Investing is not like what it used to before. Back in the day investing was seen as a risky job that needed special knowledge. People used to think that investing is not everyone’s cup of tea and only a few people would have the skills. While there is still some risk associated with investing it is not as complicated as it is used to before. There are lots of ways in which you can invest these days. You have lots of applications that help you earn money by investing through them. There are many great peer-to-peer lending platforms that people can use to lend or borrow money. These platforms are very easy to use even for the people who don’t know what does peer-to-peer lending mean. Similarly, there are other kinds of applications that allow you to make different kinds of investment, and micro investing is one of them.
In the current world, more and more people are getting into investing every day. One of the main reasons for this is the emergence of various platforms that allow people to make good investment choices through the. Apart from that these platforms are very easy to use. Unlike the olden days, you don’t need a lot of money to invest. There are many ways in which you can invest $100 or even less. While there are lots of opportunities for investors not many millennials are investing. This is because they feel investing is done by old people. Also, they think that they lack the knowledge of investing. If that is one of the reasons that is holding you back then you can always educate yourself by reading some of the best books written on investing.
Let’s take a look at one of the best ways to invest for beginners that is micro investing apps.
What is micro investing and how do these apps work?
Just by the name, you can assume that micro investing is investments that are made in small amounts. There is actually not much difference between micro investing and other types of investing. The only difference is instead of dealing with large amounts of money you are only focusing on a small portion. This trend of micro investing is gaining a lot of popularity in recent times. One of the main reasons for this is the amount with which you can start investing. A person can start investing by buying small shares. You can start investing if you have as little as $5 dollars. This is great as it is quite less when compared to other platforms that offer ways to do traditional types of investment. Many platforms require you to have thousands of dollars in your account to make an initial investment.
Most of these platforms charge $5 to $10 as a monthly fee for making an investment through them. Sure they provide ways in which you can invest a $100,000 but not everyone has such a large amount of money. On the other videos micro investing apps allow you to invest even one or two dollars. The main aim of these applications is to make investing a fun thing to do. These micro investing apps have user-friendly interfaces that contain descriptions that can be understood by anyone. By reading those you will know what you are getting into. While the applications do not teach you about how to invest they are a great way for learning to invest. The stress-free environment provided by these applications will let you figure out the best strategies to invest without losing much money.
Now that you know what is micro investing, let’s look at some of the best micro investing apps.
Robinhood is one of the most popular micro investing apps that is present in the market. The aim of Robinhood is to make investing cheap for common people. While this app is a micro investing app you might want to avoid it for some time if you are a beginner as this application requires a little knowledge about investing. On Robinhood, you can buy ETFs, stocks, and cryptocurrencies. But this application doesn’t choose an investment option. It is entirely your call. Sometimes the shares can be too expensive for a beginner. But the best part about using Robinhood is it offers free trading. This makes one wonder how Robinhood makes money. There is also Robinhood gold for $5/month if you want to advance your investing capabilities.
This is probably the most popular name when it comes to micro investing. Acorns is very user friendly and can be used by almost anyone which explains its popularity. If you are a beginner in investing then you should definitely start with Acorns. This is because it is designed for people who do not know anything when it comes to investing. You only need a minimum deposit of $5 to start investing through Acorns. Before getting started you need to answer a few questions. Based on your answers Acorns picks out a portfolio for you. Acorns will choose low-cost ETFs rather than stocks. You can also earn cashback for shopping at certain retailers if you link your debit or credit card.
- Lite is for $1/month.
- Personal is for $2/month.
- Family is for $3/month.
Stash is another great application for micro investing if you are a beginner. According to the company, 84% of its users are first-time investors. Just like Acorns you need just $5 to start investing through Stash. But unlike Acorns, it offers you a lot of freedom to choose your investments. There is a wider range of stocks and ETFs when compared to Acorns. But you are unable to choose a portfolio Stash also has the ability to create one for you. Using stash you can do one time deposits, round-up deposits, and automatic deposits. You can even get cashback for the stocks you purchase every day if you use your debit card.
- Beginner is for $1/month.
- Growth is for $2/month.
- Stash+ is for $9/month.
Investing has become easier than ever before. More and more millennials are getting into investing because of micro investing apps. Millions and millions of millennials are learning to invest using micro investing apps. They are very easy to use and require less money to start investing. It only takes a few minutes for registering with micro investing apps. Sign up to one of the popular micro investing apps out there and start investing.