*Editors note: we do not have an affiliation with any of the apps mentioned on this page. This review is provided for educational purposes only. Please see our content disclaimer for more.
Automatic investment apps simplify investing by automating tasks like rebalancing, contributions, and diversification. Whether you’re a beginner or an experienced investor, these apps can help align your portfolio with your financial goals. Here’s a snapshot of the top apps:
- Ally Invest: Commission-free trading, ideal for active traders.
- M1 Finance: Customizable portfolios with auto-rebalancing, great for long-term investors.
- Acorns: Micro-investing by rounding up spare change, perfect for beginners.
- Robinhood: Easy-to-use platform for hands-on traders.
- Wealthfront: Automated management with tax-saving features, best for passive investors.
Quick Comparison
| App | Best For | Key Feature | Cost |
|---|---|---|---|
| Ally Invest | Active traders | Commission-free trading | $0 |
| M1 Finance | Long-term investors | Custom portfolios with automation | $0 |
| Acorns | Beginners | Auto-invest spare change | $1/month |
| Robinhood | Hands-on traders | User-friendly mobile app | $0-$5 |
| Wealthfront | Passive investors | Tax-loss harvesting | 0.25% AUM |
Each app caters to different needs, from active trading to hands-off investing. Choose the one that matches your investment style, goals, and experience level.
The Best Investing App For Beginners (Complete Guide)
1. Ally Invest: Features and Highlights
Ally Invest has carved out a strong position in the 2025 investment world, offering tools that cater to both beginners and seasoned investors. It combines commission-free trading, powerful research tools, and smooth integration with Ally Bank to deliver a well-rounded experience.
The platform’s robo-advisor provides tailored portfolios and automatic rebalancing, keeping your investments aligned with your goals and risk preferences – no manual effort required.
| Feature Category | Details | Cost |
|---|---|---|
| Stock/ETF Trading | Commission-free | $0 |
| Options Trading | Per contract | $0.50-$0.65 |
| Robo-Advisory | Automated portfolio management | Competitive rates |
| Research Tools | Real-time data & analysis | Included |
One standout feature is its seamless connection with Ally Bank. This integration allows for easy transfers between banking and investment accounts, giving users a one-stop solution for managing their finances. For advanced traders, Ally Invest delivers tools like customizable charts, real-time market data, and in-depth trading insights.
"Ally Invest is a solid choice for investors who want a wide range of investment products and competitive pricing." – NerdWallet
The platform strikes a balance: automation simplifies investing for beginners, while active traders get access to the resources they need to make informed decisions. It supports various account types, including IRAs and brokerage accounts, and even offers options and forex trading.
Though Ally Invest excels in creating an all-in-one financial platform, M1 Finance leans more toward personalized portfolio management.
2. M1 Finance: What You Need to Know
M1 Finance blends robo-advisory features with brokerage services, offering a "Pie" system that lets investors build and automate personalized portfolios. With this approach, users can set up portfolios that automatically stick to their target allocations.
The platform provides commission-free trading for stocks and ETFs, along with optional paid features like M1 Borrow, which offers credit lines. This setup appeals to investors who want to minimize costs while keeping control over their portfolios.
| Feature | Details | Cost |
|---|---|---|
| Stock/ETF Trading | Commission-free with automatic rebalancing | $0 |
| Portfolio Customization | Up to 100 holdings per pie, multiple pies allowed | Free |
| M1 Borrow | Credit line with low interest against portfolio | Available |
| M1 Spend | Checking account with debit card | Basic: Free |
M1 Finance makes managing your investments simple by automating contributions and rebalancing. This ensures your portfolio stays aligned with your goals, whether you’re saving for retirement or targeting specific sectors. You can even create multiple portfolios, each holding up to 100 assets, to meet different financial objectives.
The platform also includes tools like M1 Borrow and M1 Spend, which integrate credit and banking services for added convenience. This makes M1 Finance a great option for investors looking for a mix of automation and control to grow their wealth over the long term.
However, it’s important to note that M1 Finance isn’t ideal for active traders who need advanced charting tools or frequent trading options. The platform is best suited for those focused on strategic, long-term investing.
For beginners, Acorns may be a simpler alternative, offering a more straightforward way to start investing.
3. Acorns: Simplifying Investing
Acorns makes investing easy with its round-up feature, which automatically invests spare change from your purchases into a diversified ETF portfolio. This effortless system is perfect for beginners who want to start building wealth without diving into complicated decisions.
| Plan Level | Monthly Fee | Features Included |
|---|---|---|
| Basic | $1 | Automated investing, round-ups, educational tools |
| Premium | $3 | Everything in Basic + retirement account options |
| Premium Plus | $5 | All features + advanced investment tools |
After setting their risk preferences and financial goals, users can let Acorns handle everything – from portfolio management to rebalancing. However, for accounts with smaller balances (like $100), the $1 monthly fee could take a noticeable chunk out of returns [1].
