Investing Through Cash App

As more and more people are using smartphones, the world of online investing has become increasingly convenient. Investors can now buy and sell fractional shares of stocks or Bitcoin with just a few taps on their smartphone. Cash app, a popular peer-to-peer payment service, has recently launched its own investing account, making it easy to invest small amounts of money in stocks. Here’s what you need to know about the new feature.

The Cash App investing feature is a partnership between Square and Lincoln Savings Bank and Sutton Bank, which provides the brokerage services through Cash App Investing LLC, a registered broker-dealer and member of the Financial Industry Regulatory Authority (FINRA). The service is free to use for sending and receiving money, with no transaction fees. Users can also connect their Cash App accounts to their linked bank account to automatically transfer funds. Cash App Investing doesn’t offer investment advice, but does provide basic research tools and alerts to notify users of price changes. The platform is designed with beginning investors in mind, and it doesn’t include advanced trading tools such as charting. It also doesn’t allow you to invest in retirement accounts or other tax-advantaged funds. Finally, Cash App Investing doesn’t support margin trading, which can be risky for beginners.

Unlike other brokerage apps, Cash App allows you to purchase fractional shares of stock, meaning you can invest just $1 and buy one-tenth of a share of a company’s stock. This is helpful for beginners who don’t want to commit a lot of money to the stock market and can help them grow their investments over time. Additionally, the Cash App Investing app doesn’t have any minimum account balance requirement, and it’s available on both iOS and Android devices.

Another benefit of investing through cash app is that there are no fees for buying or selling shares, as well as no account maintenance or transaction fees. However, the app isn’t as comprehensive as other investment platforms, such as Robinhood or Webull, which both offer more features and investment types. The Cash App investing app is also limited in what it can invest in, with only a few blue-chip stocks available for investment.

The Cash App app also offers a range of perks for its users, including Cash Boosts, which give users instant perks when they use their cash card at coffee shops, restaurants and other retailers. Users can also use their cash app to send or receive money in 56 different currencies, which is a huge advantage for those who travel or make international payments regularly. Cash App’s perks are not without drawbacks, though, such as the inability to link the app to a bank account or deposit checks. This may limit its popularity among some investors. In addition, users who earn cash back at a retailer or through other rewards programs on their cash app card are required to report it to the IRS.