The best investment apps in June 2024 (2024)

Why use investment apps?

• Convenience: Investment apps offer a level of convenience that hasn’t traditionally been available to much of the retail US market. Accounts can be opened from anywhere with an internet connection, allowing users to access almost every corner of the investing market. Investors no longer need to visit physical locations or have the requisite investable assets to work with traditional brokerages. They can also buy almost any investment product, including stocks, bonds, ETFs, mutual funds and more.
• Low costs: Investment apps are also cost-effective. Most apps offer zero-commission trades and have lowered fees on almost all of their products. The low fees can add up for investors over the long term and mean more money can stay invested in the markets.
• Social features: Besides being easy to use, the apps foster new online networks. Some of the latest apps mimic some of the most well-known social platforms, where investors can share investment ideas, comment in forums about their investments, follow their favorite investors or stream live posts from other users. The new features can be used as an additional learning and educational resource and foster community engagement among users.

An overview of investment apps

Investment apps typically offer a range of tools to help everyday investors make informed decisions. The apps give investors the ability to buy and trade in real time, but, just as importantly, they provide educational tools and data — like access to investment research from economists and market experts — that help investors along the way. More advanced apps even offer portfolio tools to analyze market performance or have automated portfolios managed automatically for additional fees.

It’s important to use educational tools to research investments thoroughly and understand the risks of those investments before ever placing a trade. Fear not; there are investment apps for both beginners and experienced traders. Many investment apps even come with commission-free trading, which can lower the cost to almost zero. While most big names offer such zero-commission trades, they can also come with additional, and sometimes hidden, costs that investors will want to know about.

How do investment apps work?

Investment apps are often inexpensive or free to use and can be a convenient way for users to trade and sell investments. By downloading these mobile applications, investors gain access to various financial vehicles like equities and bonds, mutual funds or ETFs, and even sophisticated and complex alternative investments like cryptocurrencies.

1. Download the investment app: First, users download the investing app on a mobile phone or tablet and create an account. Opening the account may require personal information like a phone number, email address and banking information to link and fund the account. Funds can be transferred to the new investment account after linking the app to a financial institution.
2. Select your services: After spending some time learning about the market and researching the best strategies, users can select the appropriate products. Investment apps generally offer a host of tools and educational articles to help users select investments based on their individual goals, risk tolerance, age and other factors. Investors can use the app to execute the trades directly on the app, meaning the investors’ money will be used to buy or sell securities in real time. It’s important to remember that investments may lose value, so investors should thoroughly consider the risks.
3. Manage your investments: After investing in the markets, investors will have to continue to manage those trades over time. The apps offer easy-to-use portfolio management tools that help users track the performance of their investments. The tools can also help monitor market trends and tweak portfolios to keep them balanced and in line with the user’s investing strategy.
4. Integrate other financial accounts: Some investment apps can even sync with your other financial institutions, like banking, budgeting and financial planning apps. If you have a sophisticated portfolio, you may benefit from integrations between your investment accounts and other aspects of your financial life. Considering most Americans have access to a mobile phone or tablet, investment apps are a convenient way to invest in the financial markets, allowing users to manage their investments — sometimes 24 hours a day — right from their pocket.

Features to look for in an investment app

Choosing an investment app can be daunting for investors, and even experts have trouble filtering through the dozens of potential apps to find the best possible fit. Each app has pros and cons, so analyzing its features is a good way to start when choosing a platform to ensure it meets your investing preferences. Investing is a long-term game, so apps need to be able to grow and adapt to your current and future needs.

1. Fees

Cost should be front and center. Fees cut into investment gains over time, meaning small differences in fees can add up over years of investing. Many kinds of costs may be associated with opening up accounts and using investment apps, the most prominent of which are trading commissions and account maintenance fees. While most apps are upfront about fees and generally offer commission-free trading or low-cost monthly subscription options, others may charge more. The fee structure should fit your budget and investing style, including how often you plan to make trades.

