Is Public a Safe Brokerage Firm?
Public.com is a broker that has a somewhat different style of investing compared to most others. Its app, the way you buy stocks, and the social features are all uncommon. Because these features are different, some people wonder if Public.com can be trusted or if it’s a scam. We’re here to say that Public.com is not a scam.
Here’s why.
Public.com Company Profile
Public.com is headquartered in New York and Copenhagen. It got its first round of funding in 2018 from Greycroft and has several well-known investors backing it.
Public.com is a brokerage firm that lets users trade many types of assets. It emphasizes the social aspect of investing and encourages sharing ideas across its platform. You can follow other investors and be followed back, and there are also many live events hosted by Public.com staff.
Is Public.com Legitimate?
One of the best ways to figure out if a broker is fake is seeing how it follows guidelines from regulators.
The main regulators in the investment world are the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC). Both ensure that investors have a safe place to do business. Many of their rules require brokers to provide fair trading, protect personal data, and run transparent operations.
Public.com is registered with FINRA and SEC.
Is Public App Safe?
Another way to tell if a broker is reliable is to look at the connections it has with other companies.
A broker’s clearing firm is a good example. Clearing firms are separate companies that cooperate with brokers: they rely on each other (unless the broker clears its own trades). Public.com’s clearing partner is Apex Clearing.
Apex is one of the biggest clearing firms in the U.S., and it only does business with brokers that meet standard industry rules. If Public were a scam, Apex Clearing wouldn’t work with it.
Is Public.com Insured?
Public.com offers SIPC coverage for every customer. This means all investments in the account
are insured up to $500,000. Half of that $500,000 applies to cash in the account. Public’s clearing company also provides extra insurance for more protection.
Public wouldn’t be able to provide that insurance if it didn’t comply with
FINRA and SEC standards.
Is Public.com Secure?
Regulators require brokers to set up strong security for their customers.
At Public, accounts are protected with AES 128-bit encryption. Transfers of personal data and bank details are secured with TLS. Besides high-level encryption, Public.com uses two-factor authentication so that unauthorized users can’t log into accounts they shouldn’t.
Public.com BBB Reviews
Beyond licenses and insurance, we can also check the Better Business Bureau (BBB) to see if a broker’s business practices match customer expectations.
BBB Rating
Public.com is certified and has an
‘A’ rating from the BBB.
Based on the BBB’s criteria, scoring a business involves looking at complaints, the kind of business, how long it’s been operating, openness, and proper licensing.
Public.com Complaints & Reviews
Along with the BBB rating, we can check user feedback on BBB’s website.
Customers point to good customer service, a responsive app, and a decent variety of investments.
Negative comments usually focus on the same thing. Some investors mention frozen accounts and issues with withdrawals. Interestingly, the company’s replies reference day trading rules and limits on accounts. The best way to avoid trouble at Public.com is to review the rules beforehand.
Investing System
Public provides self-directed accounts. It doesn’t include financial planning or advisory services. With a self-directed account, you can trade the following:
- Cryptocurrencies
- Treasury and Corporate bonds
- Exchange-traded funds
- Closed-end funds
- Stocks
- Options
- Alternative investments
The alternative-investment service lets you trade shares of collectibles, such as Air Jordans,
Banksy pieces, digital art, and famous video games. Public.com packages these physical and
digital assets and then makes their shares available for trading.
There are only two account types at Public: taxable individual accounts and Traditional/ROTH IRAs.
A personal account at Public can register for recurring purchases of a group of assets. Public calls this an Investment Plan. A plan can hold up to 20 assets, which can be stocks, ETFs, or cryptocurrencies.
Another special service is Alpha. It’s an AI that Public is testing alongside GPT-4. It can do many things, like showing analyst ratings (but not its own) for a security and summarizing earnings calls around 2 hours after they happen.
Public.com only opens accounts for people who live in the U.S. and have citizenship, permanent residency, or a valid visa. A Social Security Number is also needed.
While these alternative assets normally aren’t covered by SIPC, physical assets have coverage from Aspen American Insurance Company, and digital or intangible assets are self-insured.
Cash Management
Besides brokerage accounts, Public offers cash accounts. These currently yield
4.1%, which is appealing. Public’s cash account allows unlimited deposits and withdrawals, acting like a checking account (without checks). In reality, it’s a brokerage account with FDIC sweep, sending money to partner banks for up to $5 million in coverage.
The downside is the lack of check-writing or a debit card for Public’s cash account.
Public.com Cost
Public doesn’t charge commissions for online stock, equity option, or ETF trades during market hours. There are no regular fees or minimum deposits. For other trades, fees may apply to non-Premium members (and in some cases, Premium users too).
For instance, index options cost 50¢ per contract for non-Premium investors and 35¢ for Premium users. A pre-market or after-hours stock order costs $2.99 for standard customers. Crypto trades either charge a fixed fee (up to $6.25) or 1.25%.
