When I first decided to start investing, one of the biggest hurdles I faced was finding an investing app that wouldn’t eat away at my profits with high fees. As a beginner, I wanted to make sure I wasn’t paying unnecessary commissions or account management fees that would take a chunk out of my returns.
Let’s be honest — as a new investor, the last thing I wanted was to have to spend a fortune just to get started. After trying out several apps, I can now confidently say I’ve found some of the best investing apps with low fees for beginners that really work. These are the apps I use personally, and I’ll share why I love them, along with a few tips on how you can get started without breaking the bank.
Why Low Fees Matter (Especially for Beginners)
Small Fees = Big Difference Over Time
When you’re just starting to invest, it’s easy to think that small fees won’t make a huge impact. But trust me — they add up. Even a $5 fee per trade might seem insignificant when you’re first starting out, but over time, those small charges can really eat into your returns.
Let me put it this way: if you invest $1,000, and you pay $5 per trade, that’s a 0.5% fee on each trade. If you’re making frequent trades, those fees can quickly eat into your profits.
That’s why I decided to find the best low-fee investing apps — so I wouldn’t be giving away my hard-earned money. As a beginner, I needed something that made it easy to invest without getting bogged down by costs.
The Best Low-Fee Investing Apps I Use
1. Robinhood
Why I Love It:
When I first started, Robinhood was one of the first investing apps I tried. It’s super popular for a reason: zero commissions on trades. That means I could buy and sell stocks, ETFs, options, and even cryptocurrencies without paying a single cent in commissions. This was a game-changer for me as a beginner, especially when I was testing out different strategies.
Key Features:
- No commission fees on stock or ETF trades.
- Fractional shares: I didn’t have to buy an entire share of an expensive stock like Amazon. With fractional shares, I could invest as little as $1.
- Easy-to-use interface: As a beginner, I appreciated how simple Robinhood made things. There’s no complicated jargon — just a clean, intuitive platform to buy and sell.
What I Don’t Like:
- Limited research tools: While Robinhood is great for trading, the research and educational resources are a bit basic. I had to look elsewhere for in-depth info.
- No retirement accounts (yet): Robinhood doesn’t offer IRAs or 401(k)s (though they’re working on it), so it’s more suited for individual investments.
2. M1 Finance
Why I Love It:
M1 Finance is a platform that helped me take my investments to the next level. I was looking for something that would allow me to build a portfolio without paying high fees, and M1 Finance delivered. It’s a hybrid between self-directed and automated investing. I could choose stocks and ETFs or let the app automate the process for me.
Key Features:
- No fees for trades or account maintenance (yay!).
- Fractional shares: Similar to Robinhood, you can invest small amounts in expensive stocks.
- Automated rebalancing: M1 Finance offers automated portfolio rebalancing, which is ideal if you’re like me and want to invest without constantly worrying about the market’s day-to-day movements.
What I Don’t Like:
- Limited trading flexibility: I can’t trade individual stocks instantly like I could with Robinhood. Instead, trades are executed at the end of the trading day, which means if you’re looking for instant results, it may not be ideal.
- Minimum deposit: To open an account, M1 Finance has a $100 minimum deposit, which could be an obstacle for some beginners.
3. Fidelity
Why I Love It:
Fidelity is one of the oldest and most trusted names in investing, and when I was ready to dive deeper into my investment journey, I turned to them. They don’t charge fees for stock or ETF trades, which makes it a great option for beginners who want to avoid high costs.
Key Features:
- No commissions on stock and ETF trades.
- Excellent research tools: Fidelity has a ton of educational resources and market analysis, which helped me make more informed decisions as I gained experience.
- Fractional shares: You can invest in a portion of a stock if it’s too expensive for you to buy an entire share.
What I Don’t Like:
- Platform can be overwhelming: The interface can be a little intimidating at first due to all the available tools and options, but once I got the hang of it, it was fine.
- Limited to stocks, ETFs, and mutual funds: Unlike Robinhood, Fidelity doesn’t offer options or cryptocurrency trading.
4. Acorns
Why I Love It:
If you’re looking for a way to start investing without thinking too much about it, Acorns is a great option. The app automatically rounds up your everyday purchases to the nearest dollar and invests the difference. So, if you buy a coffee for $3.50, Acorns will round it up to $4.00 and invest that 50 cents. Over time, this adds up without me even realizing it.
Key Features:
- Automatic round-ups on purchases.
- Low-fee portfolios: Acorns offers a mix of ETFs based on your risk tolerance.
- Easy-to-use interface: Even as a beginner, it was simple to set up my account and start investing.
What I Don’t Like:
- Monthly fee: Acorns charges a $3/month fee for their basic plan, which might not be ideal for someone with a smaller balance or someone who prefers commission-free trades.
- Limited control: Unlike other platforms where you can pick specific stocks, Acorns automatically invests in a portfolio for you. For beginners, this can be helpful, but it may be too hands-off for some.
5. Webull
Why I Love It:
Webull is another zero-commission app that I turned to when I was starting to get more comfortable with investing. It offers a ton of advanced features (like margin trading and short selling), but you can also stick to basic trading without getting lost in the complexity.
Key Features:
- No commissions on trades.
- Advanced features for experienced traders: Once I got the hang of the basics, I was able to explore features like margin trading, advanced charting, and technical analysis tools.
- Great for active traders: If you’re planning to trade frequently, Webull offers extended hours trading (pre-market and after-market) and advanced charting tools.
What I Don’t Like:
- More complex interface: Webull has more advanced tools, so it might be overwhelming for absolute beginners who just want to make simple trades.
- No fractional shares (for now): While Webull is great for active traders, it doesn’t yet offer fractional shares, which makes it harder for beginners with smaller budgets.
Final Thoughts: How to Choose the Right App for You
When it comes to choosing the best investing apps with low fees for beginners, it all depends on what you’re looking for in an app. If you want simplicity and zero commissions, Robinhood and Webull are excellent choices. If you prefer a more hands-off approach with automated investing, then Acorns and M1 Finance might be more up your alley.
Here’s what I’ve learned: start with one or two apps, explore their features, and choose the one that fits your needs. The goal is to invest without getting bogged down by fees, so you can grow your wealth over time. And remember, as a beginner, it’s always better to start small and gradually increase your investments as you become more comfortable.
Happy investing!
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