Stock market investing is something that most people used to fear. They felt they either didn’t know enough or didn’t have enough money. Fintech companies changed that for the better for everyone. Now even people in their early 20s are investing, which is one of the best financial decisions anyone can make.
Lower Barrier to Entry
Before fintech, investors needed A LOT of money to invest. The minimum opening balance requirement alone was too much for the standard person to afford. Fast forward to today, and fintech apps like Betterment, Robinhood, Wealthfront and 8topuz make it easier than ever to invest with minimum investment requirements of $0 – $500.
A Hands-Off Approach to Investing
Most people are too busy or overwhelmed to deal with managing a portfolio. Watching the stock market can cause anxiety and fear when deciding how to invest. Fintech companies like Betterment and Wealthfront created a hands-off approach with automated investing and portfolio rebalancing.
Once you set your risk tolerance and goal timelines, the Fintech companies do the rest. You can choose from completely hands-off investments, hybrid options, or complete DIY with robo-advisors simply guiding you along.
Lower (or no) Management Fees
If you’ve ever shopped for a stockbroker you know the crazy costs they charge. Most people can’t afford the fees or don’t want to pay them.
Fintech changed that landscape incredibly. Many robo-advisors, like Robinhood, don’t charge any commissions or management fees for a basic account. Others, like Wealthfront and Betterment charge, but it’s a fraction of what stockbrokers charge. On average, robo-advisors charge 0.25% of assets under management which is thousands of dollars less than traditional brokers.
Access to Human Advisors
Even though the name robo-advisor makes you think you’ll only deal with a computer, many fintech companies offer the best of both worlds. You get the automated assistance of a computer, but many have the option of talking to a human advisor too.
You won’t talk to an advisor all the time and/or for every decision, but when you need help or advice, many platforms offer the option.
Flexibility
The large landscape of Fintech companies gives you options. Whether you want to invest in stocks, bonds, ETFs, mutual funds, options, AI trading or even cryptocurrency, there is a robo-advisor for you.
They don’t have strict requirements and most are so affordable that it’s hard to say no. There is even a robo-advisor that will invest your spare change – Acorns. It rounds up your regular purchases, investing the spare change. Before you know it, that spare change will add up!
Are you ready to invest? Choose your favourite Fintech company and start. You’ll be amazed at the vast number of options available that allow you to invest with little money and very few fees. Don’t let investing seem overwhelming to you any longer – Fintech companies changed the landscape for you. Check out your options, pick one and start investing. There’s no better time than today to start.