Cash App Stock Review: A Simple Solution For Newbies

Cash App has become a popular financial tool for sending and receiving money, but did you know that it also offers the ability to invest in stocks? In this Cash App Stock Review, we’ll take a closer look at this feature and explore its benefits, limitations, and how it compares to other investment platforms. Whether you’re new to investing or an experienced trader, this review will provide valuable insights into Cash App’s stock trading capabilities.

What Is Cash App Stock?

Cash App Stock is the investing portion of the Cash App that lets you buy and sell stocks and ETFs for free. When launched in 2013, Cash App only had options to send and receive money. Today, the fintech firm headquartered in San Francisco, California, has widened its service portfolio to buying and selling stocks and even Bitcoin.

In terms of features and offerings, the Cash App Investing service is relatively simple compared to other brokerages. It offers fractional shares and commission-free trading, adopting strategies from online discount brokers. On top of that, there are hundreds of stocks and ETFs to choose from.

On the flip side, their quotes don't provide fundamental information like a stock's price-to-earnings ratio, analyst estimates, earnings beats, misses, or yields that more advanced active traders need to make investment decisions.

Features Of Cash App Stock

Cash App is a user-friendly platform recognized for its quality tools and convenience. The following are the best features of Cash App's stock investment section:

#1 Cash App Stock Auto-Pilot

This feature lets you set up automatic stock purchases with Auto Invest on a predetermined schedule. You could, for instance, use it to invest $10 in stock each week or when a stock reaches a certain target price. This feature allows you to create and execute a well-thought-out investment strategy without having to keep your eyes glued to the screen tracking share prices.

#2 Fractional Shares

A single share of some of the most popular companies, such as Berkshire Hathaway, Google, Tesla, and Microsoft, can cost hundreds to hundreds of thousands of dollars. Beginner investors with small investing portfolios might not have the means to purchase full shares. In such cases, fractional shares are the answer, and Cash App Stock provides them.

When investing with Cash App, you don't have to purchase an entire share of stock. You can decide how much money you want to invest and buy the percentage of a share the sum represents. For instance, you can purchase a tenth of a share on Cash App if you're interested in buying shares of a $1,000 stock but only have $100 to spend.

#3 Cash App Stock Alerts

This feature helps investors keep up-to-date on current stock market trends in real time. This is something great to have since it alerts you about new hot stocks that just recently came out or about which companies had particularly high earnings. This information can help you make informed decisions to take advantage of unique opportunities you may not have caught wind of otherwise.

Related: If you're unsure about what stock to buy, you'll benefit from signing up for an investment newsletter.

#4 Cash App Integration

A great aspect of Cash App is that all its features, including the Cash App Stock investing feature, are fully integrated into one single app. If you want to create an investment account on the Cash App, you won't have to create a new separate account. Besides that, you don't need a different app to trade stocks. You can send and receive money to and from other Cash App users, trade stocks, and buy and sell Bitcoins, all from the same app.

#5 Advanced Analytics Tools

Although Cash App Stock is great for newbie investors, it also provides multiple tools for the more experienced crowd.

This is important not just for advanced traders and investors but also for those new to the field since it offers an opportunity to learn about technical analysis and to practice it from within the same platform where they learned investing from the start.

#6 My First Stock

The “My First Stock” training guide from Cash App Investing teaches you the fundamentals of investing. It teaches about market capitalization, buying and selling stocks, and successful investors' characteristics.

The guide is the ideal crash course if you have little market understanding. But it skips over the market specifics, which is a significant drawback for investors with little experience hoping to gain better knowledge.

Nevertheless, the Cash App Investing service appears to target novice investors. So, the My First Stock guide is a fantastic resource for that target group.

How Do I Open A Cash App Stock Account

To open a Cash App Stock account, all you need is a verified Cash App account, nothing more. In other words, you just need to download the Cash App, verify your identity to prove you're over 18, and you'll immediately have access to all of Cash App's features, including Cash App Stocks as well as Cash App Crypto for buying and selling bitcoin.

Read our step-by-step guide to verifying your Cash App account so you can get started today.

