Best Investing Apps for Beginners [2024] | Top 3 Picks (2024)

This guide will explore our pick for the three best investing apps for beginners. It will delve into the platforms’ features, fees, investment options, and safety, as well as the pros and cons of each and any controversies they might have suffered.

What are investing apps and why do people use them?

The best investment apps for beginners offer low fees, no account minimums, easily navigatable interfaces, and various financial instruments. Ultimately, the platform you decide on should suit your investment style and provide the tools you need (e.g., educational resources, analysis instruments, and solid customer support) to reach your financial goals.

There are investing apps directed to almost every investment method and skill level, from beginners ready to start their investing journey to seasoned traders looking to access the market on the go. The right app will have your finances organized and invested, so don’t immediately go after the one making headlines, but explore your options and figure out what kind of investor you are.

Here are our top three picks for the best investing apps for beginners. Let’s get started.

Beginners’ corner:

• What is Investing? Putting Money to Work
• 17 Common Investing Mistakes to Avoid
• 15 Top-Rated Investment Books of All Time
• How to Buy Stocks? Complete Beginner’s Guide
• 10 Best Stock Trading Books for Beginners
• 15 Highest-Rated Crypto Books for Beginners
• 6 Basic Rules of Investing
• Dividend Investing for Beginners
• 5 Passive Income Investment Ideas

Established in 2007, eToro is a multi-asset investing app providing a wide range of financial instruments, encompassing everything from stocks and commodities to cryptocurrencies. Also, it provides traders with optional access to leverage, catering to both long-term and short-term investment strategies.

This social trading pioneer puts emphasis on transparency and community engagement, offering users the opportunity to interact and learn from each other through its Copy trading feature. It provides both a website interface and a mobile app, bringing trading and investing accessible to individuals across the globe. As of January 2024, eToro was home to over 30 million registered users.

eToro’s trading platform and app

eToro is accessible across various devices, ensuring users can trade on-the-go with its mobile application or delve deep into market analysis via its web platform. Its app is robust, elegant, and easy to navigate as it displays integral analytical data, including media coverage, companies’ financial status, and the current stock price. The main features provided by eToro include:

• Simple login and registration: Users can trade directly through the eToro app via smartphone or a website browser;
• Face ID: With face ID login, you can ensure supreme security and the safety of your portfolio;
• Text-to-speech and voice control;
• One-click investing: eToro allows users to simply execute trade orders in just one click;
• Automatic copy trading: With its highly accessible copy trading feature, users can follow the steps of the community’s most successful investors;
• Order types: eToro supports market orders, out-of-hours orders, limit orders, and stop-loss orders.

Investment options

eToro supports a broad spectrum of financial instruments:

• 60+ cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), as well as emerging altcoins;
• Access to zero-commision stock investment, with an abundant choice and enabled dividend payments;
• Dozens of commodities, including gold, silver, oil, wheat, and others;
• Fractional shares (you can acquire a tiny fraction of any listed stock).

eToro fees

The platform offers commission-free stock and ETF trading, with the following conditions:

• Minimum trade: $10, and $200 to use eToro CopyTrader;
• Overnight funding time: CFD positions that stay open overnight may incur a small fee relative to the value of the position;
• Fiat withdrawal fee: $5, with the minimum withdrawal amount of $30 (Platinum, Platinum + and Diamond Club members are not subject to withdrawal fees);
• Currency conversion fee: Withdrawals and deposits are managed in USD. Other currencies will need to undergo conversion and, therefore, incur a conversion fee. See here for more details.

Cryptocurrency trading commission rate:

• A fee of 1% is calculated for both the OPEN and the CLOSE transactions of your position, at the time that you open the position. The 1% fee is added to the market price.

There are zero charges for depositing funds, regardless of your payment method. However, there is an inactivity fee of $10 per month after one year of inactivity.

Getting started

eToro operates across 74 countries, including 47 US states (the exceptions are Hawaii, Nevada, and New York). If your the platform operates in your country, you then have to register an account to start trading. For this, you must be at least 18 years old. Once you verify your account and identity and make a deposit, you can start your eToro trading journey.

