My Top 3 Investment App Picks. It's your future, invest now!

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My Top 3 Investment App Picks

Investing, stocks, "the market", futures, our economy; scary and misunderstood words that to be honest can be very confusing. Hearing "Only the top 1 percent are able to invest or do anything related to investing and stocks" can be a huge discouragement to even try. These sorts of things can just turn you off to the whole idea of wall street and getting wealthy.

Well, I'm here to tell you it isn't too late, it isn't difficult, and you don't need a mountain of cash to do it. Anyone can and SHOULD invest and with today's resources anyone with any amount of money can do it!

Heads up! I won't be going into deep detail about stocks, but rather mostly into the app reviews and what the apps can do for you. I may make a separate post on suggestions for general stock investment advice if the apps don't do justice for you already.

Lets talk about the apps briefly first. (Here comes the fluff. If you like, skip to the reviews here)

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What is investing? 

Easily put investing is putting away money for your future. It is very much like and could be considered starting a savings account, buying a house or car (necessity), or putting money into stocks. 

The biggest difference between a savings account and "investing" is that savings accounts are much easier to access and can be used for daily needs and investing is more for the long haul. Also, with investments the interest rates could be higher or you may be able to make money off your investments. The idea to invest is to save, let your money work for you, and let it sit till you really need it. I mean REALLY need it.

Why should I be investing? 

To start ...retirement. If you have a 401k or similar then good for you! You are already investing in your future when you get old and grey. Buying a home or saving to buy a home would also be a good example of good investing. Think of it as future comfort or a backup plan in case things really go south or when you decide to retire and not have to worry about holding down a job.

There is also potential to make some good money with the right investments. Having a rental property for example would bring in idle income which makes it a wise investment. A car purchase to get you from A to B would be another as you may depend on it for a daily work commute.

These are great examples but not some I'll be discussing in this post. I'll be covering in short, stock investments.

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Why stock investing?

I'll give you the short answer; it's easy and it doesn't take much to start. It's a misconception that you need a lot of money to get started. Additionally, the "interest rate" is higher than most savings accounts and income from it can be seen daily if invested properly.

About the investment apps I will be recommending in a nut shell:

It is NEVER too late to save or prepare. Maybe your retired and maybe your not. Despite having a 401k or using your 401k, there is money to be had by investing in yourself. The apps I will be recommending, I say everyone should at least consider.

These apps primarily allow you to be in a sense or just like a day-trader. Day traders buy and sell stocks daily to make a living. Two out of the three recommended will work similarly like a 401k where you won't need any specific amount to invest and allow you to invest any amount; the later would require the full amount to invest into a single stock.

If you don't have a 401k yet these apps have 401k options and/or 401k-like services.

Overall, these apps do not limit you, lock you in, and the funds can be accessed any time unless you sign up with one of their 401k/retirement plans. 

Why should I use these apps?

They're easy to use, they educate you on stock and ETF investments, and their management fees are low or don't exist. Signing up with a day trading site, hiring a broker, or just doing things more manually can be a headache and cost a good amount of money. 

I'm a fan of "Doing it yourself" but in the easiest way possible all at the reach of your fingertips.

Stocks have interest rates? I heard you can loose money in stocks!

Sort of and yes! 

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Interest: Let me explain. Stocks with interest rates aren't really considered to have "interest". I say "interest" because it is a bit easier to understand. In actuality "interest" in the stock world is known as dividends. Dividends are essentially a "thank you" percentage that companies give you for investing in them. So in short, depending on the percentage or amount of stock you invest in will determine how much dividends get paid to you. Most of the time dividends are paid quarterly (four times a year), Semi-annually (two times a year), or annually. I've seen them sometimes as early as monthly.

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Loss: With any investment loss is possible. Companies you invest in do not want to loose money, they aren't planning on filing bankruptcy, and they don't want to hurt their investors who believe in them; A.K.A. you, the stock purchaser/share holder. Stocks are volatile. They fluctuate moving up and down depending on the market, news, and what's being sold. Rest assured though, despite seeing a stock plummet, if you keep it there and don't panic, it is pretty likely it'll jump back up.


