8 Best Micro-Investing Apps for New Investors
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It seems like I’ve always got a few piles of change around the house. The coins sit there, unused, which bugs the heck out of me as a personal finance writer.
I could invest it, but what’s the point of a few dollars every month or so added to my savings account?
Micro investing apps may be a better solution. They allow users to invest small amounts of money, even as little as a few dollars, in a low-cost brokerage account and buy whole shares or just fractional shares of individual stocks.
Some micro-investing platforms allow users to connect a debit card. Purchases are rounded up to the dollar and the change from the round-ups is automatically transferred to the app and invested for you.
Here are eight of the best micro-investing apps that may be able to help you build wealth a lot faster than putting your spare change in a bank account.
Jump To
Overview of the best micro-investing apps
App | Best For |
Acorns | Automated investment of your change |
Stash | % of purchases given back in stock |
Robinhood | Beginners |
Betterment | Robo-advisor investing |
SoFi | IPO investing |
M1 Finance | Customizing portfolios |
Webull | Active investors |
Fidelity | Managing all of your finances |
Best micro-investing apps
Acorns
There are many things to like about Acorns, which offers checking accounts and accounts for micro-investing, retirement, and checking without minimum balances or trading fees. I like that it can automate investing by rounding up purchases through a debit card you connect to an Acorns account and investing that change for you. Plan pricing is $3 to $12 per month.
Round-ups of your purchases can be a painless way to add to your investing account, and Acorns takes it a step further by allowing users to set round-up multipliers up to 10 times the amount.
For example, a $2.70 purchase would be rounded to $3, giving you 30 cents to your investing account. Allow the app to double the round-up, and $0.60 of your money will be moved. Allow 10x in value, and $3 more will be charged on your debit card purchase, and you’ll have $3 more for investing.
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Stash
Stash’s beginner plan costs $3 per month and has a few extras that make it stand out among micro-investing apps. Along with buying whole or fractional shares of individual stocks, Stash has an FDIC-insured debit account with a debit card that earns stock rewards.
Called the Stock-Back Card, it’s a debit card that gives users up to 3% of their purchases back in stock. The reward money is invested automatically, and the card doesn’t have minimum balance fees.
Robinhood
Robinhood is a micro-investing app that’s good for beginners but is especially worthwhile for experienced investors who want an active, do-it-yourself investing app with a range of investment options.
Robinhood’s Gold account, which costs $5 per month, offers margin trading. Experienced traders may be interested in margin trading, which is much riskier than the type of training beginning investors should start with. Margin trading involves borrowing money to trade. You could end up losing more money than you had to invest.
Betterment
Betterment is a robo-advisor, meaning a computer helps you pick investments instead of a financial advisor. You know, a human. The company claims its robo-advisor outperforms financial advisors by 88%.
You can follow Betterment’s recommendations based on your goals and risk tolerance, among other factors, or choose from five portfolios with different risk levels. One of the portfolios is flexible, allowing you to seek Betterment’s advice and create your own. Another invests in socially responsible companies that positively impact the environment and social economics.
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
SoFi
SoFi Invest has been chiefly known for student loan refinancing and other types of loans. It now offers its customers personal finance help through an investment account and is one of the top investing platforms.
It offers the traditional investments you’d expect: exchange-traded funds, fractional shares, retirement accounts, and cryptocurrency. It also offers IPO investing, or initial public offerings, which is unusual among the micro-investing apps I have reviewed.
M1 Finance
M1 Finance offers many personal finance services: loans, free digital checking, and a credit card with up to 10% cashback, among others. It’s also one of our favorite micro-investing platforms because it not only sells fractional shares and automates investing, but has a strong focus on helping customers build their investment portfolio with dozens of prebuilt templates, called “expert portfolios.”
M1 Finance also has “pies” on its interactive dashboard. Users choose stocks and ETFs to build customized investment plans designed for their goals and investment styles. More than 60 curated “pies” with various investing styles or goals are set up, such as responsible investing, dividend earners, and cannabis companies.
Webull
With extended trading hours, in-depth analysis tools, and real-time data, Webull seems to be going after day traders. Or at least targeting experienced and active investors.
