Micro-investment apps are drawing attention as an accessible way to start investing in stocks even without a large pool of funds. Their biggest feature is that users can buy from just one share and begin asset building with only a few hundred yen.
What Is Micro-Investing? Why Is It Suitable for Beginners?
Micro-investing is an investment approach that allows users to purchase stocks from a single share instead of the standard 100-share trading unit. Traditional stock investing typically required at least 100,000 yen, but with micro-investing, it is possible to start with just a few hundred yen.
There are three reasons it is well suited to first-time investors.
- Even shares of well-known companies with high stock prices can be purchased from just one share
- If the share price falls, the amount of loss is far smaller, helping investors control risk
- Users can build knowledge while gaining practical investment experience
What Are the Benefits of Starting to Invest Through a Smartphone App?
Today, the environment is in place for people to invest in stocks easily through smartphone apps. One major advantage is the ability to place orders conveniently during a commute or in spare moments, while keeping fees low.
There are several types of micro-investment apps, including securities company investment apps, mobile brokerages, point-based investing, and spare-change investing.
Comparing Three Notable Investment Apps
Monex Securities App
This is a comprehensive investment app offered by a major online brokerage. Its "One Stock" service allows trading in fractional shares with no purchase fee. Everything from cash trading to margin trading can be handled in a single app, making it suitable for people who want to build hands-on investing experience.
LINE Securities Ichikabu
Its key feature is the convenience of completing everything within the LINE app. Real-time trading is available until 9 p.m. on weekdays, so even people who are busy during the day can avoid missing investment opportunities. Purchase fees are also free.
Rakuten Securities
Its biggest appeal is the ability to invest using Rakuten Points. It also offers a broad lineup of investment trusts, and because users can start investing with points alone without using cash, it is well suited as a first step for people who feel uncertain about investing.
Frequently Asked Questions (FAQ)
Q. Can you still make a profit with micro-investing?
Yes, profits are possible even with micro-investing, but because the investment amount is small, the profit amount is also limited. A practical approach is to use it first as a hands-on way to learn how investing works, then increase the amount once you become more comfortable.
Q. Are micro-investing fees high?
Many apps charge no purchase fee, or set fees at 100 yen or less for transactions under 100,000 yen.
Q. What is the difference between point-based investing and cash investing?
Point-based investing is a method of allocating accumulated points to investments, and its main advantage is a lower psychological barrier because no cash is used. The investment results are reflected in the same way as with cash investing.
Micro-investment apps, alongside new forms of real estate investment, are an effective entry point for building a diversified investment portfolio.
