3 Investing Platforms For Newbie Investors
Are you a newbie investor looking to get started with investing in the stock market? I get a lot of questions about where and how to invest and so I'm sharing a few investment platforms that I'm familiar with and that are highly reviewed by users.
I will however stress that it's important to make effort to understand how investing in the stock market works as well as how the associated fees affect your portfolio so you can make informed decisions about how you invest your money.
The platforms I mentioned below are a great way to get your feet wet if you are an investing newbie and once you get more comfortable, you can begin to explore investing larger amounts.
A great book to get started with is "A Beginner's Guide to Investing: How to Grow Your Money the Smart and Easy Way" (and you can get it on Amazon here).
Ever wanted to own stock in companies you are familiar with and use their products e.g. Disney, Facebook, Apple, Coca-cola etc? Stockpile makes it easy to buy stock in the companies you love. Instead of having to buy a whole share, you can buy fractional shares and spend just the amount you’re comfortable with.
There are thousands of stocks to choose from, there is no monthly maintenance fee and you can give stock as a gift - a great gift idea for kids and young adults. They also give you a free $5 to get started! (Get yours here).
Cost: No monthly fee. Buying and selling stocks is $0.99 per trade but you get a free $5 to start
Minimum deposit: $0
Acorns is a micro investing platform that allows you to invest your spare change by diversifying them across over 7,000 stock and bond funds. To use it, you connect your most used bank accounts and card to Acorns and as you spend, Acorns will round up your purchases to the nearest dollar and invest the difference on your behalf.
You can also schedule recurring deposits or make one time deposits to go towards your investment portfolio.
Cost: $1 a month; For accounts $5,000 or more, you pay 0.25% per year. (Free if you are under 24 or attending college).
Minimum deposit: $0
Stash is all about helping you invest in the things that you believe in and love. You have access to over 30 different investment fund options and all you need to do is connect a checking account to make transfers from. You can also buy fractional share too.
Cost: $1 a month; For accounts $5,000 or more, you pay 0.25% per year.
Minimum deposit: $5
Bola Sokunbi is the founder of Clever Girl Finance and she's passionate about helping women take control of their money so they can live life on their own terms.