You might be familiar with the popular small business payment gateway company, Square. Well they also offer a product called Cash App, which is a peer to peer payment platform similar to PayPal or Venmo. In particular, Square's Cash App has a unique benefit that allows you to also invest in the stock market.
You can choose from hundreds of stocks, and invest based on dollar amounts rather than the number of shares, all for free. I'll lay out the details in this Cash App investing review to help you determine whether it's right for you or not.
Watch my recent video of Cash Apps investing platform below:
What Is Cash App?
Cash App is the peer-to-peer payment platform offered by Square. It allows you to transfer money between accounts and between friends and family. Cash App comes with a convenient debit card, allowing you to use the money transferred to you immediately rather than transferring it to your bank before using the money (although you can do it either way).
The most similar companies that are competitors to Cash App is PayPal and Venmo (which are both owned by the same company). What is the difference between Cash App and PayPal or Venmo? With Cash App you can invest in the stock market for free!
What Is Cash App Invest?
It seems that innovative companies like Square are making it easier and easier to begin investing in the stock market. What used to cost you every time you made a stock market purchase, is now completely free through investing with Cash App.
Cash App Invest is a feature offered through Squares Cash App that allows you to use the peer to peer payment platform as a means to invest in the stock market for free. Furthermore, you don't need a specific dollar amount to begin investing, and can invest in fractional shares as well.
Why Should I Use Cash App For Investing?
It can be an intimidating task now days choosing which company you wish to use as your investing platform. Do you want a company that's been established in the stock market industry like Fidelity or TD Ameritrade, that offers detailed reports and analytics? Or do you wish to have a robo-advisor like Acorns put together a customized investment portfolio for you and handle all the heavy work?
Or, perhaps you are a bit mixed and find yourself somewhere in the middle of the two options. That's where Cash App's investing feature may be of value. Among the many reasons to use Cash App to invest in the stock market are:
- Fractional Shares: Not very many investment companies offer the ability to purchase fractional shares. For example, if you want to invest in Amazon through a regular broker, you need to purchase at least one full share which is thousands of dollars. With Cash App's investing benefits, you can invest as little as $5 in Amazon if you wish.
- No Minimums: Traditional investment banks require a minimum opening balance to even open an account. With Cash App, there is no minimums required.
- Completely Free: It's not until recently that many banks are working to provide commission free trades, but not everyone yet offers this. Cash App has no trade fees and no account fees either.
- Simplified Investing: Simple is often much better. Cash App couldn't be any simpler than it already is. Simply click on your investing account to view your holdings, options to see their returns for different time frames, and a tab to purchase stocks. That's it!
- Transfer Abilities: Cash App may be a convenient option for those who wish to get quick access to their money. If you've got some funds invested but need access to them, you can sell your shares and either have a debit card ready to use or transfer the money to your bank in real time.
When all is said and done, Cash App provides a simple, free and easy way for anyone with some extra cash to begin investing in the stock market.
Who Is Cash App Invest For?
Those who will benefit most from Cash Apps investing benefits include anyone who wants to invest in fractional shares, who wants simplicity to their portfolio, and wants a cost effective investing platform with no fees. People in these stages of life may find Cash App's investing benefits useful:
- New investors
- College students
- Long term investors without need for detailed reports
- Investors seeking to take advantage of market moves, but don't have the money to buy whole shares
- People with little money to invest
- Those that want to simply invest any dollar amount into their favorite companies that they associate with every day
Who Cash App Invest Is Not For…
Some of you out there may be micro-managers when it comes to your investing portfolio. This means you want to know all the details of your portfolio such as returns, chart analysis, company news, company financials, etc.
Furthermore, if you find that you prefer to have a passive approach to investing in the stock market, you might consider using a robo-advisor or a modern investing app.
If of these sound like you, there are alternatives that you may wish to consider.
Cash App Investing Alternatives
The list of alternatives could be nearly endless, however in efforts of pointing out only the best choices for investors of all types, here are a few options both for sophisticated investors and passive investors.
Cash App Alternatives For Sophisticated / Active Investors
Fidelity: Fidelity is considered a discount broker, which simply means they provide you all the tools to invest yourself without having to access your money through a financial adviser. There is no cost to placing trades, and no fees or account minimums for generic brokerage accounts. They provide some of the top detailed investing tools available for those active investors who wish to analyze their portfolio on a regular basis.
TD Ameritrade: TD Ameritrade is almost identical to Fidelity, however their competitive advantage is the ability to house all your investments in one location, including cryptocurrency. They have competitive investment tools to analyze your portfolio, and access to advisers as needed.
Cash App Alternatives For Passive Investors
M1 Finance: M1 Finance is a free app to invest in fractional shares of stock. By creating a portfolio (called “Pies”) of your desired investments, you can automate your contributions so each contribution automatically gets allocated among your chosen investments. They also have options to invest in expert made pies if you want some added guidance.
Robinhood: Robinhood is considered the pioneer of commission free investing, and paved the way for the industry to begin offering commission free accounts. Robinhood allows you to invest in multiple investment vehicles for free with their modern investing app.
They even offer a free share of stock when setting up a free account from the link below:
Acorns: Acorns allows you to link your bank account to your Acorns Investing account, and round up your daily purchases to the next dollar to invest the spare change. Your money is invested in an customized portfolio made for you by their experts and sophisticated algorithms.
Acorns offers $5 for free when setting up your account from the link below: