What are Micro-Investing Apps? Like other apps, Public lets you buy fractional shares of stocks and ETFs (called “slices” on Public) so you can invest with as little as .
Even experienced investors struggle with asset allocation and diversification. If you’re just starting out, using an app that creates a diversified portfolio for you is a plus. Automatically generated portfolios eliminate much of the stress and guesswork new investors face.
More Information About Acorns
For a full run down of fees and services, check out our complete Acorns review.
For a full run down of fees and services, check out our complete Sofi review. Micro-investing works by consistently allocating small sums of money to an investment portfolio. It sounds simple, but each app has different fees, features and flexibility.
Minimum investment Like SoFi, Public doesn’t charge any monthly or annual fees, and offers commission-free trading. You can also buy and sell a limited number of cryptocurrency coins within the app.
Best for New Investors
Fees What makes SoFi unique from other micro-investing apps is you can chat with a financial advisor over the phone or on video at no extra cost. These certified financial professionals act as fiduciaries, meaning they’ll put your financial interests first and won’t try to sell you anything.
More Information About SoFi Invest However, Public does a great job teaching you about investing as you go. You can tap on key terms to learn simple definitions and see “safety labels” on riskier investments, like companies that recently filed for bankruptcy.
Micro-investing apps offer several advantages, but they’re not for everyone. It’s important to understand the pros and cons before putting your money into any investing app. The app has a large community forum where users can offer trading advice and ask questions about stocks. This can be attractive to beginning investors because it provides additional information, feedback and insight from more experienced traders.
Features of the Best Micro-Investing Apps
All Stash accounts include a bank account with no overdraft fees or minimum balance requirements. (It doesn’t earn any interest either.) You can also create goals by separating your cash into spaces for specific purposes, like buying a home.
Easy to Use
4.5 out of 5 Overall
Diversified Investment Portfolios
4.5 out of 5 Overall
Educational Tools
Some micro-investing apps offer other services in addition to their brokerage accounts, including access to a savings and/or checking account, an IRA and custodian accounts. You might pay more for these services, but the cost may be worth it depending on your goals.
Recurring Transfers
for Growth and for Stash+
Other Banking Services
Acorns offers two pricing options: A monthly fee for its Personal account or a month for its Family account.
Pros and Cons of Using a Micro-Investing App
Ease of use
Around-the-clock access. You can quickly and easily monitor your account on the company’s website or mobile app.
Fractional shares get you invested quickly. Stocks and ETFs can cost hundreds or even thousands of dollars a share, but fractional shares get you invested with whatever amount you can afford.
Account minimums are lower than some traditional brokerage accounts. Most micro-investing apps feature $0 minimum balance requirements so you can begin investing with just a few dollars.
They’re safe. Just like a traditional brokerage account, micro-investing platforms must register with the U.S. Securities and Exchange Commision. Savings and checking accounts are FDIC insured.
Fees
Fees are high for accounts with low balances. Apps like Acorns and Stash advertise low fees, but getting charged $36 a year for a brokerage account isn’t a great deal.
You’ll miss out on retirement plan tax perks — or pay more. Most of these apps offer retirement accounts, but you’ll usually pay more if you opt for an IRA.
Your investment choices may be limited. You may or may not be able to handpick the investments inside your portfolio.
They probably won’t help you meet your retirement goals. Retirement is expensive, and making tiny contributions to an app isn’t likely to amass the nest egg you need to comfortably retire.
Recapping the Best Micro-Investing Apps
Stash: Best for Hands-On Investors
SoFi Invest: Best for Free Investing
Acorns: Best for New Investors
Public: Best for Investors Seeking a Community
Frequently Asked Questions (FAQs) About Micro-Investing Apps
Public doesn’t offer an automated portfolio like most of its competitors. Instead, it organizes stocks into user-friendly categories called “themes.” For example, there’s an American Made theme that includes U.S.-based companies and an eCommerce theme with companies like Amazon, eBay and Shopify.
All portfolios are public by default, so you can track other users’ stock portfolios (and they can track yours). However, the app will never show how much money users invested, lost or gained on any individual stock.
Account minimum
The app lets you invest your spare change through its Round-Up feature. After linking a debit card to the app, your purchases are rounded up to the nearest dollar and the difference is invested into your portfolio.
After creating your account, you answer a brief questionnaire to assess your risk tolerance and financial goals. The app then selects a pre-made portfolio, so you don’t have to choose any investments yourself.
Micro-Investing Apps Features
In October 2022, Stash also introduced a selection of eight cryptocurrencies investors can purchase, including bitcoin and ethereum. Users with Stash Growth accounts are charged a 1% fee per crypto transaction and Stash+ users pay a 0.8% fee per transaction.
The best investing apps provide a host of educational resources and investment advice for beginners, including articles, videos and podcasts. While most micro-investing apps don’t offer access to a professional financial advisor, these free educational tools are a helpful way to boost your personal finance knowledge.
Very easy
5 out of 5 Overall You won’t get rich quick from investing in Acorns or any micro-investing app. The app’s fees are actually rather high if you have a low account balance. However, using an app like Acorns can be a good introduction to the stock market if you’re new to investing or you struggle with saving money. Minimum investment
For a full run down of fees and services, check out our complete Public review.