The Best Investing Apps Of 2023 That Help You Beat Inflation
As the world becomes increasingly digital, investing has become more accessible than ever before. Investors no longer have to rely on traditional brokers to buy and sell stocks, bonds, and other securities. Instead, they can use investing apps to manage your portfolios, track your investments, and even automate your trades.
These apps are designed to make investing accessible and easy for anyone, regardless of your level of financial expertise.
Investing apps are a great option for people who want to start investing but don’t have a lot of money to invest upfront.
Many apps allow you to start with as little as $5 or $10, and some even offer fractional shares, which means that you can invest in expensive stocks or funds by purchasing a small portion of them.
Can you afford not to invest?
Investing your money can be a smart financial decision for several reasons:
- Inflation reduces the purchasing power of your money over time, meaning that the same amount of money will buy fewer goods and services in the future. Investing can help you stay ahead of inflation and potentially earn higher returns than the rate of inflation, which means that your money can grow over time.
- By investing in a diversified portfolio of assets, you can potentially earn higher returns than you would by keeping your money in a savings account or other low-risk investments. This will help you build wealth over the long term.
- It can help you achieve financial goals, such as saving for retirement, buying a house, or paying for your children’s education. By investing your money wisely, you can potentially earn the returns you need to reach your goals.
- Diversification can help reduce your overall investment risk and potentially increase your returns. Investing allows you to diversify your portfolio by investing in a variety of assets.
The best investing apps of 2023
- Betterment
- Interactive Brokers
- TD Ameritrade
- Acorns
- Robinhood
Nowadays, there are many investing apps available, each with its own unique features and benefits. In this article, we will explore some of the best investing apps of 2023.
1. Betterment
Betterment is a popular robo-advisor that offers a simple, low-cost way to invest your money. Founded in 2008, Betterment has grown to become one of the largest robo-advisors in the market, managing over $32 billion in assets for more than 500,000 customers.
Minimum Deposit and Balance
Betterment’s minimum deposit to open an account is $0, which means you can start investing with any amount of money. However, you will need to maintain a minimum balance of $10 to keep your account open.
With no minimum deposit to open an account, goal-based investing, and tax-efficient strategies, Betterment is a good choice for investors who want a simple, automated way to manage their investments.
Pros
- Low fees
Very competitive fees, with an annual management fee of 0.25% for digital-only accounts and 0.40% for premium accounts. - Automated portfolio management
Betterment’s robo-advisor uses advanced algorithms to automatically manage your portfolio based on your investment goals and risk tolerance. - Tax-efficient investing
Uses tax-loss harvesting and other tax-efficient strategies to help maximize your after-tax returns. - Goal-based investing
Allows you to set specific financial goals, such as saving for retirement or a down payment on a house, and creates a customized investment plan to help you reach those goals. - User-friendly app
Betterment’s mobile app is easy to use and provides a simple, streamlined way to manage your investments.
Cons
- Limited investment options
Investment options are limited to ETFs, which may not be suitable for all investors. - No individual stock investing
Does not allow users to invest in individual stocks, which may be a drawback for some investors. - Higher fees for premium accounts
Premium accounts have a higher annual management fee of 0.40%, which may be a drawback for investors with smaller account balances.
App Ratings
Betterment‘s mobile app has a rating of 4.8 out of 5 stars on the App Store and 4.4 out of 5 stars on Google Play. Users generally praise the app for its simplicity, ease of use, and user-friendly design.
Fees and Costs
Betterment charges an annual management fee of 0.25% for digital-only accounts and 0.40% for premium accounts. There are no trading fees or account transfer fees, and Betterment’s ETFs have relatively low expense ratios.
However, it’s important to note that there may be other costs associated with investing in ETFs, such as bid-ask spreads, which can affect your overall returns.
2. Interactive Brokers
Interactive Brokers is an online brokerage firm that provides access to a wide range of global markets, including stocks, options, futures, currencies, bonds, and more. This makes it an attractive option for traders who want to diversify their portfolios.
