Cash App Stocks Rating:   Cash App Investing Rating

Review of Cash App Investing: stock brokerage fees and commissions, pros and cons, minimum requirements, level 2 quotes, IRA, margin trading and shorting stocks.

Overview of Cash App Investing

Cash App offers more than just a mobile app for cash services. Investment services are on tap as well. Before opening your next brokerage account, be sure to look over our review of this up-and-coming investment firm.


Cash App Investment Accounts and Assets

Cash App Investment Rating

Cash App only offers self-directed accounts. It does not provide robo-advisory or any other type of investment advisory services. In these accounts, you can trade stocks, ETFs, and bitcoin. No other asset types are available, and some stocks and ETFs are also not available. You can’t take short positions on the assets Cash App does offer.

All brokerage accounts at Cash App are individual taxable accounts; no other tax structures are offered.

Only the securities, not cryptocurrencies, held in Cash App accounts are insured by SIPC up to the program limits. Cash App does not offer excess SIPC insurance.


Cash App Stock Trading Review


Cash App Margin

Cash App Margin Rating

While every Cash App account is technically a margin account, it does not allow borrowing. You cannot short securities, trade options, or engage in pattern day trading.


Cash App Fees and Minimums for Investment Accounts

Cash App Fees Rating

Bitcoin trades have no commission fees at Cash App, but there is a spread which acts as Cash App’s compensation for the trade. This spread might be around 2% or higher, especially for small transactions. Larger trades may have smaller spreads. Cash App does not publish a detailed pricing schedule, which is a downside.

For stock trades, there are no commission fees either, but Cash App receives payments for order flow through the bid-ask spreads of each security, which vary with market conditions.

There are no minimum balance requirements or recurring fees for brokerage accounts at Cash App.


Banking Tools

Cash App Banking Rating

Cash App provides excellent cash management features through its app. It offers a Visa debit card, called the Cash Card, which allows fee-free ATM withdrawals at in-network machines (with a $300 monthly direct deposit requirement). This card is vital because only accounts with the card have FDIC insurance on free cash balances.

The card also offers "Boosts," which are discounts at certain retailers. Using Cash App for direct deposit of paychecks allows funds to become available two business days early.


Cash App Stocks Review


The Cash Card has a "round-ups" feature, where you can automatically invest spare change into stocks or bitcoin.

Cash App is particularly popular for instant money transfers between users using $cashtags, a unique identifier for each user. Transfers can also be made using an email address or phone number.

However, Cash App automatically transfers free cash balances from investment accounts to a Cash App balance, where it is not covered by SIPC insurance. Without the Cash Card, these balances do not have FDIC insurance either.

Cash App also provides a free tax filing service.


Website

Cash App Invest Website Rating

Cash App’s website is simple but effective for managing the cash side of its business and filing taxes. It does not provide tools for researching or trading securities or bitcoin.


Cash App Investing review


You can log in to the website using a phone number or email address. Once logged in, a vertical menu on the left-hand side offers a few options like Tax Filing and Pay & Request, the latter of which can be used to send or request money.

Not all functions can be performed on the website. For example, the Cash Card can only be requested within the mobile app. Let’s look at it now.


Mobile App

Cash App Invest Mobile Rating

On the mobile app, you can trade easily. Start on the Home screen by tapping the home icon. You'll find sections for stocks and bitcoin. On the bitcoin page, you can set up automatic bitcoin purchases with your paycheck when it's deposited directly.


Cash App Invest review


On the stocks page, use the search bar to find stocks to trade. Tapping the search bar brings up lists like most-traded stocks and dividend-paying stocks. Below, you'll find categories like energy, health, and technology. Tapping a category shows you a list of relevant stocks. Selecting a stock or ETF opens its profile with key details like:

- Analyst opinions
- Earnings history
- Financials shown as bar charts
- Trading data like P/E ratio and daily volume

The app's trading interface is simple. You have three types of orders: market, recurring, and a custom order similar to a stop order, which triggers a market order when the stock price hits the price you set.

Charting is basic. Charts are at the top of a stock's profile page without detailed axes, making them hard to read. They only display as line graphs, with no analysis tools or horizontal view.

In the settings, accessed from the upper-right icon, you can adjust privacy settings. Under "Security & Privacy," you can disable money requests to stop others from requesting money.


Other Software

Cash App Trading Rating

Cash App lacks a desktop platform or any advanced trading tools, relying solely on its basic mobile app.


Cash App Stock Review


Customer Service

Cash App Customer Rating

You can reach Cash App by phone weekdays from 9 AM to 7 PM EST. To use phone support, complete an in-app verification by trying a transaction like a withdrawal or payment.

Chat support is available through the mobile app (not on the website). Go to settings, then support, and scroll to find the chat, which functions more like an email form.

The Cash App website includes a help page covering many common topics customers might need assistance with.


Additional Services

Cash App Service Rating

Fully-Paid Stock Lending: Not available.

Initial Public Offerings: Not available.

DRIP Service: Not available.

Extended Hours: Not available.

Fractional-share Trading: Only whole-dollar trades; no whole-share trading.

Individual Retirement Accounts: Only individual taxable accounts are available.


Recommendations

Mutual Fund Trading: Cash App doesn't support this, but Firstrade is a great alternative with over 11,000 no-transaction-fee mutual funds.

Frequent Stock Trading: Cash App's limited software makes it unsuitable for active trading. Consider Webull for advanced tools and access to international markets.

Small Accounts: Minimum orders at Cash App start at $1, and automatic purchases at $10.

Retirement Planning & Long-Term Investing: Cash App would be a rather awful investment firm for long-term investing. Besides the lack of IRAs, the brokerage firm has no annuities, lifecycle mutual funds, financial planning, or bond ladders. These and much more can be found at Charles Schwab.

Beginners: Although Cash App tries to simplify investing, we think novices would be better off with a managed account with a firm like Acorns.


Cash App Invest Final Judgement

As its name suggests, Cash App is primarily about money management. Its investing service is decent, but there are far better alternatives out there for all sorts of trading.


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Updated on 4/26/2024.

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