Let's face it, investing can be intimidating to many people, especially if you've never done it before. Thankfully, with today's technology, many companies have made investing so easy that anyone can do it. They have even provided ways to invest your money if you don't have much to invest!

Investing online can be an excellent source of passive income that will pay off big time in the long run.

I'm going to show you what the best way to invest your money online is, and how you can easily get started today!

Invest Online vs. Invest With A Financial Adviser

A financial advisor is simply a professional who holds active licenses to advise and get paid on commissions for investing other peoples money. Just like your accountant advises you on your taxes and small business finances, so does a financial advisor advise you on your investments with a given investment objective.

The problem with financial advisers are they can be very pricey, and aren't always as accessible to get your money when you need it.

Financial advisers often only work with clients with a high net worth, ruling out all the other households who don't have hundreds of thousands of dollars to invest.

Investing online has been made very easy with new smartphone apps and computer apps. They allow one to get started with little money, in some cases as little as $5. Their fees are very reasonable ranging from $1 per month, or 0.25% if your account value is above $5,000.

Investing online takes the headache of doing all the research out of the game. Their highly educated professionals have done all the research for you and give you a variety of investment choices for each investment objective (whether it be a long term investment, or short term investment).

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How do you determine what to invest in when investing online?

Through a series of common questions you will be asked, your answers will result in a handful of investment recommendations that will help you reach your investment goal for the invested money.

Some of these questions will be similar to:

  • How long do you plan to keep this money invested?
  • What is your goal with this money? (large purchase, retirement, vacation)
  • Are you comfortable with volatility in your investment's value? (volatility is the amount of change in your account value from day to day)
  • What type of experience do you have with investing?

Those are just some examples, but will give you an idea of what questions may be asked, and show you how they narrow down their customized recommendations.

What is the best way to invest online and how to get started

Given the simplicity and ease of investing online versus investing through a financial advisor, more and more people are able to take advantage of the stock market benefits. But where should you get started with your online investment portfolio?

Below are a list of top recommended investment companies that allow you to open an account for free, and invest with as little as $5 – $25.

1. Acorns
Acorns is an investment app that allows you to invest extra change. Rather than stashing all your spare change into the plastic piggy bank sitting on your shelf at home, Acorns will round up your daily purchases to the next nearest dollar and invest that change for you.

  • Opening Deposit Amount: $0
  • Cost: First 30 days free, $1 per month if less than $5,000 balance, or 0.25% if greater than $5,000 account balance
  • Set up your free Acorns account here (Get $5 deposited to your account when you begin your Acorns account FREE)

2. Betterment

Betterment is a well-known and top investment app that specializes in customized investment recommendations with little required to invest. Through a series of questions, they will put together an investment portfolio with a diversified mix of stocks and bonds based on your answers to their account questions.

3. Stash

Stash is similar to betterment in that you get a customized recommendation of stocks and bonds to invest in. They also allow you to invest in industries that you are passionate about such as green energy, finance, technology, U.S. defense companies, etc.

  • Opening Deposit Amount: $0
  • Cost: First 30 days free, $1 per month if less than $5,000 balance, or 0.25% if greater than $5,000 account balance
  • Set up your free Stash account here

4. Stockpile

Stockpile is your basic investment account app that allows you to invest with purchasing fractional shares of a company. For example, if you wanted to invest in Amazon, you would need to pay $1,000+ just to purchase one share of their stock. With stockpile, you can invest as little as $5 in Amazon and own a fraction of a share.

This allows you to invest in your favorite companies and get those large returns that the industry leaders are providing for their clients and investors, without the deeper pockets to do so.

Your biggest advantage with investing

Your biggest advantage with investing is time. Some of you reading this may have a long time ahead of you, and others are getting started late. It is never too late to start investing in the stock market. Time allows you to take advantage of compound interest.

Compound interest is simply investing say $100, and you get a 5% return in that month. Next month you start with now $105, and you now get a 5% return on $105 rather than $100. This adds up over time and is often said to be one of the “Wonders of the World.”

My advice, pick any of the suggested apps above that resonates most with you and get started today! What other investment apps have you found helpful and worth doing some research on? Post your questions and comments below!