Customer service

The platform comes with a detailed help center with useful FAQs covering different topics. There is a chat feature integrated into the help center, allowing direct interaction with a representative. Other direct customer help channels, like phone and email support, are not that easily accessible. Additionally, users can submit a support ticket online. eToro is available in 19 languages.

Educational resources

• eToro Academy: eToro offers a wide array of educational materials, including articles, videos, webinars, podcasts, and both virtual and in-person training sessions;
• Copy trading: Users can monitor and automatically mimic the live trades of proficient traders on the platform. A minimum investment of $200 per trader is required for copying;
• Curated portfolios: Smart Portfolios are curated investment bundles that combine various assets and strategies to create diversified investment opportunities for users. An investment of at least $500 is required;
• Demo account: eToro’s demo account replicates the natural trading environment, allowing users to familiarize themselves with the platform and refine their trading techniques without financial risks;
• Charting: With ProCharts, eToro delivers advanced charting tools, enabling users to study an asset’s past performance using various chart types. It also lets you view multiple charts on the same screen, allowing you to compare their performance;
• News: The platform features a news and analysis section that includes weekly articles and insights on diverse topics, like the Crypto Roundup and The Bottom Line;
• Third-Party research: eToro integrates research from TipRanks, a premier platform that aggregates the latest insights from global t investment banks and financial companies.

Security

eToro is regulated by multiple authorities in various jurisdictions, including the FCA, CySEC, ASIC, De Nederlandsche Bank N.V. (DNB), French Financial Markets Authority (AMF), Malta Financial Services Authority (MFSA), Financial Services Authority Seychelles (FSAS), Financial Crimes Enforcement Network (FinCEN), U.S. Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), and Gibraltar Financial Services Commission.

Equities, including stocks and ETFs, are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 for each customer, with cash protection capped at $250,000. Beyond this SIPC coverage, eToro’s clearing ally, Apex, offers additional insurance, safeguarding eToro users up to $37.5 million in securities and $900,000 in cash for each person. Note that cryptocurrencies held at eToro aren’t insured.

Furthermore, eToro ensures clients’ funds and assets are kept in distinct accounts, enforced with internal and external supervision.

Additional security measures include:

• Two-factor authentication;
• Cold storage: eToro holds some digital assets in cold wallets and some in hot wallets;
• Biometric access: eToro provides multi-signature security, offering both face and touch ID recognition.

Pros and cons of eToro

Revolut is a globally recognized fintech company with over 15 million users worldwide, which is well-known for its innovative approach to digital finance and mobile banking. However, in recent years, the platform has expanded to offer stock, commodity, and cryptocurrency trading.

Facilitated by Revolut Trading Ltd, the company launched its first commission-free stock trading service in 2019. Initially available only to premium clients, it is now open to all account holders.

Revolut’s trading platform and app

The Revolut trading platform is part of its existing mobile banking app, though a web version is also available. The platform is relatively basic but easy to navigate and provides valuable analytical information covering news, companies’ financials, and the analysts’ average target price for a particular stock. The following are the main features Revolut offers to its users:

• Easy sign-up process: You can start trading directly from the Revolut app through your smartphone;
• News: Revolut delivers real-time updates on market news and stock performance;
• Dividends: Revolut credits dividends (if you own stock that pays out dividends) directly to your Revolut Account;
• Watchlist and price alerts: Revolut allows you to keep track of your chosen assets;
• Order types: Revolut supports market orders, out-of-hours orders, limit orders, and stop-loss orders.

Investment options

Revolut supports a limited range of financial products:

• 50+ cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), plus emerging tokens;
• Access to 1000+ global stocks, including Apple, Amazon, and Netflix;
• Commodities: Gold (XAU), silver (XAG), platinum and palladium;
• Fractional shares (you can acquire a tiny fraction of any listed stock).

Revolut fees

Revolut offers commission-free stock trading on an allowance basis based on your account type:

• Standard Plan (Free): 1 free trade;
• Plus Plan (€2.99/month): 3 free trades;
• Premium Plan ( €7.99/month): 5 free trades;
• Metal Plan (€13.99/month): unlimited.