Pros Of Cash App Stock

• No account minimum: Certain brokerage accounts require that you maintain a minimum balance at all times. With Cash App Investing, you don't need to fulfill minimum balance requirements. In fact, the fractional share capability made available by the app allows you to start investing with just $1.
• Commission-free trading: You do not need to pay commission fees or any service fee to buy and sell stocks or ETFs on the Cash App Investing platform. It’s a free-to-trade, no-commission broker.
• No maintenance fees: Cash App doesn’t charge an inactivity or maintenance fee on your account as many other brokers do.
• Accessibility: The Cash App mobile App is available for Android and iOS devices through the Google Play store or the App Store, respectively. You can also access Cash App through their website.
• Easy to Use: Hard-to-navigate interfaces are one of the biggest challenges beginners and non-investors face when deciding to invest. Block Inc. designed Cash App to be as easy to use as possible. All you need to do is to sign into your account, search for the stock you want to buy, and purchase it. A beginner investor won't find the company's investment platform overly complicated or filled with tools they won't need or understand. Instead, it offers a simple method for accessing the stock market, making it one of the most user-friendly platforms out there.
• Invest on the go: Cash App mobile app makes Cash App services (including its Cash App stock investing) available on the go, meaning you can buy, sell or monitor your stock portfolio no matter where you are.

Cons Of Cash App Stock

• Limited investment options: Cash App Investing only allows investors to buy and sell specific stocks. It doesn't support options, mutual funds, or bonds.
• Limited Account types: Cash App Investing only provides standard, taxable, self-managed brokerage accounts. The platform doesn't offer joint accounts, trusts, educational accounts, Individual Retirement Accounts (IRAs), solo 401(k)s, margin accounts, or any other type of account.
• Limited tools and research: Cash App Investing provides specific resources for new investors, such as the “My First Stock” tutorial, but it doesn’t provide access to stock research tools or comprehensive educational resources. Investors who want to learn more about investing or take a more analytical approach to stock selection are better off with a more advanced broker.

Cash App Stok Pricing

Cash App is a no-commission broker, which means that it doesn’t charge investment-related fees when buying or selling stocks. There are no trading fees and no maintenance fees either.

However, Cash App clearly states on its website that there may be fees charged by government agencies such as the SEC. If that happens, Cash App will pass these fees on to you. But don't worry, the app will fully disclose these fees to you before executing a trade.

In Summary

Cash App Investing is an excellent trading option for beginner investors or anyone looking for a simple investing experience. The platform is easy to navigate because it doesn't have complicated tools that new users won't use either way. Furthermore, there isn't the need for margin trading or to engage in short-term trading, both of which carry a high degree of risk and require much more experience to avoid losing your investment. If you're a new investor or trader and are looking for a no-frills trading experience, Cash App may be a good choice.

On the other hand, the slim stock functionality is a deal-breaker for more savvy investors who need access to a broader selection of stocks, analytics tools, and other products. If that's your case, you should give Capital a try. It's also a no-commission broker but offers a ton of functionality for the advanced trader or investor, including graphs and other analytics tools, different order types, and more.

Cash App Stock FAQs

Is investing in Cash App Stock safe?

Yes, investing in Cash App Stock is safe in the sense that your personal and financial data are very well protected, and so is your account in general. To keep you safe while using its services, Cash App employs several security measures, including encryption and multi-factor authentication. However, all market investments carry risk since any stock has the potential to lose value. You should note, though, that this is an inherent risk of investing in general, not of investing with Cash App.

Is it worth doing stock on Cash App?

Yes, it is worth it doing stock on Cash App for some traders, albeit not for all of them. For example, beginner investors may see the most value due to the lack of commissions and the ability to invest in small amounts through fractional shares. Investors looking to invest in other options, such as mutual funds and options contracts, may be better of with a more advanced broker like Capital.

Does Cash App Stock pay dividends?

Yes, Cash App Stock pays dividends if you invest in dividend stocks. Not all public companies pay dividends, so if you invest in a company that doesn’t, you won’t receive them. If you’re interested in receiving dividends, you should research which stocks pay them and how much they pay before you buy your stocks.

Do you get taxed when selling stock on Cash App?

Yes, when you sell a stock, there may be tax implications. The law requires all brokers, including Cash App Investing, to report holdings, gains, and losses to the IRS. It’s all a part of being a legitimate broker.