Welcome to my article Best Investing Apps for Beginners to Earn Passive Income. Let’s be honest—making money while you sleep sounds way better than grinding away at a 9-to-5 job forever. That’s exactly why passive income has become the holy grail of financial freedom. Whether it’s dividends rolling in, real estate paying you rent, or crypto rewards stacking up, the idea of making money with little to no effort is pretty appealing. But here’s the thing: not everyone has the time (or patience) to learn complex investing strategies or analyze stock charts like a Wall Street pro. That’s where investing apps come in to save the day.
In 2025, investing is easier and more accessible than ever, thanks to apps that do most of the heavy lifting for you. Whether you’re rounding up spare change with Acorns, automating your investments with M1 Finance, or earning passive income from real estate through Fundrise, there’s an app for every type of investor. Even if you don’t know the difference between a stock and a bond, these beginner-friendly apps can help you start building wealth with just a few taps on your phone. So, if you’re ready to dip your toes into the world of passive income but don’t know where to begin, don’t worry—we’ve got you covered. Let’s dive into the best investing apps that can help you make your money work for you, instead of the other way around.
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Why Investing Apps Are a Game-Changer for Beginners
Once upon a time, investing was complicated, expensive, and frankly, a little intimidating. If you wanted to buy stocks, you had to call a broker, pay ridiculous fees, and somehow figure out what “bullish” and “bearish” even meant. Fast forward to 2025, and things have changed—a lot. Now, thanks to investing apps, anyone with a smartphone can start investing with just a few bucks. No financial degree, no intimidating phone calls, no Wall Street jargon required.
So, what makes investing apps such a game-changer for beginners? First, they make investing simple. Most apps are designed with easy-to-use interfaces, educational resources, and automation tools that do the heavy lifting for you. Don’t know which stocks to pick? No problem! Robo-advisors like Wealthfront and Betterment can create a portfolio for you based on your goals and risk tolerance. Too busy to monitor the market? Apps like M1 Finance let you automate investments so your money grows on autopilot.
Another huge perk? You don’t need a fortune to get started. Many investing apps allow fractional shares, meaning you can invest in companies like Amazon, Tesla, or Apple for just $5 instead of buying full shares at sky-high prices. Some, like Acorns, even round up your spare change from everyday purchases and invest it for you—so you’re building wealth without even thinking about it.
And let’s not forget the low fees. Traditional brokerage firms used to charge commissions on every trade, but many investing apps today, like Robinhood and Webull, offer commission-free trading—meaning you keep more of your money.
At the end of the day, investing apps have leveled the playing field, making wealth-building easier, cheaper, and more accessible than ever. Whether you’re a college student saving for the future, a young professional looking for passive income, or just someone who wants their money to work harder than their coffee addiction, investing apps make it possible. And honestly, why not let your money grow while you binge-watch Netflix? Sounds like a win-win to us.
What to Look for in an Investing App for Passive Income
Not all investing apps are created equal—some are slick and beginner-friendly, while others feel like they were designed by a 1990s IT department. If you’re looking to earn passive income, choosing the right app is crucial. The wrong one could drain your money with hidden fees, limit your investment options, or leave you staring at a screen full of confusing charts wondering if you accidentally signed up for a finance PhD program. So, before you hit that download button, here’s what you should look for in an investing app that actually helps you grow your wealth—without the headaches.
1. Easy-to-Use Interface (Because Nobody Wants a Finance Degree Overnight)
If you’re a beginner, you don’t need an app with 50 technical indicators and a trading dashboard that looks like NASA’s control center. You need something simple, intuitive, and easy to navigate. Apps like Acorns and M1 Finance are designed for effortless investing, making it easy to set up an account, automate investments, and track your growth without feeling overwhelmed.
