The Best Investment Apps for Beginners: Ranked and Reviewed

Imagine this: you’re 28, have a stable job, and finally want to put your money to work. Stocks, bonds, ETFs – the jargon is overwhelming. You know you need to start investing, but the sheer number of investment platforms available is paralyzing. Where do you even begin? The problem isn’t a lack of desire, it’s a lack of clarity and a user-friendly starting point. This article will cut through the noise and provide a ranked list of the best investment apps for beginners, empowering you to confidently take control of your financial future.

1. Fidelity: The All-Around Champion for New Investors and Best Ways to Invest

Fidelity stands out as a top choice for beginners due to its comprehensive resources and zero-fee trading. The platform offers a vast library of educational materials, including articles, videos, and webinars, designed to guide new investors through the fundamentals of investing. You can research stocks, ETFs, and mutual funds with detailed analyst reports and screening tools. Fidelity’s intuitive mobile app makes it easy to manage your portfolio on the go. Unlike some other platforms, Fidelity offers fractional shares, allowing you to invest in high-priced stocks like Amazon or Google with as little as $1. This feature is vital for beginners who may not have substantial capital. In addition, Fidelity boasts excellent customer service, providing support through phone, email, and live chat. This combination of resources, ease of use, and robust support makes Fidelity an ideal starting point for anyone looking to enter the world of investing.

For buy-and-hold investors, Fidelity’s index fund selection is unmatched. Their ZERO expense ratio funds are a game-changer, allowing you to invest without paying any management fees. This is a huge advantage over competitor index funds which, while usually having low fees, still incur some cost that eats away at your returns over time. Fidelity also offers self-directed brokerage accounts, traditional and Roth IRAs, and even 529 plans for college savings, meaning that you don’t have to change platforms as your investment sophistication grows. You can start with a basic brokerage account and, as you become more comfortable, explore other investment vehicles within the same platform.

Fidelity’s Active Trader Pro platform is available for more advanced traders. Although beginners might not need it immediately, it’s good to know that the platform scales with your needs. As you gain experience and want to trade actively, you have access to Level II quotes, advanced charting, and customizable order types. This flexibility prevents you from having to switch apps as you learn. Finally, Fidelity’s account security is top-notch, offering two-factor authentication and fraud monitoring to ensure your investments are protected.

Actionable Takeaway: Open a Fidelity account and explore their educational resources. Invest in a low-cost index fund like the Fidelity ZERO Total Market Index Fund (FZROX) to start building a diversified portfolio.

2. Charles Schwab: User-Friendly Platform with Robust Research Tools

Charles Schwab is another excellent option for beginner investors, rivaling Fidelity in its offerings and user-friendliness. Similar to Fidelity, Schwab provides commission-free trading of stocks, ETFs, and options. Schwab distinguishes itself with its exceptional research tools and resources. Their website and mobile app provide access to independent research reports from leading analysts, helping you make informed investment decisions. Schwab’s web platform is highly intuitive, with a customizable dashboard that allows users to track their portfolios, monitor market trends, and access news and analysis. Schwab also offers a wide range of educational resources, including articles, videos, podcasts, and webinars, suitable for investors of all levels. They boast an extremely helpful 24/7 customer service line.

Schwab Intelligent Portfolios, a robo-advisor service, is a standout feature for beginners who prefer a hands-off approach. This service automatically builds and manages a diversified portfolio based on your risk tolerance and investment goals. Intelligent Portfolios rebalances your portfolio regularly and tax-loss harvests to maximize your returns. The main benefit is its complete lack of advisory fees. While some robo-advisors charge a percentage of assets under management, Schwab Intelligent Portfolios is entirely free. This can save you a significant amount over the long term, especially as your portfolio grows. This makes it ideal for small accounts, as percentage-based fees charged by advisors can eat dramatically into the account balance.

Like Fidelity, Schwab also offers fractional shares, allowing you to invest in companies with high stock prices, regardless of your starting capital. Schwab’s StreetSmart Edge platform caters to more advanced traders, providing advanced charting tools, real-time data, and customizable trading strategies. This allows for a graduated learning curve. But even better, Schwab’s banking services integrate seamlessly with their investment platform. You can easily transfer funds between your Schwab brokerage account and your Schwab checking account, simplifying your financial management. This integration, along with excellent customer service and research tools, makes Schwab a top contender for beginner investors.

