By: Imani Williams

In recent years, retail investing has revolutionized, making it more accessible than ever. Thanks to apps and online platforms, there are fewer barriers for the general public to participate in the stock market game. This shift is particularly empowering for the Black community, offering us new opportunities to build wealth.

What are Retail Investing Apps

Retail investing apps are digital platforms where individual investors can buy and sell stocks, ETFs, cryptocurrencies, and more directly from their smartphones. 

These apps tend to be great for beginners, including user-friendly interfaces, low or zero commission fees, and educational resources. Certain features within the apps make it easy for beginners to start small and build their investment portfolio over time. 

These features include automated investing and fractional shares. Fractional shares allow investors to buy portions of expensive stocks. This means you can start investing with as little as $1, making it possible for anyone to participate, regardless of their financial situation.

Zero-Commission Trading

One of the most significant changes brought about by these platforms is zero-commission trading. In the past, traditional brokerage firms charged fees for every trade, which could add up and discourage frequent trading or smaller investments. 

Today, apps like Robinhood have eliminated these fees, allowing users to trade stocks, ETFs, and even cryptocurrencies without worrying about commission costs.

Educational Resources

Many retail investing apps also prioritize education. They provide tutorials, articles, and videos that explain investment concepts and strategies in simple terms. 

For the Black community, which has historically faced financial literacy challenges due to systemic inequities, these resources are invaluable! They empower us to make informed decisions, understand market trends, and develop investment strategies that align with their financial goals.

Social Investing

Social investing is another feature gaining popularity. Platforms like Public and eToro allow users to follow and learn from successful investors, participate in discussions, and even mirror trades. This community-driven approach helps demystify investing, making it more approachable and collaborative.

 

How the Black Community Can Benefit

Here are some practical ways the Black community can leverage these tools to build wealth and secure financial futures:

1. Start Small and Grow Gradually: Take advantage of fractional shares to start investing in small amounts. Over time, you can increase your investments as you become more comfortable and knowledgeable.
2. Utilize Educational Resources: Dedicate time to learning about investing. Use the educational materials provided by these platforms to build your financial literacy.
3. Join Supportive Investing Communities: Engage with social investing features to learn from others. Follow experienced investors, participate in discussions, and don't be afraid to ask questions. And recommend your friends and family to join as well.
4. Set Financial Goals: Define your investment goals, whether it's saving for a down payment on a house, funding education, or building a retirement fund. Having clear objectives will help you stay focused and make strategic decisions.
5. Diversify Your Portfolio: Don't put all your money into one stock or sector. Diversify your investments across different asset classes to spread risk and increase the potential for returns.
6. Stay Informed: Keep up with market news and trends. Understanding the broader economic context can help you make better investment choices. Be sure to subscribe to The Black Currency’s Newsletter for updates to help you on your financial journey.

Conclusion

The rise of retail investing apps and online platforms is democratizing the stock market, providing unprecedented access and opportunities. For the Black community, this represents a powerful tool for financial empowerment. By starting small, educating ourselves, and leveraging the resources available, we can take control of our financial destinies and work towards greater economic equality. Now is the time to harness the potential of these platforms and invest in our futures.

Click here to learn more about Investing Apps and how to choose the right one for you.