Bloom Investing App: Does It Work?

Bloom is a mobile application that teaches its users how to invest. It offers 300+ bite-sized, interactive financial lessons on critical topics like investing, stocks, credit, diversification, dollar-cost averaging, fundamental analysis, and financial metrics. It also allows users to open a real investing account in a few minutes to invest in 5,000+ stocks and ETFs. However, some users have questioned the app's effectiveness for beginners due to its steep fees.

Bloom's fees

While the Bloom investing app offers $0 commissions when you trade stocks and ETFs, it does charge a flat monthly fee of $15. This fee structure can be costly for beginners, especially when compared to percentage-based platforms, which typically charge a small percentage of your capital as a fee. For example, if you invest £1,000, a typical Vanguard fee of 0.5% would cost you around £5 in the first year, while Bloom's flat fee would amount to $180.

The app's fees may be a concern for those starting with a small amount of capital or investing for the first time. In such cases, percentage-based platforms like Vanguard are recommended, as they are more cost-effective for those with limited funds. However, it's important to note that Bloom's flat fee structure can be advantageous for individuals with larger investment portfolios.

Additionally, Bloom offers a range of features, including the ability to invest in 5,000+ stocks and ETFs, set up investing strategies with conditional and recurring orders, and make instant deposits from bank accounts and debit cards with no fees. The app also provides educational content with 300+ interactive financial lessons and allows users to open a real investing account in just a few minutes.

While the app charges a flat monthly fee, it's important to consider the value provided by the educational content and the range of investment options available. For those seeking to improve their financial literacy and make informed investment decisions, Bloom's fees may be justifiable. However, for those with limited capital or those who are new to investing, the app's fees could be a significant consideration when choosing an investment platform.

Investment horizon

When considering the Bloom investing app, it is important to understand your investment horizon, which refers to the length of time you plan to hold your investments before withdrawing. This is a crucial factor in determining the suitability of the app for your financial goals.

For those investing in stocks and shares, it is generally recommended to have an investment horizon of longer than five years. This longer time frame reduces the risk of losing money when withdrawing from your investments, although it is important to remember that there are never any guarantees in the financial markets.

Bloom takes into account your investment horizon, along with your financial goals and risk tolerance, to craft a personalised investment strategy. The app offers educational resources and interactive lessons to help users make informed decisions and boost their confidence in investing.

However, when it comes to fees, Bloom's flat monthly fee structure may not be the most cost-effective option for beginners or those with a small investment amount. For example, if you invest £1,000, typical Vanguard fees would be around 0.5%, resulting in a fee of £5 for the first year. In contrast, Bloom's flat $15 monthly fee would amount to $180 for the same period, making it relatively more expensive for those with smaller investment amounts.

Therefore, when considering Bloom as a beginner investor, it is essential to evaluate your investment horizon, financial goals, and the potential impact of fees on your overall returns. While Bloom offers valuable educational content and personalised investment plans, there are alternative platforms with different fee structures that may be more suitable, depending on your specific circumstances and investment horizon.

Investment account options

The app offers fractional shares, allowing you to start investing with as little as $1. You can set up investing strategies with conditional and recurring orders, and make easy, instant deposits from bank accounts and debit cards, with no-fee withdrawals. You can also set price alerts on your favourite stocks to track their price movement.

Your account is SIPC insured up to $500,000 and is protected by bank-grade encryption and authentication. Teenagers aged 13-17 can start investing with parental approval through UTMA/UTGMA custodial accounts.

The app also features extended hours trading, allowing you to buy and sell stocks before and after market hours. You can protect your order fill price with Limit Orders and automatically place trades when stocks hit certain prices with Stop Orders. You can also set up recurring investments into Auto-Portfolios, investing a fixed schedule and copying top investors.

The app features investing tournaments, where you can build a portfolio with a fictitious amount of money and earn prizes if your portfolio performs well. You can also guess which stock will perform better each day and earn rewards.