2. Low (or No) Fees – Because Fees Eat Your Profits
Fees might seem small at first, but over time, they can quietly eat away at your returns like financial termites. Look for:
✅ Low or zero trading commissions (Robinhood, Webull)
✅ Minimal account maintenance fees
✅ Low expense ratios on ETFs and mutual funds
✅ No withdrawal or transfer fees
Apps like Robinhood and Webull offer zero-commission trading, while M1 Finance lets you invest with no management fees—so more of your money stays invested and working for you.
3. Diverse Investment Options – Because One Size Doesn’t Fit All
A good investing app should offer multiple ways to earn passive income, not just stocks. Consider:
📈 Dividend Stocks & ETFs – Great for steady, long-term passive income
🏡 Real Estate Crowdfunding – Platforms like Fundrise let you invest in real estate with as little as $10
💰 High-Yield Savings & Bonds – Apps like Wealthfront offer cash management options with competitive interest rates
₿ Crypto & Staking – Apps like Coinbase allow staking for earning passive crypto rewards
The more options you have, the better you can diversify your portfolio—which means less risk and more income streams.
4. Automation & AI Features – Because Lazy Investing is Smart Investing
Let’s be real—the best kind of passive income is the one that happens without you lifting a finger. That’s why automation is key. Look for apps that offer:
🔁 Auto-investing – Set it and forget it (M1 Finance, Wealthfront)
📊 Robo-advisors – AI-powered portfolios that adjust automatically (Betterment, SoFi Invest)
📉 Dividend Reinvestment Plans (DRIPs) – Automatically reinvests dividends to compound your earnings
These features ensure your money keeps growing in the background, even if you forget to check the app for weeks.
5. Strong Security & Regulation – Because No One Likes Getting Scammed
Investing apps handle your hard-earned money, so security is non-negotiable. Before signing up, make sure the app:
🔒 Is regulated by financial authorities (SEC, FINRA, FDIC for cash accounts)
🛡️ Has strong encryption & fraud protection
📜 Offers SIPC insurance (protects up to $500K if a brokerage fails)
The last thing you want is to wake up one morning and find your account wiped out by a shady platform. Stick with well-known, regulated apps that prioritize security.
Final Thoughts: Pick the Right App, Let Your Money Work for You
The best investing app for passive income should be easy to use, low-cost, diversified, automated, and secure. Whether you’re looking to build a dividend portfolio, invest in real estate, or earn from crypto staking, the right app can turn your spare change into real wealth. So, choose wisely—because in 2025, making money in your sleep isn’t just a dream—it’s a well-placed investment.
Best Investing Apps for Beginners to Earn Passive Income in 2025
Gone are the days when investing required a Wall Street broker, a hefty bank account, and nerves of steel. Thanks to investing apps, anyone—yes, even if you still Google “what is a stock?”—can start building wealth with just a few taps on their phone. But with hundreds of options out there, which apps actually help you earn passive income without needing to monitor the market 24/7?
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Whether you’re into dividend stocks, real estate, automated portfolios, or even crypto staking, there’s an app that fits your style. Let’s dive into the best investing apps for beginners in 2025 that can turn your spare change into long-term wealth—without requiring you to become the next Warren Buffett.
1. Robinhood – Best for Commission-Free Stock & ETF Investing
💰 Best for: Beginners looking for zero-commission investing in stocks, ETFs, and options.
🎯 Why it’s great: No trading fees, fractional shares, and an easy-to-use app.
Robinhood is like the gateway drug to investing—it’s simple, sleek, and lets you start trading with as little as $1. It’s great for beginners who want to invest in dividend-paying stocks or ETFs, which can generate passive income over time. However, it lacks robo-advisors and automated investing, so you’ll need to choose your own investments.
🚨 Heads up: Robinhood has no automatic dividend reinvestment (DRIP), meaning you’ll have to manually reinvest your earnings.
2. Acorns – Best for Hands-Off Micro-Investing
💰 Best for: People who want to invest spare change automatically.
🎯 Why it’s great: Rounds up purchases and invests them in diversified ETFs.