Cryptocurrency trading commission rate:

• Standard Plan: 1.5% commission;
• Premium & Metal Plan: 1.0% commission.

Commodity trading commission charge:

• Standard Plan: 2% commission;
• Premium & Metal Plan: 1.5% commission.

There are no charges for depositing or withdrawing funds. In addition, there is also no requirement to trade regularly as the platform does not charge inactivity fees. However, all clients must pay an annual custody fee of 0.12%, i.e., if your portfolio holds $1,000 worth of securities, the yearly custody fee will be $0.12.

Getting started

To start trading, you must be at least 18 years old and already have a Revolut account. Opening an account is positively straightforward and only requires you to have a smartphone, a few personal details at hand, and a selfie. Again, this is thoroughly detailed in our Revolut card and app review.

Customer service

Revolut offers 24/7 customer service via in-app live chat. To contact support, go to the ‘Dashboard’ and click on ‘Chat’ at the top right of the screen, and you will be automatically connected to the interactive system. Waiting times are generally short; you can expect to get an answer within 2 minutes.

Educational resources

For learning resources, you can discover the Revolut Bolg, an informative portal where you can find informational articles about the world of finance. In addition, check out Revolut Academy, a section entirely dedicated to economic education, including various topics such as finance, IT security, and cryptocurrencies.

Security

How does Revolut keep your funds safe?

Revolut is regulated and licensed by several top-tier bodies, including the US Financial Industry Regulatory Authority (FINRA), the US Securities and Exchange Commission (SEC), plus the UK Financial Authority (FCA).

The company isn’t considered a bank in the traditional sense and doesn’t currently hold a UK banking license. As a result, any funds held by Revolut are not protected by the Financial Services Compensation Scheme (FSCS). However, funds are held in segregated accounts, meaning traders get their money back even if the company were to go bust.

How does Revolut keep your account safe?

Revolut employs several security measures to counteract fraud and online crime, such as:

• 2-factor authentication via SMS;
• 3D secure (3DS) payments;
• KYC protocols;
• Fingerprint identification (if applicable) to access the account and confirm operations;
• Localization systems to send real-time alerts on fraudulent activities.

Pros and cons of Revolut

Closing thoughts

To sum up, the Revolut trading platform, an addition to the company’s personal and business banking solutions, offers a convenient one-stop-shop for all your unique finance needs. As well as commission-free stock trading, investors can speculate on precious metals and popular cryptocurrencies.

The trading experience on the Revolut app is intuitive and beginner-friendly, offering flexible trading plans and a straightforward mobile interface. And while its basic nature is appealing to some, the limited range of financial assets might turn other investors away.

Robinhood was established by Vladimir Tenev and Baiju Bhatt in 2013 and is currently headquartered in Menlo Park, California.

The platform is a true pioneer in the no-commission brokerage model and is a solid choice for beginner investors. The app offers a stripped-down mobile interface while providing commission-free stocks, exchange-traded funds (ETFs), options, and cryptocurrency trading. Unfortunately, however, Robinhood has had its reputation smeared by controversies over service downtime and restrictions.

As with any investment app, Robinhood traders need to understand the risks of what they’re doing to invest in line with their goals and avoid unexpected losses.

Robinhood’s trading platform and app

Robinhood is optimized for beginner investors and is straightforward to set up and use. Though investors can also operate on the web-based interface, Robinhood is a mobile-first company, so its most recognizable investing platform is the mobile app.

The app is streamlined, without the bells and whistles of a typical online stock broker, making it easy to navigate, particularly once you understand how the app’s icons function.

