With the rise of fintech companies, investing apps have become increasingly popular among retail investors looking to take control of their financial future. Investing apps allow users to conveniently track markets, research stocks and funds, and execute trades all on their smartphones. When choosing an investing app, key factors to consider include investment options, fees and commissions, platform functionality, educational resources, and security. This article will compare and contrast some of the top investing apps like Robinhood, Webull, M1 Finance, and more to help you determine the best fit for your investing needs.
Robinhood Offers Commission-Free Trading But Has Limited Investment Options
Robinhood is one of the most well-known investing apps, pioneering free stock trades and attracting millions of users. Robinhood offers commission-free trading on stocks, ETFs, options and cryptocurrencies. However, one downside is that Robinhood has a limited selection beyond those core assets classes. For example, Robinhood does not allow users to purchase mutual funds, bonds, OTC stocks, or foreign stocks. The app also lacks more advanced trading features like trailing stops. Robinhood makes money through a payment-for-order-flow model, selling user order information to market makers and earning interest on cash balances.
Webull Delivers Strong Trading Capabilities and Market Data
Webull is another commission-free trading platform that offers stocks, ETFs, options and cryptocurrencies. Webull provides users with Level 2 market data, advanced charting and analysis tools. Users can trade on margin and even short sell stocks. One advantage over Robinhood is that Webull allows trading during extended hours. However, similar to Robinhood, Webull also has a narrow investment selection. Webull generates revenue through payment-for-order-flow and subscription services for its premium features.
M1 Finance Focuses on Automated Long-Term Investing
Unlike Robinhood and Webull, M1 Finance aims to enable automated long-term passive investing. Users create diversified portfolios using stocks and ETFs, set target allocations, then M1 automatically invests any deposits to maintain the desired asset balance. M1 offers retirement accounts like IRAs in addition to taxable accounts. However, M1 does not allow trading options, cryptocurrencies or fractional share purchases. The app charges no commissions but makes money on loan interest from unused cash balances.
When choosing an investing app, consider your specific needs in terms of features, investment types, costs, tools and educational resources. Apps like Robinhood and Webull are better for active trading while M1 Finance enables hands-off long-term investing. There is no one-size-fits-all best investing app.