Actionable Takeaway: Consider using Schwab Intelligent Portfolios if you prefer a hands-off approach, or explore their research tools to select individual stocks and ETFs for your portfolio.

3. Robinhood: Simple Interface for Mobile-First Investors and Exploring Side Hustle Ideas

Robinhood revolutionized the investing landscape by offering commission-free trading through a sleek and intuitive mobile app. Its simplicity and ease of use make it particularly appealing to new investors. The app’s user interface is clean and uncluttered, making it easy to navigate and execute trades. Robinhood caters to a younger demographic and those comfortable managing their finances primarily through their mobile devices. Its focus on ease of use makes it straightforward to buy and sell stocks, ETFs, and options. However, the platform is not without its drawbacks. While it is excellent for buying and selling, it lags in terms of investment research, educational resources, and customer support compared to Fidelity and Charles Schwab.

Beyond traditional investments, Robinhood also offers access to cryptocurrencies. This can be appealing to investors interested in diversifying their portfolios with digital assets. However, like other platforms, Robinhood offers limited cryptocurrency wallet functionality. Your crypto is held by Robinhood, not privately stored by you. For beginner investors, the platform’s simplicity can be a double-edged sword. While the intuitive interface makes it easy to buy and sell, it may not provide the in-depth research tools needed to make informed investment decisions. To mitigate this, beginners should supplement Robinhood’s offerings with external research from reputable sources.

Robinhood’s lack of retirement accounts (traditional and Roth IRAs) is a significant drawback for long-term investors. The platform only offers taxable brokerage accounts, which can incur higher taxes on investment gains compared to tax-advantaged retirement accounts. Furthermore, Robinhood’s customer service has been criticized for being slow to respond and lacking personalized support. This can be frustrating for new investors who need assistance with technical issues or investment guidance. Despite these drawbacks, Robinhood remains a popular choice for its simplicity and commission-free trading. Just think critically about its limitations versus your long-term objectives. One possible supplement is taking an online course to improve your overall investment knowledge. Many courses like Teachable’s focus on investing strategies that apply across platforms.

Actionable Takeaway: If you prefer a mobile-first experience and are comfortable conducting your own research, Robinhood can be a good starting point. However, consider its limitations and supplement it with external resources and potentially a more comprehensive platform like Fidelity or Schwab for long-term investments and retirement planning.

4. Acorns: Automating Investing for Beginners

Acorns simplifies investing by automatically investing your spare change. The platform rounds up your purchases to the nearest dollar and invests the difference in a diversified portfolio of ETFs. This micro-investing approach makes it easy to start investing without needing a large initial investment. Acorns is particularly appealing to young adults and those who struggle to save. The platform offers several different portfolio options, ranging from conservative to aggressive, based on your risk tolerance and investment goals. Acorns also provides educational resources to help you understand the basics of investing. However, Acorns charges a monthly fee, which can eat into your returns, especially for smaller account balances. For example, the basic Acorns Lite plan costs $3 per month. While this might seem insignificant, it can be substantial relative to a $100 account balance.

Acorns also offers other features, such as Acorns Spend, a checking account that rounds up purchases and invests the spare change, and Acorns Later, which helps you save for retirement through an IRA. Acorns Early allows you to invest for your children’s future by opening a custodial account. The platform uses robo-advisor technology, meaning that your portfolio is automatically managed and rebalanced. This hands-off approach is ideal for beginners who want to automate their investments. However, it also means that you have limited control over your investment decisions. Acorns also offers a rewards program called Found Money, where you can earn bonus investments when you shop at participating retailers. This can provide an extra boost to your savings.

While Acorns is a convenient way to start investing, it is important to consider the fees and the lack of control over your investments. It is best suited for young adults who are new to investing and those who want to automate the saving process. The fees can be a significant drawback, especially for smaller portfolios. Ultimately, you might exceed its usefulness as your skillset and account size grow. Consider graduating to another service as you gain knowledge and resources.

