Investment is no longer just in the realm of pensions or locked away on Wall Street. Instead, as the GameStop shares incident highlighted, retail investors now also have huge collective power in the stock market. It’s not all about so-called “meme” stocks, though, which can be extremely risky. Mobile investment apps, instead, can be used to monitor and manage typical trades including individual stocks, mutual funds/ETFs, ISAs, SIPPS, and other types of pensions, and more. You also don’t always need to manage your stocks personally, depending on your preference. Below, ZDNet has compiled a list of the top investment apps to consider in 2022. Disclaimer: The information presented by ZDNet is not intended to be individual investment advice and is not tailored to your personal financial situation. It does not constitute investment, legal, accounting, or tax advice, nor a recommendation to buy, sell or hold any particular investment. We encourage you to discuss investment options with your financial adviser prior to making any investments. Fidelity is an excellent option for both professional and retail investors. The brokerage’s app, available on iOS and Android, offers individual stocks and shares as well as bundles, such as socially responsible funds or index funds, to explore. There are also useful news feeds, a goal planner, and Fidelity offers commission-free trades of ETFs and shares to retail investors. Pros:
Investment toolsStraightforward pricing structure
Cons:
A learning curve
Nutmeg is my personal favorite for long-term investments in ISAs. One for UK investors and accounting for over 185,000 users, the Nutmeg app can be used to manage general investments, ISAs, and pensions. You can set goals, investment styles, and how comfortable you are with risk. You can also choose to have your funds managed. Nutmeg invests in index funds, ETFs, and by country and sector. Fees vary by portfolio, whether managed, socially responsible, or based on fixed allocations. Pros:
Fully managed portfolios are an optionRegulated by the FCAUser-friendly
Cons:
Need substantial deposits to open new ISAs (£500)Fees
Robinhood is an interesting option as the platform has a vast share portfolio to choose from – and users can purchase fractional shares, which isn’t very common. Say you have $5 – you can buy a fractional share of a stock that costs far more, or you can contribute toward a unit in an ETF, drip-feeding your investments over time. You can also explore margin calls and cryptocurrency, and you can start with as little as $1. You should keep in mind, though, that Robinhood’s platform has faced controversy, not in the least due to how the company handled the GameStop share ramp. Pros:
Easy access to investment at any fund levelPossible to buy fractional shares
Cons:
User trust has suffered a blow
eToro markets itself as a tool for the “social” investor by copying the moves of other traders. The broker has a clear pricing structure and offers users the chance to snap up fractional shares, but the app, arguably, is more geared toward offering both stocks and crypto, rather than being a master of one – and so stock options are somewhat limited. The app has an emphasis on cryptocurrency trading and facilitates access to coins including Bitcoin (BTC), Ethereum (ETH), EOS, and Dogecoin (DOGE). You can start with $10. Pros:
0% commission, fractional sharesAccess to a range of cryptocurrencies
Cons:
Limited stock and ETF investment options
TD Ameritrade’s brokerage app is an excellent option for the more experienced investor who wants access to in-depth market research, news, and movement charts. The app offers access to stocks, options, and ETFs, as well as the option to create real-time alerts and watch lists. Ameritrade’s pricing structure now includes 0% commission and some free online stock trading. However, fees may come into play for broker-assisted trades, options, futures, and other types of investment. Pros:
Real-time market tools and updatesTransparent pricingNo account minimum
Cons:
Beginners may experience a steep learning curveNo fractional shares
The stock market has inherent risk and as a general practice, it’s not recommended to put more in than you can afford to lose. So, if you’re unsure where to begin, you might want to consider stocks and shares accounts that are managed for you (for a % fee), trackers, index funds, or ETFs that don’t require you to select individual shares. There’s no magic number beyond what you feel comfortable with. Some suggest between 10 - 15 is a ‘sweet spot’ for beginners, whereas 20 - 30 is also pegged as a general comfort level. It all depends, however, on your own level of investment, the time you intend to hold stocks, and how much risk you are willing to shoulder. Accounts may also have different tax rules: for example, a pension account (such as a SIPP/IRA) might require a draw-down and tax liabilities that only hit after you can access the funds; whereas a UK stocks and shares ISA is tax-free with contributions of up to $20,000 per year.
