How to invest through Cash App

How to invest through Cash App

February 6, 2021

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  • Cash App Invest offers commission-free trading for hundreds of stocks and ETFs.
  • The app also offers Bitcoin trading, but you’ll have to pay service fees.
  • There’s no option to automate your trades with Cash App, but it only takes a few steps to buy stocks.
  • Click here to set up an account with Cash App.

Cash App is a popular payment service that links to your bank account to let you transfer money to friends, family, and other users. Owned by Square, Inc., the company also offers a debit card that lets you use your account balance to make purchases.

In 2019, the app formed Cash App Investing, LLC to add investing services to its platform. Cash App Investing, LLC is a registered broker-dealer and member of the Financial Regulatory Industry Authority (FINRA) and Securities Investor Protection Corporation (SIPC). FINRA regulates investment companies, and the SIPC offers insurance on your investments.

Keep reading to learn how to invest with Cash App, and to see if it’s the best investing app for you.

Cash App investing features

Cash App Investing lets you try your luck in the stock market with as little as $1. While investing services are only available to US investors who are at least 18 years old, accounts are free to set up and include commission-free trading on hundreds of stocks and ETFs. 

However, Cash App’s investing service differs from other online brokerages and automated investing apps in many ways. For one, the app doesn’t offer investment advice or recommendations, which is available on apps from Charles Schwab, Wealthfront, and SoFi. It also offers strictly self-directed services, so you’ll be solely responsible for placing your own trades and making investment decisions.

In addition to stocks and ETFs, the only other investments you’ll be able to purchase are cryptocurrencies like Bitcoin. Unlike stock and ETF trades, Bitcoin investments have fees attached. Cash App says it charges two fees for all Bitcoin trades: a service fee for every transaction and an additional fee that takes stock market price volatility into consideration. 

How to invest with Cash App

When it comes to buying stocks, you can either transfer money from your bank account to your Cash App account, or use any amount of your current Cash App balance. According to its website, you can buy a stock by taking the following steps:

Steps for placing trades on Cash App

  1. Click the investing tab on your homescreen
  2. Tap the search bar and find a stock by entering a company name or ticker symbol
  3. Choose the company you want to invest in
  4. Choose a preset dollar amount or enter a custom amount
  5. Follow the prompts to verify your personal info
  6. Confirm transaction with your PIN or Touch ID

Cash App also offers the option to set up automatic purchases of stock or Bitcoin. 

Is Cash App the right investment app for you?

Cash App Investing could be a good fit for existing Cash App customers who want to actively invest and place trades at no cost. If you don’t currently have a Cash App account, you can still sign up and take advantage of the company’s investment offerings.

Just note that you won’t be able to invest in any other securities beyond stocks, ETFs, and Bitcoin. If you’re looking to invest in mutual funds, bonds, options, real estate, or any other investments, you’ll need to consider other investment apps like Merrill Edge, Fidelity, and Vanguard. 

Cash App investing probably isn’t a good option for hands-off investors who are looking for the guidance of a human financial advisor or the help of an automated investment app. If you’re looking for advisors that can help you make smart decisions, you should consider other apps like Betterment and Ellevest.

It’s also worth noting that Cash App recently faced backlash from users after it temporarily halted trading on Gamestop (GME) and several other stocks that skyrocketed due to a Reddit-influenced price surge. Other apps like Robinhood and Webull also temporarily restricted trading on multiple hot stocks, though they have all since lifted the pause on trades. If this gives you pause, consider other options from our list of the best investment apps.

Rickie Houston is a wealth-building reporter at Personal Finance Insider who covers investing, brokerage, and wealth-building products.

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

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