Public, formerly known as Matador, is a stock-trading app designed for beginner investors, launched in March 2019. While it shares similarities with other beginner-friendly investing platforms like Robinhood, Public stands out with its unique social networking features. The app allows users to follow friends and popular investors, gaining insight into what others are buying and selling. While Public can be a great resource for discovering stock ideas, you can also work with a financial advisor for help in building a diversified portfolio and managing investment risks.
Public (Formerly Matador) App Basics
Public (formerly Matador) is a social platform connected to a brokerage (Open to the Public Investing, Inc.) and your bank account. The idea behind the app is that if you see other people buying and selling stocks, especially your friends, you’ll find it less intimidating. You’ll also get ideas about what to buy.
Aside from the social aspect, Public’s big appeal is that it’s free. There are no commissions when you buy or sell. And you can buy basically any stock or exchange-traded fund. The only equity securities you can’t buy are stocks sold over-the-counter (OTC).
What’s more, the money that sits in your account earns 2.5% interest (up to $10,000).
Sound too good to be true? There is one big drawback for investors who want to make frequent trades. The app will cap you at four round trades (meaning you can buy four stocks and sell them) per day.
Public (Formerly Matador) Background
Public is the brainchild of Jannick Malling and Matt Kennedy. Both started their careers in the financial services industry, and as Malling writes on Medium, “instead of exploring the markets solo, we found ourselves texting with our friends a lot about stock and fund ideas (well, the ones that we could afford), and the early idea for Matador was born.”
With their app, Malling and Kennedy hope to make investing more inclusive by empowering young people and giving them free access to trading.
It’s not entirely clear how the app makes money. Some online reviewers suggest the company earns interest off the cash sitting in accounts, but that seems unlikely given how much interest the company pays out.
Several venture capitalists have signed on to invest in the company. As of the writing of this review, Public has raised $8.5 million in funding in two rounds, according to Crunchbase. Its backers so far are Greycroft (Seed and Series A), Accel (Series A) and Advancit Capital (Series A).
Matador had a soft launch in 2017 and became available to the general public in early 2019. It changed its name to Public at the end of August that same year. According to Crunchbase, it gets roughly 1,000 downloads a month. The app is currently only available for iOS. Users on the Apple App Store have rated it 4.3 (out of 5) stars.
Why You May Like the Public (Formerly Matador) App
If you’re looking to start an investment club, this app would be great for you. Members can follow each other and automatically see each other’s trades. The platform also provides investing themes to explore, such as tech giants, S&P 500 companies led by female CEOs, IPOs and cannabis companies.
Also, anyone who makes daily trades will like this app, as the first four purchases are commission-free. Though Public has its sights set on newbie (and young) investors, there’s no reason why veteran investors can’t use it, too. In fact, day traders have been discussing it in online forums (they say just to do the four free trades to avoid having your account suspended – day trading is not allowed on the app). The app allows you to make limit and stop-limit orders as well as market orders.
Why You May Not Like the Public (Formerly Matador) App
This app may not be for you if you make a lot of trades and want to use only one platform. As mentioned earlier, day trading is not allowed – and accounts found to be making more than four round trades (the technical definition of day trading) will be restricted.
You may also be put off if you don’t want others to know generally what you’re buying and selling – or when. Of course, details like share quantities are not publicized. And you can always turn off the sharing feature or limit access. But the app will have your transaction information, which it will aggregate with all community data for its trending data feed.
Finally, you must be in the U.S. to use the app.
How to Get Started Using the Public (Formerly Matador) App
Go to the Apple or Android stores to download Public (it’s free). Once it’s on your phone, you’ll have to answer nine personal questions in order to open an account. You’ll be asked for your:
- Date of birth
- Permanent address
- Citizenship
- Employment status
- Employer name and title
- Whether you’re a senior executive or 10% shareholder of a publicly traded company
- Whether you work for another brokerage
- Marital status
- Number of dependents
- Social Security number
After you’ve provided this information (you can skip giving your Social Security number for now), you’ll have access to the social platform and can see what is trending. Setting up a brokerage account will involve providing even more sensitive info (plus, if you skipped it, your Social Security number, which is required for tax reporting purposes).
Bottom Line
A relative newcomer to the fintech space, the Public app seeks to democratize investing by empowering people who are new to it – and providing commission-free trades. Like Venmo, it offers a platform where community members can see what others are doing. Investing clubs may find this social platform convenient, but most users will probably want the app for the free trades – and a great interest rate on cash balances.
Tips for Rookie Investors
- There’s a very good reason for the huge popularity of ETFs, which are baskets of stocks that trade like stocks. They are less risky than individual stocks, plus they offer tax benefits.
- It can be a good idea to hire a professional who’ll have the research and know-how to optimize the return of your investments – and minimize the risk. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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