Treasury investments have fees between 0.29% and 0.09% per year, depending on the balance.
Buying an investment plan can cost $0.49 to $1.49 per trade, depending on how many assets are included. Premium users pay $0.
Public’s cash account has no minimum balance or ongoing fees.
Mobile App
Public customers can use a straightforward mobile app that works on both Android and Apple devices. The app does miss some tools we’d like, such as mobile check deposit and live news streams, but it has other handy elements. Most notable is the trade ticket, which is very simple to use. Order types include:
- Market
- Limit
- Stop
Each asset’s page on the Public app has icons in the top-right corner to add it to a watchlist or set up an alert. There’s a chart on the page, but it offers no tools. You can’t rotate the chart sideways.
The community forum is where the app really stands out. It’s a place for users to interact with each other and talk about possible trades and daily market events. A Feed icon appears at the bottom for this social space, and each asset’s page has a bulletin board below it.
Website
The website syncs watchlists and social features with the app, making it easy to jump between them. The same research data you see in the app is also on the website. It’s disappointing that the charts are just as weak with no tools or full-screen view.
The order ticket has the same order types as the mobile version. On both platforms, you can schedule a recurring purchase for a single asset.
Public doesn’t have a browser-based platform or a desktop software system beyond these basic tools.
Asset Research
Neither the app nor the website has a screener. Still, you can find things to trade on Public. The app (via the globe icon at the bottom) and the website (under Explore in the left menu) both offer market news. You’ll find groups of investments here, like:
- Popular crypto
- Top movers
- Earnings this week
- International stocks (Y shares)
- Popular ETFs
It’s simple to browse these categories to see what’s in them. Clicking or tapping on an entry opens its profile. Stocks and cryptos show basic data like 24-hour volume and market cap.
Stocks have more details overall. Popular names often have analyst recommendations and price targets. For instance, Bank of America had input from 28 different analysts during our research.
News stories come with thumbnails and links to outside websites. Sources include Seeking Alpha, Fox News, and Reuters.
Some details require a Premium subscription, like viewing the main financial statements (income, balance sheet, and cash flow).
Margin
A Public account can be either cash-based or margin-based. Margin gives you access to things like option spreads and leveraged positions, but short selling isn’t allowed.
Borrowing money costs something. At the moment, Public charges 9.5% to 5.5% on margin balances. Amounts over $1 million might qualify for special rates.
Any cash account with Public can switch to margin mode via the settings page on the website or in the app.
Customer Service
On Public’s website and in its app, there’s a chat portal in the Help Center. The chat starts in a bot format and can connect you to a real person if necessary. Live help is available on weekdays only.
When we tested the chat, it was somewhat helpful. Inside the chat window, there are FAQs that many users will find useful. If you don’t need immediate assistance, you can email support@public.com.
The website has a few do-it-yourself options under the settings & privacy area, located under the account tab in the top-right corner.
The main issue here is that there is no phone support. You cannot call Public for help. This is likely to be a problem if you ever have an urgent issue.
Bonus Services
DRIP Service: Any cash dividend inside a Public account can be automatically reinvested into
extra shares of the dividend-paying asset.
Initial Public Offerings: Public.com does not provide IPO investing.
Fractional Shares: In most cases, trades at Public can be executed in whole shares or
dollar amounts. Some smaller securities, like certain OTC stocks, must be purchased in whole shares.
Individual Retirement Accounts: Public supports both Traditional and ROTH IRAs.
Extended-hours Trading: Public customers can trade stocks and ETFs from 8:00 am to 8:00 pm
Eastern on weekdays. Crypto trades 24/7.
Periodic Mutual Fund Investing: No mutual funds are available.
Fully-paid Securities Lending Program: Public users earn 10% of the net gains on shares loaned out. Apex Clearing Corp, Public’s clearing firm, manages the program. Earnings arrive in the account next month.
Our Recommendations
Beginners: Public.com is made with new investors in mind. It offers plenty of easy-to-read
educational content. However, there are no managed accounts, which might be more helpful to some beginners. We suggest a blend of robo and human guidance from a
company like Webull.
Active Stock Trading: Even though Public has decent trading features, like OTC stocks and
fractional shares, it doesn’t have software that’s strong enough for very active trading. We recommend
Charles Schwab instead.
Mutual Funds: Public doesn’t offer mutual funds, but
Firstrade has thousands of them.
Retirement Planning & Long-Term Investing: Public isn’t built for long-term retirement goals.
Robinhood
has more resources for extended planning, including a free 1% match for contributions.
Small Accounts: Because Public has inactivity and related fees, it’s not our top choice for smaller
investors. Webull is a stronger alternative.
Public Brokerage Review Summary
Other than the alternative assets feature, Public.com doesn’t offer much to set it apart.
In many ways, it doesn’t even reach average levels.
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Updated on 3/13/2025.
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