If you don’t have a lot of money to spare, micro-investing is a great way to get started with investing. In this article, we review the best micro investing apps in 2023. We’ll look at factors such as fees and investment options to help you choose the right app for you.
What Is Micro Investing?
Micro investing is a way to invest small amounts of money regularly, typically in dollar amounts as low as $1 or $5. This makes it a great option for people who want to start investing but don’t have a lot of money to spare. Micro investing apps make it easy to get started by automating your investments and rounding up your spare change.
Here are the best micro-investing apps in 2023:
Acorns
Acorn is a micro-investing app that helps you save and invest money without having to think about it. It does this by rounding up your spare change and investing it in a diversified portfolio of stocks and ETFs. For example, if you spend $3.75 on a coffee, Acorns will round that up to $4 and invest the extra $0.25 in your account.
Acorns also offers a robo-advisor service that can help you manage your investments. This service will automatically rebalance your portfolio as your financial goals change and your risk tolerance evolves. This service is what makes Acorns one of the best net worth trackers.
Pros
- Round-up investing
- Automatic investments
- Robo-advisor
- Educational resources
Cons
- Limited investment options
Stash
Stash is a micro-investing app that makes it easy to start investing even if you don’t have a lot of money. You can invest in individual stocks, ETFs, and fractional shares with Stash. Fractional shares allow you to invest in a stock even if you can’t afford to buy a whole share.
Stash also offers a variety of educational resources to help you learn about investing. These resources include articles, videos, and quizzes.
Pros
- No monthly fees
- Fractional shares
- Educational resources
Cons
- Minimum investment of $5
- Limited investment options
- Customer service has been criticized
Robinhood
Robinhood is a commission-free stock trading app that also allows you to invest in fractional shares. Robinhood is a popular choice for people who want to trade stocks actively, as it allows you to buy and sell stocks without paying any commissions.
Pros
- No commissions
- Fractional shares
- Easy to use
Cons
- Limited investment options and customer service
Betterment
Betterment is a robo-advisor service that offers micro-investing. Betterment will create a diversified portfolio of investments for you based on your risk tolerance and financial goals. It is a good option for people who want to invest but don’t want to do the research themselves.
Pros
- Micro investing
- Robo-advisor
- Diversified portfolio
- Low fees
- FDIC insurance
Cons
- Monthly fee
- Minimum investment
Wealthsimple
Wealthsimple is another robo-advisor service that offers micro-investing. Wealthsimple is a good option for people who want to invest passively and don’t want to worry about managing their investments.
Pros
- Micro investing
- Robo-advisor
- Passive investing
- Low fees
- FDIC insurance
- Canadian-based
Cons
- Monthly fee
How to choose the best micro-investing app for you
When choosing a micro-investing app, there are a few factors you’ll need to consider:
1. Your Investment Goals
What are you hoping to achieve with your investments? Are you saving for retirement, a down payment on a house, or something else?
2. Your Risk Tolerance
How much risk are you comfortable with? Micro-investing apps typically offer a variety of investment portfolios, so you can choose one that’s appropriate for your risk tolerance. Endeavor to check out the best stock research websites for information on your preferences before you make a decision.
3. Your Budget
How much money do you have to invest each month? Micro-investing apps typically have minimum investment requirements, so be sure to factor this in when making your decision.
4. Your Investment Experience
If you’re a beginner investor, you’ll want to choose an app that’s easy to use and has educational resources. Also, you’ll want an app that’s most convenient for what you have an interest in, especially if you decide to deal with the best alternative investments.
Some additional things to keep in mind when choosing a micro-investing app are:
1. Fees: Micro-investing apps typically charge fees for their services. Be sure to compare the fees of different apps before making a decision.
2. Investment options: Different micro-investing apps offer different investment options. Be sure to choose an app that offers the types of investments you’re interested in.
3. Customer service: If you have any questions or problems, you’ll want to choose an app with good customer service. Check for micro-investing apps with the best stock chat rooms so you can be better informed before you make certain decisions.
Are Micro Investing Apps Worth It?
Micro investing apps can be a great way to get started with investing, even if you don’t have a lot of money to spare. They make it easy to automate your investments and round up your spare change, so you can start saving for your future without even thinking about it.
However, it’s important to remember that micro-investing apps are not a get-rich-quick scheme. It takes time and effort to build wealth through investing. So if you’re looking for a way to make a quick buck, micro-investing is not for you.
Best Micro Investing Apps: Final Verdict
Micro investing apps represent an accessible and user-friendly entry point into the world of investing, allowing individuals to build wealth systematically. While they aren’t a shortcut to instant riches, they cultivate the habit of saving and investing for the future. Ultimately, the best micro-investing app for you will depend on your unique financial goals, risk tolerance, and preferences.
