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Cash App Investing
On Cash App's website
Insider’s Rating
3.99/5
Perks
Offers commission-free trading of stock and ETFs
Account Minimum
$0 ($1 for access to fractional shares)
Pros
- Banking and investing on one platform
- Commission-free trading of stock and ETFs
- Gift stocks to friends and family
Cons
- Doesn’t offer IRAs, custodial accounts, or margin trading
- Limited resources and tools
- Doesn’t offer cryptocurrencies other than bitcoin
- Doesn’t trade mutual funds, options, or futures
Insider’s Take
Cash App Investing is a beginner-friendly platform for banking and investing on the go. If you’re looking for simplified, low-cost trading, Cash App may be worth looking into. However, other low-cost investing apps for beginners offer more investment options, more account options, and better resources.
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.
Access advanced analysis opinions, order on autopilot, set up market trend alerts, and participate in commission-free stock trading on Cash App. Cash App's integrated financial services allow you to transfer money to friends, family, and other users.
Mobile investing for beginners via Cash App offers a simplified, hands-on trading strategy for investors prioritizing convenience over advanced account features. You can also opt-in to get access to trade fractional shares and bitcoin. However, bitcoin is the only supported cryptocurrency currently on Cash App Investing.
Cash App Investing 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.
Is Cash App Investing Right For You?
Cash App Investing may be a good option if you're looking for simplified, low-cost banking and investing on the same platform. You'll get access to a wide range of commission-free stocks and ETFs, as well as bitcoin and fractional share investing on Cash App.
Opening a brokerage account is a no-brainer if you're already banking with Cash App. 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
| Feature | Insider rating (out of 5) |
| Fees | 4.90 |
| Investment selection | 3.00 |
| Access | 3.80 |
| Customer service | 4.70 |
| Ethics | 3.50 |
| Overall score | 3.99 |
Cash App Investing: Pros and Cons
| Pros | Cons |
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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 its business type), customer complaint history, licensing and government actions, and advertising issues.
In February 2024, whistleblowers alleged that Cash App lacked sufficient security features to prevent fraudulent activity such as money laundering from 2016 to 2022. Complaints were submitted to the Financial Crimes Enforcement Network (FinCEN) and the SEC. Cash App may be under investigation.
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 fraud-related. These claims triggered an investigation by the SEC. Cash App 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. As of March 4, 2024, Cash App is seeking approval from a California federal judge to approve a $15 million settlement agreement.
How to Invest With Cash App Investing
Anyone can open a self-directed brokerage account on Cash App for $0. Cash App Investing offers commission-free trading of stocks and ETFs. For only $1, you can invest in stocks and fractional shares.
Self-Directed Brokerage Accounts
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.
Only a handful of tools and features are 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 or education savings accounts. If you're interested in opening an educational savings account, the best 529 plans offer a range of low-fee and tax-advantaged options.
Sponsored Custodial Brokerage Accounts
Cash App Investing recently launched free custodial banking and investing accounts for minors aged 13 through 17. Family members or trusted adults act as "Sponsors" by setting up a Cash App custodial account for accessible savings, spending, and investing all in one place. Children can invest as little as $1 in stocks, ETFs, or bitcoin.
Sponsored accounts can buy and sell stocks and bitcoin, enable Round-Ups, get paid in Bitcoin, and gift bitcoin through a Cash App Balance. Sponsored accounts cannot send bitcoin through peer-to-peer transactions, use Bitcoin Boosts, and send or receive bitcoin through Lightning Network and Bitcoin Network.
View your child's account activity, balance, and monthly statements in real time. As a sponsor, you can add additional security measures, enable Cash App Card spending, and even set allowances. Minors get full control over their accounts once they turn 18.
Stock buy limits occur over a 30-day rolling basis and can be set for as low as $5 per month and as high as $400 per month. This includes stock gifts and Round-Ups. Cash App does not set limits for selling stocks.
Check out Business Insider's guide to the best custodial 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, and 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 $0.000166 per share sold for equity trades but will not exceed $8.00. There's an SEC Fee of $8.00 per million dollars of covered sales.
Cash App Investing — Frequently Asked Questions (FAQs)
What is Cash App Investing, and what services does it offer?
Cash App Investing is a mobile trading platform easily paired with Cash App's regular banking and savings services. Open a free brokerage account through Cash App Investing to buy and sell commission-free stocks, ETFs, and fractional shares. Moreover, Cash App provides a suite of financial services suitable for beginners, including peer-to-peer payments and bitcoin trading.
How does Cash App Investing stand out from other mobile trading platforms?
Cash App Investing stands out as an accessible, low-cost mobile banking and trading platform best for novice and fee-conscious investors. For as little as $1, you can invest in stocks, ETFs, and bitcoin. Fractional share investing allows you to participate in a wider range of investments that would otherwise be too expensive. Moreover, new Sponsored custodial accounts offer a way for teens to get hands-on investing and banking experience with the supervision of a parent or trusted adult.
What are the fees associated with Cash App Investing?
Cash App Investing is a free mobile investing app with no account management fees. It offers a commission-free trading structure for stocks and ETFs. This approach makes it an attractive option for cost-conscious investors. You only need $1 to invest in fractional shares. The cost of bitcoin varies.
Is Cash App Investing suitable for beginners?
Cash App Investing is suitable for beginners, offering low-cost and accessible trading on the go. Investing on Cash App may be a good option for beginners interested in actively trading commission-free stocks, ETFs, fractional shares, and bitcoin. However, plenty of other low-cost, beginner-friendly investing apps have better trading features, account options, and resources.
Is investing on Cash App good?
Cash App Investing is a decent online investment platform for beginners seeking straightforward trading of low-cost stocks and ETFs. If you already own a Cash App banking or savings account, then opening a Cash App Investing account is a no brainer. However, if you don't already have ties to the platform, plenty of other cost-effective investment apps have better trading features and more investment opportunities.
How Does Cash App Ensure the Security of Investment Transactions?
Security features of Cash App Investing aim to protect users' personal information and money through encryption software and fraud detection technology. Your Cash App Investing account is protected by SIPC insurance up to $500,000. Keep in mind that SIPC does not protect you against failed investments.
You'll get notifications from Cash App for any suspicious activity, including alerts if your PIN or security settings have changed. Cash App is equipped with identity verification features. In addition, users with the Cash App Card have a Cash App account balance insured by the FDIC up to $250,000.
Cash App phone support is available daily from 9 a.m. to 7 p.m. ET.
How Cash App Invest Compares
Cash App vs. Acorns Invest
Acorns Investis 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 $5 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 is the overall better choice as it offers a larger selection of cryptocurrencies, options, and margin trading. Experienced traders can use the platform's more in-depth analysis, Nasdaq market data, and advanced charting features with Robinhood Gold. Retirement-focused investors will even get up to a 3% match on IRA contributions.
Unless you already have a Cash App banking account and want to draw funds directly from your Cash App balance to invest in stocks and other assets, Robinhood is the better investment app.
Robinhood review
Methodology: How We Reviewed Cash App Investing
We examined the 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 and passive investors. Cash App Investing was evaluated with a focus on how it performed in each category.
Junior Investing Reporter
Tessa Campbell is a Junior Investing Reporter for Personal Finance Insider. She reports on investing-related topics like cryptocurrency, the stock market, and retirement savings accounts. She originally joined the PFI team as a Personal Finance Reviews Fellow in 2022.Her love of books, research, crochet, and coffee enriches her day-to-day life.
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