The rise of on-the-go investment apps

No longer do you need to engage a traditional broker to invest your money.

Thanks to technology and everything going digital – and the rise of increasingly intelligent apps – it has never been easier to get your foot in the door.

Many of the apps available use algorithms to help with the investments, which generally results in less fees and can still assist you in creating an individualised strategy that is low maintenance.

So what are the options?

Micro-investing apps

Micro-investing apps, such as Raiz and Spaceship Voyager, can be used either by people who want to invest a lump sum of money, or by those who prefer to use it as a piggy bank. Both apps give you the option to round-up purchases to the nearest, meaning if you spend $2.40 using your allocated spending account, the app will invest 60 cents for you in your chosen portfolio.

Micro-investing apps are great because people can dip their toe into the investing world for as little as $5, whereas many other investment platforms or brokers will require a minimum spend.

Your money then gets invested with everyone else’s money, however, you can decide whether you would like to put your money onto modest/safe investments or higher risk/higher reward ones.

Micro-investing apps are a great low fuss strategy that especially suits people who are not great at saving. It is also surprisingly effective over time when all of a sudden you have a fair bit of money in there.

Another factor that increases traders’ satisfaction is the opportunity to improve their skills within a platform. For instance, a broker like BDSwiss provides tutorials and even webinars that help their clients trade more intelligently.

Sharing platforms

There are literally tonnes of investing platforms available at your fingertips these days. The one you go for will depend on how often you trade, the structure, fees and of course, certain platforms cater more to ethical trading than others.

Finder.com.au recently named CMC Markets Invest the overall best broker due to zero brokerage global share trading, Low brokerage fees for ASX CHESS- sponsored share trading, no inactivity fees or account fees for a basic account and it is suitable for both new and advanced traders. 

The best low cost broker was Superhero, the best for beginners was Sharesies and the best for active traders was Interactive Brokers to name a few.

Apps that let you invest directly into the Australian Stock Exchange

Up until very recently, the ability to invest in the ASX – Australia’s stock market – was limited to those traditional brokers and banks. But times have changed and thanks to Stake, Wall Street and the ASX can be flicked between at the touch of a button to help you put your hard-earned dollars to work!

They have the lowest recorded brokerage fee of all the on-the-go investment apps and have recently launched the ASX bets function to a select few before going live with it to the public in 2022. To find out more about Stake and how to easily sign-up, have a read of this.

Sign up to Stake with this exclusive VIP link.

Investing in shares is a great way to make your wage go further, however do your research and consider speaking to a financial advisor before you part with your money.

Article produced in collaboration with Gerry Incollingo, the MD of LCI Partners, a firm that specialises in accounting advisory, lending, wealth, property, insurance and legal.

This content is not financial advice and is purposed for discussion and information purposes only.

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