The popular payment platform, Cash App, offers a new brokerage option that allows its users to start buying and selling securities directly through the same app where they send and receive payments. With Cash App Investing, users enjoy commission-free trading, fractional investing, and other great perks that newbies or mobile investors need from an online brokerage. Learn more about the platform’s new investment options in our Cash App Investing review below:
Cash App Investing is a brokerage option integrated directly into the payment platform. Therefore, if you already own the app, you can buy stocks and bitcoins on Cash App, without downloading a new app. The brokerage account is intended for new investors and is therefore relatively straightforward, but it is also a convenient option for passive investors who want to manage all of their assets on one platform.
Investment features include:
- Approximately 1,000 stocks and exchange-traded funds (ETFs). The reason for the limited security options compared to other online brokers is that Cash App only supports stocks listed on the NYSE or NASDAQ that have a market cap of $ 1 billion + or average daily trading volume. of $ 5 million. This filters out some of the smaller or less frequently traded stocks as they tend to be higher risk and Cash App focuses on low to medium risk investments to keep its platform friendly for beginners.
- Fractional investment. This means that you can invest in a stock even if you cannot afford the full price of a stock. It’s a great way to diversify your portfolio, even if you only have a small amount of money to invest. Instead of buying one or two whole shares in a single company, you can spread that money over a wider range of stocks by buying only fractional shares in a handful of companies.
- Several types of commands available. Although this is more of a straightforward brokerage platform, you can still place limits or stop losses on your orders. With a limit or stop loss order, you can trigger an automatic buy or sell order once your criteria are met. This allows you to automatically sell a riskier stock before you lose more money than you’re comfortable with (or lock in your profits) or automatically buy a stock once it hits a price, you are comfortable paying.
- Automated investment. You can schedule daily, weekly, or bi-weekly orders to automatically invest your money for you. For example, you can program it so that a fixed part of your salary is automatically invested as soon as it arrives in your account. This makes it easier to integrate the investment into your financial plan. You can cancel the automatic investment at any time through the app.
Because Cash App also acts as a payment platform and offers banking services, using the app to invest also makes it easier to manage your cash and investments in one place. Receive your paychecks and other direct deposits directly to your treasury app account and instantly invest your extra cash in stocks or cryptocurrencies.
The main missing features that more frequent or advanced traders might miss are the full range of stocks and ETFs, derivatives, other cryptocurrencies besides Bitcoin, and the ability to open a margin account. or an IRA account. You also don’t have a lot of research or technical analysis built into the platform, so investors should do most of their research outside of the app.
Although the features and titles available are limited compared to other brokerage platforms, it is still a young platform compared to its competitors. Square, the company behind Cash App, said it continues to develop new features for the platform. Users can expect to see more stocks and more investment tools added to the app in the months and years to come.
The goal of the new investing features is to make investing affordable and accessible, no matter how much money you have to start with. There are no account maintenance fees, no commission on your transactions and no monthly minimum.
However, there are fees associated with buying and selling Bitcoin. If you want to invest in cryptocurrency, the fees vary depending on the volatility of the coin at the time of your trade. However, it is usually between 1% and 1.76% of the total purchase price. You will see the exact charge amount on the order page before confirming your order.
Cash App offers customer support through the mobile app itself, the website help page, and a customer service phone line. However, customers have noticed that representatives don’t always respond quickly or resolve your issue in a timely manner.
Because the payment platform was originally designed to be used primarily on your phone, the new investing features are built right into the app which you already know how to navigate if you already had Cash App.
You can view all of your stocks and bitcoins in the app, search for other tickers, and view their price history. While the search options are a bit limited, all the basics are right at your fingertips, so you have the flexibility to manage your investments wherever you are.
Cash App Investing is a very simplified brokerage platform that is ideal for new investors, but will also serve passive investors with a more conservative strategy, as the stock selection available is suitable for more cautious investment styles. While it lacks some of the most robust research tools and the full range of stocks that would interest more advanced traders, the basics it provides, including investing in split stocks, allow new investors to start creating. a wallet with as little as $ 1. . You can learn how the stock market works, manage your investments, and set up automated trading, all from your phone.
Benefits of the Cash application
The biggest advantage of Cash App Investing is that it makes investing incredibly easy, even for those who are buying and selling stocks for the very first time. The app offers all the basic tools you need to get started and uses simple language that makes it easy to learn how it all works.
One of the most unique features is the ability to buy fractional shares. This is a relatively new investment option that is still only offered by a few select brokers, but it makes available larger, lower risk stocks that are often too expensive for new investors.
Another unique benefit that users will enjoy is the ability to integrate your brokerage account and banking into one app. When you use it to bank, send and receive money, and invest, it makes it easy to manage all of your assets in one convenient and easy-to-use app.
Frequently Asked Questions
How does Cash App protect my account?
How does Cash App protect my account?
Cash App integrates many security features into its platform, including PCI-DSS Level 1 encryption which protects your data, offline Bitcoin storage, fraud protection and multiple security locks ensuring that you are the only one. to be able to access your account. You also receive account notifications alerting you to any activity so you can spot and respond to fraud the second it happens.
What is a $ Cashtag?
A $ Cashtag is your unique identifier on the Cash App, much like a social network nickname. You can choose your own $ Cashtag or let the platform generate one for you. Once you choose one, it automatically creates a shareable URL. Give this URL to your friends, family or customers so that they can make payments to you directly.
0 Commissions and no minimum deposit. Everyone has smart tools to invest smart. Webull supports full extended trading hours, which includes full pre-trade (4:00 am – 9:30 am ET) and after hours (4:00 pm – 8:00 pm ET) sessions. Webull Financial LLC is registered and regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). He is also a member of the SIPC, which protects (up to $ 500,000, which includes a limit of $ 250,000 for cash) against the loss of cash and securities held by a client of a brokerage firm. member of the SIPC in financial difficulty.