miss the call or get disconnected, the support team will call you back and leave a message and notification for an easy way to get back in line.
Robinhood offers Robinhood Learn for easily-understandable concise information on the basics of investing, market trends, and financial concepts. The content is prepared by experienced writers and editors who formerly reported at publications such as Forbes and Quartz and boasts over 650 articles to help you make sense of investing lingo and trends.
In addition, the platform also has Robinhood Snacks, a daily podcast, newsletter, and video series which delivers the day’s top financial news stories.
Moreover, all Robinhood customers can access trusted news sources through the newsfeed with in-app WSJ Markets coverage, news from Reuters and Barron’s, and video from CNBC Business, Reuters, and Cheddar.
Robinhood is a member of SIPC, which protects up to $500,000 (including $250,000 of cash) of securities of its members’ clients. However, cryptocurrency investments through Robinhood Crypto are not protected by SIPC, and Robinhood Crypto is not a member of FINRA or SIPC.
Robinhood uses several industry-standard measures to protect your account and ensure your secure experience with them. Some of the security measures they take to help keep your information safe:
Unfortunately, Robinhood has been the subject of severe complaints and lawsuits:
To sum up, the trading experience on Robinhood’s web and mobile app is fast, straightforward, and streamlined. However, while Robinhood has the functionality necessary to trade for new investors, more seasoned investors will find familiar tools missing and no option for customization.
In addition, beginner investors should apply caution and thoroughly research their trading strategies, especially because Robinhood encourages active trading and has been accused of gamifying investing and enabling risky trading behavior.
Wealthsimple is a Toronto-based online investment management service launched in September 2014 and provides algorithmic investment and savings programs for clients in Canada, the U.K., and the United States.
The platform uses a small pool of low-cost ETFs (Canadian and U.S. citizens) or mutual funds (U.K. citizens) to populate relatively generic portfolios that are fully customized by the information you provide. In addition, Wealthsimple offers a simple trading platform.
Wealthsimple offers two mobile trading apps: Wealthsimple Invest, its robo-advisor solution for ultra-passive investors, and Wealthsimple Trade, for more hands-on investors (not available in the U.K.).
Wealthsimple Invest is an automated investing service that allows you to set up automatic deposits and recurring investments, round up change to the closest dollar amount on credit card purchases, and invest that difference on your behalf.
Your investment portfolio is managed based on predefined investment preferences tailored to your risk tolerance and goals and through market strategies that include diversification, passive buy-and-hold investing, and dividend reinvestment. However, the trading costs, i.e., management fees, range from 0.40% to 0.50% per year (according to the amount you deposit).
Wealthsimple Trade is a self-directed investment platform with two kinds of accounts:
You can find the following features on the app:
Ultimately, because the platform wants you to focus on your long-term goals, it has excluded many of the traditional market-timing tools offered by other brokerages. For example, Wealthsimple doesn’t provide time frames lower than one day (e.g., hourly, 10-minute charts).
Five possible portfolios can be generated after you’ve gone through the Wealthsimple questionnaire:
Note: Wealthsimple’s portfolio contents and construction are selected according to Modern Portfolio Theory (MPT) principles, as with most robo-advisories.
Wealthsimple offers commission-free trading, and there is no account minimum. There are two types of trade accounts: Basic and Plus.
The only trading fee Wealthsimple charges in crypto trading accounts is a 1.5-2% Operations Fee per transaction, charged by applying a spread on the bid and ask prices at which buy orders and sell orders execute.
Wealthsimple Invest management fees range between 0.40% and 0.50%, depending on your portfolio size. There are three types of portfolios: Basic, Black, and Generation.
To open an account (Wealthsimple Cash/Trade/Crypto/Tax/Invest), you must meet the following criteria:
To get started with Wealthsimple Invest, you’ll need to:
Wealthsimple offers 24/7 customer support from their Virtual Assistant. You can connect with a team member via call during their business hours: Monday-Friday: 8am – 8pm (EST), and Saturday & Sunday: 9am – 6pm (EST).
Wealthsimple’s website features a comprehensive Investing Master Class, a broad-brush investment FAQ, and a monthly magazine/blog with dozens of “how-to” articles, as well as a YouTube channel with organized playlists.
Wealthsimple is insured by the Canadian Investor Protection Fund (CPIF), so your investments are protected in the unlikely event of insolvency. Wealthsimple is also affiliated with Canadian ShareOwner Investments and is a member of Canada’s Investment Industry Regulatory Organization.
Wealthsimple uses these measures to keep your account safe:
To sum up, Wealthsimple is a great option for anyone wanting to start long-term investing. If stock picking and market timing are not your forte, opening a Wealthsimple Invest account may be the way to go. With its commitment to tried and true market strategies, you’ll be able to use dollar-cost averaging to your advantage and master your passive investment goals.
Conversely, if you want a self-directed account, you will find Wealthsimple Trade’s curated lists helpful. On the other hand, the lack of analysis tools in-app makes the Wealthsimple trading experience pale compared to its rivals.
Ultimately, Wealthsimple Trade and Wealthsimple Invest are both appealing options for beginner investors. However, picking the right approach will boil down to your knowledge and knack for investing, schedule, and risk tolerance.
Online trading refers to buying and selling assets via the Internet, typically through an online broker, eliminating cumbersome paperwork and allowing you to start investing with a click of a button. As with a traditional broker, you can trade various financial instruments, including stocks, cryptocurrencies, ETFs, bonds, and options.
There are hundreds of investing apps to pick from, so the choice will often boil down to what you need. When choosing, consider your level of experience and knowledge, the financial tools you wish to trade, customer service provision, fees, how much time you can dedicate to trading, and your goals.
The rules for successful investing online are the same as for any stock trading method. You must know how to evaluate market trends, analyze valuable financial charts and statements, assess taxes and expenses, diversify your portfolio, and take appropriate risks. Of course, online trading is convenient but requires research and reasonable comprehension of the financial landscape.
Remember, there is always an element of risk associated with online trading apps. That said, be sure to choose an app with encrypted firewalls and two-factor verification to protect you from online fraud best. In addition, ensure you have antivirus and malware protection on all the devices you will use for trading, and, naturally, never share your login information with anyone. Importantly too, be wary of companies with a history of scandals and consider what they’ve done to combat the issues.
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Diana is an economics enthusiast with a passion for politics and investing. Having previously worked as a financial translator, she provides in-depth articles and guides on the world of finance and commerce.
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