7 best investment apps for beginners

Which investment apps do the Nerds use?

What do we consider when choosing an app?

The most important thing to consider when choosing an investing app is how you're going to use it — if you're a frequent stock trader, you might prioritize an app with strong trading capabilities or stock analysis tools. If you want to invest but don't want to actively manage a portfolio, an app from a robo-advisor like Betterment might make the most sense.

How much money do you need to start trading stocks or investing?

At this point, many apps allow you to open an account with as little as $1. But the amount of money you’ll need to begin investing after you open your account depends on the assets you intend to buy. In most cases, you'll be able to find options you can afford now matter how much you can invest. Many of the apps on this list allow you to trade fractional shares, which means you can purchase a dollar amount of a stock (say, $5 or $10) instead of a full share.

What investments can you trade?

The investments available to you will vary by broker. Typically, an app from a traditional online broker will offer the largest range of investment options, while smaller apps, start-ups or robo-advisors tend to limit their selection. Investments that are commonly available through investing apps include stocks, bonds, mutual funds, index funds, exchange-traded funds and options. Some apps will also offer access to trade cryptocurrencies, futures, forex or commodities.

Which one is best for beginners?

For new investors, working with a larger, established brokerage like Fidelity is often a good fit — their apps rate highly, and they also offer higher levels of educational support and strong customer service. You might also consider an investing app from a robo-advisor. Robo-advisors build and manage portfolios for you, often using ETFs, so you don't have to choose any investments yourself. On the list above, Betterment is a robo-advisor that is a good choice for beginners.

What about for stock trading?

Many of the brokers on our list of the best brokers for beginners also show up here. In general, mobile trading apps are a good choice for beginners because they're typically easier to navigate than online or desktop platforms. However, we've chosen Robinhood as the best overall stock app for beginners because of how approachable and initiative the app is. Robinhood's features were designed with beginners in mind and it shows.

Are investing apps safe?

Just as FDIC insurance insures bank accounts, SIPC insurance insures the money you have in your brokerage account (or robo-advisor account) up to $500,000. This includes investing apps. $250,000 of that total can be applied to protect cash that you haven’t yet invested. All of NerdWallet’s picks for best apps are members of the SIPC. (Here’s more on SIPC insurance and what it does and doesn’t protect.)

Some of the investment apps listed here also offer bank or savings accounts, which are FDIC insured against loss.

Investment apps typically also use industry-standard security measures, including two-factor authentication, hashing of passwords and encryption of personal information.

What happens if an investment app goes out of business?

If your brokerage (app or brick-and-mortar institution) goes out of business, it's highly unlikely that you will lose money. In most scenarios, another institution will agree to buy the investing app or take over its accounts, and your assets will be transferred to the new brokerage.

Can you lose money?

Yes, it is possible to lose money through an investment app, but that largely depends on how you invest your money within the app, rather than the app itself. Like traditional brokers, your investment and trading decisions can determine how much money you gain or lose and how "safe" your money is overall. Some investments carry more risk than others — for example, individual stocks or cryptocurrencies are known to be riskier than funds, bonds or Treasurys.