Top 5 Investment Apps of 2020

Table of Contents

1. Introduction
2. The Importance of Investment Applications
3. M1 Finance: Building a Free Portfolio
4. Fidelity Investment: Commission-Free Trading and Diverse ETFs
5. TD Ameritrade: Free Option Trading
6. Robin Hood Investing: Beginner-Friendly Platform
7. Vanguard: Lowered Commissions and Commission-Free Trading
8. Honorable Mentions
9. Conclusion

Introduction

As we enter 2020, it's essential to explore the top investment applications available in the market today. With numerous options to choose from, it can be challenging to determine which platform is the best fit for your investing goals. In this article, we will discuss five investment applications that have gained popularity among investors. From building a free portfolio to offering commission-free trading and innovative features, these platforms offer unique benefits to enhance your investing experience. Whether you are a beginner or a seasoned investor, this article will help you make an informed decision on which investment application suits your needs and preferences.

The Importance of Investment Applications

When it comes to investing, having the right tools and platforms can significantly impact your success. Investment applications provide a convenient way to manage your portfolio, research investment opportunities, and execute trades. They offer a user-friendly interface, real-time market data, and useful features that simplify the investing process. With the advancement of technology, these applications have revolutionized the way investors engage with the stock market. They have leveled the playing field and made investing accessible to a broader audience. Whether you are a busy professional or a college student, these investment applications allow you to take control of your financial future. In the following sections, we will Delve into the top five investment applications and learn why they have garnered Attention in the investment community.

M1 Finance: Building a Free Portfolio

Pros:

• Allows investors to build a diversified portfolio easily
• Provides pre-made investment portfolios for beginner investors
• Offers automated portfolio management
• No fees or commissions for trading

Cons:

• Limited selection of investment options compared to other platforms

M1 Finance is an investment platform that caters to long-term investors looking to build a diversified portfolio. The platform simplifies the process of investing in multiple Exchange-Traded Funds (ETFs) by enabling users to allocate their funds Based on their preferred percentages. Unlike traditional brokerage accounts, where each ETF requires a separate transaction, M1 Finance allows investors to invest in multiple ETFs simultaneously through a structured portfolio. This unique feature offers convenience and ensures your investments are allocated according to your desired diversification strategy.

Additionally, M1 Finance provides pre-made investment portfolios, making it an excellent choice for beginner investors. These portfolios are carefully selected by M1 Finance and cater to various risk tolerances and investment goals. By choosing a pre-made portfolio, investors can take AdVantage of expert recommendations while also having the flexibility to customize their allocation percentages.

Another significant advantage of M1 Finance is its commission-free trading. Unlike some brokerage platforms that charge fees for trading, M1 Finance does not impose any commissions, allowing investors to transact without incurring additional costs. This feature makes M1 Finance a cost-effective solution for investors looking to grow their portfolio without worrying about trading fees.

While M1 Finance offers an excellent platform for building a free portfolio and managing your investments, it does have a limited selection of investment options compared to other platforms. This limitation may not be suitable if you are looking for a wide range of investment opportunities beyond ETFs. However, for those focused on long-term investing and diversification, M1 Finance remains a top choice.

Fidelity Investment: Commission-Free Trading and Diverse ETFs

Pros:

• Offers commission-free trading for stocks and ETFs
• Wide selection of ETFs, including newly added commission-free options
• No minimum account balance for Individual Retirement Accounts (IRAs)
• User-friendly platform with exceptional analysis and portfolio management tools

Cons:

• Limited availability of certain features for non-U.S. investors

Fidelity Investment is a renowned brokerage firm that has recently embraced the trend of commission-free trading. With their introduction of commission-free trading for stocks and ETFs, Fidelity has become a preferred choice for investors seeking cost-effective trading options. This move has significantly lowered the barriers to entry for new investors, allowing them to buy and sell securities without incurring trading fees.

One notable advantage of Fidelity Investment is its extensive range of Exchange-Traded Funds (ETFs). They offer a wide selection of ETFs, including options from various reputable providers. Fidelity has also introduced commission-free options for several ETFs, further enhancing the value proposition for investors.

Apart from commission-free trading and diverse investment options, Fidelity Investment provides an intuitive platform with exceptional analysis and portfolio management features. Whether You are a novice or an experienced investor, Fidelity's platform offers a user-friendly interface that simplifies the investing process. Their analysis tools provide comprehensive insights, helping you make informed investment decisions. Additionally, Fidelity's portfolio management functionality allows you to track and manage your investments efficiently.

It's worth noting that while Fidelity Investment offers an all-around excellent platform, certain features may have limited availability for non-U.S. investors. As such, international investors should consider the platform's suitability based on their specific country of residence and investment goals.

TD Ameritrade: Free Option Trading

Pros:

• Offers free option trading
• Provides comprehensive statistics and analysis tools
• User-friendly platform with a seamless web and application experience

Cons:

• Potential changes in the platform due to recent acquisition by Charles Schwab

TD Ameritrade is a prominent investment platform known for its free option trading feature. Option trading involves buying and selling options contracts, which can be complex but potentially lucrative investment strategies. With TD Ameritrade, investors can engage in option trading without incurring any commission fees, making it an attractive choice for those looking to explore this investment avenue.

One advantage of TD Ameritrade is its comprehensive statistics and analysis tools. These tools provide investors with valuable insights and data, enabling them to make well-informed investment decisions. Whether you are seeking historical price data, technical indicators, or advanced charting features, TD Ameritrade's platform offers robust analysis tools that cater to both beginner and experienced investors.