Acorns is perfect for those who don’t want to think about investing. It rounds up your spare change from everyday purchases (like coffee or groceries) and invests it into a portfolio of ETFs. This means you’re slowly building passive income without even noticing. Plus, it offers automatic dividend reinvestment, making your money work even harder.
🚨 Heads up: Acorns has a monthly fee, which can eat into profits if you’re investing small amounts.
3. M1 Finance – Best for Automated Investing & Passive Income
💰 Best for: Investors who want automated portfolio management with dividend reinvestment.
🎯 Why it’s great: Free auto-investing, customizable portfolios, and fractional shares.
M1 Finance is perfect for passive income seekers. You can create a custom portfolio of dividend stocks, ETFs, or bonds, and M1’s auto-investing feature will automatically rebalance and reinvest your dividends—so your wealth grows on autopilot. Plus, zero management fees means you keep more of your returns.
🚨 Heads up: No real-time trading—M1 executes trades once a day, which might not work for active traders.
4. Fundrise – Best for Real Estate Passive Income
💰 Best for: People who want passive income from real estate without being a landlord.
🎯 Why it’s great: Low-cost real estate investing with quarterly dividends.
Fundrise lets you invest in real estate properties for as little as $10. You earn passive income from rental income and property appreciation, making it a great way to diversify your portfolio. Unlike stocks, real estate tends to be less volatile, making it a solid long-term passive income strategy.
🚨 Heads up: Real estate isn’t as liquid as stocks—you can’t cash out instantly.
5. Wealthfront – Best for Robo-Advising & Automated Passive Investing
💰 Best for: Beginners who want AI-powered investing with zero effort.
🎯 Why it’s great: Fully automated portfolios with tax optimization and low fees.
If you want to set it and forget it, Wealthfront is a top choice. This robo-advisor builds a diversified portfolio of stocks, bonds, and ETFs, then automatically rebalances and reinvests dividends to keep your money growing. It also offers tax-loss harvesting, which can boost your after-tax returns—aka, more money in your pocket.
🚨 Heads up: You’ll pay a 0.25% management fee, but it’s worth it for hands-off investors.
6. Coinbase – Best for Crypto Staking & Earning Rewards
💰 Best for: Passive income from staking cryptocurrencies.
🎯 Why it’s great: Earn rewards by holding crypto like Ethereum and Solana.
If you’re into crypto and want to earn passive income, Coinbase lets you stake certain cryptocurrencies and earn 5-10% APY in rewards. It’s one of the easiest platforms for beginners, with a user-friendly app and security protections.
🚨 Heads up: Crypto is volatile, and staking rewards can change based on market conditions.
Final Thoughts: Which App Should You Choose?
Choosing the right investing app depends on how you want to earn passive income:
✅ Want to build a dividend portfolio? → M1 Finance or Robinhood
✅ Prefer automated, hands-off investing? → Acorns or Wealthfront
✅ Interested in real estate income? → Fundrise
✅ Curious about crypto rewards? → Coinbase
The good news? You don’t have to pick just one—you can mix and match apps to create multiple passive income streams. Whether you’re investing spare change, automating your portfolio, or earning crypto rewards, there’s an app that makes passive income easier than ever.
So, why not start today? Your future self (and your growing bank account) will thank you.
How to Start Investing with These Apps (Without Losing Your Mind)
So, you’re ready to dive into investing, but you don’t know where to start. No worries—you’re not alone. The world of investing can seem like a maze of acronyms and financial jargon. But here’s the good news: investing apps have simplified everything. Whether you want to build wealth with stocks, earn passive income through dividends, or even try your hand at crypto, these apps make it easy to get started. The best part? You don’t need to study finance for years or know your ETFs from your ETPs (we’ll get into that in a minute). So, let’s break it down step by step, and we’ll have you investing like a pro in no time!
