Young people in the modern world are cutting their independence differently from previous generations, and therefore their handling of finances is also different. Today, people do not have to wait for a large bonus to be able to invest in stock or other related securities. The utilization of micro-investing applications has become the go-to strategy for young professionals to invest for the financially fruitful future they require.
However, there are so many platforms in existence. This is where it becomes very hard when deciding on the most suitable one to use. This blog is rich with specific information about the best micro-investing apps for millennials and Gen Z, guiding them to the best apps.
What Defines the Perfect Micro-Investing App for Youths?
Here are a few factors that make micro-investing app ideal for young investors.
Low Minimums
Gone are the days when one had to have thousands to begin with. Truthfully, micro-investing applications help you start with spare change or with a few dollars, and this makes it ideal for budget-conscious people.
Fractional Shares
These apps allow you to buy portions of expensive stocks, providing access to a wider range of companies without breaking the bank.
Automated Investing
Set it and forget it! Many platforms offer automated investing features, allowing you to invest consistently without the need for constant monitoring.
Top Micro-Investing Apps for Millennials & Gen Z
These are some of the top micro-investing apps available in the market, each serving specificity for the millennial and Gen Z population.
1. Stash
Stash is one of the earliest and easiest options to use out of all the platforms for trading. It has a minimum investment of only $5 and you can buy stocks in fractions. Stash also offers a learning center with courses and articles regarding investing to ensure you make a sound decision.
2. Acorns
This app adds a small amount to the total of your normal purchases and puts the change in a basket of stocks. Indeed, it is one of the simplest techniques for observing your money pile up over a certain period of time.
3. Robinhood
Robinhood is one of the most popular choices for commission-free trading on stocks and ETFs. It also provides possibilities to buy shares for fractions, which can let you invest in the companies that you trust despite their high cost. Aside from that, Robinhood has some disadvantages. One of them is the lack of intensity in the educational component compared to others.
4. Betterment
Betterment is one of the best-known robo advisors that recently included micro-investing in its offerings. The investment is fully automated and uses your risk profile/financial objectives to determine where your money should be invested. Though there is a slightly higher minimum investment as compared to Acorns ($10), Betterment offers personal and robo experience to investing.
5. M1 Finance
Like Acorns, M1 Finance provides an easy way to invest in stocks and ETFs; however, M1 offers the flexibility of designing investment pies based on the user’s funds allocation. It provides the fractional ownership of shares and the features of the simple and intuitive app, which is good news for users who need more options.
Deciding on the Right App for Yourself
There is no best app when it comes to micro-investing. Ensure that you look at your objectives, tolerance to risks, and trading preferences when making your decision. This approach to entrepreneurial sales is perfect for novel ideas and products; do not be afraid to experiment!