With the rise of financial technology, more and more investment apps have emerged to help ordinary investors better manage their money. However, with so many choices, how to choose an excellent investment app that can serve you in the long run becomes very important. This article summarizes the key factors you need to consider when picking an investment app for long-term asset growth.
Focus on core investment functions like automatic rebalancing, dividend reinvesting, and fractional shares trading
A good investment app needs to have advanced core functions that boost your investing efficiency and maximize profits. Key functionalities include automatic portfolio rebalancing to maintain your target asset allocation, flexible dividend reinvesting so dividend income works harder for you through compounding, as well as fractional share trading that lowers barriers so you can build diversified portfolios with minimal capital. By strengthening investment core competencies, excellent apps like M1 Finance and Robinhood facilitate the growth of your wealth.
Look for low fees, especially zero commission stock and ETF trades
Investment fees, even just a tiny percentage, can eat substantially into your long term returns. According to a Motley Fool study, paying merely an extra 1% in fees over 25 years could result in over 25% less savings. Therefore when researching investment apps, prioritize those offering zero or very low fee stock, ETF and options trades such as Robinhood, Webull and SoFi Invest. Also compare management fees for robo advisors and how transaction costs might add up for periodic rebalancing.
Security and data protection need to be top-notch
Since investment apps involve managing your hard-earned assets, their security standards must be stringent enough to protect user data and money. Check if the app uses bank-grade AES-256 data encryption, 2-factor authentication (2FA), and other protocols to prevent hacking and internal fraud. Also understand their customer asset protection policies in case unfortunate incidents occur. Reputable firms like Charles Schwab provide robust assurance which is vital for your peace of mind.
Prioritize apps with smooth multi-device experience for maximum accessibility and convenience
In today’s mobile age, the top investment apps allow you to seamlessly track and manage your portfolio on the go across platforms like iOS, Android, and web. This provides you unparalleled flexibility to capitalize on time-sensitive opportunities whenever they arise on the stock markets. Intuitive user experience and trade execution speeds also enhance your productivity in building long term wealth. Apps known for excellence on these metrics include TD Ameritrade, E*Trade and Merrill Edge.
Consider investment research, education and community to enrich your investing skills
While executing trades efficiently is key, having access to actionable investment analysis, education and community can be invaluable in sharpening your decision-making over time. Some apps like Webull and Robinhood provide basic market data and analyst ratings, while others like E*Trade offer robust stock research capabilities. Also check if investment courses, seminars, blogs and chat forums are available to support your investing journey in a substantive way.
When selecting an investment app to grow your long-term savings, evaluate its core features, fee structure, security protocols, accessibility and supporting resources comprehensively. Finding one that excels across all key aspects maximizes the probability of your investing success over the decades.