Step 1: Choose the Right App for Your Investment Goals
Before you start throwing money into random stocks, you need to figure out what you actually want to do. Not all investing apps are created equal, and different apps cater to different goals. Some apps are best for beginners, while others focus on advanced strategies. So, how do you decide? Here’s the quick breakdown:
- For hands-off investing & automation: Apps like Acorns and Wealthfront let you set it up once and then basically forget about it. They handle everything, from asset allocation to reinvesting dividends. If you just want to grow your money over time, this is the way to go.
- For commission-free trading & stocks: Apps like Robinhood and Webull let you trade stocks and ETFs with no commission fees, perfect for new investors looking to build a portfolio of individual stocks.
- For real estate income: If you’re more into the idea of real estate as a passive income stream, apps like Fundrise let you invest in real estate without the headaches of being a landlord.
- For crypto staking & rewards: Want to dabble in crypto? Apps like Coinbase allow you to stake digital currencies like Ethereum and earn passive rewards.
Pick the app that best aligns with your financial goals, and you’re already halfway there.
Step 2: Set Up Your Account and Fund It (Yes, the Money Part)
Alright, you’ve chosen your app—now, it’s time for the exciting part: funding your account. Don’t worry; it’s not like selling your firstborn child to get started. Most apps let you fund your account with as little as $5 to $10, making it super accessible for beginners. Here’s what you’ll generally need to do:
- Download the app from your phone’s app store (duh).
- Create an account—you’ll need to enter basic info like your name, email, and Social Security number (don’t worry, it’s safe).
- Link your bank account (this is where your money will come from, so get cozy with your bank account info).
- Deposit funds—choose how much you want to start with. Apps like Acorns even let you set up automatic recurring deposits (think of it as paying yourself first).
Pro tip: Don’t go crazy funding your account right away. Start small, get comfortable, and then ramp up your contributions as you learn. Investing isn’t a race—it’s about consistency.
Step 3: Pick Your Investments (Don’t Panic, It’s Not That Hard)
Now comes the fun part: picking what to invest in. Here’s the thing—you don’t need to be an expert to get started. You just need to understand a few basic concepts:
- Stocks: When you buy a stock, you’re buying a piece of a company. If the company does well, you earn money in the form of price appreciation and possibly dividends.
- ETFs (Exchange-Traded Funds): These are like pre-made baskets of stocks, bonds, or other assets. They’re great for diversification (fancy word for spreading out your risk). Apps like M1 Finance let you create your own ETF portfolio.
- Index Funds: Think of these as a low-cost way to track the entire market. If you want to invest in the S&P 500 (a group of 500 large companies), an index fund will let you do that without picking individual stocks.
- Dividends: Some stocks and ETFs pay you a portion of the company’s profit, known as dividends. If you want passive income, dividend stocks are the way to go.
- Real Estate & Crypto: If you’re into real estate income, Fundrise offers crowdfunding opportunities. For crypto fans, Coinbase lets you stake cryptos for rewards.
Apps like Acorns or Wealthfront make things easy by creating pre-built portfolios based on your risk tolerance (i.e., how much risk you’re comfortable with). If you want to get more hands-on, apps like Robinhood and Webull give you the freedom to pick individual stocks and ETFs. Just remember: diversification is key—don’t put all your eggs in one basket, even if it’s your favorite tech stock.
Step 4: Monitor & Rebalance Your Portfolio (But Don’t Obsess Over It)
Once your investments are set, it’s time to sit back, relax, and let them grow. That said, you do want to keep an eye on your portfolio from time to time. Many apps like M1 Finance and Wealthfront will automatically rebalance your investments based on your goals and risk level. This means you don’t have to do much. However, if you’re using an app that doesn’t offer automatic rebalancing (like Robinhood or Webull), you’ll need to monitor your holdings periodically and make adjustments if needed.
Pro tip: Don’t panic when the market drops. Investing is a long-term game, and short-term market fluctuations are completely normal.
