Best Investing Apps in 2019 (Top 5 Ranked)

Updated : Aug 26, 2019 in Articles

Best Investing Apps in 2019 (Top 5 Ranked)


– Hey, what’s up guys, Shane here. So, there’s been a lot
of hype lately about all these investment apps that are coming out and whenever you go to
watch videos on YouTube, it seems like their
always either sponsored by the investment apps or
there’s an affiliate link in the description or something like that. So it’s really hard to know which ones are actually good. So, I thought I’d make a
video about what I believe to be the top five
investing apps based off of my own experience and the experience of friends of mine who’ve been
using these app for years. I’m really going to break
down all the features of these apps so you can
figure out which one is best for you and your specific situation. And I’m also going to
help you avoid falling in to some of the traps that
some people fall in to when they start investing
using these apps and they don’t have much experience. So, with that being
said, lets jump right in with number five on the list, which is going to be Stockpile. So, it’s getting to be
that time of year again where you’re going to have
to start shopping for gifts for your friends and your
family and it’s really annoying. You spend hours and hours
shopping for gifts and you don’t even know whether they’re
gonna like it or not. Well that’s where
Stockpile comes in because it’s a perfect app for
actually gifting stocks to your family. Now some of the pros
to using Stockpile are, there’s only a 99 cent fee
for all of your trades, which is lower than the
industry average of about four to five dollars. Usually it’s about $4.95. And a great thing is you can
actually buy fractional shares which means you can just buy
partial parts of a stock. You don’t have to buy the whole stock. And this really comes in handy because some of the more popular companies have stocks that are worth a lot. There’s no minimal account
balance, so you can start an account no matter
how much money you have and there’s also no annual fees. Now the problem with this app
is that there is very limited account selection. So, an example of this
is you can’t open an IRA with this app, you know,
there’s only individual or custodial accounts. And there’s also a very
limited investment selection. They generally only have the
most popular stocks on there. There’s a ton of smaller
stocks that aren’t available. Overall this app is really
great because you can actually gift stocks to people who
are under the age of 18 and then that way you can
actually teach them the basics of personal finance and investment and they can learn this 10
years before most people actually learn this stuff. And overall that’s what
this channel is all about, is teaching personal finance
because it’s probably the single most important
topic that you need to know as a grown-up and for
some reason nobody teaches this to anybody in school. So, I love this app because
instead of buying your nephew a shirt or some stupid socks or something that they’re never going to
wear, you can just buy them a stock instead and teach
them the basics of investing. Now I don’t use this
app myself for investing but I have used it to gift
stocks to my family and friends. Now number four on the
list is Acorns and this one is really good if you want to
invest but you don’t really want to think about investing at all. So, the way that it works is
lets say you buy something and the total price is about $3.50, it’ll round that up to four
dollars and put that extra 50 cents in an investment
account that automatically invests for you. All you have to do is set up your account, link your debit and credit
cards to the account and then it does all the rest of the work. The best thing about
doing this account is, first of all it’s free for
college students for up to four years. So, as long as you have a
.edu email, it’s free for you. It’s kinda like how
Facebook first started. You had to have a .edu
email in order to sign up. It’s also incredibly easy to use. Out of all of them, this
is probably the easiest one to use. It takes maybe 15 minutes to set it up. And it’s great if you
don’t understand anything about investing. You just want other people
to do all of that work for you. And you can also start saving
with little to no money. Now some of the issues with
this app is the one dollar a month fee, probably
doesn’t sound like a lot, but here’s the thing. If you’re only investing, lets
say 10 or 20 dollars a month, lets say 20 dollars a month,
that one dollar fee is actually 5% of your total investment,
which is way more than what would normally be charged if you used a different broker. And then the other obvious
issue is you don’t really have much control over your investments. They do all the work for you and so you might miss out
on really good opportunities that otherwise you would’ve
been able to capitalize on. Now number three on the
list is going to be Stash and this is very similar to Acorns, but you have a little bit more freedom. So the way that Stash works
is they’re gonna give you a survey where they ask you about a bunch of different things that you believe in. For instance, you might want
to only invest in companies that use clean energy or maybe you want to only
invest in certain tech companies because you think that virtual reality is gonna get really big in the future. So, you basically tell them
those things and then they will do all the rest of the work for you. They’ll do all the research, they’ll diversify your portfolio. So it’s still uses an automatic,
you know, robo advisor, just like Acorns does,
but it does give you a little bit more freedom in
where you want to distribute your money. So, some of the great things
about it is it gives you more investment opportunities
and it gives you more freedom. It’s also great for educating
yourself on how to invest in the stock market if
you’ve never done it before. So, it’s really, really beginner friendly and it makes the basics of investing and personal finance pretty easy to learn. It also has a really good
