If you decide to invest on your own, there are a number of apps with commission-free and low cost options. Here, I will (1) describe the apps; (2) describe the pros and cons of each app; and (3) identify which type of investor each app is best for. Also, I will provide my referral link for each app. If you want to try an app, you (and I) will get benefits in the form of stock or investing capital for using the referral links.
Robinhood – the App that disrupted commission-based trading.
Robinhood is a commission-free app (and website) that allows individuals to trade stock without paying any fees. The company makes its money through margin trading — individuals borrowing money to buy stock — and through users that subscribe to “Robinhood Gold” for additional tools and benefits, such as expert research and analysis.
The benefits of this app include the cost-free trading and access to any investment. This is truly a flexible app that continues to release more content, such as DRIP (Dividend Reinvestment Program), “Savings Account” interest for cash in your account, and access to extended trading hours for pre-market and post-market trading. Finally, the app continually adds new ways to invest, including option and cryptocurrency trading.
The app does have a few downsides. First, it takes time to roll-out new features on the app. Second, the app does not offer guidance on investing. This allows for the no-cost trading; however, for novice investors it is not the ideal platform to learn on. Finally, the app has crashed a few times in the past. While this is not usually a deal breaker, some investors were upset that they were not able to trade on those days, one of which was the day of a market crash.
Overall, Robinhood is a good supplemental/”play” account for investors with some experience. So long as investors take time to understand how different investments — a.k.a. don’t mess with options unless you know how to — it is an excellent platform for buying individual stock that you have your eye on.
Sign up using my referral link to get a free stock for trying out the app.