LightRocket via a photo by Rafael Henrique/SOPA Images.
LightRocket via a photo by Rafael Henrique/SOPA Images.
A feature has been launched that will generate investing recommendations for beginners.
The trading app said in a post Tuesday that it's introducing a feature called First Trade Recommendations to help new investors begin their financial journey.
New users of the app can fill out a questionnaire about their investing goals. The app will recommend a small, diversified portfolio of four exchange traded funds that will provide exposure to domestic and international stocks and the US bond market based on their answers.
The novice investors can learn more about each exchange traded fund before investing as little as $20, according to the company.
The post said that this allows customers to learn by doing. They can determine how much they're comfortable investing and how much they're willing to practice.
The commission-free trading app has added a feature called "Tours" that will run through essential investing terminology and symbols, like tickers and price charts.
The app said that participation is power. We want to help people start investing in the new year.
The wave of retail investors that have entered the market for the first time during the Pandemic has been a popular trading platform, though it has had its share of negative publicity. The company halted trading of meme stocks and other stocks as retail traders tried to drive a short squeeze. The payment for order flow business model, in which market makers execute trades for retail investors and collect on the difference between the bid and ask price, sparked backlash from users, a congressional hearing, and controversy.
The app went public at a $32 billion valuation despite the negative headlines early in the year. The stock was worth $17.40 at the Tuesday close, but has since sunk 22%.
Business Insider has an original article.
