Investing is the process of taking small amounts of money, week on week, month on month, year on year decade on decade and letting your money do the talking.
It is often said that fees kill the average investor. But, it is 2019, not 1919. Start-ups are here and they’re getting rid of the fees. So what are the best apps to help you to start invest?
Investment apps are far overtaking traditional brokerages, so new investors are increasingly turning to investment apps to get into the stock market. Even many experienced are taking to investment apps, no high fees cutting into their bottom line, no picking up the phone to make a trade.
Now, you can pick up your phone, make a few taps and invest thousands.
Whether you’re a seasoned professional, or someone just getting into it, consider these investment apps to start investing. Whatever the markets bring in the coming years.
1. Degiro
I personally use Degiro. So this may be a little biased, Degiro is a Dutch stock brokerage founded in 2013. It is headquartered in Amsterdam. Degiro has many perks, not only the low fees, but whichever country you’re registered in, that stock market’s highest fee is €5.
Although some stock markets are excluded from this highest fee, mainly the US stock market.
With Degiro you can trade: stocks, bonds, options, mutual funds, warrants and ETF’s, all from the comfort of your home. However, cryptocurrencies are not available on Degiro.
Degiro is regulated by both the Dutch AFM and DNB, it is a relatively safe investment app for an investor in Europe.
2. eToro
eToro is an online brokerage, that focuses on its copy trading. By which an investor can set their account up, where they can automatically execute trades that another eToro user does.
It is eToro’s main selling point and is a staple of their ads.
However, there is a minimum deposit of $200, which makes it difficult for start-up investors to begin. eToro is regulated by both the Cyprus Securities and Exchange Commission and the FCA.
3. Saxo Bank
Saxo Bank is much like Degiro in many respects. It is a Danish Investment Bank, that specializes in online trading and investments. Saxo offer many securities, including: stocks, bonds, FOREX, CFDs, commodities, futures, FOREX options, listed options and ETFs.
Trading can cost as little as £4.99 for UK stocks, but $3 for US stocks. The only problem is that the help is open only when the markets are, meaning it can take 2-3 business days to get the answer to a query, at worst.
4. IG
Although IG is slightly pricier, it makes up for it. There is a quarterly fee of £24, plus a per trade fee of £8. However if you are a frequent trader, the fee is lowered to £5. However there is a positive of no transfer fees, which is common among low cost brokerages. IG also allows the trading of contacts and financial spread betting. IG also allows you to add your existing ISA.
5. AvaTrade
AvaTrade is relatively new and relatively unknown. AvaTrade charge $0.30 per trade, with the only downside is that AvaTrade charges an inactivity fee. $50 for 3 months of inactivity. AvaTrade allows you to trade the standard securities, including: stocks, indicies, bonds, ETFs, commodities, CFDs. and FOREX.
Cryptocurrencies are also available with AvaTrade.
6. Moneybox
MoneyBox is a rather strange one, not only do they do budgets automatically, they take the investing process out of your hands too.
It works by you connecting your card and purchase history, you use your card as you would normally and every purchase you make is rounded up to the nearest pound/euro/dollar and invested.
For example, if you buy a coffee for £1.60, you will automatically invest 40p into your ISA. After you spend your £1.60, it calls the transaction £2, putting the extra 40p into your “digital piggybank.” You can then invest as you see fit to do so.
It is at this point where our lawyers inform us that we need to make a declaration. *You are never guaranteed to make money when you invest, you might even lose money*. We are not affiliated with any of these investment apps. This is our opinion. It is up to you to do your own due diligence. To make sure that that app is the best one for you. However, if you think you can handle the financial loss. One of these apps may be for you.
Obviously, this is tailored to UK-based investors. Obviously, British investors based abroad should always consider this. But, should always consider the best apps tailored for them. Many investments apps are tailored for the US. Including M1 Finance, TD Ameritrade, Robinhood and Acorns.
Why did I choose Degiro as my investment app of choice?
I have been looking for an online investment app for a while. Which is why I wrote this piece. I have quite a big trading account with another broker. However, the fees were killing me. Thus, annoying me. I looked at quite a few investment apps. But I had a few stipulations. low fees, responsive app, and a customer service phone number.
I found Degiro to fit those stipulations quite well. Despite the issues surrounding the app, such as no fingerprint ID. Which I don’t really mind. I also don’t mind that there is no detailed research, as I do my own anyway with independent research tools.
I‘m not a frequent trader. I only buy stocks when they are on sale. I have alerts set up on the stocks I like. However, I believe that if I were, Degiro would not serve me properly.
For the moment, I won’t transfer my whole portfolio to Degiro. However, I will continue to use them. Maybe one day, I will transfer my portfolio to Degiro…
Which investment app do you use? Could you recommend another investment app? Tell me in the comments!
