2-star brokerage rating

Cash App Investing Review (2024)

Cash App stock investing review: pros and cons, platform, broker account fees, stocks trading cost, commissions. Is it a good firm?

Overview of Cash App Stock Investing

Cash App’s modern investing platform delivers a stylishly crisp user experience, but at what cost? Keep reading to find out.

Slick user interfaces and intuitive functionalities have arrived in the investment sector. It is no longer necessary to waste time clicking through text walls of clunky dinosaur webpages or waiting on hold contacting a broker. With Cash App buy or sell fractional shares of stocks or Bitcoin instantly.

Cash App Investing Interface

The colorfully crisp style of Cash App casts a striking difference from traditional brokerage apps. Stock and Bitcoin movements are smoothed to form easily identifiable patterns, the vibrant lines transform to sharply detailed versions by the press of a finger. The app is able to focus on these aesthetics and ease-of-use by sacrificing core pieces of stock trading.

cash app stock pros and cons

While the graphs are sleek and stylish, they lack customizability. There is no way to view stock price movements in candlestick charting or alongside a Relative Strength Index. Advanced investors will have to rely on different charting apps or webup-to-the minutesites to get a more detailed view of stock formations.

The stocks homepage is blissfully clutter-free and is headlined by a minimalist graph depicting investment value over time. This graph displays every transaction and date conveniently on the line. Other apps like Firstrade struggle to provide this up-to-the minute summary in a precise fashion.

Cash App Investing Features

Investments are easily tracked with a simple list of staked companies and their daily return in total or percentage value. A Newsfeed of important articles catered to held investments streams above the investment portfolio. The simply stylish interface is truly refreshing when compared to outdated traditional brokerage apps.

A useful feature of the modern looking format is the selections of favorite stocks. These favorites automatically sort from biggest gainers to losers. Below is a similar ticker box showing the biggest gainers and losers from all of Cash Apps supported stocks. These tables can be a helpful toolbox for finding values near 9 A.M. reversals or finding the rising stars before they fully take off.

cash app stock review

What Can You Buy

The sleek yet slim app does not have margin or option trading capabilities.

While the App allows trading of fractions of Bitcoin, only select mainstream stocks are tradeable. Most NYSE and NASDAQ stocks with a market cap above 1 billion are covered, for about 1,000 stocks in total. Just search for the desired stock ticker and a page will appear with neatly ordered essential information. A stream of news articles is available below the streamlined graph, followed by a synopsis of the selected company and a bird’s eye view of important financial information.

Cash App does not offer over-the-counter stocks, precious metals, mutual funds, foreign securities, futures, warrants, forex, or any other investment vehicle. The brokerage house does offer trading in penny stocks if they’re on the major U.S. exchanges.

Funding and Withdrawals

Unlike traditional brokers, transactions complete immediately, and funds can be withdrawn without any waiting period. Accounts can be funded by bank account or even a credit/debit card.

There is no iIdentity check required to start purchasing Bitcoin, as seen in similar cryptocurrency apps.

Cash App is stunning in its ease-of-use, though streamlining does have a cost.

Cash App Trading

The App also differs from traditional brokerages in how trades are conducted. The investor chooses how much capital to invest instead of selecting the number of shares.

The inability to set price targets has severe side effects. Stop limits and take profit orders do not exist in this trading format. Instead, there is a notification setting, which alerts the user when an owned or favorited stock moves by more than 5% a day. Investors will have to actively monitor the app to track vested interests and manually make profit/loss decisions.

Cash App Investing Review

Normally, an investor places a direct limit order on the market to be filled in their name. In the Cash app, trades are completed by the Broker-Dealer DriveWealth at the “market price” shown on the final step of the buy order. The underlying securities are then held by Cash App and attributed to the investor's account.

Cash App Commissions

By acting as a sort of middleman, the Cash App does not charge any commissions, but is able to profit from small differences between the markets available to them and the price the investor sees at purchase.

Cash App does not charge any commissions on stock transactions. Bitcoin transactions incur fees based on its current volatility, similar to peers like Coinbase. Dividends are paid in cash.

Fractional Shares

While Cash App trading format has downsides, the benefit of having a larger intermediary investment pool is the ability to access fractional shares. Instead of being forced to trade in full shares, investors can buy a piece of any company with as much or as little capital as desired. Not even Berkshire Hathaway at $418,000 a share is out of reach.

Additional Features

A litany of additional functionality makes Cash App useful outside of investing. Send or receive money from friends, pay bills, or even get a debit card linked directly to a Cash App account. Some stores even track discount vouchers through the user’s $Cashtag.

Customer Support

Unfortunately, contacting Cash App support is slow and difficult. Most communication is via e-mail. Getting phone support is a real hassle. However, with the streamlined offerings, there are far fewer errors in transactions and common errors seen in traditional brokerages such as ticker changes or exchange migration.

Cash App Top Competitors

Cash App Stock Investing Review Summary

Cash App focuses on the quintessential information for mainstream stock trading. However, the elegant ease of use comes at the cost of more precise trading options. The app can be a helpful addition for people looking to send money to friends or for investors who desire liquidity and the aesthetics of a modern app.

Ultimately the platform is great for beginner investors, but the slim stock functionality is a deal breaker for more experienced investors who seek a broader range of stocks and other products, margin trading, and stop loss/ take profit orders.

About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.