The stock market is a volatile and unpredictable place, even for seasoned investors. This is where micro-investors come in. Micro-investing apps make it easy to invest as little as $5 or $10 at a time to build up wealth over time.
But first, what is micro-investing?
Micro-investing is an increasingly popular, low-risk investing strategy that allows small investors to build up their portfolios over time gradually. It involves investing in stocks, ETFs, and other securities through apps or websites with low minimum investment requirements.
Let’s say you can start investing $100 per week in your early 30s. By the time you retire at 67, you would have invested a total of $40,000, and your portfolio could be worth over $600,000, depending on the rate of return and the amount you reinvested along the way.
That’s why micro-investing is a great option for anyone who wants to get started investing but doesn’t have a lot of money to spare. And there are now several apps that make it easy to do this on your phone or computer.
What are micro-investing apps?
Micro-investing apps work a lot like other investment platforms, but they have low minimums, and you can start investing with as little as $0.01 or even less. The idea behind many of them is to give you the chance to build up a portfolio little by little.
Here are some examples: Acorns was one of the first micro-investing apps, and it’s still very popular today. The app rounds up your everyday purchases and invests the spare change in a diversified investment portfolio for you. So if you buy a coffee for $0.95, Acorns will invest the extra $0.05 in your account.
Another popular app is Stash. It has a minimum investment of just $25 and lets you invest in various stocks and ETFs. You can also choose from a range of “themes” or investing strategies, like clean energy or medical innovation.
So, now, since you’ve read about the best micro-investing apps, why not try one out? In this blog post, we will explore eight different apps that offer variations on investing strategies and risk levels so you can find the one that suits your needs best.
Acorns
Acorns is an app that rounds up your purchases and puts the change in a portfolio of low-cost index funds. The app charges $1 per month for accounts with less than $5,000 invested and 0.25% (or $2) per year on accounts over that amount. There is no minimum balance requirement or account opening fee, and since it invests in index funds, there are no fund management fees either!
Robinhood
Robinhood is a zero-commission stock trading app where all trades happen online — making it great for instant buys or quick trades. It also has a web-based platform that allows users to track stock prices between devices and make paperless dividends or corporate actions requests. Robinhood is also one of the few brokers that provides cryptocurrency trading.
Public.com
Public is an automated investing app that allows you to automatically invest in stocks, ETFs, and mutual funds with as little as $1. Its target market is millennials and Gen Z-ers who want to invest but don’t have the time or knowledge to do it independently. Fees range from 0.35% – 0.50%, and there are no minimum account balance or investment requirements.
Stash
This app is also geared towards beginning investors but with a broader range of investment options that include real estate and precious metals in addition to stocks and ETFs. You can start investing with as little as $5, and there are no account minimums or fees (except for the cost of whatever you buy). The app also offers a retirement account option and custodial accounts for investors under 18.
M1 Finance
This app is a bit different from the others because it lets you invest in individual stocks and ETFs and create custom portfolios that include both. You can also choose to have your portfolio automatically rebalanced for you or do it yourself. There are no account minimums, trading fees, or commissions.
Wealthsimple
Wealthsimple is another app designed with millennials in mind. It has a streamlined user interface and low fees, so you can invest your money quickly without worrying about missing opportunities due to commissions or minimums. Wealthsimple also offers tax-efficient portfolios, goal-based saving strategies, and retirement planning tools.
Greenlight
Unlike other apps, Greenlight is an investment account for kids that comes with a debit card, bank account, and investments. It’s an excellent option for parents who want to teach their kids the value of saving money early. Moreover, it also offers financial education tools and resources that can help them learn more about investing and managing money as they get older.
Webull
Released in the market in 2018, Webull is a free-trading app that offers real-time market data and detailed charting. It also provides users with analysis tools, customizable price alerts, and educational resources to teach them how to trade profitably in the financial markets.
Final words
So, there you have it! Eight different apps to help get you started in micro-investing. Whether you’re looking for a commission-free option, an app that invests in real estate and precious metals, or one that’s designed specifically for kids, there’s sure to be something here for you. What are you waiting for? Get started investing today!
