All around the nation we have been seeing a growing popularity of financially oriented mobile applications, especially with the recent rise of cryptocurrency. The digitization of the trading industry has allowed the wealth created in the stock market to reach more than just the top 1%.
History has shown that investing in stocks is one of the easiest and most profitable ways to build wealth over the long term. Decades ago, the stock market was the sole domain of wealthy traders and investment bankers. Access was restricted to only those with influential connections and large incomes. However, we are now living in a time where purchasing stock has never been more accessible, and what was once an arduous task, can be conducted via smartphone and for half the cost!
The advent of new micro investment apps such as Acorns and Robinhood have gamified investing, incentivizing participation in the financial market. Acorns excels in its automated approach that encourages effortless saving through a concept similar to that of the 401k and other retirement accounts, which sweeps excess change from purchases on linked credit or debit cards, and even Paypal cards into a computer-managed investment portfolio.
Robinhood is an application that promotes free stock trading and it is the service current Fisher sophomore and veteran investor Anthony Pignataro prefers Robinhood over any other service. According to Pignataro, this app, “unlike most brokerages, doesn’t charge commission on trades.” That is to say, the user does not lose money when buying or selling shares. “Also the app is not complicated to navigate or comprehend, making it friendly to user who are starting to invest,” Pignataro adds. Anthony got his start a few years ago after deciding that he’d like to see his money grow rather than sit.
“Essentially knowledge is your best friend in the stock market,” asserted Anthony. “Reading books and articles helped me the most.”
Pignataro suggests first finding a style that align with your goals and then conducting research on that particular style. He himself uses exchange trade funds (ETFs) because they provide him with the diversification that he could not otherwise get with the limited capital he has.
These applications appeal specifically to those students who do not have an earned income and cannot contribute to a retirement account because this service will allow them to pile up a significant of money after four years of accumulating. This is perfect for millennials and beginning investors with a large interest in the stock market but not-so-large pockets.