There has been a rise in the number of investing apps available for smartphone users. While some of these apps are legitimate and linked to established investment companies, others are less trustworthy. In choosing an app to use for investing your money, it’s important to know how to determine the integrity of each app. Knowing what to look for in an investing app will help you avoid scams that could cost you the money you have saved.

Look for Fee Transparency

Before you choose to use any investment app, do a little research into the company behind the app. There should be a licensed brokerage or investment house backing the app. Look on their website for their fee schedules to ensure you understand the costs of using their app. You should also find out how their advisors earn their revenue. For example, you’ll want to know in advance if you’ll be charged a fee each time you contact an advisor. You should also know what fees you are expected to pay on options, trades, and making other investment changes.

Look for SEC Registration

The SEC or Securities and Exchange Commission is responsible for regulating investment houses that are publicly registered. This ensures the investing firm you use will be putting your interests first as one of their clients. An SEC-registered firm is required to act as a fiduciary for each one of its clients, including its app users. Be sure the website for the investment company offers information regarding their SEC registration.

Look for Quality in Customer Service

Your access to customer service is also a highly valued feature to look for in an investing app. When you use this type of app, you’ll be handling your investments yourself instead of relying on a broker or advisor. For this reason, you should ensure you have access to a customer support representative when you need them. Look for an app that offers multiple ways to contact representatives, such as live chat, email, and phone calls.

Determining the reliability of an investing app will save you from losing your money in a scam. However, you will still have to do your due diligence in choosing your investments. Even though an app makes it easier to invest, failing to research your options still raises your risks for loss. By doing proper research, you’ll be able to use your investing app more wisely.