Today we’ll be taking a look at five different investing apps a lot of people have been asking how to actually get started with investing in stocks or bonds or mutual funds or other types of investment vehicles. Hopefully this video can kind of give you a layout of the opportunities that are available right now at the moment. Some of the best investing apps and stockbrokers that you could consider starting with to start investing or if you have an account right now with one of these you might want to consider switching to a different one depending on some of the different benefits and the pros and cons behind some of these different investment platforms so we want to jump into that.
In this video But there should be something here for everyone considering that some people invest differently. Some people might do what buy one to do some day trading. Others might want to do some long term investing that’s what I do long term investing. And then there’s also active and passive investing. What type of investor are you going to be that’s going to depend and kind of you know change your mind on which stockbroker or investing athlete might want to choose depending on how much you’re actually investing and how often and how actively you’re doing it or if you just kind of passively putting into mutual funds.
So this kind of help you kind of decide what might be the best option for you. So let’s get started with this one. Let’s start with the first one here which would be stash invest now what I really like about stash I’ll let me just take you to their Web site really quickly now stash is really interesting because they make it very simple to start investing. And that’s what I like about this company. You can start with as little as five dollars to start investing into specific stocks. It doesn’t give you a ton of options for stocks but it gives you kind of the ones that you might be very familiar with already like Apple and Nike and Tesla stock.
But what’s great about this is that you can buy fractional shares of these stocks. So traditionally if you want to buy say one share of Amazon it’s like 17 or 18 hundred dollars for one share. So if you don’t have you know over a thousand dollars you can’t buy any Amazon but with stash you can do that you can buy pieces of a share of stock if you’re confused on this a little bit. So you know down the comments and I can try to kind of help you out a little bit walk through this but that’s one of the best features about this but it also gives you opportunities to invest in the ETF and other types of funds as well index funds.
And it makes it very simple. That’s why I do like about this now. They don’t charge you fees to buy and sell these stocks. And these ETF or these other funds that you might be getting into the one thing that they do have is it starts off at one dollar per month as their fee. So kind of their management fees one dollar per month. And then if you have over I believe five thousand dollars in that account it gets charged at point to 5 percent annually off of your account which really isn’t too bad.
It’s about the new industry standard. We could say but considering that some financial advisor financial advisors like traditional financial advisors can charge 1 percent or more in some cases for their advisory fee point to 5 percent it’s really not too bad to see that happen and I think it’s a great way to kind of just get started with investing. You can do automatic deposits into that. What I would suggest doing maybe just download the app check it out or you can kind of go onto the Web site and see what they offer.
So another great feature of this app is that you can set up a custodial account. So this is for anybody who’s under 18. Maybe you ought to start investing but you don’t know how. Setting up a custodial account with stash could be an option. And essentially what you have to do is bring your parents into this and have them help you set it up. But not every brokerage firm or investing app allows you to use for example Robinhood as of sometime in 2019. They still don’t allow those custodial accounts.
So if you’re under 18 consider that with stash it is an option but they also will have retirement accounts that you can set up as well with this company. So I would suggest just heading over. Take a look at their Web site and see what they offer. But let’s kind of talk about these other ones on this list. And the next one might be one of my favorites. And you know when listing these five they’re not necessarily in specific order of which one is actually best it all really depends on what type of investor you are.
But for number four it’s going to be Vanguard. Now you don’t think of Vanguard as an app traditionally but it is one of the best investment platforms out there. And in the numbers really show for it. That’s why they manage trillions of dollars’ worth of assets for millions of people. So many people use Vanguard to manage their money. And what’s great about this is that their fees are very low for long term investors. So if you’re the type of person you want to set up like an IRA or a Roth IRA or maybe have a 4 1 K through something like Vanguard what’s great about this is that they’re not charging you fees to operate your account and they’re not charging you fees to buy and sell like their mutual funds or their ETF.
You can do that for free through Vanguard and take a really low expense ratio so zero point zero 4 percent for like the S&P 500 index fund. Very low fees overall and I think it’s one of the best ways for people long term if that’s we want to do just kind of passively throw money into the markets that’s what I would personally do. Keep in mind I’m not a financial adviser these are just my personal opinions here so you should look into them a little bit further. But Vanguard is one of the most reputable companies in the world in the finance game so another great reason to consider Vanguard is that they offer so many different types of accounts so not just the traditional brokerage account but IRA accounts for one case college like 529 plans.
They have so many different possibilities within here. That is something that you’ll probably end up opening an account with Vanguard at some point in your life. Just based off of the amount of opportunities that they offer for most people. Number three is M1 finance. Now the greatest feature of this company by far is probably the fact that they offer free trading they’re almost entirely free. Almost anything that you use on this platform is free and at first that might sound a little bit outlandish. Thinking how is this company free.