Step 5: Stay Consistent & Keep Learning
The key to success with investing is consistency. Even if you can only invest a few dollars a week, that’s better than nothing. The most important thing is to keep learning and adjusting as you go. There are a ton of resources, blogs, podcasts, and even in-app learning tools to help you expand your knowledge.
The more consistent you are with your contributions, and the more you learn about investing, the better your results will be over time.
Final Thoughts: You’ve Got This
Starting with investing apps doesn’t have to be intimidating. In fact, it’s one of the easiest ways to get into the game without needing a financial degree. Pick the app that matches your goals, set up your account, fund it, choose your investments, and then watch your money grow—all while keeping a chill vibe.
Remember, the real power of investing is in the long-term—and with these apps, you’re setting yourself up for success. So, go ahead, start investing today, and let the apps do the heavy lifting for you.
How to Maximize Passive Income Using Investing Apps
Alright, you’ve downloaded the apps, you’ve set up your accounts, and now you’re ready to make some serious passive income. But wait—just because you’re invested doesn’t mean your money is working as hard as it could be. It’s like buying a treadmill and then sitting on it—you’ve got to make that app work for you! So, let’s get into how you can maximize your passive income using those sleek little apps on your phone. Trust us, it’s easier than you think.
1. Take Advantage of Dividend Reinvestment Plans (DRIPs)
You’re probably familiar with the idea of dividend-paying stocks—those companies that send you a little love in the form of cash payouts for simply holding their stock. But did you know that with the right app, you can automatically reinvest those dividends, rather than just letting them sit there like a stack of uncashed checks?
Apps like M1 Finance and Robinhood allow you to enroll in Dividend Reinvestment Plans (DRIPs), where your dividends are automatically reinvested to buy more shares of stock, which leads to compounding returns over time. This strategy takes advantage of the power of compound interest—basically, your dividends are earning dividends. It’s like turning your small investments into big returns while you sleep. 💰💤
2. Set Up Auto-Investing for Consistent Growth
Let’s face it—life gets busy. Between work, social media, and making sure your coffee machine is still alive, who has time to constantly monitor their portfolio? Luckily, many investing apps offer auto-investing features that let you invest on auto-pilot, so your money keeps working without you lifting a finger.
Apps like Acorns, M1 Finance, and Wealthfront allow you to set up automatic deposits on a daily, weekly, or monthly basis, so you’re consistently adding money to your portfolio. It’s like having a personal wealth-building assistant who makes sure you’re always adding to your investments without you even realizing it. Just set it, forget it, and watch that passive income roll in. 🌱📈
3. Diversify Your Portfolio for More Passive Income Streams
One of the best ways to maximize your passive income is by spreading out your investments—don’t just put all your eggs in one basket (especially if that basket is a meme stock). Diversification is key to mitigating risk and ensuring your money keeps growing.
Using apps like M1 Finance, you can create a customized portfolio of stocks, bonds, ETFs, and even real estate (if you’re into that) to ensure you’re spreading your money across different types of assets. You could build a mix of dividend stocks, growth stocks, bonds, and maybe even real estate crowdfunding via Fundrise. The more diverse your investments, the better your chances of generating steady, reliable income. A little here, a little there—before you know it, you’ve got a solid stream of passive income flowing your way from multiple sources.
4. Tap into Real Estate Crowdfunding for Tangible Passive Income
You’ve probably heard that real estate is one of the best ways to earn passive income, but owning property can be a pain—not to mention expensive. Luckily, real estate crowdfunding platforms like Fundrise allow you to invest in real estate with as little as $10, and they handle all the heavy lifting for you. From rental income to property appreciation, Fundrise generates passive income from your real estate investments and sends it straight to your account.
