As a rival to Zelle, Venmo and other free money transfer services, Cash App gained popularity. Owned by Square, the firm also made the decision to enter the brokerage business as a result of the growth of its user base.
Through Cash App Investing, users of Cash App may now purchase, sell and exchange stocks. In terms of features and offerings, this service is really basic when it comes to brokerages. Still, if you’re a trader looking to enter the stock market, it’s a good platform. You should consider consulting a financial counselor if you have any questions regarding investing.
Launched in late 2019, the Cash App Investing platform is very new. Users can exchange Bitcoin and purchase and sell stocks using it. Users of Cash App Investing can also set up automatic investments and transfer their investments to other broker-dealers. Furthermore, Cash App Investing is compatible with Android and Apple smartphones.
Pros: Commission-free trading of stocks and ETFs; fractional share ownership
Cons:
- Fewer alternatives for investments
- Less comprehensive features compared to rivals
- Ideal For: Novice Investors; Online and Mobile Traders
How To Invest In Stocks On Cash App: Charges for Cash App Investments
The Cash App investment platform is particularly noteworthy in terms of fees. To begin investing, all you’ll need is $1; after that, you’ll pay nearly nothing. There are no minimum balance requirements, transaction commissions, or monthly maintenance costs.
However, while purchasing and selling specific securities, you could have to pay fees set by the government. You will be informed of these costs prior to completing the transaction.
Although the fees listed above cover the majority of what you’ll spend when trading equities, Cash App Investing can charge you more when you purchase or sell Bitcoin. These costs consist of volatility and transaction fees, each of which is based on the state of the market.
How To Invest In Stocks On Cash App: Services and Features
Even though Cash App Investing is a very basic investing platform, it can nonetheless assist you in reaching your financial objectives. Users can freely purchase, sell and trade stocks using the services.
If you don’t have enough money to acquire entire shares of stock, you can still buy fractional shares. For instance, you may still own a portion of Berkshire Hathaway (class A) for just $1 if the $400,000+ price tag of a single share is out of your price range. This is an extremely uncommon service, particularly for a tiny company like Cash App.
The range of investing options available on Cash App Investing is narrow. You can invest in stocks, exchange-traded funds (ETFs), or Bitcoin if you sign up.In spite of this, anyone looking to start investing with minimal costs can choose the service’s straightforward platform.
The research instruments offered by Cash App Investing are quite basic. Upon creating an account, you can utilize the “My First Stock” feature. But the platform lacks other analytical tools and in-depth study.
How To Invest In Stocks On Cash App: An Online and Mobile Experience
As the name implies, Cash App Investing is simple to access via the Cash App mobile app for Apple or Android. From an investing standpoint, the app is easy to use and allows you to send and receive money from friends and family. Both app stores have given Cash App Investing excellent ratings. More precisely, 4.8 stars out of 5 are given by Apple users, and 4.6 stars out of 5 are given by Android users.
You have two options for financing your account: using your current Cash App amount or connecting your bank account to the app. After that, you can choose an investment to purchase, input your desired investment amount, and proceed. You can sell your investments and take money out of your account whenever you’d like, depending on how you funded it.
How To Invest In Stocks On Cash App: What you should know
Although Cash App Investing is a low-cost and straightforward platform, not everyone may find it suitable. You’re quite limited in a number of ways, even if the service is great for novice investors. This is particularly evident in the lack of sophisticated investing tools offered by the business. Such comprehensive knowledge could be useful, even if you’re new to investing.
The investment choices of Cash App Investing is another area where it falls short noticeably. You will not be able to invest in securities such as bonds, futures, mutual funds, options, or other cryptocurrencies. Conversely, Cash App most likely won’t satisfy your objectives if you want to create a properly diversified portfolio with a comprehensive asset allocation.
Comparing Cash App Investing with Other Brokerages
Although it has fewer features than the majority of huge companies, Cash App Investing compares favorably to other straightforward trading platforms. It makes an effort to make up for this, though, by being practically fee-free and simple to use.
Because it is fee-free, mobile-only, and intended to be easy to use, Robinhood and Cash App Investing are somewhat similar. Nevertheless, compared to Cash App Investing, Robinhood offers many more investing options and more benefits. You’ll probably pay more for platforms like MetaTrader 4 or Charles Schwab, but in exchange, you’ll have access to more markets, customer service and investment tools.
How to buy stocks on Cash App
- On the main screen of the Cash App, tap the Investing tab.
- Enter a ticker symbol or company name by tapping the search bar.
- Choose the business whose stock you wish to purchase.