Tip! The concern of loss is expressed with most investing companies and most of these companies will advise you "not to put all your eggs in one basket". In other words spread yourself out a little and that way if a stock/company isn't doing so well, you've made yourself some insurance.

In my experience you only loose if you panic and jump ship before giving your "believed in" investment a chance to climb back up to where it was.

How do these investment apps work?

To start: Each app does function differently but to get started it doesn't take much effort and they're all generally structured the same. In the following is an outline of the basic starting point.

1. Download (obviously :-p)
2. Create an account with the desired app
3. Deposit money to get started

Primary deposit method: Some apps may vary in regards to the primary deposit method. All the apps I'm about to review allow you to either deposit funds every month or bi-weekly. Also, at minimum you are required to deposit $5 to $10.
Secondary deposit method: These apps come equipped with a "keep the change" type of deposit. This allows you to round up your purchases directly from your bank account up to the nearest dollar. For example, if I spend $1.75 at the super market, my app will withdraw $0.25 from my bank and deposit it into the app for investing.
Third "deposit" method: You hear right. two out of the 3 apps gives you money to invest if you refer a friend. The other app gives you a free stock for referring a friend. If you like this post, be a friend and use my referrals!!!  ;-)

I'm ready to invest!: Now that you have money on your app your ready for investing! Each app has its unique way of investing and specific amounts to invest. Two of the apps will allow you to invest pretty much any amount into what your interested in. The other is more like day trading but rest assured there are a few low cost stocks out there and a few that are even under $5.00.

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Is this dangerous, why do I need to link my bank account, and why do they need my social security number?

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Is it dangerous: With any information given anywhere in person and online there is always a risk of something bad happening. Usually with financial apps like these they've taken the steps to secure your information and provide top notch safety. No company wants to loose customers or in this case investors. So rest assured you should be pretty safe. I fully trust these apps with my information and with the time I've spent with them I have not encountered fraud, data breaches, etc.
Why link my bank account: This is so they can easily withdraw or deposit your money without charging you fees. It also allows the app to track investment opportunities and allow the "keep the change" methods to work for you. Again, nothing to worry about as I've not run into any funny business with my accounts and these apps.
Ok but why my social security number: When your stocks grow you may want to sell them. This lets you make money. Sadly, with money made on "the market", it is taxed. They need your social security number so they can properly report the taxes from the sale and provide you with essential tax information during tax season.

Now what we've all been waiting for; the reviews! (To Top or just sign me up!)

These investment apps are my suggested top 3. They may be top 3 on other sites and my ranking is in no relation to other sites. These are my personally subjective opinions of the applications. Additionally these reviews will be simplified for easy of understanding and access.I will not delve too deep unless requested ;-)

1. STASH (Skip to Pros and Cons) (To Top)

A little about STASH: This app has been around since 2015 so it does have a few years under its belt. It is considerably new compared to its competitors listed on this post but it is my #1! When I first started using STASH I loved the layout, they way it looked, and the simplicity of it.

Like Acorns, STASH allows you to make automatic deposits, "keep the change" deposits, and single deposits. This makes the app super flexible in how you would like to start saving.

STASH makes investing really easy compared to the others! To start, you are not required to purchase a full stock. You are able to invest in just a part of a stock. For example, lets say Disney is at $151.00 a share, STASH allows you to invest a minimum of $5 into it instead of forcing you into paying $151.00.

Another way STASH makes investing easy is that you have the option to invest in stock or an ETF. The difference between the two is that a stock is a share in a single company; an ETF on the other hand is several companies under one roof who share a similar interest. The cool thing with the ETF investments is that it tells you what the ETF is all about and allows you to invest based on your interests.

Lastly, STASH informs you when dividends are paid, they provide tips and tricks, help you set goals, and offer a 401k plan. Another very important feature they has is the performance, risk, and dividend percentage for each stock and ETF.

