If you’re young, it’s the perfect time to start building your wealth with small, smart investments. With technology today, there are now investing apps that allow you to get started with as little as $5, making investing accessible and manageable even for beginners. These apps provide user-friendly interfaces, educational resources, and low fees, helping you learn as you grow your portfolio. In this post, you’ll learn 8 best investing apps for young people that make it easy to start your investment journey with minimal upfront money.
1. Acorns
The gold standard of micro-investing apps is Acorns. Its core promise? Making each day-to-day purchase a mini-investment. In case you are new to investing and a bit unsure about choosing stocks one by one, Acorns offers a low-risk, automated means of beginning to create a portfolio.
How it works:
- Round-up feature: Round-up all transactions to the nearest dollar and invest the change with your debit or credit card. To illustrate, a coffee that costs 3.42 will be a 1 dollar investment and the difference of 0.58 will be retained as cash.
- Recurring contributions: You can establish a regular weekly or monthly deposit – even as small as $5 – and you have dollar-cost averaging over time.
- Diversified ETFs: Your funds are diversified through a combination of exchange-traded funds (ETFs) that track major indices such as the S&P 500, emerging markets, and bonds, providing instant diversification without the need to select stocks.
- Goal-setting: Acorns allows you to set money aside towards certain goals (e.g., a down payment, a vacation, or an emergency fund in the future) and automatically tracks your progress.
Reasons why it is good among the youth:
– Easy to enter: You can start with as little as $5, and your spare change will pile up automatically.
– Hands -off investing: The app does the work on your behalf, so it is best suited to students or young professionals who are interested in investing without spending hours on research.
– Educational materials: Acorns has a library of articles and videos that guide you through basics, so you become smarter as you become richer.
– Auto rebalancing: The portfolio is automatically adjusted to keep the target asset allocation, so you are kept up to date without having to do it manually.
2. Stash
Stash sits between a full‑featured brokerage and a micro‑investing app. It is made to educate you to choose single stocks and at the same time provides the convenience of low-cost ETFs. The key selling point? Start with a minimum of $5 and be taken through the market with a mentor.
How it works:
- Fractional shares: Stash lets you purchase a portion of a share of any stock or ETF, meaning you can add even expensive stocks such as Apple or Amazon to your portfolio with a small dollar investment.
- Stash Picks: The app selects a list of Picks, a combination of stocks and ETFs that you can add with a few clicks. Every Pick is accompanied by a brief summary and learning notes.
- Stacking: You can combine multiple Picks into a stack that is a particular theme or sector (e.g., tech, green energy). This renders the process of portfolio construction more concrete.
- Educational content: Stash has an in-app learning platform, which has quizzes, lessons, and articles that give you badges and unlock new investment options as you advance.
- Automatic rebalancing: Stash, similar to Acorns, will automatically rebalance your investments to keep your allocation on track.
Why is it so good with young people?
– Low minimum: You need only $5 to start, and can add to your deposit later.
– Practical learning: Stash will challenge you to make your own stock choices, but the educational layer will assist you in making informed choices.
-Themed stacks: You can create a focused portfolio without having to do a lot of research, especially when you are interested in a specific industry (e.g., sustainability or gaming).
-Community drive: The community feature of the app enables you to exchange ideas and get educated by fellow community members, which creates a feeling of responsibility.
3. Robinhood
The archetype of a free-trade brokerage application that has revolutionized retail investing is Robinhood. Robinhood allows you to have complete freedom to buy and sell whatever you want without commission fees. And, you can begin with as little as $5 courtesy of fractional share trading.
How it works:
- Zero-commission trades Buy and sell stocks, ETFs, options, and crypto with no brokerage.
- Fractional shares: You can invest in high-priced companies with a fractional share even with a balance of 5.
- Easy to use interface: The app is user-friendly – clean dashboard, one-tap trading, and live market data.
