With the rise of financial technology, there are more and more investment apps available for retail investors. Choosing the right app that fits your need is crucial to maximize your investing experience. When reviewing investment apps, here are some key factors you should consider carefully:
Wide range of investment products
A good investment app should offer access to stocks, ETFs, mutual funds, options, cryptocurrencies and other major asset classes. This allows you to construct a diversified portfolio within one app. For example, leading apps like Robinhood and Webull all have basic stocks and ETFs. More advanced platforms such as TD Ameritrade even offer futures, forex and portfolio margin. The wider the products, the more flexibility you have in investing.
Low fees and commission rates
Trading fees and commissions can significantly eat into your investment return over time. When picking an investing app, go for ones with low or no commission fees. For stock trading, leading apps like Robinhood, Webull and Moomoo all offer zero commission. For options trading, fees are typically higher, but apps like Tastyworks have capped commission rates. Besides trading fees, also look out for account maintenance fees or inactivity fees.
Powerful trading capabilities
The trading functionalities on the app directly impact your investing experience. Check if basic orders like market order, limit order, stop loss are supported. More advanced traders may need tools like bracket orders, trailing stops, conditional orders etc. Leading platforms like Interactive Brokers have extremely powerful trading capabilities catered to active investors. You also want to see if the app offers fractional share investing, which allows buying stocks in dollar amounts rather than whole shares.
Research and analysis tools
Serious investors rely on research and analysis to make informed investing decisions. At minimum, a decent investing app should have basic stock screeners, interactive charts, financial data and news feeds. More advanced platforms take it further by incorporating AI-driven analytics, risk analysis tools, options strategy builders, social sentiment trackers etc. Thinkorswim by TD Ameritrade is highly regarded for its robust research capabilities.
Education and community
For new investors, having educational resources on the app is invaluable for learning the ropes. Many apps now incorporate investing courses, video tutorials, guides and e-books. There are also online communities on platforms like Reddit and Discord where you can discuss investing ideas with fellow users. Don’t underestimate the value of community in improving your investing skills over time.
When reviewing investment apps, prioritize low fees, trading capabilities, research tools, educational resources and community. Test out multiple apps by opening free demo accounts first before funding a real account. Finding the right investing app takes research, just like finding the right investments.