Stock trading apps make investing easy, modernizing platforms and providing instant account access and details. There are many great apps for investing in stocks. Some of them tied to traditional firms, some are for informational purposes, and then there are those newer companies targeting the generation mostly using these apps, millennials. Let's take a look at the different types of apps that fall into this category.
To technically be classified as a stock trading app, an app has to of course represent a brokerage. Traditional brokerages have released apps to make trading easy. Boring. Then there are the newer companies like Acorns and Stash that have released apps targeting millennials. It is first important to mention, however, that these apps, while worth a much closer look, focus on exchange traded funds or ETFs. In other words, they aren't for purchasing individual securities.
There are still many modern discount brokerages for purchasing and trading stocks. There are those platforms that penny stock traders use, too. Most of the online discount brokerages that are around now were available prior to the onslaught of the app market. Commissions are still generally the same, meaning you have to pay at minimum $4 in commissions for each purchase. However, there is one company out there that has shattered the concept of commissions and has single-handedly pioneered an investment app in which people buy and sell individual stocks commission free.
The app, although not necessarily new anymore, still scares people a little. Investors aren't used to the concept of buying and selling stocks without paying commissions. Big time investors that make huge purchases aren't worried about paying even a $9.99 commission on thousands of shares anyway. Many people out there, however, are small investors, and those commissions hurt their ROI. Plus you have to take into account day traders that don't want to pay thousands in commissions each month.
What is this stock trading app that allows you to purchase securities without paying commissions? It is the Robinhood app, and it has been around for a couple of years now. The Robinhood app even caters to day traders as long as they have a $25,000 account balance minimum. Otherwise, there is no account balance minimum, and there are no commissions ever for placing trades. You get what you pay for.
Like other stock trading apps, Robinhood is sleek and very nifty. Sign-up is simple, bank accounts can be instantly linked and funds are instantly available for trading. Robinhood has revolutionized stock trading, and the app has been backed by many big name celebrities. What's interesting, however, is that while it does have millions of users, it hasn't completely taken over the market yet.
Acorns, Stash and other ETF apps have their place. There are apps that help you purchase securities on a subscription basis vs paying a commission each time. Discount brokerages and traditional firms have released apps for stock trading. But the Robinhood so has entered the market and is set to literally reshape the way stock trading is handled in modern times.