Is Stash Safe?
Stash is a relatively new broker that has gained popularity quickly due to its straightforward approach to investing, automated trading features, and an easy-to-use mobile app.
Is Stash safe to use, and is it insured? Is Stash a scam? The short answer is that Stash is a trustworthy broker.
Read on to find out why Stash is considered safe for investing.
Is Stash a Scam?
One quick way to check if a broker is reputable is to look at its registration with regulatory authorities.
Stash Investments LLC and its clearing firm, Apex Clearing, are registered with the primary regulatory bodies in the United States.
The Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC) oversee Stash Invest's activities. Stash must adhere to industry standards and pass regular audits and inspections to maintain these registrations.
You can check the latest licensure information on FINRA’s BrokerCheck.
Is Stash Legitimate?
Another key factor in assessing a broker's legitimacy is its clearing firm. For Stash, Apex Clearing handles trade facilitation and custody of brokerage accounts, adding an extra layer of security through its insurance policies.
Is Stash Insured?
Regarding the security of your investments, Stash provides two forms of insurance:
SIPC protects your securities and some cash in your investing account. This protection is in place to secure your assets in the unlikely event that Stash faces financial difficulties.
SIPC insurance covers up to $500,000, with a $250,000 limit for cash.
FDIC insurance protects cash balances in your Stash Bank account and funds swept to partner banks, with each bank providing a $250,000 coverage limit.
Stash Incentive
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Stash BBB Reviews
Stash is not currently rated by the Better Business Bureau (BBB) as it is undergoing a rating review. It is also not accredited by the BBB. You can view its BBB profile here.
Stash BBB Ratings
The BBB assigns ratings based on business performance, customer complaint handling, and company size. Stash currently has an NR (No Rating) as the BBB is updating its evaluation.
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Stash BBB Complaints
There are several complaints about Stash on the BBB website, mostly concerning customer service and account closure issues. Despite these, Stash responds actively to complaints.
While 950 complaints over three years might seem high, considering Stash has over 6 million customers and manages more than $3 billion, these numbers are relatively small.
Stash Review
Now that we've clarified that Stash is not a scam, let's discuss its merits as a broker. Stash offers a simple, effective way to invest, ideal for those looking to build long-term portfolios with stocks and ETFs.
Stash offers a range of account types and a premium subscription that provides enhanced features and better rates.
Investment Approach
Stash provides tools aimed at helping investors build professional, balanced portfolios intended for long-term strategies.
Stash offers both self-directed and automated portfolio options. The automated option includes features like auto-rebalancing, risk level adjustments, and recurring deposits.
Available Investment Vehicles
Stash allows you to invest in US-listed stocks and ETFs.
The platform categorizes these investment options into groups, making it easier to view the markets. You can find investments categorized by sector, such as bonds, commodities, consumer goods, healthcare, and more, or by themes like global exposure.
If you have specific investments in mind, you can directly search for any U.S.-listed stock or ETF by name.
Portfolio Management
Stash lets you purchase fractional shares of stocks and ETFs, allowing detailed control over the composition of your portfolio.
If you prefer managing your investments, Stash's categories and collections can help streamline the selection process. Simply enter the amount you wish to invest and submit your order.
For an automated investment experience, define your risk tolerance and answer a few setup questions. Stash will then create and manage a portfolio for you, automatically adjusting it over time.
Subscription Tiers
Stash offers several subscription plans, each providing different features:
- **Personal:** $3 per month includes investment account, retirement account, and metal debit card with stock-back rewards.
- **Growth:** $5 per month adds two custodial accounts and double the stock-back rewards.
- **Stash+:** $9 per month provides additional features like monthly market insights, full stock-back rewards, and premium research.
Available Account Types
Stash supports a variety of account types to suit different investment needs, including personal investment accounts, retirement accounts, and custodial accounts.
Ease of Use
Stash is known for its simplicity and ease of use, making it a solid choice for those new to investing or those who prefer a straightforward approach.
The platform simplifies the process of setting up investments, whether you're exploring stocks and ETFs, planning for retirement, or setting up investments for minors.
Cash Management Features
Stash offers a robust cash management package with a unique stock-back debit card. Use the card for everyday purchases and earn fractional shares of stock in return.
Research Tools
While Stash's basic service might lack advanced research tools, upgrading to Stash+ unlocks enhanced market insights and a variety of financial reports.
Additionally, Stash offers an educational blog with a range of topics designed to enhance your investing knowledge.
Additional Tools and Services (Partnerships)
Stash extends beyond typical brokerage services, offering partnerships with insurance providers and loan services, providing a comprehensive financial solution.
Stash Pros
Stash is ideal for those who appreciate:
- Easy access to U.S.-listed stocks and ETFs
- A user-friendly mobile app
- Automated investment options
- Integrated banking and investment services
- Innovative cash management tools like the stock-back card
Stash Cons
However, some may find downsides with Stash, including:
- Monthly fees for account maintenance
- Limited investment product range
- Basic investment research tools
Stash Review Summary & Recommendation
Stash is suited for investors who value simplicity and integrated financial services in one platform. It's particularly good for long-term investing and everyday cash management.
Active traders or those looking for advanced trading capabilities might find Stash limiting.
Updated on 7/24/2024.
Ben Wright is an investor, a trader, an educator, and something of an explorer. He spends his days in the markets when he is not teaching or spending time with his family. Ben writes about stockbrokers, markets, investment vehicles, promotional offers, and tools that help investors make the most of their time in the markets.
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