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3 Ways Technology Can Help First-Time Investors
Getting into the world of investing can be an exciting experience. Rather than placing all of your money into savings accounts which typically pay minimal interest, you can choose to buy stocks in a variety of companies and work on building up a portfolio.
While your grandparents relied on the printed newspapers to check how the stock market was doing and they had to go into a broker’s office in person to manage their portfolio, the advent of technology — and specifically the smartphone — makes the process much easier for you.
A smartphone is an incredible tool for first-time investors
When it comes to convenience and investing, nothing beats a smartphone. That hand-held computer you take with you everywhere can be used as a learning tool, as well as a way to buy and sell stocks and more. For example, you can use an iPhone 7 to download apps for your bank and investment companies like Vanguard, which allow you to purchase stock right from the palm of your hand. The smartphone is also an amazing source of information related to stocks; if you are sitting in a coffee shop waiting for your buddy to show up, you can research stocks and trading tips on your smartphone and boost your education in the process.
Use the power of robo-advisors
The proliferation of robo-advisors means you can use the combination of algorithms, robo-advisors and either your smartphone or a laptop computer to build your portfolio. One key benefit of robo-advisors is that they remove emotion from the equation of investing. They also allow you to build your wealth over the long haul by letting you invest in a “set it and forget it” approach. Examples of robo-advisors that rely on algorithms to create a portfolio include Acorns and Betterment; you can set up an automatic investing plan and then avoid constant trading. For newbie investors who are feeling a bit nervous about the entire process, using the power of technology to create a suggested portfolio can make you feel more at ease.
Online trading is now easier than ever
Before online trading platforms were created, you had to call a financial advisor or full-service broker to purchase stocks — this usually involved paying a flat fee or a commission somewhere around 2.5 percent. But now the rise of online brokers can help you save money on investing, while also giving you a chance to learn how it all works. Ally Invest offers free research, charting, data and analytical tools that will help teach you more about investing. They do not charge an annual fee and or require an account minimum, which can be an attractive feature to first-time investors who are getting their feet wet. E-Trade and Charles Schwab are also helpful for first-time investors.
Investing is now easier than ever
Buying your first stocks can be a thrilling experience. Thanks to technology that is designed to help new investors like yourself, you can use your smartphone to learn more about your new hobby, as well as robo-advisors and online trading platforms to buy and sell stock and build a portfolio.
