The stock market has seen tremendous volatility this year due to the coronavirus pandemic. While the crisis initially caused the market to tumble significantly, it quickly rebounded. It did so to the extent that the stock market recently experienced its best quarter in decades.
Many have credited the use of innovative investment apps as having helped drive this surge. Not only have these apps allowed people to trade at home during the shutdowns, but they have allowed them to do so in ways that were not possible just a short time ago.
Here are 5 great investment apps that you should know:
If you were to mention investment apps to a stranger, the one that would likely come to mind is Robinhood. This app has led to a revolution in how people invest, by eliminating stock trading fees. But the app does a lot more than just let you buy and sell stocks cheaply. You can use it to trade both options and cryptocurrencies and to make advanced orders, such as:
- market orders
- limit orders
- stop-limit orders
- stop orders
However, Robinhood is not perfect. It has many limitations, such as you cannot use it for retirement accounts. So, it is important for you to thoroughly research its capabilities before committing to it.
Acorns is another app that allows you to inexpensively invest in the stock market, though it works in a fundamentally different way than apps such as Robinhood. By linking one of your credit or debit cards to the app, it will automatically round up your purchases to the nearest dollar, using this money to invest in a selection of exchange-traded funds (ETFs).
While Acorns is not free, it can cost as little as $1 per month, and you can also use it for retirement accounts.
One of the most common limitations of many investment apps in comparison to more traditional forms of stock trading is the lack of high-quality investment research tools. Fortunately, there is an app that provides this research: Finviz. This app is what is called a stock screener, which lets you find great stocks based on whatever your investment criteria may be, making it an excellent companion to other investment apps.
One of the terrific aspects of Finviz is that it does not force you to choose between fundamental or technical indicators when screening stocks. You can use either methodology with it or even some combination of the two.
While Finviz does have a paid subscription plan that includes advanced features, you can also use the app completely free of charge.
Betterment is a type of investment app that is known as a robo-advisor. What it does is first ascertain the amount of risk that you are willing to accept, and based on this and your investment goals, it matches you to ETFs. It further professionally manages your investment portfolio, much like an expensive investment advisor would do but at a very low price. It does all this while requiring no minimum investment, so you can try it out with just a small amount of money.
One of the biggest problems many new investors face is that they often do not have sufficient knowledge about investing to do it successfully. Invstr can help with this, by teaching you how to invest through the context of a game. The app provides you with $1 million in virtual money to invest and the tools to do so properly. Not only can you learn how to invest real money using this app, but you can receive prize money if you do well in the game.
Investment apps have been all the rage during the recent surge of the stock market, and for good reason. They have given ordinary investors innovative means to secure their financial future. So, anyone considering investing in today’s stock market should strongly consider their use.