In terms of user experience, TD Ameritrade's platform is user-friendly and provides a seamless web and application experience. The platform's intuitive interface allows investors to navigate effortlessly and execute trades efficiently. With a variety of account types and investment options, TD Ameritrade offers flexibility and caters to different investor preferences.

It is important to note that TD Ameritrade has recently been acquired by Charles Schwab, a leading brokerage firm. While the acquisition is expected to bring about changes and integrations between the two platforms, the Current functionality and features of TD Ameritrade remain intact. Investors should monitor any updates and changes resulting from this acquisition to ensure the platform continues to meet their needs.

Robin Hood Investing: Beginner-Friendly Platform

Pros:

• Beginner-friendly platform with a simple interface
• Offers a wide range of investment options, including stocks, ETFs, and options
• Revolutionary initiative in the investment market
• Continuously innovating with new features

Cons:

• Information accuracy may be lacking compared to other platforms
• Limited customer support compared to traditional brokerage firms

Robin Hood Investing has gained significant popularity for its beginner-friendly platform and simplicity. With its easy-to-use interface, Robin Hood Investing appeals to new investors who are looking to enter the stock market. The platform allows users to trade stocks, ETFs, and options, providing a comprehensive range of investment options.

One standout feature of Robin Hood Investing is its initiative in revolutionizing the investment market. By offering commission-free trading, Robin Hood has disrupted the industry and compelled other companies to adopt similar fee structures. This shift has made investing more accessible and affordable, particularly for small-Scale investors.

Additionally, Robin Hood is continuously innovating and introducing new features to enhance the user experience. For example, they offer a cash management account that provides a variable interest rate on uninvested money. This feature allows investors to earn a return on cash that would otherwise sit idle in their accounts.

Despite its strengths, Robin Hood Investing may have a few limitations to consider. While the platform is user-friendly, it may lack the same level of accuracy in providing information compared to other platforms. Investors should rely on external sources for thorough research and analysis. Furthermore, Robin Hood Investing may offer limited customer support compared to traditional brokerage firms, making it essential for users to Seek assistance through alternative channels.

Vanguard: Lowered Commissions and Commission-Free Trading

Pros:

• Lowered commissions for ETFs and mutual funds
• Commission-free trading for selected competitor funds
• Established reputation as one of the first companies to reduce fees
• Ongoing commitment to innovation

Cons:

• Chunkier application interface compared to other platforms

Vanguard is a well-established investment platform renowned for its lowered commissions and commission-free trading features. Vanguard was one of the first companies to lower fees for ETFs and mutual funds, making it a pioneer in reducing costs for investors. This commitment to affordability has attracted a significant number of investors to the platform.

Furthermore, Vanguard offers commission-free trading for selected competitor mutual funds and ETFs. By expanding their commission-free trading options, Vanguard strives to offer greater flexibility and investment opportunities to their customer base.

While the Vanguard platform may have a chunkier interface compared to some of its competitors, it still provides a solid investment experience. Vanguard's reputation for low-cost investing and their ongoing commitment to innovation helps solidify their position as one of the top investment platforms in the market.

Honorable Mentions

Apart from the five investment platforms discussed above, several honorable mentions deserve recognition in the investment space. Companies like Charles Schwab and E-Trade offer competitive features and services that cater to different investor preferences. Charles Schwab, in particular, has recently acquired TD Ameritrade, and investors should monitor the platform for any changes resulting from the acquisition. Whether you are seeking commission-free trading, analysis tools, or diverse investment options, these honorable mentions provide additional choices for investors to consider.

Conclusion

Investment applications have transformed the way investors engage with the stock market, making it accessible to a wider audience. Whether you are a beginner or an experienced investor, finding the right investment platform is crucial for your investing Journey. In this article, we explored five top investment applications: M1 Finance, Fidelity Investment, TD Ameritrade, Robin Hood Investing, and Vanguard. Each platform offers unique benefits, ranging from building a diversified portfolio to commission-free trading and user-friendly interfaces. We also Mentioned honorable mentions such as Charles Schwab and E-Trade, reflecting the diverse range of investment applications available in the market. With these options at your disposal, you can choose the platform that aligns with your investing goals and preferences. Begin your investment journey with confidence and take charge of your financial future.

FAQ

Q: Are these investment applications suitable for beginner investors? A: Yes, all the investment applications mentioned in this article cater to beginner investors. They offer user-friendly interfaces and educational resources to help newcomers navigate the world of investing.

Q: Do these platforms charge any fees for trading? A: The platforms mentioned in this article, such as M1 Finance, Fidelity Investment, and Robin Hood Investing, offer commission-free trading for various investment instruments. However, it is essential to review each platform's fee structure to ensure you understand any potential costs.

Q: Can I access these investment platforms outside of the United States? A: While most platforms are accessible internationally, certain features or availability may vary based on your country of residence. It is recommended to check with each platform to ensure its compatibility with your location.

Q: Do these platforms provide customer support? A: Each platform offers customer support, although the level of support may vary. Traditional brokerage firms and established platforms typically have more comprehensive customer support options compared to newer, app-based platforms.

Q: Can I transfer my existing investments to these platforms? A: In most cases, investment platforms provide options to transfer existing investments from other accounts or brokerage firms. However, it is essential to review each platform's transfer policies and any associated fees before initiating a transfer.

Q: Do these investment platforms offer retirement accounts? A: Yes, most investment platforms mentioned in this article offer retirement accounts, such as Individual Retirement Accounts (IRAs) or Roth IRAs. These accounts provide tax advantages and are tailored for long-term savings and investing goals.