If you’ve been thinking about breaking into investing, then you’ve probably been looking at apps like Robinhood and E-Trade. While investing in stocks can seem scary and overwhelming, it’s easier than you think, thanks to these easy-to-use apps.
Let’s look at some features of these apps and what makes them great for beginners and veteran traders alike.
One of the best things about modern trading apps is that many of them offer no trade fees. That’s a massive boost for amateur traders who want to break into the stock market and invest their money in shares they feel strongly about. If you’ve got an inkling that an outsider company is about to break out in a big way, you could use a trading app to buy stock in that company and hopefully grow your investment over time.
Another feature that makes investing so attractive to newcomers on apps like Robinhood is the ability to buy fractional shares. Fractional shares are little slices of individual stocks in a given company. For companies like Amazon and Alphabet with extremely high costs per share, this is essentially a must for newcomers to break into the market.
Without access to these fractional shares, investing in more prominent companies has long been inaccessible to the average amateur investor. That’s part of why the modern stock market is so flush with cash: tons of people can invest now who were previously priced out of investing.
There’s never a “sure thing” stock. Even the biggest, most stable companies could suffer a significant setback that brings their stock prices tumbling down. As such, no investment can ever be indeed called “safe.” However, many investing apps offer educational materials and primers to help you understand the basics of investing in stocks.
There are few risks with these apps that wouldn’t be posed by simply using a brokerage to facilitate trades. You could lose your investment if the market goes sideways, but that’s always the case and isn’t unique to trading apps.
Getting started trading is as easy as downloading a trusted trading app and signing up for an account. Before you know it, you can begin making investments on the stock market, calling the shots for yourself, and plotting your financial course. Just remember to keep your assets diversified and never put all of your eggs in one basket!