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How to Get Started with Investment Apps in Australia

Tawhid Islam

In the era of digital transformation, beginning your investment journey has never been more accessible. With just a smartphone and an internet connection, you’re well on your way. But how do you actually get started? Let’s dive deep into the process.

1. Define Your Financial Goals

Every successful investment journey begins with a clear objective. Whether it’s saving for a dream home, securing your retirement, or merely growing your wealth, having a clear vision helps in making informed decisions.

Define Your Financial Goals
  • Short-term vs. long-term: recognise whether you’re in it for the short haul (less than 3 years), like saving for a vacation, or the long game, like planning for retirement.
  • Risk Tolerance: Understand how much risk you’re comfortable with. Investment apps in Australia offer everything from stable bonds to volatile cryptocurrencies.

2. Research the Available Platforms

We touched on some of the best investment apps in Australia earlier, but the fintech world is vast. Spend some time getting familiar with different platforms.

Research the Available Platforms
  • User Reviews: Platforms like the App Store or Google Play provide user reviews, which can give insights into the app’s usability and performance.
  • Features: Look for features that align with your investment strategy – from automated investing and robo-advisors to in-depth market analytics.

3. Consider the Costs

Every platform has its cost structure. While some apps might offer zero commission trades, they might charge account maintenance fees or higher spreads.

  • Management Fees: Some apps charge a percentage of your portfolio as a management fee, especially if they offer robo-advisory services.
  • Transaction Fees: While many apps offer commission-free trading, ensure there are no hidden fees when buying or selling.

Read our article on Best Investment Apps In Australia

4. Start Small

It’s tempting to dive in headfirst, but as a beginner, it’s always prudent to start small. This gives you a chance to familiarise yourself with the platform, understand market dynamics, and get a feel for investing without exposing too much capital.

  • Demo Accounts: Many apps offer demo or ‘paper’ trading accounts where you can practice without using real money.
  • Diverse Investments: Instead of putting all your funds into one stock or bond, diversify across different assets to mitigate risks.

5. Educate Yourself

Knowledge is the cornerstone of successful investing. The more you know, the better equipped you are to make informed decisions.

  • Tutorials and webinars: Many apps offer in-platform education, ranging from beginner tutorials to advanced trading strategies.
  • Stay Updated: The world of finance is ever-evolving. Regularly check financial news sites or subscribe to newsletters to stay updated.

6. Set Up Security Protocols

Cybersecurity should be a top priority. Your financial data is sensitive, and with the increasing number of cyber threats, ensure you have solid security practices.

  • Two-factor Authentication (2FA): This is an extra layer of security used to ensure that people trying to gain access to an online account are who they say they are.
  • Regularly Update Passwords: Strong, unique passwords updated regularly can thwart many cyber threats.
  • Secure Wi-Fi: Always access your investment apps on a secured Wi-Fi connection. Avoid public networks when making transactions.

7. Continuously Review and Adjust

The investment world is dynamic. An asset performing well today might not do so tomorrow. It’s crucial to review your portfolio periodically.

  • Set Milestones: Have clear check-in points, be it monthly, quarterly, or yearly, to review your investments.
  • Rebalance Portfolio: If some assets perform exceptionally well and others don’t, your portfolio might become skewed. Rebalancing ensures you stick to your original investment strategy.

8. Engage with a Financial Advisor

While investment apps have democratised finance, there’s still immense value in professional advice, especially when large sums are involved.

  • Personalised Strategies: An advisor can provide tailored strategies based on your financial situation and goals.
  • Tax Implications: Investing has tax ramifications. A financial advisor or tax professional can guide you in optimising tax benefits.

Starting with investment apps in Australia is an exciting journey into the world of finance. The digital age offers tools and resources right at your fingertips, making the process more straightforward than ever. However, as with all investments, due diligence and continuous education are paramount. Equip yourself with knowledge, stay updated with market trends, and always be ready to adapt and evolve. Happy investing!

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