With the rise of mobile technology, more and more investment apps are emerging for investors to manage their portfolio and trade stocks or cryptocurrencies on the go. Choosing a suitable mobile app can help investors better track their investments, get market insights, and take actions quickly. However, not all apps are created equal. When looking to invest through a mobile app, key factors like security, fees, investment options and tools should be evaluated carefully. This article will dive into the key considerations when choosing an investing app and provide examples of top apps for different investment needs.
Look for strong security measures
Security should be the number one priority when choosing an investing app. Look for basic security features like secure login, two-factor authentication, and data encryption. Leading apps may also use biometric logins like fingerprint or facial recognition for enhanced security. Check the app provider’s security track record and see if they offer protection for your account, such as FDIC insurance for cash balances or SIPC protection for securities. Avoid apps that have a history of security breaches.
Compare transaction fees
Investing apps make money by charging transaction fees when you trade. The fees can vary significantly across apps and account types, from zero commission to $5-10 per trade. Pay attention to the fee structure for stock/ETF trades, options contracts, cryptocurrency transactions, and any other investments you plan to make. Some apps offer commission-free trading on certain securities to attract investors. But they may charge higher fees in other areas or have strict limits. Choose an app that offers competitive rates overall.
Check investment selection
A good investing app should give you access to a wide range of securities to build a diversified portfolio. At minimum, you’ll want to invest in stocks, ETFs, options, and mutual funds. Leading apps also let you trade alternative assets like cryptocurrencies, fractional shares, and foreign currencies. Consider both the breadth of assets offered and whether the specific investments you want are supported. Some apps cater more towards active traders, while others are better for casual investors.
Evaluate investment tools and research
Mobile investing apps aim to provide an enhanced user experience through intuitive design and useful tools. Look for helpful features like customizable watchlists, price alerts, risk analysis tools, education resources, and investment research. Top apps offer real-time streaming data, advanced charts and technical indicators, trading automation, virtual trading, and more. Consider which specific tools will be most valuable to your investing strategy and level of activity.
Check ratings and reviews
There are many investing apps to choose from, so checking ratings and reviews can help narrow your search. Look at the app’s overall rating and number of ratings in the iOS and Android stores. Then read the most recent reviews from real users to get a sense of pros and cons from their experience. Pay attention to complaints about reliability, ease of use, fees, and customer service. Be cautious of newly launched apps that don’t have an established track record yet.
Consider account minimums
Some investing apps require you to deposit a minimum amount of money to open an account, which can range from $0 to $500 or more. If you’re just starting out investing small amounts, choose an app with no minimum or very low minimum deposit and balance requirements. Otherwise, make sure you have enough funds available for the initial deposit. Also look for low minimums for retirement accounts like IRAs if those are part of your investment strategy.
In summary, key factors to evaluate when choosing an investing app include security, fees, investment selection, tools and research, user ratings, and account minimums. Taking the time to thoroughly compare a few leading investing apps can help you find the right platform tailored to your specific needs as an investor.