Investment apps are fast becoming a trend. It is widely adopted by the younger generations who love to trade stocks with little or no stress. Most people see stock trading as something that requires a whole lot of money and studying trends to execute. Some avoid it because of the risks attached to it and their inability to fully understand the trend. There comes the need to dispel these beliefs and make trading of stocks for stock enthusiasts. Robo-advisors like Beanstox are investment apps that help manage your investments effortlessly while collecting very low fees for the hassle. Also, you don’t need tons of money to trade on these apps
Although these apps serve as the best method to trade stocks as it eliminates the work of studying the trend tightly so as to place your bids, just like everything it has its pros and cons. Let’s take a look at these Pro’s and Con’s associated with investment apps;
Low Minimum deposit;
One of the turn-offs in trading stocks for most people is that the belief that who need tons of money to be able to make a profit through stocks. This is one of the barriers investment apps stand to break for stock traders, in investment apps like Beanstox, there is no minimum deposit for trading. You can deposit as little as you have, as low as one cent, and trade your way to tons of profits.
Simple to use;
Trading stocks the traditional way is a whole lot of stress, studying trends for hours and days, taking notes and closely watching to avoid stress, its tough and difficult for newbies. Investment apps are very easy to use, takes minutes to set up, and delve into the stock trading world. Investment apps like Beanstox are a plus to traders and newbie traders as they are fully automatic, you won’t need to study trends and pick stocks to trade, everything is done by the app why observing very low risk.
Low commission fees;
Micro investment apps charge very low fees when you use them. Investment apps like Beanstox charge as low as $5 for a subscription monthly, and an annual 0.25% charge for clients above $25,000. This is very fair for traders who do not have much to spare on fees.
High fees for large accounts;
Yes, investment apps charge very low fees to manage your account, but Some of the fees when calculated cumulatively, they tend to be a lot. Clients that operate large accounts tend to lose a good amount on fees. Accounts that exceed $25,000 are charged 0.25% annually. Let’s say a client has $100,000 in his trading account, he is charged $250 yearly. The more you invest, the more you are charged.
Using investment apps like Beanstox is a bright idea for newbies in the trading world, as they don’t get to lose a lot in their beginning days. Though for large investors, the fees are a whole lot. Always evaluate yourself, weigh the pros and cons before trading in investment apps.