Once you’ve opened your account, you can start investing right away — though you may want to explore and familiarize yourself a bit first.
1. Download the app and open an account
You can find the app through your phone’s app store. Once you’ve downloaded it, you’ll have the opportunity to create an account. You’ll need to provide some personal information, including your contact information and Social Security number.
2. Link your bank account
The app will prompt you to link a bank account to your new brokerage account so you can fund your account and begin investing once you’re ready. You can link several bank accounts if you’d like.
3. Learn how to use the app and invest
Many investment apps for beginners offer educational articles and videos. They may teach you the ABCs of investing or how to use the app’s features. You can sometimes find these resources in the app, and you can also check the broker’s website or YouTube channel.
4. Decide on your investing strategy
The investments you choose will depend on your financial goals. You may want to grow your wealth with high-risk, high-return investments. Or you may want slow, steady growth and regular income. The Motley Fool offers plenty of guidance on how to invest money.
If you’re not sure where to start, or you feel overwhelmed by your options, consider a robo-advisor that chooses investments based on your goals. Diversified index funds, such as an S&P 500 ETF, are a great way to start as well.
5. Fund your account and start investing
Once you know your strategy, it’s time to start investing. Investment apps make it easy to transfer money from a bank account and buy stocks and other assets. You can make a one-time purchase or set up regular, automatic investments.
6. Check your portfolio regularly
It’s not good to obsess over the day-to-day movements of your investments. This can lead investors to micromanage their portfolios, lose sleep over temporary losses, or sell investments out of panic. For most investors, the best strategy is to buy investments and hold them for years — and to be clear, “hold” means “do nothing.”
That said, you want to be sure that your investments are more or less meeting your expectations. If an investment turns out to be way more volatile than you’d expected, or it’s not delivering the growth you need, then it may be time to sell. Keeping tabs on your investments can also help you adjust your portfolio over time.
If, for example, you want 90% of your money in stocks and 10% in bonds, but the stocks grow faster than the bonds, then they’ll take up a larger percentage of your portfolio over time. That means you’ll need to sell some off now and then to rebalance and maintain your 90% to 10% mix. Note that if you invest with a robo-advisor, then these rebalancing adjustments will be made for you.
7. Check for unexpected fees
Check your account transactions on a monthly basis and look out for any fees you may not have known about. Those fees may be worth the cost, but you should know exactly what you’re paying for and why.
All fees should be listed on the broker’s website, so it’s best to give those a look before you open an account.
8. Check in for the latest promos
Brokers frequently offer limited-time bonuses. You may be able to get free cash or stock for referring friends. Some investment apps offer bonuses for transferring money over from another brokerage. These promos can be worth hundreds of dollars, so don’t miss out.
9. Shop for a new investment app once or twice a year
Brokerages are constantly trying to one-up each other with lower fees, better apps, sign-up bonuses, and other perks. Moving your funds to a new brokerage is easy. If you find an investment app you like better than your current one, there’s little reason not to switch.
