6/14/2023 0 Comments Robinhood vs stockpileIt offers the best overall experience for a wide range of investors. ![]() The platform is a good option for younger investors who make frequent trades of a few shares at a time. ![]() Its primary appeal is that it doesn’t charge a commission on the trades. Robinhood is the most popular of the trading apps. Robinhood: The best app for investors with different levels of experience In an effort to cut through the noise, here’s how Barron’s evaluates a few of the leading apps based on features, overall experience, fees, and account minimums. (Check out Barron’s ranking of top Robo Advisors.) They each offer features aimed to stand out from competition, such as social interaction tools, stock-buying gift cards, robo advisors, and creative ETF names. The apps, meanwhile, are fighting for larger slices of the investing audience. “If you know little or nothing about finance, you should look at these apps as a way to keep a closer eye on your investments and really learn from it,” she says. If there’s a silver lining to the trading apps, Schlesinger says, it’s that they allow users to track investments more easily. Remember that free share of Chesapeake Energy? The company’s stock has soared in 2019, but it’s still down 22% in the last six months. Read more: How App Makers Are Targeting Young Investors “Investing like this can be like going to Vegas and losing all your money-without even getting perks like the free drinks.” “I have a hard time believing everyone downloading these apps have enough knowledge, or even financial stability, to really be getting in the market on their own.” For those who still want to take the risk, she advises to only invest an amount they’re comfortable losing. “This trend shows that many people are jumping in the world of investing before really knowing what they’re getting themselves into,” argues Jill Schlesinger, a certified financial planner and author of a new book called The Dumb Things Smart People Do with Their Money. Financial advisors tend to advise caution about products that ease trading and enable emotional responses to news events. The idea of trading apps isn’t universally applauded, though. Robinhood now has over six million users, surpassing established self-directed trading firms like E*TRADE, which has 5.7 million accounts.
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