You might be wondering how stocks work on Cash App. If you’re new to investing, then this article is perfect for you. We all love the idea of making money right away and it seems like stock investing can let you do just that. But before you dive headfirst into the world of stock trading, there are a few things you need to know about stocks on Cash App. By learning more about stocks in general, you’ll be able to decide if they’re worth your time or not.
If you’ve never used a stock on the Cash App, you may be wondering how stocks work on the Cash App. If you’re already a seasoned investor on the app, but want to improve your investing strategy, this is the article for you. Nope, seriously. I took a selfie of my face discussing how stock working on the Cash App.
To buy stock using Cash App Investing:
- Tap the Investing tab on your Cash App home screen
- Tap the search bar and enter a company name or ticker symbol
- Select the company whose stock you want to buy
- Press Buy
- Select a preset amount or tap … to enter a custom amount
- Follow the prompts to verify your personal information
- Confirm with your PIN or Touch ID
Stock can be purchased using the funds in your Cash App balance. If you do not have enough funds available, the remaining amount will be debited from your linked debit card.
Once the order is filled, you can view your investment by tapping the Investing tab on your Cash App home screen and scrolling down to My Portfolio.
Stock purchases or sales can be scheduled 24/7. However, orders will only be placed during market hours. The U.S. stock market is open Monday–Friday during the following hours:
Eastern time: 9:30 AM – 4 PM Central time: 8:30 AM – 3 PM Mountain time: 7:30 AM – 2 PM Pacific time: 6:30 AM – 1 PM
Market hours may vary depending on a number of factors. A complete schedule of when the market is open or closed can be found here: NYSE Market Hours.
Cash App Investing Review
This platform is a good fit for: Beginning investors may see the most value, both from the lack of commissions and ability to invest small amounts via fractional share purchases. Investors wanting to use Cash App for IRAs and other investments (for example, options and mutual funds) will want to look elsewhere. We’ll be keeping an eye on these additional features, since the app may become a more robust investing platform in coming months and years.
Pros
- No commissions
- Great for beginning investors with fractional share investing
- Cash management features
Cons
- Limited investment options
- Limited account types
Top perks
Easy to use
Investing with Cash App is designed to be as easy to use as possible. One of the biggest obstacles non-investors complain about is they “don’t know how to get started.” With Cash App Investing, it’s easy. Simply open the Cash App, decide how much you want to invest in a particular stock, and make a purchase. The app needs to collect some legally required information such as your Social Security number, but it’s a quick and easy process.
No commissions
Like many brokerages, Cash App Investing doesn’t charge commissions for stock transactions.
Fractional shares investing
Cash App Investing is one of the few options for investors who want the ability to buy fractional shares of stock. For example, to buy one share of Amazon.com, you’ll need more than $3,120 as of mid-January 2021. With Cash App Investing, you can buy a piece of your favorite stocks for as little as $1.
Cash App integration
To trade stocks using Cash App Investing, you don’t need a separate app. You can trade stocks, send and receive money from other Cash App users, buy and sell bitcoin, and more.
What could be improved
Nothing but stocks
Cash App Investing allows investors to buy and sell stocks (and bitcoin, elsewhere in the Cash App), but does not support mutual funds, stock options, or bonds. While these and other types of investments may eventually be offered, Cash App Investing is not an excellent option for people who want to invest in pretty much anything other than stocks and ETFs.
Tools and research
Cash App Investing offers some tools for beginning investors, such as its “my first stock” tutorial, but it doesn’t offer access to stock research or thorough educational tools. The platform is designed for beginning investors and those who just want to dip their toes into the stock market. Investors who want to learn more or take a more analytical approach to choosing stocks may be better served with another brokerage.
IRAs or other account types
The only account type offered by Cash App Investing is standard, taxable, self-directed brokerage accounts. You can’t open a joint account, and the platform doesn’t support IRAs, solo 401(k)s, trusts, educational accounts, UTMA accounts, or any other type offered by other brokerages.
No margin
To be clear, at The Ascent we generally discourage investors from trading on margin, which essentially means buying stocks with borrowed money. However, there are some cases where it can make sense, and many active investors like having margin access. At this point, Cash App Investing doesn’t support margin trading.
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 its clearing broker, Axos, 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.
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.
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
Stocks and bonds usually appear as separate lines on your Cash App account. Most people don’t know how to use stocks and can also be confused about what stocks to buy. We at Cash App Trading 101 will help. Visit our site if you would like to learn more about the stocks and bonds on Cash App.