Founded in 1977, Interactive Brokers has an equity of $381.1 billion and a total 1.49 million customer accounts. It is mainly known for its advanced trading tools, low fees, and broad global reach.
Using a margin trading service, allows you to borrow funds to trade with. This can increase the potential for profits but also comes with increased risk.
Minimum Deposit and Balance
There is no minimum deposit required to open an account, meaning that you can use whatever amount you want to start with. You need a minimum account balance of $2,000 to avoid monthly account fees.
Pros
- Low fees
Some of the lowest fees in the industry, with commission-free trading for US stocks, ETFs, and options, and low fees for trading in other markets. - Advanced trading tools
Including customizable charting, real-time market data, and advanced order types. - Global reach
Offers access to over 135 markets in 33 countries, making it a good choice for investors who want to invest globally. - Wide range of investment products
Including stocks, options, futures, bonds, mutual funds, and ETFs. - Strong financials
It is a publicly traded company with strong financials, which may provide added peace of mind for investors.
Cons
- Complex platform
Can be complex and difficult to navigate for new investors. - Inactivity fees
Charges inactivity fees if you don’t meet certain trading requirements - Minimum balance requirements
Minimum account balance of $2,000 to avoid monthly account fees
App Ratings
Interactive Brokers‘ mobile app has a rating of 3.7 out of 5 stars on the App Store and 3.8 out of 5 stars on Google Play. Users generally praise the app for its advanced features and trading capabilities, but some users report issues with the app’s stability and performance.
Fees and Costs
Interactive Brokers offers commission-free trading for US stocks, ETFs, and options, but charges fees for trading in other markets.
- Margin fees (charges interest on the amount you borrow)
- Inactivity fees (if you don’t meet certain trading requirements)
- Account fees (of $10 if your account balance falls below $2,000)
3. TD Ameritrade
Ameritrade, now part of Charles Schwab, has a number of unique features that set it apart from its competitors in the online brokerage industry.
It is used by individuals who want to manage their own investments and make trades online, as well as by financial advisors who use the platform to manage client portfolios. With Ameritrade you can buy and sell securities such as stocks, bonds, mutual funds, options, and exchange-traded funds (ETFs).
Minimum Deposit and Balance
One of the benefits of using TD Ameritrade is that there is no minimum deposit requirement to open an account. However, to trade options or futures, a minimum balance of $2,000 is required.
For margin trading, the minimum balance is $2,000 for a standard margin account and $25,000 for a pattern day trading account.
Pros
- Wide range of investment products
Including stocks, bonds, mutual funds, ETFs, options, futures, and forex. - Educational resources
Including, webinars, video tutorials, and articles to help investors learn more about investing. - User-friendly platform
It is intuitive and easy to use, making it accessible to investors of all levels. - Research tools
Including market analysis, news, and third-party research reports.
Cons
- High fees
Relatively high compared to some of its competitors. However, the platform does offer some commission-free trading options. - Limited forex trading
While TD Ameritrade does offer forex trading, its platform is not as robust as some of its competitors.
App Ratings
TD Ameritrade‘s mobile app has a rating of 4.7 out of 5 stars on the Apple App Store and a rating of 4.6 out of 5 stars on the Google Play Store. The app is easy to use and provides investors with access to their accounts, market data, and research tools on the go.
Fees and Costs
TD Ameritrade charges a $0 commission fee for online equity trades.
Options trades are charged $0.65 per contract, and futures trades are charged $2.25 per contract.
Mutual fund trades are charged $49.99 per trade, and bond trades are charged $1 per bond with a $10 minimum and $250 maximum.
Forex trading is charged on a commission basis, with fees ranging from $0.10 to $1 per 1,000 units, depending on the currency pair.
In addition to these fees, TD Ameritrade charges a $6.95 flat-rate commission fee for trading penny stocks and a $25 service fee for outbound account transfers.
