Best Investing Apps for Beginners
Fidelity, Schwab, Robinhood, and M1 Finance are the top options for beginner ETF investors. Here is an honest comparison with no affiliate hype -- just features, fees, and who each app is best for.
Don't have time? Here's what you need to know:
- 1Fidelity and Schwab are the best overall choices for beginners -- zero fees, great research, strong support
- 2M1 Finance is best for hands-off investors who want automatic portfolio rebalancing
- 3All major brokers now offer $0 commissions and fractional shares, so the differences are small
- 4The broker you choose matters far less than starting to invest -- pick one and open an account today
The 4 Best Apps for Beginner ETF Investors
Fidelity is the best all-around choice for most beginners. Zero account minimums, zero commissions on ETFs, fractional shares, excellent customer service, and strong research tools. Their app is clean and well-designed. They also offer Roth IRA, traditional IRA, and HSA accounts all in one place.
Charles Schwab is essentially tied with Fidelity. Same zero-commission structure, excellent research, and they recently acquired TD Ameritrade. Their mobile app has improved significantly. Schwab also offers a checking account with unlimited ATM fee rebates, which is convenient if you want banking and investing in one place.
Robinhood has the simplest interface but lacks the depth of Fidelity and Schwab. It is good for people who want a clean, no-clutter experience. They offer a 1% match on IRA contributions (essentially free money) which is a notable perk. The downside: limited customer support and no mutual fund access.
Feature-by-Feature Comparison
All four apps charge $0 commissions on ETF trades. The differences come down to additional features, account types, and the quality of the investing experience.
M1 Finance stands out for its automated portfolio feature called "Pies." You set a target allocation (for example, 60% VTI, 30% VXUS, 10% BND), and every time you deposit money, M1 automatically buys the underweight portions to maintain your target. It is like a free robo-advisor with DIY flexibility.
| Feature | Fidelity | Schwab | Robinhood | M1 Finance |
|---|---|---|---|---|
| ETF Commissions | $0 | $0 | $0 | $0 |
| Fractional Shares | Yes | Yes (Schwab Stock Slices) | Yes | Yes (automatic) |
| Account Minimum | $0 | $0 | $0 | $0 |
| IRA/Roth IRA | Yes | Yes | Yes (1% match) | Yes |
| Auto-Invest | Manual recurring | Manual recurring | Recurring buys | Automatic rebalancing |
| Research Tools | Excellent | Excellent | Basic | Basic |
| Customer Support | Phone + chat, excellent | Phone + chat, strong | Limited, mostly email | Email only |
Which App Should You Actually Pick
If you want the best overall platform with strong research and customer support: Fidelity. If you want automated portfolio management and hands-off investing: M1 Finance. If you want the simplest possible interface: Robinhood. If you want banking and investing combined: Schwab.
The honest truth: the difference between Fidelity and Schwab is negligible. Pick either one and you will be well-served for decades. The platform matters far less than actually investing consistently.
Tip: Do not overthink the broker choice. Fidelity and Schwab are both excellent. Pick one, open an account today, and start investing. You can always transfer to a different broker later if you want to.
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Platforms to Avoid as a Beginner
Avoid platforms that charge commissions on ETF trades (rare now but some still do). Avoid any app that primarily pushes options trading, cryptocurrency, or leveraged products to beginners. These are not investing -- they are speculating.
Be cautious with robo-advisors that charge 0.25-0.50% of your assets annually on top of ETF expense ratios. For a simple 2-3 ETF portfolio, you do not need to pay someone (or an algorithm) to manage it. M1 Finance gives you similar automation for free.
Frequently Asked Questions
Is my money safe in these investing apps?
Yes. Fidelity, Schwab, Robinhood, and M1 Finance are all SIPC members, meaning your securities are protected up to $500,000 (including $250,000 cash) if the broker fails. Additionally, Fidelity and Schwab carry excess insurance above SIPC limits. Your ETF shares are held in your name and are separate from the broker's assets.
Can I transfer my account from one broker to another?
Yes. An ACAT (Automated Customer Account Transfer) moves your entire portfolio from one broker to another, typically within 5-7 business days. Your ETF shares transfer in-kind, meaning you do not need to sell and rebuy. Most brokers handle this for free.
Do I need a desktop computer or can I invest from my phone only?
All four apps work great on mobile. Setting up automatic investments, buying ETFs, and checking your balance all work fine from a phone. Fidelity and Schwab also have excellent desktop platforms if you want more detailed research and charting tools.
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Alex Harrington
CFA Level II Candidate, Finance & Economics
Alex Harrington is an independent ETF researcher and personal finance writer with over 8 years of experience analyzing exchange-traded funds. A CFA Level II candidate with a background in economics, Alex has reviewed 800+ ETFs and helped thousands of beginners build their first investment portfolios through clear, jargon-free education.
This content is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.