- Click “Buy”
- To enter a custom amount, tap… or choose one of the preset amounts.
- To confirm your personal information, adhere to the instructions.
- Verify using your Touch ID or PIN.
- You can use the money on your Cash App balance to buy stock. Your connected debit card will be charged the remaining amount if you do not have sufficient money available.
- After the order is filled, press the Investing tab on the Cash App main page, then select My Portfolio to view your investment.
Stock sales and acquisitions can be planned around the clock. Orders will only be placed, nevertheless, during market hours. The following hours apply to the U.S. stock market’s Monday through Friday openings:
9:30 AM to 4:00 PM (Eastern time) Time zone: Central; 8:30 AM–3 PM Mountain time: from 7 a.m. to 2 p.m. 6:30 AM to 1 PM (Pacific time)
Various causes may cause variations in market hours. NYSE Market Hours has a comprehensive schedule of when the market is open and closed.
Brokerage services provided by Cash App Investing LLC, a division of Block, Inc. (previously known as Square, Inc.), a member of FINRA/SIPC. Buying and investing in bitcoin carries risk; you could end up losing money.
Block, Inc. offers bitcoin trading. Block, Inc. is not a member of FINRA or SIPC, and Cash App Investing does not engage in bitcoin trading. See the Bitcoin and Cash App Investing disclosures for more details.
How to Use a Sponsored Account to Purchase and Sell Stocks
Purchasing Stocks
The sponsored person can begin purchasing stocks in Cash App once the account sponsor grants their desire to invest in bitcoin and stocks.
Recall that a variety of reasons might cause the share price of a stock to vary. Your order may not be completed at the same price as the previous deal you saw.
Limits on Purchasing Stock
Sponsors are able to determine the rolling monthly (30-day) stock buy limit for their sponsored account. The maximum amount that can be spent on stocks each rolling month is $400, with minimum purchases being $5.
The combined action of purchasing stocks, accepting stock gifts, and round-ups is included in the stock buy limit.
Selling stocks has no restrictions (though regular Cash App stock selling limits apply).
For instance, the sponsored account will have achieved its stock limit if the account sponsor sets a $400 rolling monthly stock buy limit and the sponsored individual purchases $250 in stocks, takes $100 in stock gifts, and rounds up $50 in stocks within that rolling month
To adjust the limit on your sponsored account:
- Go to the Profile icon located in the upper right corner.
- Double Tap
- Choose the name of your sponsored account.
- Click Limits & Controls
- Navigate to Bitcoin or Stocks.
- Decide on the monthly purchasing limit for your sponsored account.
- Tap the monthly purchase cap.
- Selling Shares.
It is possible for the sale amount of a sponsored account to be automatically transferred into the Cash App balance of the sponsored account. Sales proceeds may take up to two business days to appear in the sponsored account’s Cash App balance, depending on market activity.
The sponsor must get in touch with Cash App Support and ask for the family account to be closed in order to close your account.
Paying Taxes and Selling Stocks
The sponsor is the owner of the sponsored account and is therefore fully liable for any taxes pertaining to the investments made in the sponsored account.
A sponsor should speak with a tax advisor if they have any questions regarding a specific tax scenario. No recommendations or advice regarding investments is given by Cash App Investing. See our article on Sponsorship and Taxes for further details regarding a sponsor’s tax obligations.
Remember: Sponsors must get in touch with Cash App Support in order to transfer shares to an outside brokerage, completely withdraw the assets of the sponsored account, and cancel the sponsored account’s Cash App Investing brokerage account.
Investing Advice
Even with a very simple platform like Cash App Investing, investing can be extremely difficult.Finding a financial advisor doesn’t have to be difficult; working with one might be an excellent way to learn about investing.
Using the free service from SmartAsset, you may find up to three local, vetted financial advisors to choose from. You can interview each advisor match at no cost in order to determine which one is best for you. Get going right away if you’re prepared to hire a financial advisor who can assist you in reaching your objectives.
When investing, be sure to prepare ahead of time. For instance, you can afford to take more risks in the hopes of earning higher returns if you’re still a long way from retirement. To make sure you safeguard your retirement funds, you should invest in a safer way as you approach retirement. Use the investing calculator on SmartAsset to obtain an estimate of the returns you should expect to achieve your objectives.
Bottom Line
For novice traders or those seeking a straightforward investing experience, Cash App Investing is an excellent trading platform. Cash App Investing is a decent place to start, even if you’ll give up a lot in terms of functionality and research tools and won’t have access to a desktop platform. Cash App Investing is a good, if unspectacular, choice because it allows you to purchase fractional shares and trade primarily without fees.