Why Acorns Stands Out
- Automatically invests spare change from linked cards
- Allows scheduled deposits for consistent growth
- Handles portfolio management with professional oversight
- Offers educational tools to guide new investors
Acorns is designed for simplicity. Its fully automated process helps users develop steady saving and investing habits. Unlike M1 Finance, which focuses on customization, Acorns is all about convenience and ease of use – ideal for those who prefer automation over hands-on control.
For beginners who want a no-fuss way to invest, Acorns is a strong choice. On the other hand, Robinhood takes a different path, catering to users interested in active trading with its straightforward interface.
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4. Robinhood: Key Features
Robinhood is a commission-free trading platform designed for investors who like to manage their own portfolios. Its user-friendly mobile app and straightforward setup make it a popular choice for hands-on traders.
| Feature Category | Details |
|---|---|
| Trading Costs | No commission on stocks, ETFs, and crypto |
| Investment Options | Stocks, ETFs, options ($0.65 per contract), cryptocurrencies |
| Account Minimum | $0 |
| Premium Features | Robinhood Gold |
| Protection | SIPC coverage: $500,000 ($250,000 cash) |
Robinhood focuses on giving users control rather than relying on automation. With tools for active trading and access to real-time data, it’s tailored for those who prefer making their own investment decisions.
Key Features and What They Offer
Robinhood isn’t just about trading; it also includes helpful cash management features. These include no monthly fees, free access to a debit card, no overdraft fees, and FDIC insurance. However, the platform doesn’t offer services like automated rebalancing or tax-loss harvesting, which might be a drawback for anyone looking for more hands-off investing.
For users who prefer active management, Robinhood’s scheduled deposits and basic portfolio tracking tools can help maintain consistent investing habits. That said, if you’re interested in fully automated strategies or tax-efficient investing, platforms like Wealthfront might be a better fit for your needs. Robinhood’s simplicity is its strength, but it’s geared toward traders who want to stay actively involved.
5. Wealthfront: Tools for Investors
Wealthfront blends automated investment management with detailed financial planning and tax-efficient strategies. With a $500 minimum investment and a 0.25% annual management fee, it’s an accessible option for many investors.
| Feature | Details |
|---|---|
| Management Fee | 0.25% annually |
| Minimum Investment | $500 |
| Investment Options | ETFs, Index Funds |
| Tax Features | Tax-loss harvesting, Direct indexing |
| Account Protection | SIPC coverage |
| Additional Tools | Path financial planning, College savings, Retirement planning |
One of Wealthfront’s standout features is its Path financial planning tool. It offers detailed insights into retirement projections, savings strategies, and milestone tracking – all tailored to your current financial situation and long-term goals. Meanwhile, the platform’s automated portfolio management keeps your investments on track by regularly monitoring and rebalancing your portfolio to align with your asset allocation.
Wealthfront also enhances returns with its tax-loss harvesting feature, delivering an average of 2.03% in additional annual returns. The direct indexing option allows for more precise control over individual securities within an index, further improving tax efficiency.
Key features of Wealthfront include:
- Goal-based investing: Portfolios are designed to meet specific objectives, such as retirement or saving for a home.
- Financial integration: Link external accounts to get a full view of your financial landscape.
- Specialized accounts: Options for retirement and education savings, tailored to different needs.
Wealthfront is ideal for investors who prefer a hands-off, goal-focused approach. While it doesn’t cater to active traders like Robinhood, its strength lies in offering a well-rounded, automated solution for building long-term wealth.
Next, we’ll dive into how all five apps stack up across the most important factors.
Comparing the Pros and Cons of Each App
Here’s a breakdown of the top automatic investment apps of 2025, focusing on the features that matter most to investors. Each app caters to different investment styles, goals, and experience levels.
| App | Pros & Cons | Best For |
|---|---|---|
| Ally Invest | Pros: Advanced charting tools, integrated banking services Cons: Steep learning curve for beginners, lacks robust automation |
Traders who rely on in-depth research and data analysis |
| M1 Finance | Pros: Customizable "Pie" portfolios with auto-rebalancing, no management fees Cons: Limited to one daily trading window, lacks tax-saving features |
Long-term investors who want control paired with automation |
| Acorns | Pros: Invests spare change automatically, includes educational resources Cons: Monthly fees can hurt small accounts, fewer investment options |
New investors starting small with minimal effort |
| Robinhood | Pros: User-friendly mobile app, quick access to deposits Cons: Limited market analysis tools, no retirement account options |
Stock-focused investors who prefer mobile trading |
| Wealthfront | Pros: Tax-loss harvesting to lower taxes, robust financial planning tools Cons: $500 minimum investment, 0.25% annual fee |
Investors seeking automated management with tax-saving strategies |
When it comes to costs, M1 Finance and Robinhood stand out with no management fees. Wealthfront’s 0.25% annual fee and Acorns’ $1 monthly charge can impact smaller portfolios differently. M1 Finance shines with its auto-rebalancing feature, ensuring your portfolio stays aligned with your goals without extra effort.
