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Can you use multiple investment apps?
Many people sign up for one investment app and stick to it, but there are hundreds more available through the app store on your phone. This guide explains how you can sign up to more than one app and the pros and cons of doing so.
Can you use more than one investment app?
You can use as many investment apps as you like. There’s no limit to the number of accounts you can have. For many people, it’s easier to keep track of their investments in one place, but there are plenty of reasons why you might want to use multiple apps. Each type of investment app has different features and benefits, and by spreading your money across two or more, you can take advantage of them all.
Why should you use more than one investment app?
Your investment goals, time horizon, and circumstances will help you decide if using more than one investment app makes sense. If you’re planning to invest for the long term, then it’s probably best to use multiple brokerage accounts. Using a single investment app may be a better option if you’re investing a little money or are just starting. Below you will find several reasons and benefits for using multiple investment apps.
1. It helps to keep track of different investment goals
Most investors have specific goals for why they want to invest and if you have more than one goal, using multiple investment apps will be a good choice. Investment goals can include: saving for retirement, a house deposit, planning for a big purchase, and many more. Multiple investment apps can help you maintain focus on each goal more easily.
A long term investment account for your retirement can be based on one app, while a higher risk, more active trading account might be on another. A speculative crypto trading pot could be in a third. It helps you to keep the money separate and means you don’t get sucked into putting your retirement money into risky, swing-for-the-fences plays.
2. You can take advantage of special offers and features
Some investment apps encourage you to open an account by offering sign-up bonuses and other perks like zero commission. You can take advantage of different offers for different platforms by opening multiple accounts.
In recent years, robo-advisors and micro-investing apps have become popular choices for investors wanting passive income. Robo-advisors automatically invest money into a range of assets depending on your goals and risk profile. Micro-investing apps round up your everyday spending to the nearest pound and invest the difference. Both of these types of apps can be used alongside or supplement your main investing accounts.
3. You can set up an account for your children
Depending on where you are located, you may be able to open an investment account in your child’s name. In the United Kingdom, you can open and manage a stocks and shares ISA for your child until they reach the age of 18. It makes sense to invest in a separate account for your children. Not only will it be easier to manage your funds, but these types of accounts offer tax breaks and the money legally belongs to your child.
4. It provides more safety
Using multiple accounts might be more secure if you plan to invest a large amount of money. Regulatory bodies offer protection for certain amounts if a brokerage company goes out of business.
In the UK, for example, the financial conduct authority protects your money up to £85,000 if a firm goes bankrupt. Instead of depositing £250,000 into one investment app, you could spread that across several, keeping within the £85,000 protection range to benefit from more protection.
5. Using multiple investment apps can provide tax benefits
You can use more than one investment app to gain tax breaks and lower the amount you need to pay on your profits. If you want to use an app to day trade, then you could consider using a spread betting platform where you’ll pay zero tax. If you want to invest for the long term, look to open a brokerage account that lets you invest via an ISA.
Every jurisdiction has its own tax laws, so you should take the time to research what is the best way for you or speak to a local tax expert for the best advice.
6. You can make use of different app types
Not all investment apps offer the same services and many are focused around a specific asset class or investing style. You may consider using a brokerage app to invest in the stock market, an exchange app to day trade, and a cryptocurrency app or wallet to buy, sell, and store digital tokens. You can also use a portfolio tracker, which will allow you to view all of your investments in one place.
When is it better to use just one investment app?
A lot of the time, using just one investment app makes for a better option than using many. If you’re investing for the short term or starting with a little money, it’s easier to stick to just one brokerage account. Below we have highlighted a few reasons why using just one investment app is better.
1. If you want to stay organised
The more accounts you have, the more time-consuming it is to manage them all. You need to remember your login details for each account, why you signed up, and what you invested in with each account. There are ways to mitigate this with password and portfolio managers, but one account is undoubtedly easier to control.
2. So you don’t lose track of your money
It can be difficult to remember how much you have invested and keep tabs on your profit/loss record across many different accounts. This can mean you lose money without realising it but can also have tax implications, as you have to pay Capital Gains Tax on any money you make from buying and selling financial assets.
3. To meet minimum account requirements
Some investment apps require you to hold a minimum amount of money in your account at all times or have minimum deposit requirements. If you use multiple accounts, it could be difficult to meet minimum requirements across all of your apps, especially if you’re investing with little money. When using one account, you can easily stay on top and maintain the minimum required.
How to use more than one investment app
Staying on top of multiple apps can be time-consuming and confusing, so it is important to understand how to use more than one account. With multiple apps comes multiple passwords, but you can easily get around remembering different logins by using a password manager or fingerprint/facial recognition unlocking features on your mobile device.
You can also use a portfolio manager, which is a third-party application where you can link all of your investment accounts. This will allow you to gain an overview of how each account you have is performing, but to make any changes, you’ll still need to log in to separate accounts.
Is it better to use one investment app or multiple?
It depends on your circumstances and how actively you plan on managing your money. Having two or three investment apps on your phone is probably a good idea because you can get the best prices and access a wide range of assets. More than that can be difficult to manage and brings its risks.
It’s also perfectly possible to get by with one account. If you prefer to be a hands-off investor and keep everything as simple as possible, then you should only use one investment app.
Yes, but only if your circumstances meet the requirements to open more than one trading account. One of the biggest advantages is the different fees you will pay for making trades. You could have one trading app for stocks and another for crypto or forex, all with the best fees, which can be difficult to achieve on just one app.
Yes, using more than one broker for investing is perfectly legal. As we’ve mentioned on this page, using more than one investment broker can provide many benefits.
If the broker you choose is properly regulated, it is safe (up to a certain amount). Most regulatory bodies around the world offer customer protection up to specified limits. In the UK, the FCA protects your money up to £85,000, so you should be careful if depositing more than that. Brokerage accounts are safe, but it is not unheard for them to go under.
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