Investing For Everyone – How Micro Investing Platforms Have Changed The Game
It has never been easier to invest in the share market with micro-investing platforms and robo advice. But first of all, what exactly are micro investing platforms, and how are they different from traditional brokerage platforms?
Micro investing platforms allow people to invest small amounts of money, sometimes as little as a few dollars into shares, exchange traded funds or even cryptocurrency. They are typically apps which have a great user experience, if you’re able to order something online or use a banking app, you’ll be able to use a micro-investing app.
Traditional brokerage platforms have a higher minimum investment amount and require you to select the investments you want to make (or hire an adviser to do this for you). Due to the higher minimum investment amounts it was more difficult to achieve diversification with smaller amounts of funds invested and simply not possible for a lot of people to invest under the higher minimums.
So, how much easier is it to invest with micro investing platforms than traditional brokerage platforms? Well, as mentioned, you don’t need a lot of money to get started. With some platforms, you can invest as little as $5 or $10 at a time. Plus, many platforms offer a range of investment options, from individual shares and exchange-traded funds (ETFs) to pre-selected portfolios that are automatically managed for you. Pre-selected portfolios and a lot of ETFs provide you with instant diversification. Not only that, it’s also very quick and easy to set up an account, select your investment options, and start investing your money.
So what is robo-advice?
Robo-advice is an automated investment service that provides investment advice and portfolio management to clients using AI. A major drawcard of robo-advice is it takes the research out of knowing what to invest in and provides investors with a low-cost, passive investment strategy. The funds are typically invested in a diversified portfolio of exchange-traded funds (ETFs) or other low-cost investment products. We know that even the experts fail to beat the market over the long term, this approach has been shown to offer solid returns over the long term while minimising risk. This coupled with low minimum investment requirements and much lower fees is making investing so much more accessible.
If this is new to you and you’re interested in micro investing platforms, you might be wondering what options are available in your country. Here’s a quick overview of some popular micro investing platforms in Australia, the UK, and the US:
Some of the common platforms in Australia
Some of the common platforms in the UK
Some of the common platforms in the UK
- Commsec pocket
- Etoro
- Pearler
- Raiz
- Self wealth
- Sharsies
- Spaceship
- Stake
- Superhero
- Vanguard
- Circa5000
- Evestor
- Fidelity Easy invest
- Money box
- Nutmeg
- Vanguard
- Wealthify
- Wombat
- Betterment
- Invstr
- Sofi Invest
- Stash
- M1
Some of the common platforms in Australia
- Commsec pocket
- Etoro
- Pearler
- Raiz
- Self wealth
- Sharsies
- Spaceship
- Stake
- Superhero
- Vanguard
Some of the common platforms in the UK
- Circa5000
- Evestor
- Fidelity Easy invest
- Money box
- Nutmeg
- Vanguard
- Wealthify
- Wombat
Some of the common platforms in the UK
- Betterment
- Invstr
- Sofi Invest
- Stash
- M1
You can see how micro investing platforms and robo advice remove the barriers that were preventing people from investing and make it possible for anyone to build their wealth and create passive income, even with smaller amounts of money to invest. They offer simple and user friendly apps for people to start investing their money.
Still not sure about what to do, inside of Financial Freedom Fundamentals I teach my clients (female entrepreneurs) how to get rid of that uncomfortable stomach-churning feeling about their financial situation and become empowered in managing and investing their money to generate wealth and passive income. Mastering these skills provides them with the freedom and options they desire, and they feel empowered to take control of their financial future. You can find more information here.
This is general information and for educational purposes only.
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