Robinhood’s user experience is enjoyable, and the app functions seamlessly. However, there is little you can do to customize the app to your preferred trading experience. Some of the tools Robinhood offers to simplify your trading experience:

• Instant verification: Robinhood offers verification with many major banks, sparing users the hassle of reporting micro-deposits to your bank account to verify the information. The app can move up to $1,000 of a deposit into your account immediately;
• Order types: Robinhood supports market orders, limit orders, stop limit orders and stop orders;
• Watchlists: You can create a customized stock and cryptocurrency watchlist to track the assets that mean the most to you;
• Stock price alerts: Robinhood enables users to set custom price alerts for individual stocks. The price threshold options are 5% (default) and 10%;
• Recurring investments: Robinhood lets you automatically invest in stocks and ETFs with Robinhood Financial and cryptocurrencies with Robinhood Crypto on a schedule you choose;
• News: The app offers WSJ Markets coverage, news from Reuters and Barron’s, and video from CNBC Business, Reuters, and Cheddar;
• Charting: Line, candlestick, and volume charts are available on the mobile app, on top of some other charts that are available on the web. As with all of Robinhood’s functionality, charts cannot be personalized;
• Cash sweeps: Robinhood doesn’t support money market funds. However, its cash management brokerage feature offers 1.00% on uninvested cash balances to customers enrolled in the deposit sweep program.

Investment options

Robinhood does not support mutual funds or fixed income securities such as bonds, and you can’t trade forex, commodities, or futures. However, if you choose Robinhood, you can invest commission-free in:

• Stocks (long position only, no short selling);
• ETFs;
• Options trading;
• Fractional shares (stocks worth over $1.00 per share with a market cap over $25,000,000 are eligible);
• IPOs (initial public offering);
• Access to over 650 global companies via American Depository Receipts (ADRs). Note: Some banks require investors who hold ADRs to pay periodic services fees;
• Cryptocurrencies through Robinhood Crypto (in 48 states). They offer Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC).

Robinhood fees

There is no account minimum for your brokerage account at Robinhood (also gold subscription), no account opening, maintenance, inactivity fees, or ACH fees. In addition, all equity trades (stocks and ETFs) and options trading are commission-free. However, some other costs unrelated to trading are as follows:

• Robinhood Gold subscription is $5 per month;
• Margin trading requires a Gold subscription, which includes $1,000 of margin. Margin usage above $1,000 is charged at 6.5% yearly interest;
• $75 ACAT outgoing transfer fee;
• $20 to send a domestic check overnight.

Premium account: Robinhood Gold

Robinhood Gold is the premium subscription offered by Robinhood for a $5 monthly fee. However, you can try Robinhood Gold for free for your first 30 days. The premium subscription comes with:

• Margin investing: This feature allows you to borrow money from Robinhood to purchase assets, giving you access to additional funds based on the value of particular securities in your brokerage account. $1,000 of margin is included with your $5 monthly fee. Once you decide to borrow more, you’ll pay 6.5% annual interest on any margin used over $1,000;
• Research and data: Gold members have unlimited access to Morningstar’s premium in-depth stock research reports, as well as access to Nasdaq Level II Market Data powered by NASDAQ TotalView;
• Bigger instant deposits: immediate access to up to $50,000 depending on your brokerage account balance and status. As a result, if you see an opportunity in the market, you can use your money immediately instead of waiting for your funds to settle.

Rewards

Robinhood will reward you with one share of stock to your brokerage account when you link your bank account and fulfill the conditions in your promotion.

The Fractional Stock Reward Offer is only valid for new customers of Robinhood and existing qualifying brokerage clients who successfully refer eligible new customers.

Once you are signed up, approved, and link your bank account, you’ll earn a specified dollar amount and be able to choose your gift stock from a list of 18 of America’s leading companies. The cash value is then used toward fractional shares of the offered companies (the list is selected by market cap for their respective sectors).

Getting started

To sign up for a Robinhood account, you’ll need to meet the following criteria:

• Be at least 18 years old;
• Have a valid Social Security number;
• Have a legal U.S. residential address;
• Be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa.

Robinhood is available on iOS, Android, and most web browsers.

Customer service

Robinhood has made noticeable improvements to clean up its reputation for poor customer service. While they say they can serve customers best via email, they have now added live phone support available to answer your questions 24/7.

The 24/7 phone support works by requesting a call in the Robinhood app. You will then be sent a notification when you’re next in line for a call. If you miss the call or get disconnected, the support team will call you back and leave a message and notification for an easy way to get back in line.

