Emmanuil Grinshpun is a seasoned investor and philanthropist, interested in exploring new investment opportunities. In this article, he talks about investment apps and how the digital age is changing the way people invest.
What are Investment Apps and why they are So Popular
Investment apps serve as a way to invest in stocks, shares, or other types of investment options using a smartphone. With these apps, keeping track of your holdings is a breeze. Furthermore, Emmanuil Grinshpun says these apps offer a variety of other services that are otherwise offered by stockbrokers or financial advisors.
Using an investment app is easy too. After downloading your preferred investment app, the next step is to sign up. Before creating your portfolio, you need to allow the app to access your bank account and financial information. This permits the app’s algorithm or artificial intelligence (AI) to evaluate your financial situation.
By knowing how much you can save or invest, your investment app offers you customized investment or financial advice. This helps to make an informed decision. On the other side, a few apps can also invest on your behalf when permitted.
Investment apps are quite popular in this digital age and there are obvious reasons for such popularity. Emmanuil Grinshpun lists a few of them below.
- Investment apps are known for their ease of use and minimum learning curve.
- They have ability to access and manage investment portfolios from anywhere and at any time.
- Even beginners can learn to use these apps, as it takes only a few minutes to start investing.
- Investment apps prove to be a lot cheaper choice when compared with other available options i.e. financial advisor or stockbroker.
- Most often than not, investment apps are suitable for both beginners and experts, which is another reason for their popularity.
Emmanuil Grinshpun’s Pros and Cons of Investment Apps
No doubt, investment apps or digital investment platforms are convenient and affordable. However, Emmanuil Grinshpun reminds us that these apps have their pros and cons, which you should keep in mind before making a final decision.
- Investment apps charge a little to no fee, making them ideal for beginners and small investors.
- Generally, these apps rely on automated systems, which ensure a required level of accuracy when making investments. So, there is little chance of human error when investing.
- Popular investment apps offer simple and secure ways to add money or perform transactions.
- You can access a wide range of resources and learn how to invest without seeking advice from a stockbroker or financial advisor.
- These apps offer you updated information about stocks, shares, or other types of investment opportunities.
- Investment apps come with an array of tools to learn the basics of investment and make an informed decision.
- They offer a hassle-free way to track the overall performance of your portfolio by analyzing the performance metrics.
- Most of the mobile investment platforms don’t ask for a minimum deposit, which provide great investment opportunities to small investors.
- Mostly, investment apps help you to save money by creating and managing spending rules.
- The ease of use urges investors to make quick decisions, which could be risky sometimes.
- Using an investment app on the go can distract you, leading you to make wrong investment decisions.
- And investment apps usually offer limited investment options.
Are Investment Apps Safe?
Generally, investment apps require access to the user’s bank account and financial data. This particular aspect might raise some security concerns. However, Emmanuil Grinshpun says that to enhance the safety of your money and financial data, investment apps take strict safety measures.
Popular and trusted investment apps have built-in safeguards such as data encryption. Hence, it’s nearly impossible for the third party to access the user’s credentials or log in details. Furthermore, companies using open banking have obtained approval from the concerned authority.
For instance, the Financial Conduct Authority (FCA) is the regulatory authority for investment apps in the UK. Every investment app operating in the UK must be registered with this authority. The invested money isn’t allowed to be kept with the company’s funds.
As a result, you can have some assurance that your money would stay protected even if the company goes bankrupt. If concerned about the safety measures of an investment app, just check its status with the concerned regulatory authority.
The major security protocols followed by digital investment platforms are similar to those offered by a brokerage or bank. These include third-party security protocols, encryption, and two-factor authentication.
Even if you have signed up for a highly secure investment app, Grinshpun advises to stay vigilant. For instance, you need to stay alert against the phishing or scamming attempts.
Emmanuil Grinshpun Explains How to Choose an Investment App
Finding the best investment app can be tricky. However, you can make it easy by considering the key aspects when making a decision. Usually, the selection criteria depend on your experience and financial status.
Beginners and small investors have different types of requirements when compared to experienced investors. Hence, it is essential to find an investment app suitable for you, depending on your experience.
There are numerous features to look for in an investment app. For instance, your investment app must have the ability to connect with an array of financial institutions. Also, a well-designed investment app offers a complete view of all the investment options and performance metrics in one place.
Besides, here are some other aspects to consider when choosing the best investment app:
- Choose an investment app that allows you to invest in a wide range of investment options.
- Your investment app must offer an easy-to-navigate interface with the best possible user experience.
- Look for an app that comes with the latest features like DIY investing, Robo-advisors, or semi-DIY.
- Ask the company how much commission they charge. Also, inquire about other charges such as trading fees, setting up fees, transaction fees, and exit fees, etc.
- Find an investment app with a minimum investment amount.
- Search for an investment app with advanced safety measures.
- Make sure that your selected app offers social trading features. This allows you to analyze the investment portfolios of other traders/investors and learn about their investment skills.
Now you have got familiar with all the ins and outs about digital investment apps. And if you are interested in new investment opportunities, this article by Emmanuil Grinshpun is a must-read. The information shared in this article is beneficial for both beginners and experts.