Cash App Investing Review 2023

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Bottom line: Cash App Investing - Product Name Only is best for beginners wanting to pick and choose their own stocks, ETFs, and fractional shares. Although a decent option for folks who are already banking through Cash App, Cash App Investing is rather lackluster when it comes to advanced trading tools, account flexibility, investment options, and features. It doesn't offer mutual funds, futures, or options trading.

About Cash App Investing

Cash App is an online banking and investing platform that offers accessible, commission-free trading of more than 1,800 stocks and ETFs when you open a brokerage account. You can open an online brokerage account through Cash App investing for free.

The beginner-friendly platform provides investors with simplified, hands-on trading strategies on the go. You can also opt-in to get access to trade fractional shares and bitcoin. However, bitcoin is the only supported cryptocurrency currently on the platform.

Cash App Investing - Product Name Only links to your bank account to let you transfer money to friends, family, and other users. The company also has a debit card that lets you use your account balance to make purchases. But it doesn't offer investment advice or portfolio recommendations. Nor does it offer an advanced trading platform, or assets like mutual funds, futures, or options trades.

Check out the best free stock trading apps for investing platforms similar to Cash App Investing. These apps offer low account minimums, financial tools, educational resources, commission-free trading, and more.

Is Cash App Investing Right For You?

If you're looking for simplified, low-cost banking and investing all on the same platform, then Cash App Investing may be a good option for you. You'll get access to a wide range of commission-free stocks and ETFs, as well as fractional shares and bitcoin.

If you're already banking with Cash App, then opening a brokerage account is a no-brainer. But you may want to reconsider if you're looking for stronger trading tools, extensive educational content, or hands-off trading features. Crypto investors are also better off with one of the best cryptocurrency exchanges for access to a much larger selection of coins and tokens, and crypto-specific investing features.

Cash App Investing: Overall Rating

Cash App Investing: Pros and Cons

Cash App Investing: Is it Trustworthy?

Cash App currently has an A+ rating with the Better Business Bureau and has been BBB accredited since 2021. BBB ratings range from A+ to F and reflect the bureau's opinion of how well a company interacts with its customers.

Before issuing ratings, the bureau also considers a company's time in business (including the type of business it is), customer complaint history, licensing and government actions, and advertising issues.

In March 2023, Block Inc., the parent company of Cash App, was accused of allegedly allowing rampant crime and fraud on the platform. Hindenburg Research interviewed former Cash App employees who estimated that 40% to 75% of reviewed accounts were attached to another user, fake, or involved in fraud. These claims triggered an investigation by the SEC. Cash App currently denies these allegations.

In 2022, a data breach lawsuit was filed against Block Inc. after 8.2 million users' personal data was hacked through the Cash App Investing platform after a former employee downloaded internal company reports without legal permission. Since Cash App Investing users were at greater risk of identity fraud and theft, KGG Law filed a lawsuit against Block Inc. and Cash App for alleged negligence and is seeking monetary compensation for various damages. This case is still pending.

How to Invest With Cash App Investing

Anyone can open a self-directed brokerage account on Cash App for no minimum requirement. Cash App Investing - Product Name Only offers commission-free trading of over 1,800 stocks and ETFs, as well as fractional shares for as little as $1.

When you sell stocks, ETFs, and other assets on Cash App Investing, the money from the sale will be automatically transferred into your Cash App Balance. Securities purchased through Cash App Investing are held by the platform's third-party custodian, DriveWealth LLC., and are separate from the regular Cash App balance. You can directly pull existing funds from your Cash App balance to purchase investment securities.

There are only a handful of tools and features available with Cash App Investing, such as direct deposits, automatic recurring trades, stock analyst opinions and earnings, and market trend alerts. Moreover, bitcoin investors can store their assets with the app's built-in bitcoin wallet.

Cash App Investing does not offer IRAs, custodial accounts, or education savings accounts.

Cash App Investing Fees

There is no minimum requirement to open a brokerage account with Cash App Investing. Stocks and ETFs are commission-free. Fractional shares start as low as $1 per trade but may be more depending on the stock. The price of buying bitcoin can vary, but Cash App doesn't charge additional fees on trades.

Investors will be charged a trading activity fee of $0.000145 per share sold for equity trades. There's an SEC Fee of $0.0008 per $100 principal balance.

Cash App Investing — Frequently Asked Questions (FAQs)

Is investing on Cash App good?

Investing on Cash App may be a good option for beginner, active traders wanting to trade commission-free stocks, ETFs, fractional shares, and bitcoin. However, there are plenty of other low-cost beginner-friendly investing apps with better trading features, account options, and resources.

Can you make money on Cash App stock?

Yes. You can make money on Cash App when you trade stocks, ETFs, bitcoin, and fractional shares. Cash App doesn't charge commissions on stock and ETF trades. Plus, there are no management fees or account minimums.

Can you invest $1 in Cash App?

Yes. You can invest $1 in Cash App to purchase stocks, ETFs, fractional shares, or bitcoin. You may have to pay more depending on the asset and current market rates.

How Cash App Invest Compares

Cash App vs. Acorns Invest

Acorns Invest - Product Name Only is a one-stop shop for banking, investing, and learning for passive investors. You'll get a personalized ETF portfolio based on your risk tolerance, goals, and time horizon. There's a Acorns Invest - Account Minimum minimum requirement to start investing.

Cash App Investing and Acorns are both mobile-forward platforms best for beginners. However, Acorns is the better option for passive investors as it mainly functions as a robo-advisor. You'll also get a much larger selection of assets, account options, and trading tools with Acorns.

Active investors may prefer Cash App Investing. However, the platform is significantly more limited than Acorns overall.

Acorns review

Cash App vs. Robinhood

Like Cash App Investing, Robinhood offers hands-on investing strategies for new investors to trade commission-free stocks and ETFs. Plus, it also offers fractional shares, cryptocurrencies, and IPOs.

Robinhood Investing - Product Name Only is the overall better choice as it offers a larger selection of cryptocurrencies, as well as options and margin trading. Experienced traders can utilize the platform's more in-depth analysis, Nasdaq market data, and advanced charting features with Robinhood Gold. Retirement-focused investors will even get a 1% match on contributions.

Unless you already have a Cash App banking account and want to directly draw funds from your Cash App balance to invest in stocks and other assets, Robinhood is the better investment app.

Robinhood review

Related Terms

• Cryptocurrencies: A type of decentralized, digital asset created and traded on the blockchain. Cryptocurrencies are not issued by the government and are generally high-risk assets.
• ETFs: Exchange-traded funds (ETFs) are investment funds comprised of a blend of stocks, bonds, and other securities. Investing in ETFs is a great way to diversify your investment portfolio.
• Fractional shares: Buy a small portion of a whole stock for a cheaper price. Fractional shares earn the same gains and losses as whole stocks.

Methodology: How We Reviewed Cash App Investing

We examined Cash App Investing app using Personal Finance Insider's rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience when reviewing investing platforms. Platforms are given a rating from 0 to 5.

Investing platforms generally offer multiple assets, trading tools, fees, and other resources. Some investing platforms are better for more advanced investors or active investors, while others may better suit beginner investors and passive investors. Cash App Investing - Product Name Only was evaluated with a focus on how it performed in each category.