It also aims to capture beginning investors, including those with the simple need to trade through a brokerage account or open retirement accounts. It also sells fractional shares, which can help beginner investors have a vested interest in the daily ups and downs of the stock market. That could entice them to become active traders, which Webull specializes in.
Fidelity
Fidelity is a brokerage firm you’ve probably heard about. It advertises everywhere and has more than 140 investor centers in the U.S. Its large size doesn’t mean it can’t work as a micro-investing app.
Fidelity offers fractional investing, trading in individual stocks and ETFs, mutual funds, and retirement funds. It also has savings accounts, credit cards, and bill-paying services. In essence, you can manage your entire financial life through Fidelity.
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
Best micro-investing apps summary table
App | Account minimum | Trading commission | Investments | Automated investing |
Acorns | $0 | $0 | ETFs, IRAs | Yes |
Stash | $1 | $0 | ETFs, stocks, bonds | Yes |
Robinhood | $0 | $0 | ETFs, stocks, options, cryptocurrency | Yes |
Betterment | $0 | $0 | ETFs, stocks, bonds, 5 portfolios | Yes |
SoFi | $1 | $0 | ETFs, stocks, IPOs, cryptocurrency | Yes |
M1 Finance | $100 | $0 | ETFs, stocks | Yes |
Webull | $0 | $0 | ETFs, stocks, options, cryptocurrency | Yes |
Fidelity | $1 | $0 | ETFs, stocks, options, bonds, mutual funds | Yes |
FAQs
Why pick a robo-advisor over a human?
Many of the micro-investing platforms have a robo-advisor. After you enter some information, such as your risk tolerance, financial goals, and how often you’ll do stock trading, among other things, a robo-advisor uses computer algorithms to build and manage your investment portfolio. It can automatically rebalance your investments if needed and help you pick diversified portfolios. A human personal finance advisor can manage other financial parts of your life, such as estate planning and retirement, and will initially want to meet with you in person to get to know you. Personal advisors can also be hired on an ongoing to temporary basis. Which one you choose depends on your preferences. A robo-advisor may be cheaper in the long run.
Will these apps help me get rich?
Maybe, though it’s doubtful. To build wealth so you can retire early, you’ll need to beat the market average of 10%. At the very least, micro-investing apps can help you learn how to save and invest your money in something other than a low-yield savings account. You can start investing almost immediately. With regular contributions and a long time horizon in front of you, saving for retirement, a new car, down payment on a house, or just a high-end vacation can be within your reach.
What fees should I expect?
All of the micro-investing apps I reviewed have zero trading commissions, and almost all have no account minimum requirement. But commission-free trading doesn’t mean the apps are entirely free. They may charge an annual fee, monthly fee, account fees, and management fees. While trading fees may not be charged, fees charged by specific regulatory agencies may be passed on to consumers. Webull does this and says it doesn’t profit from these fees. Deposit and withdrawal fees may also be charged, such as the $8 per deposit via wire transfer that Webull charges. New investors can be put off by the perceived complexities of investing in stocks, bonds, mutual funds, and other things.
Micro investing apps can make investing more manageable and inexpensive by giving beginners the tools they need to become confident in their investment choices. If you have a small account balance but still want to regularly invest small amounts of money, you should be aware that a flat management monthly fee can eat into your profits. Acorns charges $3-$12 per month for its range of plans, so you’d have to earn $36 to $144 per year to make up for those fees. Those free trades may not look so free after all.
Who should use micro-investing apps
All of these apps are aimed at beginners. Some, such as Robinhood and Webull, are also aimed at experienced investors who want to trade often. But new investors with small amounts of money to invest are their primary audiences, and they cater to them with apps that are easy to use and have low costs.
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
The bottom line
Investing shouldn’t be difficult. If you’re scared by the many factors that can go into choosing a stock or mutual fund, micro-investing platforms make it easy by educating you on investment choices that match your risk tolerance, investment goals, and timeline. Many also offer portfolios with certain goals and an investment strategy in mind. And with checking, savings, and retirement accounts, many can help with your financial needs.
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