Bloom is an educational app with investing integrated, teaching you how to invest with 300+ bite-sized, interactive financial lessons on topics like investing, stocks, credit, diversification, dollar cost averaging, fundamental analysis, and financial metrics. You can test your knowledge with quick quizzes and earn stock rewards.

Educational content

The Bloom investing app is designed to teach you how to invest. It offers 300+ bite-sized, interactive financial lessons on critical topics like investing, stocks, credit and more. The lessons are engaging and easy to comprehend, and the video game factor holds your attention and motivates you to learn more for better rewards. The lessons start with "investing basics" and then build your knowledge through more advanced lessons on concepts like diversification, dollar cost averaging, fundamental analysis, financial metrics and more. You can also learn how to evaluate stocks, read financial numbers, construct your portfolio and build long-term wealth. The app also features quick quizzes that allow you to test your knowledge and earn stock rewards. New lessons are released every week.

The app also allows you to open a real investing account in just a few minutes so you can invest in 5,000+ stocks/ETFs and start building your wealth. There are $0 commissions when you trade stocks and ETFs on Bloom, and you can automatically copy the investments of top politicians and billionaires with Auto-Portfolios. You can also set up investing strategies with conditional and recurring orders, and take advantage of easy, instant deposits from bank accounts and debit cards, as well as no-fee withdrawals. You can set price alerts on your favourite stocks to track their price movement, and your account is SIPC insured up to $500,000 and protected by bank-grade encryption and authentication.

The app also offers extended hours trading, allowing you to buy and sell stocks before and after market hours. You can protect your order fill price with Limit Orders and automatically place trades when stocks hit certain prices with Stop Orders (formerly known as Conditional Orders). You can also set up recurring investments into Auto-Portfolios, allowing you to copy top investors at a fixed schedule. Other features include investing tournaments, where you can build a portfolio with a fictitious amount of money and earn prizes if you are in the portfolio growth leaderboard, and Bulls vs Bears, where you can guess which stock will perform better each day and earn Oinks.

Bloom also offers flexible, safe funding options for teens looking to start their financial journey. Parents can add funds to their teen's investing account with a bank account or debit card with as little as $1, or allow them to fund their own account. They can also set up an allowance directly on Bloom to make recurring deposits to their child's investing account, and withdraw funds from their child's account at any time. You can add up to 5 teens to your account with no additional cost, and teens 13-17 can start investing on Bloom with parental approval through UTMA/UTGMA custodial accounts.

User experience

The Bloom investing app is designed to educate users on investing while providing a way to invest in stocks and ETFs. It offers over 300 interactive and engaging financial lessons, including video lessons taught by experts, covering topics such as investing basics, stock evaluation, portfolio construction, diversification, dollar cost averaging, fundamental analysis, and financial metrics. The app also features gamified rewards, where users can earn "Oinks" by completing lessons and quizzes, which can be exchanged for real stock rewards.

The user experience of the Bloom investing app has been described as positive, with users praising its educational value, ease of use, and the confidence it gives to beginner investors. The interactive lessons and gamified approach to learning are frequently cited as highlights, making complex financial concepts more accessible and engaging. One user mentioned that the app breaks down complex concepts into simple, digestible bits of information, making it easy to navigate even for beginners. The app also provides risk ratings, analyst ratings, and comprehensive statistics, helping users make more informed investment decisions.

However, some users have expressed concerns about the fees associated with the app. Bloom charges a flat monthly fee, which may be more expensive than percentage-based platforms, especially for those with smaller investment amounts. For example, the app charges a $15 monthly fee, which would amount to $180 in the first year. As a result, some users have suggested that there are plenty of free resources and alternative platforms available that may be more cost-effective for beginners.

In addition, it is worth noting that the Bloom app primarily focuses on "'growth' assets", which carry a higher level of risk. While the app provides a way to invest in stocks and ETFs, it is not the same as a savings account or term deposit, and users should be aware of the inherent risks associated with investing in shares.

Frequently asked questions