Actionable Takeaway: Use Acorns to automatically invest your spare change and build a diversified portfolio. Be mindful of the monthly fees and consider switching to a lower-cost platform like Fidelity or Schwab as your account grows.

5. Webull: Advanced Trading Tools for Intermediate Investors, but Not Always Great for Beginners

Webull offers commission-free trading of stocks, ETFs, options, and cryptocurrencies, with a focus on more advanced trading tools and features. While it appeals to more experienced traders, beginners can find Webull’s interface somewhat overwhelming. The platform provides access to real-time market data, advanced charting tools, and technical indicators. Webull also offers paper trading, a simulated trading environment that allows you to practice trading without risking real money. This is a valuable tool for beginners who want to learn the ropes. However, Webull’s educational resources are less comprehensive compared to Fidelity and Charles Schwab.

Webull’s margin rates (the interest rate charged when borrowing money to trade) can be higher than those of other platforms. Margin trading is inherently risky and not recommended for beginners. It can amplify both your gains and your losses. Beginners need to fully understand the risks involved before engaging in margin trading. Webull also offers fractional shares, enabling you to invest in companies with high stock prices with limited capital. The platform is primarily mobile-focused, although it also offers a desktop platform. Webull’s customer service has improved but still lacks the personalized support available at Fidelity and Charles Schwab.

Unlike some brokerages, Webull does offer both traditional and Roth IRAs, which is a significant benefit for long-term retirement savings. This allows you to invest on a tax-advantaged basis, maximizing your returns over time. However, Webull’s platform is still geared toward more active traders, with its emphasis on technical analysis and real-time market data. Beginners may find this overwhelming and may prefer a platform with more comprehensive educational resources. The reward system, as well, is focused on encouraging trading volume. Free stocks are offered when opening and funding accounts, but there are often other incentive-based bonuses that require a high account turnover, which is not a great long-term strategy for beginners. If you do use the platform, consider it for only a portion of your assets, while maintaining a buy-and-hold strategy elsewhere.

Actionable Takeaway: Use Webull to practice trading with their paper trading account. Consider its limitations in educational resources and margin trading risks and start with a smaller account. If you are new, this should *not* be the only app you use, it’s more of a supplement.

6. Public.com: Social Investing and Learning Money Tips

Public.com combines investing with a social networking experience. This allows users to connect with other investors, share their investment ideas, and learn from each other. The platform offers commission-free trading of stocks and ETFs and focuses on transparency and community. Public.com’s user interface is highly visual and engaging, making it appealing to younger investors. The platform provides educational content and insights from other investors, making it easier to learn about investing. One unique aspect of Public.com is its focus on responsible investing, allowing users to invest in companies that align with their values.

However, Public.com has limitations. It doesn’t offer mutual funds or options trading and has limited research resources compared to Fidelity and Charles Schwab. Public.com relies heavily on its social network, which can be both a strength and a weakness. The opportunity to learn from other investors can be valuable, it can also lead to following blindly. Due diligence on the investments you choose to buy is always required. It’s also easy to be swayed by short-term investment fads. One feature that discourages day trading is that Public.com does NOT support day trades. They close out your positions if they believe you are over-leveraging. The intent is to prevent beginners from taking outsized risks.

Public.com offers fractional shares, making it easier to build a diversified portfolio with limited capital. The platform also provides educational content on personal finance topics, such as budgeting and saving. While the social features can be engaging, it’s important to remember that investing should be based on sound judgment and thorough research. Don’t rely solely on the opinions of others, especially in a social investing environment. However, the social features of the app might provide some exposure to side hustle ideas. In particular, you might find insight into how others are investing in small cap stocks, REITs, real estate equity, and other methods for generating passive income outside of stocks or bonds. Remember to do your own research before making those investment decisions.

Actionable Takeaway: Use Public.com to connect with other investors and learn from their experiences, but always conduct your own research before making investment decisions.

Ready to take the next step in your financial journey? Check out Teachable for a wide range of courses to enhance your financial knowledge!