- Portfolio tracking: Track performance, receive price change alerts and check on your holdings all in one place.
- Learning hub: Robinhood offers educational resources like “How‑to” videos, articles, and a question‑and‑answer community.
Why it is good among the youths.
– No commissions: All traders on Robinhood have the option of trading without commissions, which is essential when you have a small amount of money and are only starting.
– Complete control: Unlike Acorns or Stash which will automatically invest on your behalf, Robinhood allows you to pick and choose stocks, allowing you to experiment as you learn.
– Active trading: In case you want to be more hands-on and active, the tools and data visualizations of Robinhood can assist with such an approach.
– Community and gamification: Bells and whistles such as the Robinhood Snacks news bites and the Investing for Dummies guide make the experience interesting.
4. Public.com
Public.com makes the process of buying and selling stocks a social one. Imagine it as a blend of a classic brokerage, a community discussion board, and a game-based learning system- all in one smooth app. It is ideal for the tech-minded millennial or Gen-Z investor who desires to know what other people are purchasing, what they are learning, and have a keen eye on the market trends.
- Zero Commission Trades
You are able to buy and sell stocks and ETFs with no trading fee, so that $5 you begin with can remain in your portfolio rather than be devoured by commissions.
- Fractional Shares
Public.com allows you to invest in a fraction of a share, and this implies that you can own a piece of expensive stocks such as Apple or Amazon even when you do not have much cash.
- Social Feed & Insights
The feed of the app shows the real-time activity of other users, their top holdings, and their recent trades. You are able to track certain investors or subjects and get notified when something interesting occurs. This naturally leads to a learning loop- How did they get to this decision? Am I missing something?”
- Built‑in News & Research
Bypass the endless news websites. Public.com is a curated market news, earnings, and analysis aggregator built directly into the app so you can make informed decisions without leaving the interface.
- Automatic Rebalancing & Savings
You are able to establish recurring deposits as low as five dollars and have the app automatically invest those funds in a diversified portfolio. This set-it-and-forget-it strategy develops a consistency in your investment habit.
- Community Engagement
The community features of Public.com allow you to ask questions, post insights and even form small groups around topics such as Tech Stocks or Dividend Growers. Discussions with peers are useful in cementing ideas and generating new ideas.
- Security & Ease of Use
The application is based on a powerful trading platform (the same mechanism of Coinbase fiat-to-crypto trades), which guarantees high security and fast processing. The user interface is deliberately simple, with easy-to-use charts, a simple buy now button, and a clear asset dashboard.
Public.com is a democratization of investing that combines social interaction with low-cost trading. The community factor may be particularly inspiring among the younger generation that likes working in groups and receiving immediate feedback. It is simple to start with a small amount of money such as $5 and build your portfolio by following some of the successful traders or just by depositing little amounts at a time.
5. M1 Finance
M1 Finance is the self-service robo-broker that lets you create a personalized portfolio but leaves the heavy lifting of rebalancing and taxes to it. It is a hybrid platform with no commission, fractional shares and a user-friendly pie system that allows you to cut your investments however you want.
- Zero Commission, Unlimited Trades
M1 Finance has no fees to buy or sell and unlimited trades per month, so your $5 can remain invested instead of being lost to fees.
- Fractional Shares & Automatic Rebalancing
The pie concept of the platform lets you allocate your dollars to any number of stocks or ETFs, including buying fractions of a share. M1 will automatically rebalance the pie to the target allocations you have configured, and keep your diversification on course without any manual work.
- Robo‑Advisor Flexibility
M1 also has a robo-advisor service, which builds a diversified portfolio according to your risk tolerance, which is more hands-off. You may also combine this with a self-build feature- e.g. add financial advisors to your pie or use M1 pick curated funds.
- Zero Fees on Managed Portfolios
The managed portfolios of M1 Finance (the “M1 Advisor”) are free of any extra fees other than a small advisory fee that is divided between you and the platform. It can be an excellent method of professional guidance at low cost.
