Are you looking for suitable alternatives to the low-frills way of investing? Well, look no further than Cash App investing. Here is everything you need to know.
If there’s one peer-to-peer payment platform or service provider that’s seen tremendous growth in the last couple of years, then it has to be Cash App. In just two years, Cash App has seen its active user base triple to 24 million people. One of the reasons why this is so is the great features that they offer its users. With Cash App, users are able to not only send and receive money from friends or family members, but they are also able to make payments to merchants or businesses and even use or access their money offline.
Despite having a number of quality features, Square Inc., the company behind Cash App, is always looking at adding new features that’ll make their users comfortable. Keeping in line with this motto, they’ve introduced Cash App investing. Basically, Cash App users can now buy or sell stocks using their account. Despite being relatively new, this new brokerage option is proving to be an ideal alternative for many. Below we’ll share with you details that’ll help tell whether Cash App investing is safe or not.
Cash App Investing: The Good
Like many other Cash App features, Cash App investing has a number of pros associated with it. One such pro is the ease of use. Worth noting with this particular feature is that it has been designed to be as easy to use as possible.
To use or access Cash App investing, simply log into your Cash App account, indicate how much you want to invest in any given stock, and click on purchase. Yes, it’s that simple. It’s good to point out that you’ll be required to share legal information with the app such as your SSN.
If you are an investor, chances are you are well aware of the fact that brokers usually take a fee or commission every time you use their platform or service to invest. With Cash App investing, however, there are no commissions.
Being able to purchase a fraction of a stock is another positive associated with Cash App investing. In fact, it’s the only brokerage that allows one to make such a purchase. What this means is that now you can try your luck with stocks you wouldn’t, especially those that are very expensive.
Equally important to note is that you don’t need a second app to use Cash App investing. You can use the same Cash App app to send, receive, or accept money to invest in the stock market.
Cash App Investing: The Bad
Cash App investing offers its user’s only one brokerage account. Simply put, Cash App investing only has standard, self-directed, taxable brokerage accounts. Furthermore, it does not support IRAs, UTMA, and educational accounts.
Limited Tools & Research: With just about every brokerage, you are able to access a number of tools and research that’ll help you make investment decisions. Sadly, however, this is not the case with Cash App investing as it has very limited tools and research.
If you are using Cash App investing, do note that you can only invest (buy or sell) in stocks. With Cash App Investing you cannot be able to invest in bonds or stock options.
Is Cash App Investing Safe?
Yes, Cash App investing is safe. However, it is very important that you do your due diligence when making investing decisions or when purchasing stock through their app. It is always best to first off all get some knowledge on all things investing in stock before using Cash App investing.