| Investment Goal | Recommended App | Why It Works |
|---|---|---|
| Passive Growth | Wealthfront | Offers tax-saving features and professional portfolio management |
| Active Trading | Ally Invest | Provides tools for real-time data and technical analysis |
| Starting Small | Acorns | Easy entry point with automated micro-investing |
| Custom Portfolios | M1 Finance | Allows precise asset allocation with automatic updates |
| Learning Investment | Robinhood | Simple interface for stock and ETF trading |
Ally Invest is perfect for active traders who need advanced tools, while M1 Finance balances automation with user control. Wealthfront’s tax-saving strategies (which can boost returns by 2.03% on average) make it appealing for tax-conscious investors. Acorns is ideal for beginners, thanks to its simplicity, and Robinhood is great for those who want a straightforward trading experience.
Each app is designed to meet specific investor needs, from hands-on trading to fully automated management. Think about your investment goals, involvement level, and portfolio size to find the platform that fits you best.
Final Thoughts and Recommendations
Now that we’ve covered the features, costs, and perks of each app, it’s time to figure out which one aligns with your investment goals. The best choice will depend on your style and financial objectives. If you’re just starting out and working with a smaller budget, Acorns is a great pick for its micro-investing approach.
Looking for a mix of automation and control? M1 Finance is a solid option. It’s ideal for investors who want some hands-on involvement while enjoying automated rebalancing, whether you’re managing a small or large portfolio.
For those focused on tax efficiency and managing larger portfolios, Wealthfront offers excellent tools like tax-loss harvesting, making it a top choice for long-term wealth growth and preservation.
Here’s a quick comparison to help you decide:
| Investor Profile | Recommended App | Key Advantage | Minimum Investment |
|---|---|---|---|
| New Investors | Acorns | Micro-investing automation | No minimum |
| DIY Enthusiasts | M1 Finance | Free rebalancing | $100 |
| Tax-Conscious | Wealthfront | Tax-loss harvesting | $500 |
| Active Traders | Ally Invest | Advanced trading tools | No minimum |
| Mobile-First Users | Robinhood | Easy-to-use interface | No minimum |
Platforms like Wealthfront and M1 Finance also include financial planning tools, offering a well-rounded approach to managing your investments.
To find the right app for you, consider the following steps:
- Set your budget: Think about both the initial investment and ongoing fees.
- Decide on your involvement: Do you prefer hands-off automation or active management?
- Factor in taxes: If you’re investing larger sums, look for tax-efficient features.
- Check for integrations: Ensure the app works smoothly with your current financial tools.
Even with all the automation available today, it’s still important to review your strategy regularly. Matching your goals, level of involvement, and portfolio size to the right platform will put you on the path to success.
FAQs
Is Robinhood or Wealthfront better?
Robinhood is ideal for:
- Commission-free trading
- No account minimums
- Direct control over investments
- Basic trading tools
Wealthfront stands out for:
- Automated portfolio management
- Advanced tax-saving features
- Financial planning tools
- $500 minimum investment
| Feature | Robinhood | Wealthfront |
|---|---|---|
| Management Fee | $0 | 0.25% annually |
| Investment Style | Self-directed | Automated management |
| Tax Features | None | Tax-loss harvesting |
| Account Minimum | $0 | $500 |
For those who enjoy hands-on trading, Robinhood’s zero fees and simplicity make it a great match. On the other hand, Wealthfront’s automated tools and tax-saving options are better suited for passive investors looking for long-term growth. The small management fee can often be offset by the tax benefits and professional oversight.
Both platforms use technology to simplify investing but cater to different styles. Robinhood is perfect for active traders, while Wealthfront appeals to those who prefer a hands-off approach.
"Wealthfront provides comprehensive financial planning tools, automated tax-loss harvesting, and diversified portfolios, which can be beneficial for users seeking a hands-off investment approach. Robinhood, while cost-effective, requires more active management and does not offer the same level of automated investment advice." [3][2]
Choosing between the two comes down to whether you value active control or automated convenience. Both can help you achieve your financial goals when matched to your preferred investment style.