Mobile investing is convenient, and convenience makes security worth checking. This article covers what to look for when choosing a platform. No platform is risk-free, and all investing involves risk, including loss of principal.

Security Checks

• Encryption. Ask how your personal and financial information is protected in storage and in transit.
• Extra verification. Look for additional verification options beyond a password, and turn them on if offered.
• Privacy policy. A clear policy should explain how the platform collects, uses, and stores your data.

Regulation Checks

A mobile investing platform will typically involve a registered investment adviser, a registered broker-dealer, or both. Registration does not mean a regulator has approved or endorsed the firm, and it does not guarantee results. You can look up registered firms and professionals using Investor.gov and FINRA BrokerCheck [3].

SEC registration. An SEC-registered investment adviser is subject to SEC rules. Registration does not imply a certain level of skill or training.

SIPC. SIPC protects securities customers of its members up to $500,000 (including $250,000 for claims for cash) if the brokerage firm fails financially. It is not investment insurance and does not protect against a decline in the market value of your securities [2].

FINRA. FINRA oversees broker-dealers that are its members.

Platform Features

Some platforms offer risk assessment questionnaires and portfolio diversification tools. Spreading your money across different investments can reduce the impact of any one falling, but diversification can’t guarantee against loss [1]. Treat any automated tool’s output as information to consider, not a guarantee.

Using Reviews

App store reviews and third-party ratings can reveal common complaints, such as problems with customer service. Reviews can be subjective, so consider a variety of sources, and remember that ratings do not measure investment results.

How Alinea Fits

Alinea Invest, Inc. offers a mobile investing app. Investment advisory services are provided by Alinea Advisory Services LLC, an SEC-registered investment adviser and a wholly owned subsidiary of Alinea Invest, Inc. SEC registration does not imply a certain level of skill or training.

Brokerage accounts are held at DriveWealth LLC, member FINRA/SIPC, which is not affiliated with Alinea. Bank accounts are linked through Plaid, Inc., a third party not affiliated with Alinea, and we do not store your online banking credentials. SSL and 256-bit encryption help protect your data.

• Model portfolios. Alinea asks about your risk tolerance and assigns you one of four risk-based model portfolios of ETFs by algorithm. Alinea rebalances it monthly. The portfolios are the same for every investor at a given risk level.
• Investing Playlists. Playlists are collections of stocks and ETFs organized around themes or interests. Some Playlists have their weights set by AI on a schedule, with no human review of the changes, and themed portfolios may be less diversified and more volatile.
• Allie. Allie, Alinea’s AI assistant, is available in the Alinea app. It can explain your holdings, market news, and financial terms in plain language. At your request, Allie can also start a deposit, withdrawal, buy, or sell, and you confirm every transaction before it runs. Allie provides educational research and feedback only, does not provide investment advice or recommendations, and can make mistakes.

Frequently Asked Questions

What is mobile investing?

It is buying and selling investments, or using an investing service, through a smartphone app.

How long does it take to set up a mobile investing account?

Setup times vary. Typically you provide personal details, verify your identity, and link a bank account.

What mistakes should I avoid?

Avoid skipping research on a platform’s security and regulation, investing in things you do not understand, ignoring diversification, and making impulsive decisions based on short-term moves.

What features should I look for in a mobile investing app?

Consider security measures, how the firm and its brokerage are registered and regulated, fees, educational resources, and how clearly the app explains its risks.

Disclosure

Advisory services are provided by Alinea Advisory Services LLC, an SEC-registered investment adviser and a wholly owned subsidiary of Alinea Invest, Inc. SEC registration does not imply a certain level of skill or training. Brokerage and custody services are provided by DriveWealth LLC, an unaffiliated registered broker-dealer and member of FINRA/SIPC.

This content is for informational purposes only and is not an offer, solicitation, or recommendation to buy or sell any security. All investing involves risk, including loss of principal. Past performance does not guarantee future results. Allie is educational only, does not provide investment advice, and can make mistakes. Some Playlists have their weights set by AI on a schedule, with no human review of the changes, and can be wrong. Alinea oversees the algorithm and monitors it for anomalies. Themed portfolios may be less diversified and more volatile. Alinea is not affiliated with the sources listed below, and their inclusion is not an endorsement. Alinea charges a subscription fee for its advisory services; see Item 5 of Form ADV Part 2A. Alinea’s support team handles questions about using the service only and does not provide investment advice.

See our Form ADV Part 2A, Wrap Program Brochure, and Form CRS at www.alinea-invest.com/legal/home. For more on Allie, see AI Allie – Disclosures & Terms of Use at www.alinea-invest.com/legal/ai-allie-disclosures-terms-of-use.

Sources

[1] U.S. Securities and Exchange Commission, Investor.gov, “Diversify Your Investments.”

[2] Securities Investor Protection Corporation (SIPC), What SIPC Protects (sipc.org).

[3] Investor.gov and FINRA BrokerCheck, tools for looking up registered firms and professionals (investor.gov, brokercheck.finra.org).

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