Once you’ve opened your account, you can start investing right away—though you may want to explore and familiarize yourself a bit first.
1. Download the App and Open an Account
You can find the app through your phone’s app store. Once you’ve downloaded it, you’ll have the opportunity to create an account. Be prepared to provide some personal information, including your contact information and Social Security number. This step is crucial as it helps the brokerage verify your identity and ensure a secure trading environment.
2. Link Your Bank Account
The app will prompt you to link a bank account to your new brokerage account so you can fund your account and begin investing once you’re ready. Linking multiple bank accounts can make it easier to manage your investments. This setup is essential for seamless fund transfers, whether you’re adding money for new investments or withdrawing your earnings later.
3. Learn How to Use the App and Invest
Many investment apps for beginners come equipped with educational articles and videos that can guide you through the basics of investing. These resources help demystify jargon and concepts that might seem overwhelming at first. Exploring the app’s features will also enhance your investing experience, making it much simpler to navigate your portfolio.
4. Decide on Your Investing Strategy
Your investment choices should align with your financial goals. Are you looking for rapid growth through high-risk investments, or do you prefer a more conservative approach that focuses on steady income? The Motley Fool provides extensive guidance on how to invest money. If the options feel daunting, consider using a robo-advisor that automates investment decisions based on your goals. Alternatively, investing in diversified index funds, like an S&P 500 ETF, can offer a balanced approach for those just starting out.
5. Fund Your Account and Start Investing
Once you’ve established your investment strategy, it’s time to take action. Investment apps facilitate easy money transfers from your bank account, allowing you to buy stocks and other assets with just a few taps. You can choose to make a one-time purchase or opt for regular, automatic investments to build your portfolio over time.
6. Check Your Portfolio Regularly
While it’s important to avoid obsessing over daily fluctuations in your investments, regularly checking your portfolio is necessary. Micromanaging can lead to poor decisions fueled by short-term anxiety. Instead, focus on a long-term outlook where you buy and hold your investments. However, if you notice an investment that is significantly underperforming or is too volatile, it may warrant a closer look or even a strategic exit. Additionally, keeping tabs on your portfolio helps you adjust your holdings to maintain alignment with your desired asset allocation.
7. Check for Unexpected Fees
Regularly review your account transactions to spot any unexpected fees that may arise. Familiarizing yourself with all associated costs can prevent unwelcome surprises. It’s wise to reference the broker’s website for a full disclosure of fees before opening an account to ensure you understand what you might be paying for along the way.
8. Check in for the Latest Promos
Brokers frequently offer limited-time bonuses. These promotions can sometimes yield free cash or stocks for referring friends or transferring funds from another brokerage. Keeping an eye on these opportunities can lead to substantial financial benefits, so it’s definitely worth your time to stay informed.
9. Shop for a New Investment App Once or Twice a Year
Brokerages are in a constant race to outdo each other by offering lower fees, better applications, and enticing sign-up bonuses. It’s worth reviewing your options annually to see if another investment app aligns better with your needs. Moving your funds to a new brokerage is generally straightforward, and switching to a platform that offers more favorable conditions can significantly enhance your investing experience.
