Cash App Investing Review (2024)
Cash App stock investing review: pros and cons, platform, brokerage account fees, stocks trading cost, commissions. Is it a good firm?
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Cash App Investing Review: Key Takeaways
• Cash App offers both banking tools and brokerage accounts.
• Its platform is very simple and not designed for day trading or advanced trading strategies.
• Cash App only supports a limited selection of tradeable products.
Overview of Cash App
If you already use Cash App for managing money, you might consider trying its trading services as well. Below is a review of Cash App’s investing features:
Investing and Trading
Cash App allows users to open brokerage accounts to trade stocks and bitcoin. It doesn't offer other cryptocurrencies or asset classes. Bitcoin transfers through the Lightning Network are supported for users in approved states.
Cash App’s product range for trading is quite limited. It doesn't support bonds, options, closed-end funds, or mutual funds. Users can only trade stocks and ETFs, and not every ETF or stock is available on the platform. Cash App doesn’t permit short selling or day trading.
The platform offers few account types, with individual taxable accounts as the standard. It has also introduced accounts for teens aged 13 to 17, which require an adult sponsor to open.
Banking
Cash management is Cash App’s strong suit. It offers features like a debit card, FDIC insurance (for qualifying accounts), early direct deposits, purchase roundups, retail discounts, and peer-to-peer transfers.
FDIC coverage applies only to accounts with a debit card, teen accounts, or sponsors of teen accounts. Uninvested cash in a brokerage account is moved to a cash balance that may not always be FDIC insured and is not covered by SIPC insurance.
The app's QR code feature makes sending money to other Cash App users and paying at select stores fast and easy.
Pricing
Stock trading is commission-free on Cash App. For bitcoin, the platform charges a sliding fee based on transaction size, starting at 3% and dropping to 0.75% for amounts over $5,000.
On the banking side, instant deposits cost between 0.5% and 1.75% of the transaction amount, while standard deposits are free. ATM withdrawals are $2.50 unless you receive at least $300 in monthly direct deposits. Cash App does not reimburse ATM fees charged by other providers.
There are no ongoing account fees or minimums for brokerage or banking accounts.
Margin
Cash App does not offer margin accounts, limiting its appeal to more advanced traders.
Mobile App
Cash App’s mobile platform combines banking and investing. From the Home screen, users can access stocks or bitcoin by tapping the relevant icon.
The trade interface offers just three order types: market, custom, and auto—though they all act as market orders. Charting is minimal, with only a basic line graph and no customization tools.
While the charts are lacking, security profiles include analyst opinions. For example, we found Nike rated as a moderate buy by 37 analysts.
Cash App also provides access to company financials, market data, and earnings reports. Users can send stock shares or bitcoin to other Cash App users by tapping the gift icon on a security’s profile.
The platform offers stock and ETF recommendations in categories like:
- Energy
- Business Services
- Food & Drink
- Technology
- Media & Entertainment
Filters like 90-day returns and dividend yield help users find suitable investments. There are also lists of the most traded and top-performing stocks.
We couldn’t find a check deposit feature in the app.
Website
Cash App has a website, but it offers no trading or research tools. It can be used to manage accounts, transfer funds, and access documents.
Other Software
Cash App’s mobile platform is designed for phones and lacks support for tablets or smartwatches. There is no desktop platform for trading.
Extra Services
IPO Access: Not available.
Extended-hours Trading: Not supported.
Fractional Shares: All trades must be made in whole dollar amounts.
IRA Service: Cash App does not offer IRAs or other tax-advantaged accounts.
Dividend Reinvestment Plan: There is no DRIP service.
Stock-Lending Income Program: Not available.
Tax Filing: Cash App offers a free tax-filing service, though some features are limited.
Cash App Top Competitors
Recommendations
Long-Term Investors & Retirement Savers: We suggest Robinhood instead of Cash App for better long-term planning.
Stock and ETF Trading: Webull offers more stock choices than Cash App.
Small Accounts: Cash App works well for small investors, with trades starting at just $1.
Beginning Investors: A managed account with Charles Schwab may be a better option.
Mutual Funds: Charles Schwab offers a broader selection of mutual funds.
Cash App Investing Review Verdict
While Cash App is great for simple trading and cash management, advanced traders and long-term investors should look elsewhere.
Updated on 10/29/2024.
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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