Qapital mobile app brokerage review, rating, pros and cons, commissions, fees, account minimums, trading platform, IRA investment research tools, education, and customer service.

Qapital Investing Rating:  3.5-star brokerage rating

  • Fees: Monthly subscriptions - Qapital Basic for $3, Qapital Complete for $6, Qapital Master for $12
  • Minimum to open:$0.01

Overview of Qapital Investing

Qapital is a mobile app designed for a new generation of finance minded users. Their tagline, “making investing accessible to everyone”, makes it clear they’ve set out to make the process of investing as simple as possible.

This article will evaluate the fundamentals of what a Qapital investing account offers, costs and benefits, ease of use with the mobile platform, and relevant differences with competing apps.

Range of Investment Vehicles

Qapital Investing Rating

Qapital Investing customers invest in portfolios of funds. These funds are a mix of equities and fixed income ETFs.

Each portfolio is defined by risk -- a user may choose from Very Conservative, Conservative, Balanced, Aggressive, and Very Aggressive.

Qapital notes on its blog that it invests in 12 different asset classes and diversifies these. A user can access the breakdown of these portfolios by hitting the “Details” button from the mobile app.

It is not stated clearly or visibly how Qapital manages these funds. The answer is buried in Qapital’s website blog under Terms, where their management technique is more fully explained. “We use algorithms to manage your portfolio.” These investment portfolios are rebalanced every quarter as well.

An example of a Very Aggressive portfolio contains equities with large, mid, and small cap, both domestic and foreign, and fixed income with various bonds. Qapital states in their terms that all securities are ETFs. A more complete breakdown:

Equity

US Large Cap (SPY) 27.09%
Foreign Large Cap (VEA) 17.92%
US Mid Cap Value (IWS) 15.78%
US Small Cap Value (IWN) 11.24%
US REIT (VNQ) 9.17%
Emerging Market Stock (VWO) 8.88%

Fixed Income

US Aggregate Bone (AGG) 2.98%
US Corporate Bond (LQD) 2.47%
Global Aggregate Ex-US (BNDX) 1.50%
US Short Treasury Bond (SHY) 1.49%
US High Yield Bond (HYG) 0.74%
Emerging Market Bond (EMB) 0.74%

Financial Research and Education

Qapital Research Rating

Unlike other brokerage or investment accounts with institutions like Vanguard or Schwab where one may buy individual stocks or funds, investment options are already pre-selected into portfolios for the user via Qapital’s mobile app. Thus, there is not a heavy emphasis on research or education from the trading side.

Qapital does maintain a blog at https://www.qapital.com/blog/ which is searchable and covers basic financial topics such as budgeting, dollar cost averaging, and compound interest. They do not offer very many tools for a more advanced investor.

After signing up for an investment portfolio with Qapital, a pdf is sent through email with more information on how investments are allocated, but effort is lacking to offer anything to the investor that digs deeper into what they are investing in, such as how those funds perform over time.

Cash Management

Qapital Cash Management Rating

Currently Qapital offers a spending account with a Visa Debit card. In order to access cash, an account holder must transfer to and from accounts through the mobile app if they do not plan on using the Visa Debit card, which is exclusively tied to the spending account. No checks are offered with the spending account.

Pricing

Qapital Pricing Rating

Current fees listed under this terms/invest page are a $3 monthly subscription fee for “Qapital Basic,” $6 monthly subscription for “Qapital Complete”, and a $12 monthly subscription for “Qapital Master.” The terms also warn that the user “may also incur brokerage and other transaction costs,” but these are never defined. (Anyone using Qapital in beta mode will not be charged monthly subscriptions and instead has access to the full suite of options for free.)


Qapital Investing Pricing


Portfolio Management and Financial Advice

Qapital Cost Rating

Beginning investors normally put off by the many choices between stocks and funds what they all mean and what costs they incur need not be discouraged by “choice paralysis” and so can tap a button and allow Qapital to make these choices for them. Investors who prefer a more active role in their choices may not welcome this “set it and forget it” style of investing, making Qapital a vehicle for investors just starting off or even more seasoned individuals who prefer not to monitor stocks or funds.

To begin investing with Qapital, new account holders start this process by setting up a goal and defining it, and then determining funding for that goal. Qapital calculates other factors, such as how much should be invested and when this monetary goal can be achieved.


Qapital Balanced Portfolio


To inject ease into the decision making process, pre-established goals are available -- Down Payment, Build Wealth, Retirement, Just Start Investing, College Fund For The Kids, or Something Else. Once the user plugs in the vital information on how much they wish to invest for, they choose from one of Qapital’s preset portfolios.

Qapital will then recommend a portfolio, and an account holder can choose from Very Conservative, Conservative, Balanced, Aggressive, and Very Aggressive regardless of Qapital’s recommendation.


Qapital Agressive Portfolio


The entire process of portfolio management is without human involvement. Everything is done by algorithms, thus there is no financial advice given with the account as everything is automated.

Customer Support

Qapital Customer Rating

Any account holder with a problem or question has a limited range of choices for customer support. The main website has a “help center” page where previous questions and answers are available for research, and users are referred to an email address for support. From the mobile app, help can be accessed from the account settings and customer support messaged from there.


Qapital Investing Menu


Website

Qapital Tools Rating

The main website is best accessed from desktop, but the application itself is designed for mobile and geared toward mobile users. The greatest difference between the mobile app and website is the Qapital Blog and Help Center pages are only available through the website.

Mobile Apps

Qapital App Rating

The mobile app is relatively easy to navigate with an intuitive interface. The app opens to a basic overview page that includes any accounts with Qapital and their balances. From there, an account holder can enter in the details of their investment account to change details or review their investing goals, or use the bottom panel to view the account profile, transfer money, look at activity, or engage in “missions”.


Qapital Investing Activity


Other Tools

Qapital Investing Tools Rating

Unique benefits of the mobile app include an option called “missions,” accessed from the bottom panel by tapping the light bulb icon. To increase the incentive to save toward an investment or savings goal, an account holder can sign up for “missions”. If an account holder signs up for “Do Sweat The Small Stuff”, this mission is meant to curb impulse spending, and the app sends notification daily to encourage the account holder to stick with it.


Qapital Investing Missions


Comparison

Compare the subscription fees against similar applications such as Acorns, which charges a $2 monthly subscription fee, or Robinhood, which does not charge any fees.

Acorns and Qapital share an intuitive mobile user interface designed to help the account owner move smoothly from one area of the menu to the next, but what it achieves in ease comes at a cost in other arenas. More detailed info is lacking in terms of research and education, and portfolios are allocated for the account holder in automated fashion.

Qapital’s greatest benefit is to encourage the good habits of building wealth with those who are new to investing and need extra encouragement to keep to goal. It is debatable whether the subscription fees are worth it when there are other competing financial products offering more or the same value for less money.

Acorns offers a bit more support in terms of having more reading material that can anticipate customer questions in their help section, but both Qapital and Acorns are relying on automation more than human interaction.

Qapital is good for learning the very basics of investing in action and forming a habit of watching money as it grows, but there is no significant value delivered to increase knowledge to understand more about the stocks that make up the chosen portfolios being invested in, or to continue education on what investing is, what its risks are, and how it can benefit an investor.

Qapital Incentive to Open Account

Open Qapital Account

Qapital Brokerage reviewed by TopRatedFirms.com Rating: 3.5