Best Investing Apps of December 2024

As you consider your options, there are a few things to keep in mind:

• Your investment budget: First, it’s important to understand your investment budget. Your budget should consider how much it will cost to invest as well as required account minimums. Realize, too, that passive investing is a long-term financial commitment. Avoid investing any amount of money that you think you’ll need in the near future.
• Available asset classes: Next, when evaluating the best investment apps, consider what types of assets you want to invest in. Different apps offer different investment options. For example, some make it easy to build a portfolio out of stocks, ETFs, and bonds. Others may offer options trading and cryptocurrencies.
  
• Account types: Figure out what types of accounts you want access to. For example, some investment platforms offer a wide variety of accounts, including individual retirement accounts (IRAs) and trust accounts, in addition to personal taxable investment accounts.
  
• Investment management fees and pricing: Many investment platforms charge fees, so it’s important to be aware of this when you’re deciding where to invest. Some platforms charge a monthly account fee based on the features you want to access. Others charge an annual fee based on the assets in the account.
  
• Security features: Don’t forget to look into security. You want to make sure your transactions are encrypted. Check to see whether the platform is registered with the Securities and Exchange Commission and see what clearinghouse it uses. For example, some platforms use Apex Clearing for their transactions, which means they have Securities Investor Protection Corporation (SIPC) insurance and are a member of the Financial Industry Regulatory Authority (FINRA).

Many investment apps allow you to open an account with no minimum and begin investing with as little as $1. Some apps, though, have higher minimums and might require $5 or more to begin investing.

The assets you trade on investing apps depend on what’s offered by each app. Most investment apps offer stocks and ETFs, while others offer crypto, bonds, mutual funds, options, forex, and more. Ensure the app you choose allows you to trade the assets you’re most interested in for the most benefit.

Asset classes are types of investments. They share similar characteristics to each other and broadly move similarly in response to various economic and market factors. Some common asset classes include:

• Stocks
• Bonds
• Cash
• Real estate
• Commodities
• Currencies

Any investment comes with the risk of loss. Cash is generally considered one of the safest investments, but even with that, you have the chance of losing value through inflation. Bonds, especially U.S. Treasuries, are also considered among the safer investments because you’re supposed to get your principal at the end of the term, though there’s a chance of default.

The safest investments don’t generally offer the highest returns, though. In most cases, the lower the risk of loss, the lower your potential return. The right options for you will depend on your risk tolerance and personal finance preferences, as well as other factors.