Today I'm going to share with you the two platforms I'm currently using for trading shares online. These are currently my favorite apps because they offer amazing functionality and are cheap to use.
Let me know in the comments what stock trading apps you like to use.
The reality is that most people who try and pick stocks on their own end up losing money. We aren't living in the 90's anymore where you could buy any stock and expect to make a profit. That's one of the reasons why I love Acorns. It lets you invest in a diversified portfolio of stocks and bonds that has been put together by experts.
Investing with just $5
The idea behind Acorns is simple – you invest small amounts regularly to build an investment portfolio. So instead of having to save up thousands to make a stock purchase like you would through a broker, you can instead get started with as little as $5.
Acorns is also automated. It will track your spending account and transfer across small amounts whenever you make a purchase. You won't even notice these small amounts leaving your account. You can also topup your account with recurring investments.
Why I like Acorns
- It's Cheap – Acorns charges a monthly fee of just $1 which is much less than traditional funds. So far the growth has outperformed any fees by a long way.
- Good design – Acorns is primarily a mobile app. It feels a million miles away from internet banking and their horribly designed interfaces. Acorns is easy to use and understand.
- Quality Portfolios – you can choose from one of 6 different portfolios. I've chosen the most aggressive option to match my age and investment goals.
- Set and Forget – I don't need to do anything with Acorns. I don't have to stress about opening and closing trades, or studying charts etc. I'm still investing in stocks but I don't have to worry about a thing.
I've been using eToro for the past few years. Currently I'm trading a little bit or forex but mainly stocks. On eToro you can trade stocks from all over the world including the U.S, Europe and Asia. eToro is a multi-asset platform so you can also trade forex, cryptocurrency, commodities and more all alongside your stock trades.
One of the coolest features on eToro is CopyTrading. As I mentioned above – most people end up losing money when they try trading stocks on their own. With Copy Trading you automatically copy the trades made by more experienced traders. All you have to do is browse through the profiles of traders, and copy the ones who have a history of being profitable and with a low risk score. You can even look through their history to see every trade they've made and how profitable they were.
Disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Buying Partial Shares
With eToro you don't need to buy complete shares. Instead you can buy and sell partial or fractional shares. This means you don't need $1000+ dollars to invest in Alphabet. Instead you can choose to invest with as little as $50.
eToro has a product called CopyPortfolios. These are portfolios are made up of themed investments. For example you can invest in a “Gaming” CopyPortfolio which has stocks related to the video game industry. There's also another that has the same stocks that Warren Buffet invests in.
CopyPortfolios are more hands off investments and do require more capital. I see them as longer term investing options.
Why I like eToro
- Multi-asset – invest in forex, stocks, cryptos, ETFs, Commodities etc all in the one platform.
- Practice trading – if you don't want to invest real money, but still want to try out trading ideas, you get a free virtual account on eToro. You can switch back and forth between your virtual and real account with a couple of clicks.
- Buy stocks with PayPal – I use paypal a lot so it's nice to be able to fund my trading account using PayPal.
- Buy stocks from all over the world – being able to trade stocks from all over the world is huge. And you don't pay any commissions. Just the spread!
So there you have it – the two platforms that I'm using at the moment to buy and sell shares. Let me know in the comments what platforms you use.