Trying to get into trading stocks? Cash App might be your gateway for that! Continue reading to learn more about Cash App Stock’s pros and cons.
In recent years, a couple of applications like Cash App, Venmo, and Zelle gained quite the popularity. So it’d make sense to find people in your circles using them on a daily basis.
Trading stocks is extremely profitable if done right, and if your friends and acquaintances are using Cash App to trade stocks, you’re bound to want to try it out as well.
However, trading stocks on Cash App can be intimidating at first. Some might even think that it isn’t a safe way to start trading stocks. If you have any of these concerns, don’t worry because we’ll answer all your questions!
In this post, we’ll talk all about the pros and cons of trading stocks on Cash App and why it might or might not work for you, so keep on reading!
- KEY TAKEAWAYS
- Cash App Stock Pros and Cons
- Cash App Stocks Pros
- Cash App Stocks Cons
- Cash App Investment Assets
- Is Cash App Good for Stocks Investment?
- Is Cash App Investing Right for you?
- Our Verdict
- New investors are attracted to Cash App Investing because it is free to open accounts
- It charges no commission fees when you buy or sell stock.
- Easy to open an account, as well as an easy-to-use interface.
- Robinhood has a limited range of offerings. Customers can buy and sell stocks, ETFs and Bitcoin.
- Platform features include Real-time stock and ETF quotes and news.
Cash App Stock Pros and Cons
|Pros||1) An excellent stock investment method for beginners|
2) No applicable fees for stock trading on the app
3) Wide range of cash management featuresYou have the option for fractional share investments
4) Buy and sell stocks and ETFs on a mobile device.
5) Clean interface.
6) Buy and sell Bitcoin.
7) No fee for most transactions, except Bitcoin investing.
8) Bitcoin can be transferred to and from an external wallet.
9) Fractional shares available for small investors.
10) Automated investing.
11) Debit card, cash management, and instant payments.
|Cons||1) Limited stock selection|
2) Customer support isn’t the best
3) Account types are limited
4) No mutual funds or individual bonds.
5) No options, futures, or margin.
6) No trading platform.
7) Only one digital coin is available: Bitcoin.
8) No research reports.
9) Limited account types.
10) Only 1,600 ETFs and stocks are available.
11) Limited order types.
Let’s discuss this in detail below!
Cash App Stocks Pros
1. Great for Beginners
One of the main issues non-investors face when getting started with stock trading, particularly this stock trading brand, is not knowing where to start. Luckily, the Cash App Stock is user-friendly, and hence, is great for new investors.
With Cash App, trading stocks can be as easy as opening the app, deciding how much you want to invest in that specific stock, and making the purchase.
Additionally, it’s so easy to register on the app; all you have to do is type in your name, username, phone number, and email. Moreover, you don’t have to link your bank account immediately, as your username (or cashtag) will enable you to move money peer-to-peer.
2. No Applicable Fees
One of the best things about Cash App is that you can buy and sell stocks without worrying about any fees whatsoever. You also don’t need to worry about brokerage charges or processing fees, as they’re all incorporated in the app.
As for monthly fees or account management fees, they’re not applicable, unlike most financial apps. Moreover, you won’t have to pay extra to get more features. All the app has to offer is there as soon as you download it!
3. Extensive Cash Management Features
While the app offers the most basic features a cash trading app could offer, it does get a few points for the extra features that can make buying and selling stocks much easier.
Of course, you’ll have the option to send and receive money and have money deposited directly two days early if you want to make a stock investment right away. What’s more, you can get a debit card with some ‘boosts,’ what’s also known as spending rewards.
If you make transactions via an ATM, the app will charge you $2 on each transaction. However, all fees and operator fees will be reimbursed if you direct deposit a minimum of $300 a month.
One of the best features that Cash App users enjoy is typically the fractional share investments.
Stock investment is quite profitable, but it can also be incredibly risky for beginners, which is why you need to invest as little as possible. This is what Cash App developers had in mind when they provided users with the fractional share investments option.
On Cash App, you can buy a $1 share in stock. Because this feature is lacking in most trading apps, Cash App is perfect for beginner investors.
Cash App Stocks Cons
1. Limited Stock Brands
Cash App offers the option to invest in all the major stocks, with almost 1000 stock brands on the app, but you won’t find niche stocks in their collection.
This won’t be a viable option if you’re a seasoned stock investor, but it’d make sense for beginners to try it out. It all depends on how familiar you are with the stock market.
Nevertheless, the company is working on widening its stock selection, and they’re looking for companies listed on the New York Stock Exchange or Nasdaq.
2. Customer Support Isn’t the Best
Like most apps, once you face any issue with Cash App, you’ll be directed to the FAQ section, and once you don’t find any of these questions satisfactorily, you’ll only be left with the option to contact customer support.
Unfortunately, it might take days for customer support to reply back to your query, and even then, it might take a while for your issue to be resolved, so it’s not really the best customer service you’d get.
3. Limited Account Types
Basically, cash apps provide only two investment options, which is considered vastly limited compared to other trading apps. These two options are stocks and Exchange-Traded Funds (ETFs).
While this might not be bad for someone who wants to invest in stocks or ETFs solely, it isn’t the wisest option. However, if you’d rather take the traditional investment approach, then stocks should make more sense.
It should be noted that you can buy, sell, or receive bitcoin on Cash App; however, it isn’t the best platform to conduct bitcoin transactions.
Cash App Investment Assets
Stocks and ETFs
- It has 1,600 popular stocks and ETFs.
- Real-time stock quotes.
- Stocks and ETFs are listed by company name, ticker symbol, trading volume or alphabetically.
- Automated investing to purchase shares at regular intervals.
- Fractional shares of companies
- Have access bond, strategy, index and ETFs.
- Allows trading three times during any five-day period.
- Currently, Cash app only has Bitcoin listed on their platform.
- Up to $10,000 worth of the Bitcoin can be transferred per seven-day period.
- Automated regular purchases of Bitcoin are available.
Is Cash App Good for Stocks Investment?
Yes, Cash App is a good place to buy stocks investment as it makes trading in the stock market easy — too easy, according to some experts and regulators. However, trading stocks on Cash App has advantages and disadvantages, but it’s an excellent way to start stock trading if you look at it from a beginner’s perspective.
From a seasoned investor’s perspective, however, you might find the app’s basic functions sorely disappointing.
On the plus side, the app will also offer you extra banking functions to make buying and selling stocks easier.
Also, it’s highly secure, fast, and incredibly user-friendly. For these reasons, stock trading on Cash App is definitely worth it!
Is Cash App Investing Right for you?
If you are looking for a streamlined trading platform to buy stocks, Cash App is a solid choice. But now that plenty of online brokers have joined the race, casual investors can afford to shop for the broker that suits them best.
So is Cash app good for Stocks? As mentioned before, it can be appealing to newer investors without a lot of cash with which to invest. It’s a low-cost way to get one’s feet wet within the stock market.
Cash App Investing is best for Mobile users, Individual taxable accounts, and users who are beginners to investing.
If you’re new to investing and have a small balance to start with, Cash App would be the place to get you accustomed to investing. However, if you’re an active investor or trader, there are much better options on the market such as Robinhood, Webull, TradeStation to name a few offer more robust charts, screeners, and so on.
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