Cash App Investing Review (2023)
Cash App stock investing review: pros and cons, platform, broker account fees, stocks trading cost, commissions. Is it a good firm?
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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.
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 TD Ameritrade 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to outdated traditional brokerage apps.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.
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.
Open Cash App Account
Open Cash App Account
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.
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.
Promotion
Open Cash App Account
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.
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