2. Investment options

Most investment apps offer a smorgasbord of investment options, including stocks, bonds, stock and index options or futures. Make sure the app you choose has everything you need to build a well-rounded portfolio tailored to your goals.

3. Account types

You should also consider the types of investment accounts offered by each investing app to determine if they meet your investing goals. Most apps will feature individual brokerage accounts, but others can also offer retirement accounts, like traditional or Roth IRAs, custodial accounts or college savings accounts called 529 plans.

4. Research

Investment apps should provide comprehensive market data and financial news to help users find and research the best possible investments to reach their goals. Some apps, like Robinhood, are even investing in media companies to help streamline financial news and analysis for retail investors. Investment apps generally provide stock performance, earnings reports or expert analysis. The best apps come with stock screeners, charting abilities and educational resources that explain the fundamentals of investing, portfolio management, asset allocation, alternative investments and more.

5. User experience

Today’s investment apps are designed to be intuitive and user-friendly, which makes the user interface easy to navigate; however, not all investment apps have the same interface and layouts. Researching funds, trading equities and other essential tasks may be easier for you to use on some apps rather than others. The good news is that many apps will be available to download and try for free without having to fund an account. If you’re interested in a specific app, try it out and factor in the user experience when selecting the final product.

Some apps will offer more features than others. For example, if you like to manage your investments on the go, evaluate the features and functionality of the mobile app version. Many mobile apps offer the same functionality as the desktop or web-based platform. If you prefer deep research and analytics, prioritize apps that offer real-time trading, portfolio tracking tools and research.

6. Security and customer service

In today’s world, security is a top concern when dealing with money electronically. Investment apps should have the latest security features, including multi-factor authentication. They should also have the ability for you to contact human customer service representatives online or over the phone.

Choosing the right investment app for you

There are dozens of investment apps on the market today, with new companies continuing to launch new products each year, meaning parsing through hundreds of features to find the right one can be a chore. Breaking down the decision and taking the process step by step can be a great place to start.

1. Clarify your goals

What are your goals? First things first, you need to clarify your goals. Are you saving for retirement? Saving up for a big purchase like a home or a car? Just trying to grow your wealth? Once you establish the financial milestones you would like to achieve, you can determine the types of investments and features to choose.

2. Determine your comfort level

If you’re a beginner, there are easy-to-use options with educational material to help you advance. If you’re more experienced, you may prioritize advanced trading features and in-depth analysis tools.

3. Make a plan

What are your needs? Once you have a goal, the next step is to plan a path to achieve it. Some goals have long time horizons better suited for long-term investing strategies like buy-and-hold, passive investing. Saving for retirement or for college is a prime example. In this case, you may want an app that offers Roth IRAs or 529 plans. For short-term trading goals, most investment apps with brokerage features will do the trick.

4. Compare and contrast

Once you have created your list of priorities, research the investment apps that catch your eye and compare and contrast the features, like the account types offered and the overall compatibility with other institutions like banking accounts and budgeting tools. Online reviews and ratings can help, as well as suggestions from friends and family. Use this information to build a short list.

5. Try different investment apps

Next, take the apps for a test drive. Free trials or demos allow users to try the investment apps out before linking the app to their bank or funding the account. This is a risk-free way of experimenting with investment apps to see how they fit your needs. If you like the features and the overall user experience, take a deeper look at fees to fine-tune your decisions.

6. Plan ahead

Keep in mind your needs may evolve over time. Today, you may be thinking about a new investment strategy, but in a few years, you may start thinking about retirement. Make sure your investment app can grow with you as your financial situation and investment goals evolve.

Investment apps and safety

Multi-factor authentication is becoming the industry standard. Whether you receive a verification code to your phone or scan your fingerprint, these additional layers go a long way to keeping your account safe. Investors should enable safety features to ensure they are using an investment app as securely as possible.