- Cash Management
The application has a cash management account that comes with competitive interest rates and easy access to your money. You can store your idle cash in this account and access it any time you wish to make more out of your pie.
- Community and Education
M1 has an active community where users post pie ideas, discuss market trends, and optimization of portfolios. The site also provides monthly webinars and educational materials to beginners to gain an insight into the logic behind asset allocation.
- Tax‑Efficient Investing
M1 automatically records gains and losses to tax purposes, thus simplifying year-end reporting. Although it is a comparatively new platform, its tax-efficiency capabilities are on par with more established robo-advisors.
The pie concept of M1 Finance provides young investors with a no-fee, flexible method of testing various asset classes. It only takes a small amount of money to begin with, say $5, and make small deposits to build a portfolio that fits your objectives. Zero commissions, automatic rebalancing and a community of like-minded traders make it a great fit to the next-generation investor who desires control and convenience.
6. Betterment
Betterment is among the most established robo-advisors in the market, which has a user-friendly experience and intelligent tax-loss harvesting. It is a full-service platform, but very accessible to beginners who can start with $5 and build a low-cost diversified portfolio.
- Low Minimums & Commission‑Free Trading
Betterment requires a low minimum balance of 0 in its standard plan (however, it suggests 25 to achieve the best diversification). The app has no commission-based trades on a large selection of ETFs, so your first $5 remains invested.
- Smart ETF Portfolios
The robo-advisor of Betterment will automatically choose a diversified portfolio of low-cost ETFs depending on your risk tolerance. Your funds are diversified in a number of asset classes such as stocks, bonds and international equity, hence you are automatically diversified.
- Tax‑Loss Harvesting
Automatic tax-loss harvesting is one of the best features of Betterment. When a holding declines in value, Betterment sells it to claim the loss, which can offset capital gains in other parts of your portfolio, and ultimately lowering your tax bill.
- Automatic Rebalancing
Betterment will automatically rebalance your holdings as your portfolio moves out of its target allocation to maintain the level of risk constant. This is the set-it-and-forget-it approach that is ideal in young investors who want a low effort strategy.
- Goal‑Based Investing
Betterment allows you to establish certain financial targets, like a down payment, emergency fund or retirement, and then optimizes your portfolio suggestions to achieve those dates. You will be able to view how much you will have to save each month to reach every milestone.
- Free Financial Planning
Although the premium plans offered by Betterment (with higher minimums) include human financial advisors, the free plan also includes goal tracking, portfolio analysis, and general financial planning modules.
- User Experience
The app is well-organized, user-friendly, and provides a richness of educational materials, such as articles, videos, and step-by-step instructions. The learning curve is not steep to new entrants.
The automated tax-loss harvesting and strong portfolio management of Betterment make it a strong partner, even when one has a small sum of money such as $5. The simplicity of the platform coupled with its track record makes young investors believe that their money is being utilized effectively. Regardless of whether you are looking at a short-term objective or a retirement, the goal-based approach of Betterment links investing to the real-life results.
7. Wealthfront
Wealthfront is the prototypical set-and-forget robo-advisor that transforms a few dollars into a diversified portfolio. It is targeted at the tech-savvy novice who desires a hassle-free investment method without the hassle of selecting stocks individually. It requires as little as $5 to get started, and enables automated investing, tax-loss harvesting, and advanced portfolio construction, all with the support of a team of financial professionals who have managed the show on behalf of large institutional investors.
Key Features & How They Work:
- Zero‑Cost Indexing
Wealthfront constructs a portfolio of low-cost index funds and ETFs that track major market indices. The platform applies an algorithm to diversify your money into asset classes and it automatically rebalances when your target allocation has deviated by more than 5%. This is because you obtain the same diversification as you would obtain with a full-service advisor but at a fraction of the price.
