Best Platforms for Beginner Investors
Investing can be a daunting task for beginners. With a plethora of platforms available today, it can be challenging to decide which one to use. Luckily, many platforms have been designed with beginners in mind, offering educational resources, easy-to-use interfaces, and low fees. Here are some of the best platforms for beginner investors.
Robinhood
Why it’s great for beginners:
Robinhood is a mobile-first platform that is well-known for its commission-free trades. This platform is perfect for beginners because it allows them to start investing with little money. The app is user-friendly and has a clean design that makes it easy for beginners to navigate.
Features:
Robinhood offers a variety of investment options, including stocks, ETFs, options, and cryptocurrencies. They also offer a cash management account with a competitive APY. For more advanced investors, Robinhood offers margin trading.
Acorns
Why it’s great for beginners:
Acorns is an investment app that makes investing as easy as spending money. This platform is perfect for beginners who want to start investing but are not sure where to start. The app automatically invests your spare change, making it a great way to start investing without thinking about it.
Features:
Acorns offers a variety of portfolios that are composed of low-cost ETFs. The portfolios are designed by experts and automatically rebalanced to keep your investments on track. They also offer a retirement account option, Acorns Later, and a checking account option, Acorns Spend.
Stash
Why it’s great for beginners:
Stash is an investment app that allows you to start investing with as little as $5. The app offers educational content to help beginners learn about investing, making it a great platform for beginners who want to learn as they go.
Features:
Stash offers a wide variety of investment options, including individual stocks, ETFs, and bonds. They also offer a retirement account option, Stash Retire, and a banking option, Stash Banking. Stash also offers a unique feature called Stock-Back, which gives you stock when you spend money at certain companies.
Betterment
Why it’s great for beginners:
Betterment is a robo-advisor that does all the investing for you. This platform is perfect for beginners who want a hands-off approach to investing. Betterment creates a personalized portfolio for you based on your financial goals and risk tolerance.
Features:
Betterment offers a variety of account types, including taxable accounts, IRAs, and trusts. They also offer a high-yield cash account. Betterment uses a diversified portfolio of low-cost ETFs and automatically rebalances your portfolio.
TD Ameritrade
Why it’s great for beginners:
TD Ameritrade is a well-established brokerage that offers a wide range of investment options. This platform is great for beginners because it offers extensive educational resources, including articles, videos, webcasts, and even a virtual trading simulator.
Features:
TD Ameritrade offers a wide variety of investment options, including stocks, bonds, ETFs, mutual funds, options, futures, and forex. They also offer a variety of account types, including taxable accounts, IRAs, and education savings accounts.
Conclusion
Investing can be intimidating for beginners, but with the right platform, it can become a manageable and rewarding task. Whether you want a hands-off approach, a platform with educational resources, or a platform that allows you to start investing with little money, there’s a platform out there that’s perfect for you.
