Are “Spare Change” Micro Investing Apps Worth It - Trading Mastery (2024)

Over the past few years, I’ve noticed a unique new trend taking hold in the investment market. Designed to transform stray dollars into modest portfolios, “spare change” micro trading and investing apps have gained serious traction around the world.

But the question many casual and experienced investors are asking is: Are they really worth it? Read on for my guide to micro investing apps and whether they could work for you.

The best investment apps are out there

Spearheaded by companies like Raiz, Robinhood and Stash, micro investing and trading apps enable you to invest small amounts in stocks that ordinarily would cost you more. For example, Raiz automatically rounds up your purchases to the nearest dollar and invests the “spare change” into six diversified ETF portfolios selected according to your risk appetite. So, with every $4.50 coffee, you’re investing .50c in your portfolio.

California-born Robinhood adopts a different business model. It offers small fry investors the chance to purchase fractional shares with no commissions. Launched by Australian bank, Commonwealth Securities, CommSec Pocket offers customers the chance to start investing with just $50. Every micro investing app has its own unique business model. So finding one that works for you takes a little research.

Are “Spare Change” Micro Investing Apps Worth It - Trading Mastery (1)

The pros and cons of micro investing apps

One of the biggest pros of micro investing apps is that you don’t have to be an established investor or trader to get started. They’re popular with young investors who don’t have much disposable income and can only afford to make “spare change” contributions. They’re also simple and easy to use. Finally, they can be controlled from your mobile phone and offer exceptionally low fees.

On the flipside, one of my biggest qualms with micro investing apps is the false sense of security they can give investors. Dipping your toes into the market is great, but micro investing apps simply don’t offer the same long-term return opportunities. For this reason, many traders may be better off trading CFDs.

What I don’t like seeing or hearing about is people downloading these apps, contributing a few dollars a week and feeling content that they’ve successfully started trading the share market. There’s so much more opportunity out there. This is why I’ve launched free seminars like my seven-partIntro to Tradingcourse designed to help kickstart trading portfolios and potentially generate some great returns. You can also unlock access to knowledge-rich documents like myInsider Stock Picking Report.

Are “Spare Change” Micro Investing Apps Worth It - Trading Mastery (2)

How to use micro investing apps

Micro investing apps are designed to be simple and easy to use. They tend to vary in terms of how much user involvement is required. With Raiz, the rounding up and investing is automatic. Platforms like Robinhood call for a little more engagement. As such, they can be a great way to learn about the market and the concept of risk and reward.

Speaking of which, it’s also important to understand that, like all investments, micro investment apps come with some level of risk. There are no guarantees your trades will perform and you could end up losing some or all of your money. Fortunately, micro investments usually translate into smaller losses, but also smaller gains.

The final verdict on how to use micro investment apps?

Ultimately, they live up to their name. Adding 20 cents here and 65 cents there just isn’t going to generate significant wealth.

They’re not likely to harm your bottom line too much, but will they deliver meaningful returns? Probably not.

You’re not likely going to earn financial freedom using these apps, which is why we all start investing, right? Maybe that’s just me. But they are certainly an option to get started.

One of the best ways I’ve seen micro investing apps used is by young investors trying to amass enough to enter the share market properly. They might save up $1,000 using one of these apps, They then use that money to open their first trading account. I like this idea a lot.

It pays to empower yourself with the skills and knowledge to confidently navigate the market. Once you do, you can make those big, life-changing investments with low risk on a regular basis. This is something you can learn to do with myfree training courses.

To find out more about how to establish yourself as a trader and investor, check out my free stock trading training videos. My latestTrade the Turmoil webinarfocuses on how to use the current volatility caused by theCOVID-19pandemic to your advantage. This is a big opportunity and I urge you to start learning today.

Are “Spare Change” Micro Investing Apps Worth It - Trading Mastery (2024)
Top Articles
11 Websites & Apps That Will Pay You Daily ($300/Month Doing Nothing)
Foreign Direct Investment in the United States 2022 - GBA
Where are the Best Boxing Gyms in the UK? - JD Sports
Busted Newspaper Zapata Tx
craigslist: kenosha-racine jobs, apartments, for sale, services, community, and events
Plaza Nails Clifton
Wmu Course Offerings
Teenbeautyfitness
Craigslist In Fredericksburg
13 The Musical Common Sense Media
Jet Ski Rental Conneaut Lake Pa
Iron Drop Cafe
Azeroth Pilot Reloaded - Addons - World of Warcraft
Ladyva Is She Married
6th gen chevy camaro forumCamaro ZL1 Z28 SS LT Camaro forums, news, blog, reviews, wallpapers, pricing – Camaro5.com
Walthampatch
The Witcher 3 Wild Hunt: Map of important locations M19
This Modern World Daily Kos
Nj State Police Private Detective Unit
Ge-Tracker Bond
18889183540
Melissababy
Rqi.1Stop
Woodmont Place At Palmer Resident Portal
Pearson Correlation Coefficient
Ecampus Scps Login
The best brunch spots in Berlin
Tire Plus Hunters Creek
Skymovieshd.ib
Account Now Login In
Radical Red Ability Pill
TMO GRC Fortworth TX | T-Mobile Community
Uncovering the Enigmatic Trish Stratus: From Net Worth to Personal Life
6465319333
The value of R in SI units is _____?
After Transmigrating, The Fat Wife Made A Comeback! Chapter 2209 – Chapter 2209: Love at First Sight - Novel Cool
Manuel Pihakis Obituary
Bt33Nhn
EST to IST Converter - Time Zone Tool
The Ride | Rotten Tomatoes
State Legislatures Icivics Answer Key
Bismarck Mandan Mugshots
Myql Loan Login
15 Best Things to Do in Roseville (CA) - The Crazy Tourist
2007 Jaguar XK Low Miles for sale - Palm Desert, CA - craigslist
Brother Bear Tattoo Ideas
Jigidi Free Jigsaw
Missed Connections Dayton Ohio
Craigslist Marshfield Mo
Grace Family Church Land O Lakes
Factorio Green Circuit Setup
Latest Posts
Article information

Author: Roderick King

Last Updated:

Views: 6543

Rating: 4 / 5 (51 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Roderick King

Birthday: 1997-10-09

Address: 3782 Madge Knoll, East Dudley, MA 63913

Phone: +2521695290067

Job: Customer Sales Coordinator

Hobby: Gunsmithing, Embroidery, Parkour, Kitesurfing, Rock climbing, Sand art, Beekeeping

Introduction: My name is Roderick King, I am a cute, splendid, excited, perfect, gentle, funny, vivacious person who loves writing and wants to share my knowledge and understanding with you.