Stock Trading: Micro Investing

Micro-investing apps have revolutionized investing by reducing the barriers related to the initial investment amount and associated costs, thereby empowering a new generation of investors.

Apps like Acorns,, and Robinhood have popularized fractional shares investing, allowing users to purchase a portion of a company’s stock, even if the share price is high.

These apps offer a user-friendly and enjoyable way to start investing. Many of them automatically round up the cost of your purchases to the nearest dollar and invest the spare change. For example, if you spend $4.25 on a drink, the app will set aside 75 cents and invest it according to your preferences.

While each contribution may seem small, regular purchases linked to your debit or credit card can accumulate over time, creating a passive investment strategy without the need for active deposit management.

Think of these apps as modern-day piggy banks or banking apps designed for young adults, teens, and kids. The key difference is that instead of the funds simply sitting there and losing value over time, these apps invest the money in appreciating assets.

Some apps offer customizable rules, allowing you to set specific triggers for additional contributions. For example, you can set a rule that every time you have fast food from your favorite restaurant, an extra dollar is contributed to your investments. Additionally, most apps provide options for regular or one-time contributions.

One of the major advantages of micro-investing apps is their “set it and forget it” approach. The funds continue to grow without requiring constant adjustments to your chosen portfolio option.

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