How are they making money isn’t it a business they need to make some money while they do make money in a kind of an interesting way they’re making it. Often the cash that’s in people’s account they’re making interest on that. It’s kind of confusing a little bit. Some of the other strategies that they used to make money. You can read into that. I believe actually in an article on their blog on their Web site but kind of one of the biggest features to this is that you can have the kind of view it as like a pie and you can put different investments in here so you can have say 20 percent of your portfolio in technology stocks or 5 percent of your overall stock portfolio in Apple stock and then it also rebalances if you would like it to do that.
It can auto rebalance for you and I think it’s really focused on automating a lot of the process like robo advising and that is what is interesting about it. The base has a cargo they manage over 100 billion dollars in assets CEOs Brian bonds I believe but they do seem to be a very good company very reputable company. Now they do have some other features as well that I haven’t necessarily tried out so I can’t speak on them too much but they have anyone spend and one borrows. So anyone spend is pretty similar to something like the Venmo card that you might see or some of these other different things like the acorns card where it’s essentially a debit card that you can connect to your account and anyone borrow is pretty interesting as well you.
But I would be careful with that whenever borrowing money just kind of is wary of that a little bit. And so overall though I think this company is very good for people to get started. They don’t offer custodial accounts. If you’re under 18 at the moment they don’t offer. I believe they said they could be offering it sometime mid 20 19 so depending on when you’re watching this video it might be available. But overall I do like this company. I love the fact that they’re free and I think it’s great for people to get their feet wet in the market kind of start buying stocks or start investing in a certain different areas.
And I don’t know if I mentioned this yet but you can buy fractional shares and that’s one of the best aspects of it because if you wanted to buy Google stock back few years ago for six or seven hundred dollars it was difficult to do that. But today with fractional shares you can put five dollars into Google if you’d like. I really wish I could have done that when I first started investing. So let’s talk about the next two here. Both of them are some of my favorites. So number two is fidelity now.
I would say that this is very similar to Vanguard in a lot of cases it might not be the go to for some people but I think it’s a great kind of like home base. Great one to put money into mutual funds or ETF because they do have very low fees you can see just on their home page here on their browser they have Y fidelity beats Vanguard now. I personally still prefer Vanguard just ever so slightly over fidelity but they do have some very good reasoning for why they are better than Vanguard and one of the best financial institutions in the world for investing.
Now this might not be a great option for people who want to invest money into individual stocks on a consistent basis considering that their investment fees about four dollars ninety five cents per transaction I believe is four dollars ninety five cents per transaction from time you’re buying and selling stocks. So that might be a downside to that you might want to go something different if you’re going to be doing that. But if you’re looking for long term investing mutual funds ETF fidelity could be a good option for you. What I like about this is that they have 24/7 customer service you can get on the line call them and kind of get some help with some things that you need not everybody offers that.
And I think that’s important to have especially if this is like your big nest egg. Like if you’re putting most of your money into something like Fidelity you’ll want to make sure that you are able to pick up the phone and talk to somebody in person. Whereas some of these other ones don’t offer that but another great feature to this is that they do offer so much for news and research. So some of these other ones like when finance for example or stash you can’t really do a lot of research on that with fidelity.
They offer a lot of opportunities just behind that and you can even set something up where maybe you’re doing a lot of your research on something like Fidelity using their analytics and kind of seeing what the analysts are saying and then buying the stocks on something that has no transaction costs that’s just like kind of like a combo you could set up that could work pretty well for a lot of people. Now let’s just kind of get into the last one here and that is by far it’s going to be Robin Hood now Robin Hood has millions of users today.
I remember when this first came out somebody called me up and said Nate you have to get on this investing platform. It’s totally free to use. And just like with one finance I said what the hell like this can’t be real. How is it free? How can you buy and sell stocks and invest into the markets with no cost. How is a business making money? Well they are making money in a variety of ways. And maybe I’ll just make a totally different video on that because it’s really interesting how they do it.
But Robinhood is probably the go to for most people getting started investing in the stock market. And I believe assuming that my link still works for this you’ll get a free stock if you sign up for Robinhood through the link down in the description below in this article. I get a free stock and you get a free stock but I think I mixed mine out already so I can’t get any more. But it’s a great way to start investing. They don’t offer a ton of different research capabilities but it seems like every week they’re kind of rolling out something new some type of new feature on their app.
They have Robinhood crypto now I believe that they introduced that last year and so this is the go to in my opinion. Like I said though I’m not a financial advisor. I kind of invest at your own risk. Don’t just trust anybody on the Internet but you can do your own research on these and see that these are all very reputable companies that you could consider starting with and a way that I wouldn’t consider doing this is like if you’re not sure which one to go with maybe considering opening up maybe one account at a couple of different brokers or investing apps and then seeing which one you like best because people have different preferences.
There’s some other ones on this list that I didn’t mention like wealth front or betterment and there’s some reasons for that. Mainly because I don’t really use them very often. And so I don’t want to put them on this list but their stock pile there’s label there’s a bunch so we can mention as well that I haven’t really used as much as I’ve used these five. And so I couldn’t kind of really vouch for them as much as I can for these. So if you found value in this video make sure you share it with somebody who might want to start investing or you think should start investing.
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