If you are fairly new to the investment world, it can be pretty intimidating. Especially if you’re not familiar with the stock market’s inner workings, you might end up making the wrong decisions that you will regret. But, investing in the share market is something that all of us know that we should be doing more frequently.
However, before stepping into this world, people have many questions like where’s the best starting point? How do you start your journey in the world of investing if you’re not worth millions? Where do you start if you have a limited understanding of the best way to invest your money thoughtfully?
Worry no more because we have made a list of the top 4 investment tools to help you get started. In the search for the ultimate investment apps, we considered every parameter of importance to different investor types. We have not given much priority to cost because you often need to spend money to make money.
However, it is undoubtedly possible to reduce fees and still maintain an acceptable investment strategy. These tools will help you understand everything from the market to what shares to invest in! So, let’s get started!
Topping our lists is the $0 commission stock brokerage firm Robinhood. This firm makes it easy for every person to invest without paying the typical fee of up to $10 for every trade that you might make. It makes money in 2 ways. Firstly, via the Robinhood gold membership. This membership provides the members with twice the buying power along with access to after-hours trading. Secondly, Robinhood earns via the collected interest on the cash and securities in Robinhood accounts. It is similar to how the banks make interest on cash deposits. Robinhood is an excellent choice because what can be better than a free service? Robinhood’s committed to providing 100% commission-free stocks. The ETF and cryptocurrency trades are admirable of this firm. Also, the savings for investors who trade frequently is very significant, especially for options traders. Robinhood is among the few brokers that don’t charge a per-contract fee. The firm is even committed to keeping other investor costs low. The Robinhood service of Clearing enables the company to operate on its clearing system. It helps to reduce some of the service’s account fees. The most oversized fees that Robinhood charges are the $75 outgoing account transfer fee. But that’s not an uncommon fee among broking firms. Robinhood doesn’t have an account minimum, which implies that the investors can get started right away. But to invest, you’ll need enough money to purchase the investment you have your eyes on. Also, like other broking firms and brokers, Robinhood requires a $2,000 minimum portfolio balance. This amount is needed to open a margin account. This account is a Financial Industry Regulatory Authority regulation.)
The second position on our list is held by Hello Money. Hello, money allows you to Design your portfolio from 24,000+ funds and stock. The idea behind this platform is unique yet simple. It will enable you to pick and choose different funds and stores to create your ultimate portfolio. It is kind of like LEGOs, one piece at a time? Hello, money enables you to do just that. Currently, Hello Money allows you to pick and choose to create your portfolio from over 24,000 different funds and stocks. What is even great is that they are adding new ones every day. If you are not a pro-investor, this app may not sound like your cup of tea. However, we would say that Hello Money is a fun way to get to know the market and understand the investment strategy better. According to us, this app is an excellent tool for looking at how others invest their money. This app can help you experiment with how different holdings influence your returns and enhance your financial portfolio.
Wealthfront had to be on this list because it is an automated investment management service. It helps to maximize the “net-of-fee, after-tax, real investments return for each client’s particular tolerance for risk.” This investment platform allows people to maximize long-term returns. Best-in-class financial experts build it. Earlier, decent investment management services were accessible only to wealthy investors through advisors who took insanely large annual management fees. But now, with the help of this software-based solution, anyone can make use of this investment management service at a much lower price. In addition to all this, Wealthfront has also launched a service called Path. This service aids you plan your financial pathway for retirement and other significant milestones like saving money to buy a house or pay the college fee. We would say it is worth checking out more so if you are looking for an easier way to understand the investing world. All in all, Wealthfront appears to be an excellent investment service. We think it’s one of the best Robo-advisors. It shines with taxable accounts. Also, Wealthfront even offers tax-loss harvesting for all budgets. This service can help you minimize annual tax expenses. For a beginner investor, who might be a little suspicious of jumping into individual security selection and management, Wealthfront proves to an outstanding choice.
Last but not least is Betterment. It is an online investment management company. Betterment will help you manage your investments so that you don’t have to do it yourself. The company is designed to attain the best returns at various levels of risk. Betterment helps you to generate 2.9% higher returns than an average DIY investor. It is done via automated rebalancing and portfolio diversification. The fee is low from 0.25% to 0.50% yearly for a Standard, Plus, or Premium account. With the help of their Tax Loss Harvesting system, the company can find capital losses to reduce the taxes you pay on your investments and maximize after-tax returns. This platform uses the concept of a goal-based investing framework. It helps investors stay on track to reach their long-term goals.