4. Acorns
Acorns is a mobile investing app that is designed to help you invest your money in a simple and automated way. The app works by rounding up your purchases to the nearest dollar and investing the spare change in a diversified portfolio of exchange-traded funds (ETFs). This makes it easy for you to invest your money without having to actively manage your portfolio or make complex investment decisions.
Minimum Deposit and Balance
One of the key benefits of Acorns is that it has no minimum deposit or balance requirements, which makes it accessible to a wide range of investors.
You can link their bank accounts to the app and start investing with just a few dollars.
Pros
- Easy to use
Easy to start investing and track your progress. - Diversification
Acorns invests your money in a diversified portfolio of ETFs, helping to reduce risk and increase potential returns. - Automated features
Such as round-ups and recurring investments, make it easy for you to invest without having to actively manage your portfolio. - Educational resources
Including articles and videos, to help you learn more about investing and make informed decisions.
Cons
- Limited control
You have limited control over your investments. - Fees
Charges a monthly fee. - Limited investment options
Acorns invests your money in a limited number of ETFs.
App Ratings
Acorns has generally positive ratings on both the Apple App Store and Google Play Store, with an average rating of around 4.7 out of 5 stars. It is praised for its simplicity, ease of use, and automated features, while some criticize the fees and limited investment options.
Fees and Costs
Acorns charges a monthly fee of $1, $3, or $5, depending on the level of service selected.
The $1 option includes a basic investment account, while the $3 and $5 options include additional features such as a checking account, retirement account, and access to financial advisors.
In addition to the monthly fee, Acorns also charges a management fee of 0.25% per year for accounts with balances over $5,000.
5. Robinhood
Robinhood is a mobile investment app that is used for buying and selling stocks, options, exchange-traded funds (ETFs), and cryptocurrencies.
The app offers real-time market data, charts, and news, as well as a simple buy and sell interface. Robinhood also offers a feature called “Robinhood Instant,” which allows users to access up to $1,000 in buying power immediately after making a deposit.
Minimum Deposit and Balance
Robinhood has no minimum deposit or balance requirements. You can link your bank accounts to the app and start trading with just a few dollars.
Robinhood also offers fractional shares, which allow users to buy a portion of a share of a stock, making it easier to invest in expensive stocks.
Pros
- Commission-free trades
For stocks, options, and cryptocurrencies, making it a more affordable option for investors. - User-friendly interface
Simple and easy to use, making it accessible to beginner investors. - Fractional shares
Which allows you to invest in expensive stocks and diversify your portfolio with smaller amounts of money. - Wide range of investment options
Including stocks, options, ETFs, and cryptocurrencies.
Cons
- Limited research and educational resources
Which may make it more difficult for you to make informed decisions. - Controversies
Robinhood has faced controversies in the past, including issues with customer service and the temporary suspension of trading during the GameStop stock frenzy.
App Ratings
Robinhood has mixed reviews on both, Apple App Store and Google Play Store, mostly because of the controversies the company has faced, with an average rating of around 3.5 out of 5 stars.
Fees and Costs
As mentioned, Robinhood offers commission-free trades for stocks, options, and cryptocurrencies. However, users should be aware that there may be other fees and costs associated with trading, such as regulatory fees and foreign exchange fees for international trades.
Additionally, Robinhood offers a premium subscription service, Robinhood Gold, which includes features such as margin trading and after-hours trading for a monthly fee ranging from $5 to $200.
Conclusion
Investing apps have made it easier than ever to manage your portfolios and make informed investment decisions. Betterment, Ameritrade, Acorns, Interactive Brokers and Robinhood, are some of the best investing apps of 2023, each with its own unique features and benefits.
Whether you are a seasoned investor or just starting out, there is an investing app that can help you achieve your financial goals.
Of course, investing always comes with risk, and it’s important to do your own research, understand the risks involved, and consult with a financial advisor before making any investment decisions.
