Are Investing Apps Good? A Comprehensive Analysis

In recent years, investing apps have revolutionized the way individuals manage their portfolios and make investment decisions. With the convenience of mobile access, low fees, and user-friendly interfaces, these apps have democratized investing, making it accessible to a broader audience. But are investing apps good? Let’s delve into the pros and cons, the best options available, and what you should consider before diving in.

What Is an Investment App?

Investment apps are mobile applications that allow users to manage their investment portfolios, buy and sell stocks, ETFs, and other securities, and access financial information and educational resources. These apps cater to various types of investors, from beginners to experienced traders, offering different features to meet their needs.

Pros of Mobile Investing Platforms

  1. Low to No Fees: Many investment apps offer trades with low to no fees, unlike traditional brokers that can charge between $5 and $30 per trade. This makes it more affordable for individuals to start investing.
  2. Low Barrier to Entry: There’s usually no minimum deposit required to open an account, making it easy for anyone to start investing. Fractional shares can be bought for as little as $1 to $5.
  3. Easy Access to Resources: These platforms provide easy access to educational resources and real-time data to help users make informed decisions.
  4. Ease of Use: The user interfaces are designed for intuitive navigation, suitable for beginners to manage and trade their portfolios effectively.

Cons of Mobile Investing Platforms

  1. Gamification Supports Risky Moves: Gamification elements, such as rewards and confetti animations, may encourage riskier behavior and lead to emotional or impulsive trading, especially among inexperienced users.
  2. You’re on Your Own: Users often lack access to human advisors for personalized guidance, which can be a disadvantage for novice traders who might make uninformed investment decisions.
  3. No Advanced Tools: Advanced investment tools and reports, advantageous for experienced investors, are typically not available on these platforms.
  4. Limited Investment Choices: Investment choices are often limited to stocks, ETFs, and occasionally options contracts and cryptocurrencies, but do not usually include mutual funds or real estate investment trusts.

Best Investment Apps of June 2024

Best Investment App for Cryptocurrency: Binance.US

  • Pros: Low fees, wide selection, good user reviews.
  • Cons: Not available in some states like Texas and New York, lacks sufficient educational materials for beginners.

Best Robo-Advisor Investment App: Betterment

  • Pros: Low-cost diversification, no account minimums, features like tax-loss harvesting.
  • Cons: High costs for advisor consultations, potentially excessive equity exposure in emergency funds.

Best Investment App for Experienced Investors: TD Ameritrade’s thinkorswim

  • Pros: Advanced trading features like options and futures trading.
  • Cons: Lacks direct cryptocurrency trading.

Best Investment App for Average Investors: Fidelity Mobile

  • Pros: Low costs, strong educational materials, availability of fractional share investing starting at $1.
  • Cons: Lacks direct cryptocurrency trading and market news functions.

Best Investment App for Beginners: E*TRADE from Morgan Stanley

  • Pros: No account minimums, robust educational resources, numerous account types.
  • Cons: Does not support 529 accounts or direct cryptocurrency trading, though it permits trading of crypto-related securities.

How To Use an Investing App

Using an investing app typically involves the following steps:

  1. Download the App: Choose an app that suits your needs and download it from the app store.
  2. Open an Account: Follow the app’s instructions to open an account. This usually requires providing personal information and linking a bank account.
  3. Fund Your Account: Transfer money into your investment account. Some apps allow you to start with as little as $1.
  4. Start Investing: Choose your investments based on your financial goals and risk tolerance. Many apps offer educational resources to help you make informed decisions.

How Much Should You Invest?

It is generally recommended to invest 10-20% of one’s income. Starting with small amounts can help build investing habits without taking on too much risk initially. Evaluate product selection, customer service, educational materials, and fee structures of investment apps before choosing the best fit for your needs.

Are Investing Apps Safe?

Investing apps are generally safe, but it’s important to choose apps that are regulated and have strong security measures in place. Look for apps that offer two-factor authentication, encryption, and other security features to protect your personal and financial information.


Investing apps offer a convenient and cost-effective way to manage your investments, making them an attractive option for many investors. However, it’s important to weigh the pros and cons and choose an app that aligns with your investment strategy and goals. Whether you’re a beginner or an experienced investor, there’s likely an app that can meet your needs.

For more detailed reviews and comparisons of the best investment apps, check out the following sources:

Invest wisely and happy investing!