Not only does real estate diversify your portfolio, but it also tends to be less volatile than stocks, which makes it a great long-term passive income option. And guess what? You get to sit back, relax, and collect your quarterly dividends—no tenants to deal with. 🏠💸
5. Take Advantage of Cryptocurrency Staking for Extra Income
If you’re not already thinking about adding crypto to your portfolio, now might be a good time to consider it. Cryptocurrency staking is a great way to earn passive income by simply holding onto your crypto. Platforms like Coinbase and Binance allow you to earn interest (or rewards) by staking your crypto assets, such as Ethereum, Polkadot, or Solana.
The best part? You don’t need to be a crypto expert to start earning passive income. With staking, your crypto essentially works for you by verifying transactions on the network, and you get paid for that. Plus, you don’t even need to constantly check the market. Once you stake your crypto, just sit back and watch your rewards grow over time—kind of like interest on a savings account, but way more fun. 💎🔒
6. Be Smart About Fees (Because Fees are the Silent Killers)
Here’s a little secret: fees are the silent assassins of your passive income. They’re small at first, but over time, they can take a big bite out of your returns. When using an investing app, look for platforms with low or no fees. Apps like Robinhood, Webull, and M1 Finance don’t charge commissions for trades, and Acorns and Wealthfront offer low management fees.
Also, be mindful of hidden fees in things like expense ratios on mutual funds or ETFs. Every little bit counts, and those extra fees could be eating into your hard-earned profits. The goal is to make sure that most of your money is working for you, not for some app’s profit margin. 💸👀
Final Thoughts: The Secret Sauce to Maximizing Passive Income
To maximize passive income with investing apps, you need to combine the right strategies with consistency and a bit of smart decision-making. Whether it’s through dividends, auto-investing, real estate crowdfunding, or crypto staking, the key is to let your money do the work—and apps have made it easier than ever to set up automated income streams.
So, start with a diversified portfolio, set your investments to auto-pilot, and don’t forget to check for fees. Before you know it, you’ll be earning passive income without having to lift a finger. Your future self will thank you, especially when you see that sweet, sweet compound growth.
Conclusion: Choosing the Right Investing App for Your Passive Income Goals
Alright, so you’ve learned a lot about the power of investing apps, and you’re probably wondering: Which one should I choose to help meet my passive income goals? With so many options out there, the process can feel a little like shopping for shoes—so many styles, but which one’s going to fit you best? The key here is to match your app to your financial goals and your level of comfort with investing.
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If you’re aiming for hands-off growth and consistent passive income, apps like Acorns and Wealthfront are your go-to buddies. These platforms make investing effortless, with automatic deposits, diversified portfolios, and tax-advantaged accounts. You can literally set it up and then just check in every few months to see how it’s doing—no stress, no drama.
For those of you looking to tap into real estate or crypto staking, apps like Fundrise and Coinbase are great options for generating passive income streams that don’t require your full attention. Whether you’re earning from rental properties or staking your crypto to earn rewards, these apps open the door to new kinds of passive income that you might not otherwise be able to access.
Match Your Goals, Reap the Rewards
At the end of the day, the best investing app for you is the one that aligns with your goals, time horizon, and investment style. If you want to focus on growing your wealth over time with minimal effort, acorns or M1 Finance might be your best bet. But if you’re a hands-on investor who enjoys being in the driver’s seat, Robinhood or Webull could be your new best friends. Or, if you want to diversify into real estate or crypto, well, we’ve got options for that, too.
The most important thing is that you start—don’t wait until you feel like an expert. The world of investing is about learning as you go, and these apps are designed to make it as painless as possible for you. You can build your wealth while you sleep (literally), and let those passive income streams flow in.
So, take the plunge, choose an app that fits your goals, and remember: it’s not about how much you start with, it’s about how much you keep going. With the right app in your corner, your passive income dreams are much closer than you think. Let the apps do the work, while you sit back and watch your money grow.
Thanks a lot for reading my article on “Best Investing Apps for Beginners to Earn Passive Income” till the end. Hope you’ve helped. See you with another article.
