Investment apps – should you use them?


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The opportunity for an investor with a limited amount of money has been restricted for a long time. Wealthy investors enjoyed the option to invest in the stock market and earn profits accordingly, while small investors faced numerous obstacles. The events that took place during the last decade had a drastic impact on the investing landscape. Because of the changes in the regulatory framework and technological advancements, investing is possible even for people with a low amount of money to spare.

In the past, people were reluctant to invest in the stock market not only because of limited funds but also because of high fees and limited knowledge. In today’s investing environment, these obstacles are almost non-existing (at least in developed economies).

The technology has enabled the possibility for any person to be able to invest in the stock market. The investment activities could be easily performed through the use of investment apps.

So, why is it smart to start investing today using investment apps?

Have you invested any funds in the stock market?

Do you want to invest in the stock market?

Reasons to start investing using an investment app

There are numerous reasons why you should start investing today. Some of the most common reasons are:

Low investing costs

As it has been noted earlier, until a couple of years back, the process of buying and selling stocks (or other instruments) was subject to high fees and other associated costs. Today, you can invest in the stock market at a very low cost or no cost at all, depending on the investment app you use or the amount invested.

You don’t need thousands of dollars to be an investor

Believing that you need a lot of money to be an investor is totally wrong. There is vast availability of personal finance apps and investment apps. These apps are eliminating the need to invest a lot of money. These days, you can start investing with as little as a couple of dollars (see the Acorns app, for instance).

Newbie friendly – newbies can start investing too

It is widely accepted that investing is rather complex, and you should have special skills. Thus your lack of knowledge in investing could be an obstacle to investing. While in the past, investing was not available for everyone because you needed to have an in-depth understanding of how things work, nowadays, all you need is an app and some money.

Meaning that a good aspect of investment apps is that they offer the possibility for you to learn as long as you have the desire to learn. In addition, with some apps, you should learn some of the investment basics. This is so because some apps can recommend you some potential investment opportunities. In addition, there are the Robo-advisors, who could define your portfolio in accordance with your age, income, ownership status, and future expectations (financial and non-financial plans).

Be in charge of your investment decision

There are people who have trust issues when it comes to investing through brokers. They are not investing because they don’t trust the broker or have lost trust in their brokers. This is not a valid reason to avoid investing anymore. Meaning that with the investment apps, you can be in charge of your own investments. You have the possibility to choose where to invest your money and to decide how much you will invest. It should be noted that some apps offer certain advice about the construction of your portfolio. If you are a newbie, maybe it would be wise to consider this advice at an early stage of your investing experience.

Tracking your investments in real-time

Another great reason for going in favor of investment apps is the option to track your investment 24/7. Stated differently, you have real-time access to your investments at any time of the day. You don’t have to wait for a call from your broker or wait for a report to see the performance of your portfolio. You have a real-time overview of your portfolio.

Some of the popular investment apps: Are motif, Robinhood, SigFig, Folio,

In order to decide which investment app to use, there are a couple of things to consider  first:

  • Check the fees;
  • Look at the minim deposit required (don’t put a lot of money if you are a newbie, get a sense of the investment process before you put all your money. Try some demo version);
  • Consider the level of analysis and information they provide;
  • Consider whether the app is providing investment advice or not;
  • What types of instruments are available for investing (trading)

Although at first glance, you may be afraid to start investing in the stock market, you should definitely overcome this fear. In case you are not investing because of a lack of funds or knowledge, you should realize that these obstacles are almost non-existing when using investment apps.

Start investing in the stock market using some of the investment apps. Not only will you be able to gain additional knowledge, but also you have the opportunity to make some extra money in the long run.

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