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Cash App Investing Review 2021: Fees, Services & More

Cash App rose to popularity as a competitor to Venmo, Zelle and other free money transfer services. The service is owned by Square and as its user base has grown, it also decided to take a dive into the brokerage market. Cash App now offers users the ability to buy, sell and trade stocks through Cash App Investing. As brokerages go, this service is relatively basic in terms of its features and offerings. However, it’s still a solid platform if you’re a trader interested in jumping into the stock market. If you have questions about investing, consider speaking with a local financial advisor.

The Cash App Investing platform is relatively new, as it launched in late 2019. It gives users the ability to buy and sell stocks, as well as trade Bitcoin. Cash App Investing also provides users the ability to transfer their investments to other broker-dealers and make automatic investments. Additionally, Cash App Investing works on both Apple and Android devices.

Cash App Investing Overview
Pros – Commission-free stock and ETF trades
– Fractional share investing
Cons – Limited investment options
– Less in-depth features than competitors
Best For – Beginner investors
– Mobile and online traders

Fees Under Cash App Investing

When it comes to fees, the Cash App investment platform really stands out. You’ll only need $1 to start investing, and after that, you’ll pay almost nothing. There are no monthly maintenance fees, no trade commissions and no minimum balance requirements.

However, you may pay government-mandated fees when buying and selling certain securities. These fees will be made clear before you execute the trade.

While the above is largely the extent of the fees you’ll pay when trading stocks, Cash App Investing may charge you a fee when buying or selling Bitcoin. These charges are made up of transaction and volatility fees, each of which depend on market behavior.

Cash App Investing: Services and Features

Cash App Investing is a relatively bare-bones investment platform, but that doesn’t mean that it can’t help you accomplish your investment goals. Through the services, users can buy, sell and trade stocks on their own accord. You can also buy fractional shares of stocks if you don’t have enough money to purchase whole shares. This feature is quite rare, especially for a smaller brokerage like Cash App.

Cash App Investing has a limited selection of investment opportunities. If you sign up, you have three options to invest in: stocks, exchange-traded funds (ETFs) and Bitcoin. Despite this, the service’s simple platform is a good choice for anyone who wants to get their feet wet in investing, while paying low fees.

Cash App Investing’s research tools are extremely rudimentary. Once you open your account, you can use the “My First Stock” tool. However, in-depth research and other analytical tools are absent from the platform.

Cash App Investing: Online and Mobile Experience

Cash App Investing Review 2021: Fees, Services & More

Cash App Investing, as the name would suggest, is easily accessible through the Cash App Apple or Android mobile app. The app, which you can also use to send and receive money from family and friends, is simple to use from an investment perspective. Cash App Investing has high ratings on both app stores. More specifically, Apple users rate it at 4.7 stars out of 5, and Android users rate it at 4.2 stars out of 5.

When it comes to funding your account, you can either link your bank account to the app or you can simply use your existing Cash App balance. Next, you can select an investment to buy, enter the amount you want to invest and put it through. Depending on how you fund your account, you can sell your investments and withdraw whenever you want.

What’s the Catch?

Cash App Investing is a cheap and simple platform, but it might not fit everyone’s needs. While the service is ideal for those investing for the first time, you’re a bit handicapped in multiple areas. This is especially obvious in the service’s lack of advanced investment tools. Even if you’re new to investing, having that type of extensive information could still be helpful.

The other area where Cash App Investing is notably weak is its investment selection. For instance, if you want to invest in options, bonds, futures, mutual funds or other cryptocurrencies, you simply won’t have the ability to do so. In turn, if you want to build a properly diversified portfolio with a holistic asset allocation, Cash App probably won’t meet your needs.

How Cash App Investing Compares to Other Brokerages

Cash App Investing stacks up well with other simple trading platforms, though it offers fewer features than most large firms. However, it attempts to make up for this by being easy-to-use and almost fee-free.

Robinhood is fairly similar to Cash App Investing, as it’s fee-free, mobile-based and designed to make things simple. However, Robinhood offers more features and many more investment types than Cash App Investing. Platforms like MetaTrader 4 or Charles Schwab are likely to be more expensive, but they’ll also give you access to more markets, customer support and investment tools.

Brokerage Comparison
Brokerage Firm Fees Minimum Best For
Cash App Investing $0 for stocks and ETFs $1 – Beginner traders
Robinhood $0 for stocks, ETFs and options $0 – Mobile traders
Charles Schwab $0 for stocks, ETFs and options $0 – Advanced investors

Bottom Line

Cash App Investing is a great trading platform for beginners or anyone who wants a simple investing experience. While you’ll sacrifice a great deal when it comes to features and research tools and won’t have access to a desktop platform, Cash App Investing is a good place to start. The ability to trade mostly fee-free and buy fractional shares makes Cash App Investing a solid, if not unspectacular, option.

Investing Tips

Cash App Investing Review 2021: Fees, Services & More

  • Investing is incredibly complex, even with a platform like Cash App Investing that’s relatively straightforward. Partnering with a financial advisor can be a good way to learn about investing, and finding one doesn’t have to be hard. In fact, SmartAsset’s free tool matches you with up to three financial advisors in your area in just five minutes. Get started now.
  • When it comes to investing, make sure you plan ahead of time. For example, if you’re far from retirement, you can afford to be riskier in the hopes of garnering better returns. But as you get closer to retirement, you should invest in a safer manner to ensure you protect your retirement savings. To get an idea of what kinds of returns you need to earn to reach your goals, use SmartAsset’s investment calculator.

Photo credit: Cash App, blocktoq.com, ©iStock.com/FG Trade

Sam Lipscomb, CEPF® Sam Lipscomb is a writer for SmartAsset. His work spans a wide variety of personal finance topics with expertise including retirement, investing and savings. He is particularly well versed in credit cards. Sam has been featured in The Economist and on The Points Guy. He is a Certified Educator in Personal Finance (CEPF®). Sam graduated from Kenyon College with a degree in Economics and enjoys being a go-to resource for family and friends when it comes to personal finance. Originally from Washington, DC, Sam loves all things aviation and is a Cleveland sports fan. He currently lives in New York.
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