As smartphone usage has increased, so too has the number of investment apps available to users. Some people are hesitant to invest through mobile apps though. Some, such as Emmanuil Grinshpun, prefer instead to use traditional methods such as a stockbroker or financial planner.
Nonetheless, an increasing number of people are finding the convenience and accessibility of investment apps hard to resist. Emmanuil Grinshpun likens the rise of investment apps to the early days of e-commerce. People were initially hesitant to make purchases online.
“I think we’re in a similar situation with investment apps,” he says. “People are starting to realize that they can do their investing from their phone, and it’s becoming more and more popular.”
Grinshpun is a philanthropist and seasoned investor whose main area of interest is FinTech. He’s seen firsthand how investment apps are changing the way people invest. In today’s feature, he discusses the rise of investment apps and how they’re changing the investing landscape.
What are Investment Apps, and Why are they so Popular?
Investment apps are a convenient way to invest in the stock market. Or other types of investment using your smartphone or tablet.
They have been designed to ensure ease of use. And they offer a range of services you would typically only get through a financial advisor or stockbroker.
According to Emmanuil Grinshpun, these apps fill a big need in the market. “A lot of people don’t have the time or resources to sit down with a financial advisor and figure out where to invest their money,” he says. “Investment apps provide a simple and convenient way to do that.”
With investment apps, you can monitor your investments, track your progress, and make changes to your portfolio. Just with a few taps on your screen. Whether you’re a beginner investor or a seasoned pro, investment apps can help you reach your financial goals.
There are many investment apps available, each with its own features and benefits. Acorns, for example, is an app that helps people invest their spare change.
Robinhood is an app that offers commission-free stock trading. There are various reasons why investment apps have started to take off in recent years. Grinshpun attributes the rise of investment apps to a combination of factors, including:
- Ubiquitous access to the global markets
- Cut down costs
- User-friendly experience and
- Wide array of options
“I think the combination of all of these factors has made investment apps very popular,” he says.
Are Investment Apps Worth it? Pros and Cons of Investment Apps
Before deciding if investment apps are right for you, it’s important to understand the pros and cons. After all, it is your hard-earned money you will be investing. So you need to make sure you’re comfortable with the risks involved.
As Emmanuil Grinshpun puts it, “Investing always comes with risk. You can lose money as well as make money.”
That being said, it is safe to look at the good side and the possible bad side of investment apps. “I always tell people to do their homework before investing in anything,” Grinshpun says. “And that includes investment apps.” So, what are some of the pros and cons of using investment apps? Let’s find out below!
The Pros
- They give you a simplified way to keep track of your investment portfolio’s performance: The last thing you want is to be constantly worrying about how your investments are doing. With investment apps, you can easily check in on your portfolio and see how it’s performing with a few taps.
- Adding money or making trades is quick and easy: If you need to make a change to your portfolio, most investment apps make it easy to do so. You can usually add money or make trades with just a few clicks.
- They have small screen formats that have driven platforms to communicate more clearly: Because investment apps have small screen formats, the platforms have been forced to communicate more clearly and simply. As a result, most investment apps are very intuitive and easy to use.
Cons
- Investment apps make it so easy to trade that, and this could lead to impulsive decisions. This can be costly in the long run.
- If you are constantly on the go, you might make mistakes or make investment decisions without putting enough thought into them.
- Be sure to factor in the cost of the platform when you are deciding whether or not to use an investment app. Some platforms charge fees, while others are free to use.
At the end of the day, whether or not investment apps are worth it is up to you. Grinshpun says it really depends on your individual needs and goals. “I think investment apps can be a great tool for people who are looking to invest without a lot of hassle,” he says. “But I would caution people to do their research and make sure they understand the risks involved.”
Emmanuil Grinshpun Talks Investment Apps Safety
Investment apps are not only reliable but secure as well. They would normally require things such as passwords, PINs, and biometric identification.
All these combined make it difficult for someone to access them in the event that you lose your phone or it’s stolen. Emmanuil Grinshpun agrees that investment apps have come a long way in terms of security. “I think the security features have gotten a lot better,” he says. “I would say they’re definitely safe to use.”
Some investment apps will allow you to forego biometric security. This means that if someone does get ahold of your phone, they could access your investment app and make trades.
Emmanuil Grinshpun says, “The most secure way to protect your information is by using a password or PIN that can’t be guessed. Ensure it follows all the rules of a strong password/pin and not write it down anywhere.” “You do not want to take any chances when it comes to your money.”
In the event that your phone is stolen, immediately notify your investment platform. After that, log in on another device to change all of your passwords. Really, that’s the best way to protect your information and your investment app account.
How to Choose an Investment App
There has been an uptick in the number of searches for investment apps. Google estimate that the searches have increased 115% YOY.
Perhaps, this increase in searches has had an influence in the number of investment apps being launched. Emmanuil Grinshpun admits that there are a lot of investment apps on the market. And it can take time to choose one. He recommends this two-step process recommended for finding the best app;
- Step 1: Decide whether you fancy ready-made portfolios or the flexibility to invest in a wider range of assets. It is important that the app caters to your investment style.
- Step 2: Look into the costs. “You don’t want to be surprised by high fees down the road,” Granberry says. “Many investment apps charge a monthly or annual fee, and some also charge per trade.”
Finally, before you choose a platform, try out their app to see if it’s the right fit for you. This way, you can get a feel for the user interface and how the app works.
Emmanuil Grinshpun’s Bottom Line
For a decade or so, only professional investors had the knowledge and tools to make sound investment decisions. This is no longer the case.
With modern technology, anyone can be an investor. Thanks to investment apps, it has never been easier to get started. If you’re considering using an investment app, research and choose one that best suits your needs.