Educational resources

Robinhood offers Robinhood Learn for easily-understandable concise information on the basics of investing, market trends, and financial concepts. The content is prepared by experienced writers and editors who formerly reported at publications such as Forbes and Quartz and boasts over 650 articles to help you make sense of investing lingo and trends.

In addition, the platform also has Robinhood Snacks, a daily podcast, newsletter, and video series which delivers the day’s top financial news stories.

Moreover, all Robinhood customers can access trusted news sources through the newsfeed with in-app WSJ Markets coverage, news from Reuters and Barron’s, and video from CNBC Business, Reuters, and Cheddar.

Security

How does Robinhood keep your funds safe?

Robinhood is a member of SIPC, which protects up to $500,000 (including $250,000 of cash) of securities of its members’ clients. However, cryptocurrency investments through Robinhood Crypto are not protected by SIPC, and Robinhood Crypto is not a member of FINRA or SIPC.

How does Robinhood keep your account safe?

Robinhood uses several industry-standard measures to protect your account and ensure your secure experience with them. Some of the security measures they take to help keep your information safe:

• Password safety: Stored account passwords are never stored in plaintext. Instead, they are hashed using the industry-standard BCrypt hashing algorithm, i.e., stored in a scrambled format that makes them complex and time-intensive for attackers to crack;

• Encryption: Sensitive information (e.g., social security number) is encrypted before being stored. The mobile and web apps securely communicate with servers utilizing the Transport Layer Security (TLS) protocol with up-to-date configurations and ciphers, ensuring that anything you send to their servers remains private. Moreover, once your banking credentials are verified, they’re never reaccessed. Instead, Robinhood uses trusted third-party integrations to access information about your bank accounts;

• Two-Factor Authentication: Robinhood requires two sources of verification to sign in (or make changes) to your account: something you know (password) and something you have (a one-time verification code or device approval request).

Reported issues and controversies

Unfortunately, Robinhood has been the subject of severe complaints and lawsuits:

• December 2020: The Securities and Exchange Commission (SEC) charged Robinhood for “misleading customers about revenue sources and failing to satisfy the duty of best execution.” The SEC found that “Robinhood customers’ orders were executed at prices that were inferior to other brokers’ prices,” ultimately depriving those clients of $34.1 million. Robinhood accepted to pay $65 million to settle the charges;
• December 2020: The Commonwealth of Massachusetts accused Robinhood of predatory practices on inexperienced investors. The complaint cites the platform’s “aggressive tactics to attract inexperienced investors, its use of gamification strategies to manipulate customers, and its failure to prevent frequent outages and disruptions on its trading platform;”
• January 2021: Robinhood restricted trading during the extreme market frenzy surrounding GameStop (NYSE: GME) and other heavily shorted stocks;
• Throughout the onslaught of new investors during 2020 and 2021, Robinhood experienced system outages and technical issues, leading to class-action lawsuits (also for the January 2021 restrictions concerning GameStop rally);
• June 30, 2021: FINRA fined Robinhood $57 million and ordered it to pay approximately $12.6 million in restitution to thousands of customers who suffered “widespread and significant harm” at the hands of the brokerage. FINRA stated millions of clients had received false or misleading information from Robinhood, and millions were affected by service outages during the March 2020 market volatility. In addition, FINRA found that algorithmic bots had approved thousands of users for options trading, even if those users weren’t eligible or had red flags in their accounts that would have prevented them from taking part in the advanced and risky trading strategy. The $70 million total marked the most significant financial penalty ever levied by FINRA;
• November 8, 2021: Robinhood reported a data security breach that disclosed the personal information of some account holders, including email addresses, full names, and, in limited cases, dates of birth and zip codes. However, they insisted that no bank account, debit card, or Social Security information was impacted, and no customers experienced a financial loss.

Pros and cons of Robinhood

Closing thoughts

To sum up, the trading experience on Robinhood’s web and mobile app is fast, straightforward, and streamlined. However, while Robinhood has the functionality necessary to trade for new investors, more seasoned investors will find familiar tools missing and no option for customization.

In addition, beginner investors should apply caution and thoroughly research their trading strategies, especially because Robinhood encourages active trading and has been accused of gamifying investing and enabling risky trading behavior.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.