With the rise of financial technology, there are now many web and mobile apps that allow everyday investors to manage their portfolios and trade stocks, bonds, funds and other assets online. While mainstream platforms like E*Trade, Robinhood and Wealthfront are popular, some investors are looking to alternative web-based investment apps for unique features or market niches. This article will explore and compare the key capabilities of lesser-known investment apps and how they differentiate themselves.
Niche focus of alternative investment apps
Many new investment apps tailor their offerings to specific investor needs or market segments that may be underserved by mainstream platforms. For example, Ellevest is an app designed specifically for women investors and their typical financial goals and risk preferences. Applications like WiseBanyan and Stash are focused on beginning investors who want to start small and may not meet minimum balance requirements on other platforms.
Unique features of upstart investment apps
In addition to niche audiences, newer investment apps try to stand out through novel features and approaches to investing. Motif Investing pioneered the concept of motif investing, allowing users to invest in baskets of stocks around a theme or idea. Micro-investing apps like Acorns allow people to invest their spare change rounded up from everyday purchases into ETF portfolios.
Fee structures and pricing models
Some alternative investment platforms compete on costs, offering low or no trading commissions. Applications like M1 Finance have no management fees and make money mainly on margin lending interest. Others like Betterment and Wealthsimple charge a single transparent management fee based on assets under management rather than commissions per trade.
Technology and user experience differences
Emerging investment apps often emphasize advanced technology and user-friendly design to differentiate themselves from incumbents. Features like automatic rebalancing, robo-advisors, and intuitive interfaces aim to attract digitally-savvy investors. Integrations with other apps via APIs also allow these platforms to provide better tracking tools and personalized analytics.
While mainstream investment apps serve most investors’ core needs, alternative web-based platforms are carving out niches with specialized offerings, innovative features, competitive pricing, and strong technology. Investors looking for a particular focus area or experience may find these upstart applications to be viable options.