A key element of planning for your financial future is investing. Today, there is an app for everything, so it stands to reason that there are several available to assist you with investing.
The lot of investing applications enable you to purchase and sell stocks, bonds, and other assets via your phone, but each is geared toward a certain kind of investor.
While features like minimal costs, low account minimums, and a straightforward user experience are advantageous to everyone, you should also consider the sort of investor each app is geared at.
What you need to know if you want to start using an investing app.
Best Investment Apps of 2023
- Best Overall: Wealthfront
- Best DIY and Self-Directed Trading App: TD Ameritrade
- Best App for Beginners: Betterment
- Best App for Active Investors: Interactive Brokers
- Best App for Options Traders: tastyworks
1. Wealthfront
For a number of reasons, Wealthfront is our choice for the best investment app.
The fact that Wealthfront keeps costs low is one feature that makes it outstanding. Opening an account requires a $500 minimum deposit, however there is no cost associated with trading. There is an annual cost of 0.25% of your assets, however many clients find this amount to be worthwhile due to the service provided.
Wealthfront is our top selection for the finest automated, or robo-advisor, investing app in addition to being a fantastic tool for consumers who prefer to manage their own finances.
You can provide some information about your investment objectives when you establish an account. Wealthfront may handle your assets on your behalf and automatically creates a balanced portfolio for you. When you have additional money to save, all you have to do is add it. With the use of automatic tax-loss harvesting, the application even promises to save more than it costs.
Wealthfront is an excellent tool for anyone’s investment strategy since it allows users who like a more hands-on investing experience to manage their portfolios more actively.
Pros
- Best robo-advisor app
- Multiple account types
- 96% of clients see fees offset by tax-loss harvesting
- Cash management account available
Cons
- You still have to pay the 0.25% annual fee if you self-manage your portfolio
- Limited investment options
2. TD Ameritrade
The TD Ameritrade app has all the resources you want to be successful if you’re a hands-on investor who prefers to manage your own portfolios. With the app’s user-friendly layout, researching stocks, ETFs, and options is straightforward even while you’re on the go. Even smartwatches can be integrated into it so you can monitor your assets.
You may configure price alerts to alert you to market movements throughout the day so you can purchase or sell your investments depending on changes in their value.
Additionally, the app offers 24/7 analysis and research that you can utilise to modify your tactics.
TD is a wonderful option for clients who prefer to manage their own assets since there are no costs for trading on stocks and ETFs, so aggressive traders don’t have to worry about fees reducing their profits.
Pros
- No minimum deposit
- Research and analysis in the app
- No fee for stocks, ETFs, and mutual funds
Cons
- No fractional share investing
3. Betterment
Betterment is one of the best programmes you can use if you want some direction and a streamlined investment procedure.
Betterment provides a robo-advisory service, just like Wealthfront. Your goals and risk tolerance will be disclosed to Betterment when you register an account.
The application will create a portfolio for you based on this data and assist you in maintaining that asset allocation. Starting up takes only a few minutes.
You may also choose from one of Betterment’s prebuilt portfolios rather than having it create one for you. They include investment funds that concentrate on socially responsible investing, innovation, or global diversity. As of the time of writing, investing in cryptocurrencies will also be available soon.
Pros
- Start investing in minutes
- No minimum deposit
- Low fees
- Socially conscious investments available
Cons
- $100,000 minimum for premium service with access to certified financial planners (CFPs) and additional guidance
4. Interactive Brokers
While some market investors buy assets and keep them for years, others try to benefit on short-term price fluctuations. Some even choose to start day trading, where they execute many deals each day. Although it may be successful, this tactic can be hazardous.
They may easily purchase and trade using the Interactive Brokers app on mobile devices. With more than 100 order types available and the option to trade on leverage or with complicated derivatives, it is also catered to expert investors.
It also appeals to active investors with its cheap costs, which are limited to 1% of the trade’s value and charged at fractions of a penny every share exchanged.
The research and analysis included in the app will also be useful to investors trying to get an advantage over their rivals by making it simpler to identify attractive acquisition prospects.
Pros
- Many order types available
- Low fees
- Can trade on margin
- Trade multiple derivatives
Cons
- Not designed for beginners
5. tastyworks
Its fee structures are close to the top of the list. For derivatives transactions, many brokers demand additional commissions, which can dramatically lower your earnings.
Even if you make extremely big deals, Tastyworks maintains costs low and caps them at $10 per transaction, reducing the amount you’ll spend.
In addition to its cheap charges, Tastyworks provides tools that help options traders locate opportunities and make buying and selling decisions. To look for trade chances, you can study several stock charts. Additionally, there are useful tools that allow you to identify the best price targets for your trades or modify your orders on the fly.
Pros
- Low fees, with a $10 cap per transaction
- Can trade many derivatives
- Research tools to find opportunities
- Powerful order options that make trading easier
Cons
- Not beginner-friendly
How Does an Investment App Work?
To purchase and sell investments like stocks, bonds, mutual funds, ETFs, or derivatives, users of an investment app use their cellphones.
How Much Cash Is Needed To Use An Investment App?
The minimum balance requirements can be established independently by each investing app.
Many applications let you to sign up without making a minimum investment, yet it will be simpler for you to diversify your portfolio the bigger your starting amount.