There are a lot of guides out there on stock investing. But none of them mention using the Cash App! As a matter of fact, I’ve tried to find guides on investing in stocks through Cash App, but haven’t had any luck. That’s why I decided to write the definitive guide to investing in stocks with Cash App. This ultimate guide shows you exactly what you can do to invest in stocks through Cash App and how to invest in stocks the right way.There are a lot of guides out there on stock investing. But none of them mention using the Cash App! As a matter of fact, I’ve tried to find guides on investing in stocks through Cash App, but haven’t had any luck. That’s why I decided to write the definitive guide to investing in stocks with Cash App. This ultimate guide shows you exactly what you can do to invest in stocks through Cash App and how to invest in stocks the right way.
The internet has allowed for instant global connections that have created wonderful opportunities to run a business. Business have evolved into online businesses that have created the ability to reach the entire world. Everyone is looking for ways to simplify their financial lives and connect with customers they never would have had access to before the internet boom. Investing in stocks through cash app is often viewed as one way people are finding success.
Trading platform
The Cash App Investing trading platform is extremely simple. You choose a stock, enter a dollar amount, and hit the buy or sell button, all within the popular Cash App. There is not a desktop or web-based trading platform at this time.
The Cash App is known for user-friendliness, and is highly regarded for its security and speed. It’s currently rated 4.5 out of 5 in Apple’s App Store and 4.2 out of 5 in the Google Play store.
Margin rates
While it may be available in the future, Cash App Investing currently doesn’t support margin trading. In other words, if you want to buy $100 worth of a stock, you need to actually have $100 in your account.
Research offerings
Cash App Investing is designed for beginning investors who want to dip their toes into the stock market by investing small amounts of money in blue-chip (high-quality) stocks. It isn’t well-suited for investors who like to analyze stocks on their own, as it doesn’t have access to third-party stock research.
This brokerage is right for you if:
- You’re a beginning investor. Cash App Investing is clearly designed with beginning investors in mind, particularly those who want to invest a small amount of money in stocks. It is not intended for experienced investors, or those who want tons of features.
- You already use Cash App. It can be very useful to keep your finances in as few different places as possible, and if you’re already a fan of Cash App’s other functions, it could be a good reason to invest through Cash App Investing rather than Robinhood or a competing brokerage.
- You don’t care about options, margin, or mutual funds. Cash App Investing allows you to trade stocks. That’s all. If you want any other type of investment vehicle (besides bitcoin), you should look elsewhere.
- You want a standard brokerage account. If you need to open an IRA or any investment account other than a standard taxable brokerage account, or if you want a joint account, you’ll need to open it somewhere else.
Commissions
Like most brokerages, Cash App Investing offers zero-commission stock trades. It doesn’t offer trading in options, mutual funds, and other products that generally still have commissions, so for the time being, Cash App Investing is a totally commission-free platform.
| STOCKS AND ETFS | OPTIONS | MUTUAL FUNDS |
|---|---|---|
| $0 | Not Available | Not Available |
Buying mutual funds
At this time, Cash App Investing is only designed for buying and selling stocks. Mutual funds are not currently offered on the platform, although this could change as additional features are rolled out.
Fees
Since the only thing you can do with Cash App Investing is buy and sell stocks, there are no investment-related fees. Many brokerages charge for things like options trading and mutual fund purchases, but those aren’t offered on the Cash App Investing platform, so investors don’t need to worry about them.
There are some fees for other functions within the Cash App, such as for sending cash to someone with a credit card, or for having cash instantly deposited to a bank account.
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
- Click the investing tab on your homescreen
- Tap the search bar and find a stock by entering a company name or ticker symbol
- Choose the company you want to invest in
- Choose a preset dollar amount or enter a custom amount
- Follow the prompts to verify your personal info
- Confirm transaction with your PIN or Touch ID
Cash App also offers the option to set up automatic purchases of stock or Bitcoin.
Cash App Stock – Investing on Cash App
If you’re looking to get a foot in the world of investing, then you might want to start investing with Cash App.
Buying stocks on Cash App
Once you’ve got an account, the first thing you’ll probably want to do is start buying stock on Cash App.
To buy stock on Cash App, all you need to do is:
- Open Cash App
- Click the “Investing” icon on the Cash App home screen
- Open the search bar and enter either the ticker symbol or company name
- Select the company
- Click “Buy”
- Either select a preset amount or click the three dots icon to enter your desired amount
- Complete the remaining steps for verification
- Confirm the purchase with your Touch ID or enter you PIN⁴
It’s important to remember that you can only buy stock on Cash App when the stock market is open. But you can schedule an investment or a sale 24/7.
| The US stock market is open from Monday to Friday, and its opening hours are: |
|---|
| Central time: 8:30 am – 3 pmEastern time: 9:30 am – 4 pmPacific time: 6:30 am – 1 pmMountain time: 7:30 am – 2 pm⁴ |
Additionally, Cash App also has another cool feature called “Auto-Invest”.
As the name suggests, Auto-Invest allows you to schedule recurring purchases of a stock, so that you don’t even have to think about it. If you’re looking to buy shares in small portions over a period of time, or wanting to consistently invest some of your salary, then Auto-Invest is a neat, easy way to do this.⁵
How to sell stock on Cash App
If you’re wondering how to sell stock on Cash App, then you’ll be glad to know it’s easy to do. Just like with buying stocks on Cash App, selling is a simple process.
To sell your stock, you’ll need to:
- Open Cash App
- Click the “Investing” icon on the Cash App home screen
- Scroll until you reach “My Portfolio”
- Click the company whose stock you wish to sell
- Click sell
- Select either a preset amount or click the three dots icon to enter your desired amount
- Confirm your sale with Touch ID or enter your PIN⁶
Easy, right?
After you’ve confirmed your sale, your money can take up to 2 business days to appear in your Cash App balance.
One thing to note is that Cash App has selling limits.
If you attempt to sell 98% or more of your share, then you’ll be forced to either sell all of your share or choose a lower amount to sell. Similarly, Cash App has a minimum sale limit of $1.⁷
Cash App Stock Fees
Like many of Cash App’s features, it is also free to open a Cash App Investing account. Even better – Cash App doesn’t charge commissions on share sales. That’s right – there are no Cash App stock fees! And, not only are there no commissions, there’s also no minimum balance to maintain the account.⁸ This makes Cash App stock trading very appealing.
One thing to keep in mind is that selling shares may come with tax implications. While Cash App may not charge fees, that doesn’t mean the government won’t. If that’s the case, Cash App will warn you of any taxes before you confirm the trade. If in any doubt, it’s best to contact a tax advisor.⁹
Conclusion
It used to be the case that investing in stocks through cash app was difficult. The equities markets were closed on weekends. Cross-border transactions could take days to clear. It was difficult if you weren’t an accredited investor, or didn’t have access to your brokerage account during regular business hours. The world of stock trading has changed dramatically since then, thanks, in part, to tech startups like Robinhood.