Investing can be a great way to save and potentially increase your money in the future. By putting aside certain amounts to invest, you have the chance to create a higher return than if your money was just sitting in a savings account.
But investing can be a very daunting process for beginners. What do you invest in? How much should you be putting aside? What makes a safe investment?
If you are interested in investing but feel out of your depth, there are a multitude of investment apps that are beginner-friendly. They give you the chance to get to grips with the world of investment without being too overwhelming.
Of course, there are also apps for those who are better versed in investments, so it’s important to find ones that are suited to your abilities. So which apps are best for beginners looking to learn about investment?
Plum is marketed as a robot that can calculate how much you can afford to invest based on your earnings and spending. The AI software is the main draw of Plum, as it removes the need for you to analyse and manually save your money. There is a monthly fee of £1, which only needs to be paid when money has been invested.
You are given a choice between two virtual wallets:
- A primary savings pocket, which you can instantly withdraw from.
- An easy-access savings pocket, which requires one day’s notice to withdraw from.
It rounds up your spending to the nearest £1, which helps to create savings.
There are ten different funds that you can invest in through Plum, with a range of risk levels depending on your goals. This includes technological shares, ethical companies, and emerging markets, provided by third-party investment houses.
Etoro is one of the largest global trading apps, and allows you to trade in different areas, including:
Its biggest appeal is its use of social trading, where less confident investors can copy the trades of more successful traders whilst they are happening. This allows new traders to learn the ropes, but if you want to start smaller, you can use their virtual portfolio. This is a practice account with up to $100,000 to learn about and practice investing before using real money.
You can begin with an initial deposit of $50 USD, but as they only deal in USD, there is a conversion fee as well as a withdrawal fee. However, they also offer offline trading, and commission-free trading, meaning you don’t need to pay for dealing charges or management fees.
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Nutmeg is a robo-advice service that is useful for those who either don’t have the time or the knowledge to make their own investment decisions. Nutmeg asks you a number of questions about your aims, and then builds you a portfolio from one of the four main portfolio types:
- Fully managed: provides ten managed portfolios with a range of risk and a mix of investment assets.
- Fixed allocation: provides five set portfolios with different levels of risk, but removes the cost of being managed by Nutmeg’s investment team.
- Socially responsible: provides ten managed socially responsible portfolios, focusing on companies that are committed to social responsibility that cover a range of risks.
- Smart alpha: provides five portfolios set and adapted by investment specialists, ranging in risk level.
The first twelve months are fee-free, as well as boasting no set-up, trading, transaction, or exit fees. The cost of investing with Nutmeg depends on your overall investment and which portfolio you choose, with the fully managed portfolio being the most expensive. It also has a minimum investment of £500.
Previously called tickr, Circa5000 is another investment app in the form of a robo-advisor, that focuses primarily on ethical investments. It encourages investments to be used as a way of bringing positive changes for the planet, and is marketed mainly towards millennials.
Its positive outlook appeals to those new to investing, with 90% of its users being first-time investors. An account can be set up from £5, with a flat fee of £1 a month.
Circa5000 has three main portfolio choices – people, planet, and planet & people. In each portfolio, there are three risk levels:
- Cautious – minimal risk and lower levels of growth
- Balanced – slightly higher risk, more space for growth
- Adventurous – maximise growth by taking significantly higher risks.
It does not recommend which risk type is best suited to each investor, and leaves that decision up to the individual, although it does suggest that those with a longer timeframe are more capable of taking bigger risks.
Trading 212 began as a foreign exchange (forex) trading app, and now provides a one-stop place to invest in:
- An ISA.
Similar to Etoro, it offers a virtual £50,000 to practice investing and learn about it, before committing to using real money. It offers three types of accounts – one for CFDs, one for shares, and one for an ISA – which can all be switched between within the app.
It offers zero commission investing, as well as a starting investment of only £1. Trading 212 also offers fractional shares, which helps to keep costs low when beginning your investment journey, and work up as you learn more.
If you are looking to learn more about investing, contact our team at Count today to help you create the best strategy for investments going forward.