design, makes a lot of sense, it’s very easy to use and
I find myself coming back to it a lot. I think it has the best design out of all of the investing apps. So, it has some of the
same cons as Acorns, it’s basically, you know, very
costly for smaller accounts. So, if you’re only
spending 20 dollars a month it’s going to be a very high fee and they generally invest in ETFs which are Exchange Traded Funds and they don’t really give you
an option to invest in say, index funds, which I prefer over ETFs. And overall the biggest pros
for the last two choices in general with Acorns and
Stash are gonna be that if you are a beginner, your
biggest hurdle is actually just getting started. I mean, so many people
think about investing and then they don’t invest
for five, 10 years down the line and these apps
make it unbelievably easy for you to get started. I mean you can literally do
this in five, 10 minutes. You know, just seriously, if
you are having any reservations about this just grab them,
get started right now. It’ll take you five or 10
minutes, then you can get started. And then after you’ve learned
the basics of everything, you can move on to some of
the more complicated apps. Seriously, just do it. Download the app and get started today. So, the next two on the
list are technically gonna be better than the previous ones. They’re gonna be a little
bit more difficult to use, but they’re also gonna have more options and more freedom for you
and overall they’re just going to be better. So, number two on the list
is going to be Wealthfront and they’re best known for
their 2.57% savings account, where you literally get
2.57% back every single year on your account for just
keeping your money there. It beats pretty much any bank. I’m pretty sure it is the top
savings account out there. I’m honestly not sure how
they’re even able to do that because that’s almost as good as a bond. And Wealthfront is great
because it also gives you the capability to track
your net worth, invest, you can basically do all
of the important things that you need to do when it
comes to personal finance all on one platform And that’s the first pro, is it allows you to do just about everything
that you would possibly need to do on one platform. It’s basically your
free financial advisor. It uses an algorithm that
was developed by PHD’s in order to invest for you. It also makes tax-loss
harvesting extremely easy and that’s basically where
if you ever lose any money on some of the stocks that you invest in, you can make a list of those and then when it comes tax time, it’ll
actually send you a list of all the stocks that you lost money on and you can turn that
in and end up getting thousands back on tax returns. Which you can then reinvest
back in to your account. And this can be done with the
other investment accounts too, but Wealthfront just makes
this very, very easy to do and it just saves you the
hassle and the trouble of having to go through
yourself and do that. Now some of the cons
to this is that there’s no fractional shares, so
you can’t buy like a small fraction of the stock. You do have to buy the whole stock itself. But overall Wealthfront
is a great option if you want to just do everything
on one platform and just keep it very, very simple. You can have your
savings account on there, which you’re getting that 2.57% interest. And I personally use their savings account for my emergency fund. And you can also invest
with them and just automate everything and they’ll keep
track of your net worth and everything for you. And just sticking with
Wealthfront honestly would be a really good
option because it just makes everything very, very easy. But there is one that’s
better than Wealthfront in my opinion and that
is number one on the list which is Robinhood. Now these financial industry
actually hates Robinhood because they make it so
easy for the common person to buy and sell stocks. Everything is completely free. Seriously, there’s like no fees. You can buy and sell
stocks for completely free. Generally you have to pay
99 cents for the other apps or maybe you have to pay $4.95. With Robinhood everything is free, like there’s almost no charges
whatsoever on Robinhood. And because of that you’ll see
these unbiased review sites that are probably
sponsored by large brokers, that will give Robinhood a bad rap. And seriously, the pros for
Robinhood, everything is free. The only thing that cost
money is if you upgrade to Robinhood gold, which
there really is no reason for you to upgrade. It’s very easy to use, very
easy to execute trades. You can even do it after market hours and then it’ll just automatically do it when the market picks up the next day. It also will give you summaries
of different companies and it’ll teach you about
the basics of trading. You also have the ability
to automate everything where it just basically
takes some money out of your bank account every month and then it automatically
invests in stocks that you want to invest in. And you can even buy
and sell crypto currency if you want to. Now some of the cons of Robinhood, which you’ll see around the internet, is the customer service is not 24/7 and people say that the
customer service isn’t great, but honestly I’ve had
nothing but good experiences with them. And there’s also no retirement accounts, which is totally fine
because I recommend using the larger brokers like TD
Ameritrade, Charles Schwab, Vanguard or of course my
favorite which is Fidelity. Overall any of these options
are going to be great because you don’t even have
to log on to a computer. You can literally just
get started by investing on your phone. And that’s the biggest roadblock
that 99% of people have which is just getting started. All right, that’s gonna be all. Thank you for watching the video. If you haven’t done it already, go ahead and smash the like button. (ding) Smash the subscribe button. (chime) Go ahead and click the
notification bell and comment down below.
(typing) (chime) Have a good one and bye for now.

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