There are many online brokers offering micro-investing apps. It’s a great option for newbie investors and those who want to start but don’t “have” money.
Welcome to the phroogal 5, a series of the five best apps. We’ve done the work to narrow down the best choices. Want more options? Check the marketplace.
Through micro-investing, you can start with as little as $1 to become an investor.
In this article, you’ll learn about the best micro-investing apps for new investors.
What is Micro-investing?
Micro-investing enables you to invest as little as $1 (sometimes less) in the purchase of shares of stocks or exchange-traded funds. With these apps, you can do-it-yourself (DIY) invest in the stock market. It helps almost everyone participate in owning shares of publicly traded companies.
Who is micro-investing apps best for? It’s best for you if you’re new to investing and have a small amount of money.
In this list of the best micro-investing apps, you can learn which service is best for you. You have many options that allow you to choose your investments and get help through Robo-advising or both.
Why micro-invest? Prior to micro-investing, I didn’t invest much outside of my old 401(k) and IRAs. In fact, I was very intimidated when it came to buying stocks as a beginner. I mistakenly believed investing meant trading stocks and following the market day in and day out. Now, I understand that investing and stock trading are simply two different ways to earn money in the stock market.
Public: Best for Community
Public is a brokerage app offering fractional investing with no account minimums or commission fees. It boasts a million investors who allow others to view their portfolios and share their investments. With Public, the focus is on community and education by offering transparency and access.
- Buy fractional shares of your favorite companies
- Automate investing on your terms
- Follow other Public investors and engage with the community
Account Fees: $0 per month
Investment minimum: None
Trading Fees: None
New Account Bonus: $10 worth of a choice stock upon signup with any deposit.
Read the Public review.
Acorns Core: Best for Your Spare Change
Acorns is one of the best micro-investing apps that rounds your purchases on linked credit or debit cards and invests the amount in an automated investment portfolio. For example, you bought coffee for $3.25, Acorns will round up the purchase to $4.00 and move $0.75 into your Acorns account. Once your “Round-Ups” equal $5.00, the money is invested. You can also make one-time investments into your account at any time.
- Rounds up your purchases and invests once $5 is saved
- Make additional, automatic, and scheduled investments
- Get more investing dollars with “Found Money”
Account Fees: $3 per month (access investing, retirement, and banking services).
Investment minimum: None
Trading Fees: None
New Account Bonus: $5 for new and funded Acorns account.
Read the Acorns review.
M1 Invest: Best for Growth Mindset
M1 Finance is a micro-investing and trading platform that is both good for beginners and seasoned investors. With M1, you get commission-free investing and automation. Choose to invest in what you want or choose portfolios (M1 Pies) created by their experts.
- Automated free investing without trading fees or commissions
- Offers automatic features such as rebalancing and reinvestments
- Robust and interactive investor education feature
Account Fees: $0
Investment minimum: $100
Trading Fees: $0
New Account Bonus: $10 after completing the signup process and funded $100 within 90 days.
Read the M1 Finance review.
Stash Invest: Best for Thematic Investing
Stash is one of the best micro-investing apps with features highlighting investor education. With Stash, you can easily select themed investments based on your beliefs, lifestyle, or sector. For example, you can invest $5 in the internet sector which would include companies like Facebook and Google.
- Theme based investment portfolios make it easy
- Robust and interactive investor education feature
- Set one-time transfers and recurring automated investments
Account Fees: $1 per month
Investment minimum: $5
Trading Fees: $0
New Account Bonus: $5 after completing the signup process.
Read the Stash Invest review.
Stockpile: Best for Gift Giving
Stockpile is an online brokerage with a twist. You can buy fractional shares of your favorite companies or index funds starting at $25. The platform is simple and visually appealing but with limited research features.
- Simple and intuitive platform makes buying/selling shares easy
- Buy fractional shares of stock easily
- Give stock gift cards to others and to the children in your life
Account Fees: None
Investment minimum: None
Trading Fees: $0.99 to buy stock from cash in your account
New Account Bonus: Stockpile offers a personal referral bonus ($10 worth of stock) via email. Ask a friend or send us a message for an invite.
You don’t need to have hundreds of dollars. Start investing with the best micro-investing apps. Choose one or try them all. It helps that many of the apps have signup bonuses and offer no minimums or no account fees. Test and see which app helps you invest and grow money.
