Millennials want low-cost, mobile-friendly investment platforms.
Americans live in a high-tech and highly mobile world, and millennials know this better than most. If you’re a millennial, chances are you’re reading this on your smartphone or tablet. Millennials don’t just want to be online; they want to be online on the go, and financial technology has enabled young investors to trade on their phones. And while some millennials are reaching middle age, others are still relatively young, making their first investments with minimal savings. These eight investing apps recognize different millennial needs and are aimed at helping millennials invest using varying strategies.
Acorns: Best for investing with little money.
Acorns tries to overcome the savings and investing hurdles millennials face. Once it’s linked to your credit or debit card or PayPal account, Acorns rounds up purchases to the nearest dollar and invests the difference in one of five diversified exchange-traded fund portfolios. You can also set up automatic investments from your bank account. Acorns Earn allows users to invest in various brands with which they make purchases. A certain amount of your purchase is invested in your Acorns Invest account. There are no minimum balances required when opening an Acorns account, but there are two pricing options for users. The first is a personal plan that costs $3 per month, and the second is a family plan at $5 per month. While these fees sound low, they can easily add up and cut investment returns.
Fees: $3 or $5, depending on account type
Account minimum: None
Stash: Best for beginners.
Starting with $5, Stash users can invest in fractional shares of more than 3,000 stocks and funds. Stash gives common ETFs thematic names, so users know how to browse and choose investments they can easily understand. For example, the “Match the Market” fund is the iShares Core S&P 500 ETF (ticker: IVV), which tracks the S&P 500, and the “Delicious Dividends” fund is the Schwab U.S. Dividend Equity ETF (SCHD). Users can also buy whole or fractional shares of familiar big-name companies like Amazon.com Inc. (AMZN), Meta Platforms Inc. (FB) and Tesla Inc. (TSLA). But the real reason Stash is one of the best investment apps for beginners is its educational platform. A guide called “The Stash Way: Our Investing Philosophy” and a Stash Learn site of articles and podcasts make this app a great one to learn with. But beware: Above-average fees may make it one to learn from, then move on from.
Fees: $1, $3 or $9, depending on account type
Account minimum: $5
Robinhood: Best for low cost.
As one of the first commission-free trading apps, Robinhood led the way for other investing apps to reduce or eliminate commission fees. The big draw for Robinhood is zero-commission trading for U.S.-listed securities and options, which used to be a bigger draw before other companies followed suit. Except for a minimal charge from regulators for all sell orders, there’s no fee to open or maintain an account or buy any of the more than 5,000 stocks and ETFs offered. Robinhood lets you trade full shares, as well as fractional shares of stocks. Its streamlined interface emphasizes research and learning by doing. Robinhood also allows its users to buy, sell and store crypto on the digital app.
Fees: None
Account minimum: None
TD Ameritrade: Best app for investor education.
TD Ameritrade’s investment app has one of the most robust research offerings. With everything from stock market research to data on individual companies and stocks and even a suite of educational videos on investing strategies, all available within the app, it’s enough to sustain even the most information-hungry investor. And when you feel sufficiently educated, you can trade a wide selection of stocks, ETFs and options commission-free, as well as monitor your investments or set up price alerts through the app.
Fees: None
Account minimum: None
E-Trade: Best for investment selection.
For the widest investment selection on a mobile investing app, look to E-Trade. In addition to the usual suspects of stocks, ETFs and options, E-Trade’s mobile app gives investors access to mutual funds and futures. It also lets you execute multileg options strategies. Like the TD app, E-Trade’s provides a robust selection of research and market news. You can stream Bloomberg TV through the app and have on-demand research and breaking news at your fingertips. This app is best suited for investors or traders who want a mobile-only market experience. You can set up watch lists and alerts and view real-time quotes. The investment app is available for Android and iOS, including the Apple Watch.
Fees: None
Account minimum: None
Betterment: Best for socially responsible investing.
With Betterment, users can get started on their investing journeys with any dollar amount and a low annual fee of 0.25%. Betterment leads with investors’ values in mind. The app’s socially responsible investing helps users make a positive impact by putting their money toward investments they care about without having to give up a lot in terms of returns. Betterment stands out in its socially responsible offerings by providing users with three investment options. The climate impact portfolio’s main focus is investing in companies concerned with environmental awareness, and it invests in funds that focus on low-carbon ETFs. The social impact portfolio supports companies that focus on social equity. Last, the broad impact portfolio invests in companies across the socially responsible landscape, which allows investors to put their money toward companies that want to have a positive impact in the world. For those who would like access to customer service, Betterment has a support team available five days a week to answer questions.
Fees: annual fee of 0.25%
Account minimum: None
Public.com: Best for community-oriented investing.
Investing with Public helps make the stock market more interactive and social. Investors can start trading on Public with as little as $1 and use the app’s social features to engage in investing in an interactive and community-oriented way. Public’s community allows users to see what other people are investing in. This means users share investments they’re buying and selling, which gives them the chance to learn from one another by seeing the investing activity show up in their feeds. On Public, you can create group chats with family, friends or other community members to discuss investment decisions. This could also be a way to find new investment opportunities or learn about companies with which you may have not been familiar. Public also hosts community events or public talks you can join on the app. Participants listen to experts discuss popular investing themes and trends.
Fees: None
Account minimum: None
Wealthfront: Best for automated investing.
Wealthfront shines for more than just its investment app thanks to its goal-based investing platform that makes it easy to start and continue investing. It builds a portfolio for you using low-cost index funds centered on your risk tolerance. While the funds are cheap and trades are free, you will have to pay an additional 0.25% advisory fee per year for Wealthfront’s management — which includes tax-loss harvesting and rebalancing. Wealthfront’s investment app scores top marks from both Android and iOS users for its ease of use and long-term planning features that help you stay on track for your investment goals. That said, its $500 minimum cuts out some beginner investors.
Account minimum: $500
Fees: 0.25% per year
The best investing apps for 2022:
Acorns: Best for investing with little money.
Stash: Best for beginners.
Robinhood: Best for low cost.
TD Ameritrade: Best for investor education.
E-Trade: Best for investment selection.
Betterment: Best for socially responsible investing.
Public.com: Best for community-oriented investing.
Wealthfront: Best for automated investing.
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8 Best Investment Apps for Millennials in 2022 originally appeared on usnews.com
Update 12/01/21: This story was published at an earlier date and has been updated with new information.
