Is Stash Safe?
Stash is a fairly new brokerage and has become very popular lately. Stash grew in popularity because of its simple investing process, automated trading, stock-back spending option, and easy-to-use mobile app.
Is Stash safe to use, and is the broker insured? Is Stash a scam? The quick answer is that Stash is a reliable broker.
Keep reading to learn why Stash is a secure platform for investing.
Is Stash a Scam?
One of the best ways to see if a broker is trustworthy is to look at its registrations with regulators.
Stash Investments LLC and its clearing partner, Apex Clearing, have registrations and licenses with the main regulatory groups in the U.S.
The Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC) keep an eye on all Stash Invest activities. The broker not only needs to meet industry rules but also maintain them to pass routine checks and examinations.
For the latest licensing details, you can visit FINRA’s Broker Check website here.
Is Stash Legitimate?
A broker’s clearing firm also indicates its dependability. For Stash, Apex Clearing handles the trades. On top of settling transactions, Apex also looks after all Stash customer brokerage accounts. That means clients are protected by insurance policies under both Stash and Apex.
Is Stash Insured?
Concerning your money and assets, Stash Invest has two types of insurance: FDIC and SIPC. Which one applies depends on your Stash services.
SIPC covers your investments (and some cash) in your brokerage account. SIPC’s role is to protect investors in the event of a broker’s failure.
If Stash ever faced serious financial trouble or stopped operating,
SIPC coverage would
replace missing assets up to $500,000. Half of that amount can also be used for any uninvested
cash in the account.
FDIC covers cash in the Stash Bank account and in partner banks. Each partner bank has a $250,000 protection limit.
Stash BBB Reviews
Stash does not currently have a rating from the Better Business Bureau (BBB) as the BBB is reviewing its
score. It is also not accredited.
Stash BBB Ratings
There can be several reasons a company gets an NR from the BBB, but in Stash’s case, it is probably due to an ongoing look at how Stash resolves user issues. We expect the grade to change soon.
Stash BBB Complaints
There are multiple complaints about Stash on the BBB website, mostly about customer support and difficulties closing accounts. Stash replies to these complaints 98% of the time, but seeing the volume can seem concerning at first.
With around 950 complaints in three years, it may appear that something is amiss, but we don’t believe that’s the case. Stash has over 6 million clients and oversees more than $3 billion. Looked at that way, 950 complaints in a few years is not very large.
Stash Review
Now that we know Stash isn’t a scam, you might wonder if it’s a good platform for investing.
Stash takes a simplified route to investing and is an excellent choice for traders who want to build balanced, long-term portfolios using stocks and ETFs.
Stash offers a variety of account types and a premium plan for those wanting improved rates and features (see more details below).
Investment Approach
All of Stash’s tools focus on the broker’s investing style. The main goal is to equip users with the knowledge needed to build balanced portfolios for long-term strategies.
Stash has two main types of portfolios. One is self-managed, and the other is automated with auto-rebalancing, risk adjustment, and recurring investments.
Available Investment Vehicles
U.S.-listed stocks and ETFs make up the core of whichever portfolio you choose.
Stash groups investments (stocks and ETFs) into specific categories, which helps you see the broader markets. If you want bonds, commodities, consumer staples, healthcare, industrials, international exposure, or anything else, Stash makes it easy to narrow down your choices by sector, category, or theme.
If you already know the company or fund you want to invest in, you can search for any U.S.-listed stock or ETF by its name.
Portfolio Management
You can buy and sell all of Stash’s investments as fractional shares, letting you fine-tune your strategy and adjust the proportions of your selected assets in your account.
If you prefer to manage your own portfolio, the categories and curated sets are helpful. Picking assets and submitting trades is also simple. You just select an amount in dollars for the trade and submit your request.
If you want the automated option, you pick your comfort with risk and answer a few questions. Then, Stash creates a portfolio that rebalances automatically. To fund your Smart Portfolio, you only add the amount of money you wish.
Subscription Tiers
Stash Invest is subscription-based, providing two service levels: Stash Growth and Stash+. Both come with solid benefits, but Stash+ offers more features.
Here is a quick list of the perks and services offered by each tier.
Available Account Types
Matching its focus on long-term investing, Stash provides account types that help with future planning while also handling everyday investing and cash needs.
At Stash, you can open investing, banking, custodial brokerage, and retirement accounts.
Ease of Use
In terms of simplicity, Stash is among the easiest platforms to understand. If you want a streamlined experience, Stash might be a good fit.
Whether you are analyzing stocks and opportunities, building a balanced portfolio, creating a retirement plan, or opening an account for a minor, you’ll find the tools simple and easy to use.
Cash Management Features
Stash provides many appealing cash management features through a Stash Bank account.
Stash Banking is provided by Stride Bank, and deposits are FDIC insured. This account comes with one of Stash’s standout cash features: the stock-back debit card.
Each time you use the card, Stash adds fractional shares to your brokerage account. The amount you get depends on your subscription (0.125% for Growth and 1% for Stash+).
The shares you receive come from the businesses where you shop. If you prefer to receive shares from a specific company, you can choose that instead.
Research Tools
If research tools are important to you, note that Stash Growth doesn’t include much. You can see an “About” section for each stock or ETF, along with a news feed for relevant updates.
For analyst views, market insights, and expert reports, you must subscribe to Stash+. Doing so gives access to a newsletter/report with more details.
If educational content is what you need, Stash has a “Learn” page with guides and tips. Most of the information is aimed at newer investors.
Additional Tools and Services (Partnerships)
Alongside its brokerage and banking products, Stash offers other “extra” services. Stash users can access life insurance (Bestow), car insurance (Jerry.ai), and home insurance (Lemonade). You can also find LendingTree loans, with multiple loan types available.
Stash Pros
There are many reasons to like Stash Invest, and it could be a perfect fit for those who share the broker’s goals.
Stash Invest is great for those who appreciate:
- Access to U.S.-listed stocks and ETFs
- An easy-to-navigate mobile app
- A professionally managed portfolio
- Automated trading and rebalancing
- Routine market updates and insights
- Brokerage, retirement, custodial, banking, and insurance in a single place
- Stock-back debit, strong referral bonuses, and reasonable fees
Stash Cons
Some investors might not like:
- A monthly subscription fee for Stash
- No “advanced” products or margin trading
- A simple approach to technical analysis
- Less control over exact prices when placing trades
Stash Review Summary & Recommendation
Overall, we believe that investors seeking an easy way to manage a long-term automated portfolio, do some self-directed trading, and get passive stock-back rewards will do well with Stash Invest. The addition of custodial and retirement accounts, insurance tie-ins, and loan options gives investors more reasons to consider Stash as an all-in-one financial solution.
We don’t suggest Stash for investors who need professional-level tools like robust charting, fast execution, precise fills, and advanced orders. In short, if you’re an active trader or want to invest in options, Forex, or futures, Stash may not be the right fit.
Updated on 2/23/2025.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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