SALT LAKE CITY – For most people, 2020 was a year of dealing with the devastating impact of the COVID-19 pandemic, including the worst economic crisis since the Great Depression.
With people looking forward to a new year, the second round of stimulus checks starting this week is hitting Americans’ bank accounts, leaving many wondering how best to spend their $ 600.
The second boost is half of the $ 1,200 many received from initial coronavirus relief funding earlier this year and far less than the proposed $ 2,000 that Congressional Democrats and President Donald Trump have pushed in recent weeks.
So how can you do more with less? To invest.
Investing is just one of the many ways individuals can choose to use the money, although most financial experts have advised citizens to pay bills and high interest debt before taking the desire to invest seriously.
Ultimately, it’s a personal decision about how you spend the money, even if it’s just buying something for yourself. But if you’re a first-time investor who wants to bring the new money into the stock market, it can be intimidating.
However, easy-to-use apps allow you to invest right from your phone. You may not become the next Warren Buffett, but you can diversify your finances without having to find a stock broker or visit Wall Street in New York.
Here are a few app-based brokers to get you started:
Robin Hood
Available in the App Store and Google Play
The app is based on the principles shared by its namesake and provides easy access for anyone wanting to enter the stock market and “not just the rich,” the creators said. Robinhood does not charge a trading commission and is free to download. Users can pay a monthly fee for Robinhood Gold, which offers more resources.
The app allows users to buy shares immediately after linking a bank account. Robinhood allows users to day trade, but with certain restrictions; it also depends on the type of account a user has before day trading.
The app recently ran into some issues with the government. This month, Robinhood Financial agreed to pay $ 65 million to pay the fees of the Securities and Exchange Commission who claimed it failed to disclose full details of high-speed traders and did not provide the best prices for clients who the platform, the Associated Press reported. .
Acorns
Available in the App Store and Google Play
Unlike Robinhood, where you choose which stock to buy, Acorns automatically rounds off your daily purchases over $ 5 change and invests the money. It is initially free to download, but you must accept a monthly fee to use it. For example, if you buy lunch for $ 7.85, the app will round up and invest 15 cents. Users select what level of risk they are willing to take and answer a few other questions before the app creates your profile and starts investing.
SoFi
Available in the App Store and Google Play
SoFi is free to download and allows users to buy shares once they have created their profile and linked a bank account. The platform does not charge an annual management fee and users can start investing right away.
Public
Available in the App Store and Google Play
Formerly known as Matador, Public prides itself on being “the social investing app” and is free to download. This allows users to buy shares without commission fees. The app not only allows users to buy stocks, but also offers unique features such as group chats with other users and to follow other investors to see which stocks they are interested in. The app does not have a day trading policy, unlike other apps.
Lauren Bennett