New apps provide easy guidance for entry investors

Global Business

One of the main impediments to investing is that many people find it confusing. The number of options can be overwhelming. Another detractor is the sense they don’t have enough money.

Some new apps targeting millennials are trying to overcome those obstacles including one called “Stash.”

CCTV America’s Karina Huber reports.

New apps provide easy guidance for entry investors

One of the main impediments to investing is that many people find it confusing. The number of options can be overwhelming. Another detractor is the sense they don’t have enough money. Some new apps targeting millennials are trying to overcome those obstacles including one called “Stash.”CCTV America’s Karina Huber reports.

Five dollars is all it takes to become an investor on Stash. Answer a few questions about your financials and within minutes you can buy fractional shares of exchange traded funds like “Clean and Green” and “Global Citizen”, all managed by reputable firms like Vanguard and BlackRock.

Another app that’s making investing easy and affordable is Acorns. It rounds up your spare change from debit and credit card purchases and once you’ve saved $5, it’s invested.

Brandon Krieg is the CEO of Stash. He said $5 is the entry point but users are investing more than that.

The App went live a little over a year ago, since then the company said it had attracted a quarter of a million users. That has been good for business. The company has raised close to $12 million in the span of one year, from venture capital firms in Silicon Valley, New York and London.

Stash and other similar apps make their money off fees, $1 a month for balances under 5,000 and a quarter of a percent a year for anything above that.

Another app Robinhood lets investors buy and sell stocks and ETFs for free. Robot investors like Wealthfront, which requires a $500 minimum will manage your first $10,000 at zero cost.

But what makes Stash stand out is its guidance in investing.

Whatever your preference, there are now more options than ever for people with limited funds looking for an easy entree into investing.