The Best Micro Investing Apps for Beginner Investors

Introduction

Investing can be a daunting task, especially for beginners. However, with the rise of micro investing apps, it has become easier than ever to dip your toes into the world of investing. These apps allow you to start with small amounts of money and gradually build your portfolio. In this article, we will explore four of the best micro investing apps for beginner investors.

1. Acorns

Acorns is a popular micro investing app that aims to make investing simple and accessible for everyone. The app works by rounding up your everyday purchases to the nearest dollar and investing the spare change. For example, if you buy a coffee for $3.50, Acorns will round it up to $4.00 and invest the extra $0.50.

One of the standout features of Acorns is its “Found Money” program, which allows you to earn cashback on purchases made with partner brands. This means that you can grow your investment portfolio while shopping at your favorite stores.

2. Robinhood

Robinhood is a commission-free investing app that has gained popularity among beginner investors. The app allows you to buy and sell stocks, ETFs, options, and cryptocurrencies without paying any fees. This makes it an attractive option for those who want to start investing without breaking the bank.

Robinhood also offers a user-friendly interface and provides real-time market data, making it easy for beginners to track their investments and make informed decisions. Additionally, the app offers educational resources and a community forum where users can learn from each other.

3. Stash

Stash is another micro investing app that caters specifically to beginner investors. The app offers a variety of investment options, including stocks, ETFs, and bonds, and allows you to start with as little as $5. Stash also provides personalized investment recommendations based on your financial goals and risk tolerance.

One of the unique features of Stash is its “Stock-Back” program, which allows you to earn fractional shares of stock when you make purchases with your Stash debit card. This means that you can grow your investment portfolio while spending money on everyday expenses.

4. Betterment

Betterment is a robo-advisor that uses algorithms to automatically manage your investments. The app offers a range of investment options, including stocks, bonds, and ETFs, and allows you to set your investment goals and risk tolerance. Betterment then creates a diversified portfolio for you and automatically rebalances it as needed.

One of the advantages of Betterment is its tax-efficient investing strategy. The app uses tax-loss harvesting to minimize your tax liability and maximize your after-tax returns. This can be particularly beneficial for beginner investors who may not be familiar with the complexities of tax planning.

Conclusion

Micro investing apps have made it easier than ever for beginner investors to start building their investment portfolios. Whether you prefer the simplicity of round-up investing with Acorns, the commission-free trading offered by Robinhood, the personalized recommendations of Stash, or the automated investing of Betterment, there is an app out there to suit your needs.

Remember, investing involves risk, and it’s important to do your own research and consult with a financial advisor before making any investment decisions. However, with the help of these micro investing apps, you can start your investing journey with small amounts of money and gradually grow your wealth over time.