Sunday, 3 March 2019

Top 3 Free Investing Apps To Look For

Top 3 Free Investing Apps To Look For

In this article, we are going to be covering the top free investing apps that you might be interested in. They are for US-based investor only. So I don't want to waste anyone's time. But each of these 3 platforms is very different. They're going to be suitable for a different type of investor and I'm going to do my best to help you understand where you should land


1. Webull

For the intermediate active trader. this is a great platform, this is somebody who might be more active with their selection. They're intermediate, they're not for beginners. So they're looking for a more research-oriented platform.

In my opinion, Webull is the best platform for you and Webull also has a great promotion going on where if you open an account with them you do not even have to fund the account. Just by opening an account they're going to send you a free stock worth up to $1,000 but in order to get that you do have to use a someone affiliate link

But if you are opening an account with Webull make sure you are taking advantage of this so you can get your free stock. 

This is what I believe to be the strong points of Webull. First of all, it is one of the only free platforms that I've come across that have a lot of technical indicators you can use to perform a technical analysis of your investments.

That being said, this platform might not be a pick for beginners because it might be so overwhelming that it might just too much for you and if that's the case platform number 3 is probably going to be the best pick for you

But if you've already been investing then this might be a good upgrade for you where you're going to get more research tools and you can grab a completely free stock as well.


3: M1 Finance

A very popular new brokerage M1 Finance is basically if you could picture combining a Robo-advisor with your traditional brokerage which basically allows you to automate the entire investing process.

You can automate your deposits, build your portfolio or your pie as they call it, and automatically be contributing to this portfolio from your account if you want to set it all up automatically. 

That being said, M1 Finance, in my opinion, is passive, long-term investors. If you're a short-term trader who's looking to buy and sell stocks, that's going to be the next platform that's best for you

But if you're looking to be a passive, long-term, set-it and forget-it type investor but you also want to be more active with selection, M1 Finance, in my opinion, is a great choice because of the feature that they offer and I also believe it is a very suitable pick for dividend investors because they have a form of a DRIP where your dividends are reinvested back into your whole portfolio.

One important thing to note here is that it's not a traditional DRIP where that dividend is going to go right back into stock. Isn't going to go back into your portfolio as a whole and be allocated according to what you set there.

If you have 50% Apple, 50% Google, and then Apple spits off that dividend, that dividend is going to go back into your portfolio but half of that's is going into Apple, half is going to go into Google.

It's won't go 100% into Apple so it's a little bit different than your traditional dividend reinvestment plan.

But that being said, here are the Pros of M1 Finance.

> It's free, all these are free.

You're not paying anything in commissions to work with these companies.

A lot of them offer above and beyond services like M1 Borrow or any kind of margin trading or investing. That's how they're making money.

> Fractional shares.

M1 Finance is the only free platform I've come across that allows you to buy fractional shares of stock. Let say you want to go out there and you want to buy Amazon, but you don't have $1,000 or more in invest.

You can buy as little as 1/10,000 of a share of Amazon stock on this platform, allowing you to buy Amazon even if you don't have over $1,000 to invest. That is one of the strongest suites of M1 Finance is that fractional share feature.

M1 Finance will also automatically rebalance your portfolio as you contribute. Let's say you have a 50/50 split of Apple and Google and Apple goes to the moon and all of a sudden you're looking at 60/40 where 60% of your money is in Apple, 40% is in Google.

As you add more money it's going to go into Google so that way you get back to that 50/50 balance, which means that M1 Finance is automatically buying low on your behalf and I'm sure you know, money is made through the stock market by buying low and selling high

On that point, if you don't withdraw money from M1 Finance account they're going to automatically sell what you are overweight in or whatever investment is high. 

> Retirement Account

M1 Finance is one of the only free platforms that offer retirement accounts and then also they have tax-efficient selling. So when you take money out of your account they're going to sell in the most tax-efficient manner possible hoping to reduce your tax bill at the end of the year.

The first thing we notice about this app is that it is a very, very simple to use and easy understand user interface.

Step 1: Create your account

Step 2. Create your portfolio

Step 3. Fund your portfolio


You have to give them your social security number for tax reason and identity verification.


3. Robinhood

The third and final app we have here is one that most people are familiar with, most people are probably already using it, that is Robinhood. In my opinion, this is good for the beginner active trader, somebody who's looking to actively trade stocks, maybe a daily or a weekly basis.

If you're day trading, I wouldn't day trade with Robinhood, you'll get in trouble with pattern day trade requirements. But if you're trading maybe once or twice a week or something like that, and you're a beginner, Robinhood might be a good choice for you and this is where Robinhood is strong in my opinion.

First of all, in certain states, they offer cryptocurrencies for free, for free trading of cryptocurrencies.

They also offer free options trading, and that's what separates them from their other two peers. 

They have a very simple, easy to follow interface and it's extremely beginner-friendly. 



Okay, folks, those are, in my opinion, the top 3 free investing apps

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