STASH Pros and Cons:

PROS

1. Allows automatic deposits, transfer deposits, and "keep the change" deposits.
2. Interface is easy to use and graphically pleasing.
3. Great breakdowns and explanations of each stock and ETF
4. Tips and tricks!
5. Goal Setting!
6. 401k option!
7. Referral Program that help you and a buddy!
8. Does not require a complete purchase of a stock at it's current share price.
9. Available for use on your computer or your phone.

CONS

1. To start STASH costs $1 a month 
2. To invest in anything is a minimum $5.00
3. Referral program caps your referral bonuses at $500 per calendar year

2. Acorns (Skip to Pros and Cons) (To Top)

A little about Acorns: This app's inception was in 2012 which makes it the oldest on this list. Acorns has a very simple way of investing and very simple interface. If your looking for simplicity Acorns will be right for you!

The way I see Acorns working is much like a simplified 401k but where you don't choose what you invest in. That's right! Acorns does all that for you. At the start you just choose how much risk you would like to take and they will do the rest! You won't need to bother doing stock/ETF research and they take care of all your "eggs" and "baskets".

Acorns allows you to make automatic deposits, "keep the change" deposits (which is something they prefer most), and single deposits. This makes the app super flexible in how you would like to start saving.

With Acorns, since your only managing how much risk you would like to take, they won't bother you with the details of what or who is being invested. This can be a little unsettling but if your just looking for a "high interest savings account" then this may be right for you and the interest would be based on how much risk you are willing to take.

Acorns also has a unique program that allows companies to invest in you. If you complete simple tasks, make purchases, or subscribe to suggested companies, they will invest in you.

Lastly, Acorns still provides tips and tricks, help you set goals, and offer a 401k plan.

Acorns Pros and Cons:

PROS

1. Allows automatic deposits, transfer deposits, and "keep the change" deposits.
2. Interface is easy to use and graphically pleasing.
3. Through completing tasks companies can invest in you.
4. Tips and tricks!
5. Goal Setting!
6. 401k option!
7. Referral Program
8. Does not require a complete purchase of a stock at it's current share price.
9. Available for use on your computer or your phone.
10. Acorns does the work for you. No need to look into stocks or ETFs

CONS

1. To start Acorns costs $1 a month 
2. Unable to choose stocks/ETFs to invest in
3. Referral program caps change frequently and have strict requirements
4. At the beginning Acorns tries to force you into the "keep the change program" (It can be turned off at a later time though)

3. RobinHood (Skip to Pros and Cons) (To Top)

A little about RobinHood: This app has been around since 2013 making it the second oldest on this list. I would say this app is for the more advanced and the aspiring day trader.

Unfortunately this app isn't as flexible but still gets the trick done. As for depositing money into the app you are only limited to direct transfers or automatic payments. Robinhood also doesn't have a keep the change program like the others.
Another downside or upside depending on how you look at it, is it's notifications. The app will notify you of new stocks, stock updates, and updates to specific stocks you've saved for later investment. I mention downside as this could be a little too frequent.

As mentioned before, this app is more for the beginning and/or advanced day trader as it requires the full purchase of a stock or ETF. This isn't too much of a problem as these do range from very low prices of lower than $5.00 if you can find them to well ...the sky's the limit. Also, on the upside, unlike Acorns and STASH this app won't charge you a monthly rate; it is completely free!

Overall the app is nice like the others, it's easy to use, and it gives you tips and tricks on how stock trading works.

RobinHood Pros and Cons: 

PROS

1. It's free! No monthly payments
2. Allows automatic deposits and transfer deposits.
3. Tips and tricks!
4. Daily stock and ETF updates via push notifications
5. Referral Program that help you and a buddy!
6. Referrals get you free random stock! How fun!
7. Available for use on your computer or your phone.

CONS

1. No "keep the change" program for deposits
2. No 401k option
3. No goal setting
4. Requires a complete purchase of a stock or ETF

Did you like this post? Want to help me out? Please sign up with these apps using my referral! Thanks in advanced!