- Tax‑Loss Harvesting (TLH)
When the market falls, Wealthfront sells losing trades to cover gains in other areas, lowering your taxable income. It automatically does it quarterly and hence you never need to keep a manual record of the underperforming stocks. TLH can cut a couple of percentage points of your tax bill, particularly when you are in a high-tax bracket.
- Financial Planning Tools
In addition to the portfolio, Wealthfront provides goal-oriented planning. You have goals, such as a down payment on a house, a college fund or retirement, and the platform calculates how much you have to save each month to achieve those goals. It also demonstrates the impact of changes in your risk tolerance or time frame on your estimated results.
- College Savings with 529 Plans
Wealthfront provides 529 plans which automatically invest in a diversified portfolio of index funds to students who wish to begin saving early. The site also offers a Smart Saver option that will learn how much you can afford to save every month depending on your income and spending.
- Automatic Rebalancing & Low Fees
Wealthfront has a 0.25% annual advisory fee, which is among the lowest in the robo-advisor industry. The platform does all the rebalancing at no additional charge and you can cancel or put a break on your account anytime in case your financial status alters.
Why It is a Success Among Young Investors:
– Low Start-up Costs: It is easy to put your feet in the water with investing with a small initial investment of just $5.
– Learn -by-Doing: The platform is educational; it describes why every asset class is there and how every action fits your objectives.
– Hands-Off Growth: You may lack the bandwidth to do market research as a student or early-career professional. Wealthfront does the heavy lifting to allow you to concentrate on your career.
8. SoFi Invest
SoFi Invest is a community-oriented, friendly approach to investing that is more of a social network than a traditional brokerage, part of the larger SoFi ecosystem. No matter how much you have, be it your first $5 or thousands in capital, the SoFi platform offers you access to both fractional shares and real-time trading, mixed with educational materials that can make you feel confident in the markets.
Key Features & How They Work:
- Fractional Shares & Unlimited Trading
SoFi lets you invest in portions of high-profile stocks and ETFs- so you can invest in companies like Apple or Amazon without having to pay the entire share price. Commission-free trading keeps the costs low and enables frequent and small-scale portfolio adjustments.
- Long‑Term and Automated Options
To the more conservative investor, SoFi provides a robo-advisor service like Wealthfront, but at a slightly higher cost of 0.25%- also competitive. The platform automatically rebalances and provides tax-loss harvesting. You can also trade direct in the active trading platform with real-time market data, but the risk-taker can do it.
- Social Finance Community
Community of users is one of the peculiarities of SoFi. You are able to view what your friends are purchasing, read curated articles, and even pose questions in discussion boards. It is a casual method of peer education, which can increase the confidence of first-time investors.
- Integrated Personal Finance Tools
The investing app is an extension of a bigger suite of SoFi, which includes budgeting, student loan refinancing, and credit monitoring. The platform challenges you to cross-link your investment information with your savings objectives, giving you a comprehensive picture of your financial well-being.
- Zero Minimum and Flexible Contributions
Whereas SoFi has a minimum of $500 to use in their robo-advisor, the active trading side allows you to begin with as little as $5. It is easy to make investing a habit because you can have automatic contributions made out of a linked bank account.
Why It is a Success Among Young Investors:
– Easy to Use Interface: The interface is clean, intuitive and more of an app you use to message than a spreadsheet.
– Education First: SoFi has a collection of videos, articles, and live webinars to guide you through the fundamentals of investing, portfolio construction, and risk management, all at a beginner level.
– Community Support: A network to talk about trades and strategies can help demystify the market and eliminate the factor of intimidation that can keep many people out of investing.
Wealthfront and SoFi Invest both eliminate the entry barrier to young people who want to grow their money. You can choose a fully automated, low-touch platform or a hybrid platform that allows you to dip into active trading and still enjoy the benefits of robo-advice, but these apps allow you to start with as little as $5 and scale up as you learn- and as your income increases. Happy investing!