While cyber threats are real, the likelihood your money will be lost is slim. Your money is protected in an investing app just like it would be at any brokerage firm. Most investment apps must be insured by the Securities Investor Protection Corp. (SIPC), a government regulatory watchdog that covers investment losses of up to $500,000 if a brokerage goes bankrupt or otherwise loses your money. If you’re considering investing more than $500,000, you may want to split up the investments into different accounts so they are insured.

Check the fine print to make sure reputable financial authorities regulate your investment app. Some apps may be headquartered abroad, so check if they are regulated to do business in your country.

Investment apps also offer different types of accounts that may be overseen by different US regulators, like robo-advised accounts that offer automated investment plans or savings accounts that deposit assets in traditional bank accounts. Depending on the type of account, an investing app may need to be regulated by the SIPC, the Federal Deposit Insurance Corp. (FDIC)for deposits and the Securities and Exchange Commission (SEC) for advised assets.

It’s important to remember that security starts with you. Use strong passwords for your investment app accounts that differ from those you use for your financial institutions, and avoid sharing login credentials with others. These measures can provide additional safeguards in the event of fraud. Take proactive steps to protect your account and personal information.

Alternatives to investment apps

There’s more than one way to invest. From cryptocurrency to real estate, investors have found dozens of ways to do more with their investable assets. The latest investment apps are adding multiple account types, like savings and retirement accounts, that blur the lines of traditional investing.

1. Traditional brokerage firms

These companies offer a variety of products and services and provide advice on a wide range of client needs, including wealth management, estate planning, tax advice and more. Also known as a full-service brokerage, these financial institutions include some of the most storied names in finance, like Merrill Lynch and Morgan Stanley.

2. Robo-advisors

Robo-advisors are automated programs that use proprietary algorithms to create and manage a portfolio of investments on the user’s behalf. By taking into account the investors’ goals, risk tolerance and time horizon, robo-advisors can offer lower fees than other brokerages and are most often used for set-and-forget investment strategies. These platforms can be paired with human advisors, usually for a higher fee.

3. Direct stock purchase plans

While less popular, direct stock purchase plans (DSPPs) allow investors to buy shares of individual companies directly from the company itself. By bypassing traditional brokerage firms, these plans often have low fees and may offer dividend reinvestment options. They also require fewer investable assets and are used for long-term investment goals.

4. Retirement accounts

Retirement accounts, such as 401(k) plans and IRAs, provide tax-advantaged ways to save for retirement. These accounts may offer a range of investment options, including stocks, bonds, mutual funds and target-date funds, but some also come with penalties for early withdrawals. For example, 401(k)s are employer-sponsored plans that can be invested in automatically each pay period. The funds typically can’t be withdrawn until retirement age, with few exceptions.

5. Alternative investments

These investments can include anything from artwork to commodities to precious metals and are generally thought to provide diversification and hedge against inflation. Real estate investment trusts (REITs) are another popular alternative investment, whereby companies own or finance real estate across sectors. Commodities like gold, silver, oil or agricultural products are often bought and sold through futures contracts.

Methodology

To construct our list of best investment apps, we examined 17 popular apps from online-only or app-first financial services companies, as determined by our expert editors. We then scored each app according to six key factors.

Tradable asset classes (35%)

Investment apps offering the ability to trade more asset classes were scored higher, as they give users more flexibility with their investments.

App basic version monthly cost (25%)

Apps that charge users a monthly subscription fee were scored lower.

Robo-advisory option (15%)

Investment apps that offer automated or robo-advisor portfolios were scored higher, as they provide users with greater flexibility to manage their investments.

Option contract fees (10%)

While all the investment apps we examined charge no commissions for stock and ETF trades, option contract fees were factored into our ranking, as these costs can eat away at returns over time.

SEC registration date (10%)

Investment apps from brokerage firms that have been SEC-approved for a longer time were scored higher, as this can indicate a more reputable and reliable company.

Brokerage firm disclosures (5%)

Investment apps from brokerage firms with fewer SEC disclosure events were scored higher, as disclosures are an indication of customer complaints, regulatory actions or other legal issues.

Frequently asked questions (FAQs)