Cash App Investing: A Guide To Getting Started

Cash App is a financial services application available only in the US. It offers peer-to-peer money transfer, a bitcoin and stock exchange, a bitcoin on-chain and lightning wallet, a personalised debit card, a savings account, short-term lending, and other services. To open a Cash App Investing account, you must be 18 or older and provide a social security number, US residential address, employment status, and the name of your employer. Cash App Investing accounts are self-directed individual brokerage accounts. You can buy stocks or ETFs using Cash App Investing. First, search for a company name or ticker symbol, then choose how much of the stock you want to buy, either from a preset amount or a custom amount you enter. You can buy stocks 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.

Opening a Cash App Investing account

To open a Cash App Investing account, you must be 18 or older and a US resident. You will need to provide your Social Security number, US residential address, employment status, and the name of your employer. This information is required to verify your identity and comply with regulations.

Cash App Investing accounts are free to open, require no minimum balance, and do not charge commission fees. However, there may be fees assessed by government agencies such as the SEC and FINRA. These fees are standard across brokerages and will be disclosed before you finalize your trade.

To open your account, simply make your first stock purchase using Cash App Investing. You can invest in a variety of stocks and exchange-traded funds (ETFs) and choose to invest as little as $1.

Cash App Investing accounts are self-directed individual brokerage accounts, and all other account types, such as trading on margin, are not currently supported.

Buying stocks

Cash App is a good option for beginners who want to start investing in stocks. It is a payment system that allows users to transfer money easily and also has a debit card and the opportunity to buy and sell stocks, exchange-traded funds (ETFs), and Bitcoin.

To buy stocks using Cash App Investing, follow these steps:

Step 1:

Tap the "Investing" tab on your Cash App home screen. This is where you will be able to view and manage your investments.

Step 2:

Search for the company you want to invest in by entering its name or ticker symbol in the search bar. You can also browse through a list of available stocks and ETFs, which must be listed on the New York Stock Exchange or Nasdaq, have more than $300 million market capitalization for 30 consecutive days, or have more than 500,000 in average daily trade volume for the prior 60 days.

Step 3:

Select the company whose stock you want to buy. You will then be able to choose how much stock you want to purchase. You can either select a preset amount or enter a custom amount. With Cash App, you can buy fractional shares of a company's stock with as little as $1.

Step 4:

Follow the prompts to verify your personal information and confirm your purchase with your PIN or Touch ID. Make sure you have enough funds in your Cash App balance to cover the purchase. If not, the remaining amount will be debited from your linked debit card.

Step 5:

Once your order is filled, you can view your investment by going back to the "Investing" tab and scrolling down to "My Portfolio." Here, you can see the current value of your investments and manage your portfolio.

It is important to note that stock purchases or sales can be scheduled 24/7, but orders will only be placed during market hours. The U.S. stock market is typically open Monday through Friday, 9:30 AM to 4 PM Eastern Time, but market hours may vary.

Understanding your Cash App Investing account

When you start investing with Cash App, you create a brokerage account with Cash App Investing LLC. Opening a brokerage account, sometimes referred to as an Investing account, allows you to buy and sell stocks and exchange-traded funds (ETFs).

A few things to keep in mind about your Investing account: The balance associated with your Investing account is different from your Cash App balance. This "stock balance" is the total current value of the investments you've made. The securities in your Investing account are held by a third-party custodian, DriveWealth, LLC. The value of your Investing account is shown separately from your general Cash App balance.

When making a stock or ETF purchase, funds from your Cash App Balance are used to purchase the stock or ETF. If more funds are needed to cover the remainder of the transaction, they are pulled from your linked debit card to your Cash App Balance. Any purchased stock or ETF bought through Cash App Investing LLC is held by our carrying broker, DriveWealth, LLC.

Once your stocks and/or ETFs are officially sold, the funds from the sale(s) will be automatically transferred to your Cash App Balance. In other words, the Cash App Investing account holds the stocks or ETFs that you purchase, but it does not hold the funds you receive when you sell your shares. Once you sell your shares, those funds go to your Cash App Balance for you to use on Cash App however you like, including Cashing Out to your linked bank account.

Cash App Investing accounts are considered "zero-balance" accounts. A zero-balance account (ZBA) is an account that maintains a cash balance of $0, but whenever you choose to buy stocks or ETFs, the purchase amount is transferred from your funding account (such as your Cash App Balance) to use for stock and/or ETF purchases within your Cash App Investing account. When you sell stock or ETFs, the proceeds of that sale (a "free credit balance") are automatically transferred out of your Investing account at DriveWealth and to your Cash App Balance.

In the Cash App Investing Customer Account Agreement, you authorise and issue a standing instruction to Cash App Investing and the Carrying Broker to initiate transfers of funds out of your Cash App Investing Account into your Cash App Balance whenever there is a free credit balance. Your Cash App Balance is not Securities Investor Protection Corporation ("SIPC") protected, but it may be subject to other protections. Your Cash App Balance funds may be eligible for FDIC insurance.

Cash App Investing security

Cash App Investing is a service provided by Cash App Investing LLC, a subsidiary of Block, Inc. Cash App Investing LLC is a registered broker-dealer and a member of the Securities Investor Protection Corporation (SIPC). As a member of SIPC, securities in your Cash App Investing account are protected up to $500,000.

To open a Cash App Investing account, you must verify your identity to protect your account and keep Cash App safe. Cash App also uses encryption and fraud detection technology to secure your data and money. Any information you submit is encrypted and sent to Cash App's servers securely, regardless of the type of internet connection you are using.

When sending money to someone new or not in your contacts, Cash App will always ask you to confirm the payment. You will also be notified if your PIN or security settings are changed. Additionally, when sending money internationally or logging in from a new device, Cash App will ask you to confirm details only you would know to keep your money and account secure.

While Cash App does not charge a commission fee for buying or selling stocks or exchange-traded funds (ETFs), there may be fees assessed by government agencies such as the SEC. These fees will be disclosed prior to your confirmation of a trade and listed in the trade confirmation.

Selling stocks

• Open your Cash App and tap the "Money" tab on the home screen.
• Tap on the "Stocks Tile". This will bring up the list of stocks you own.
• Scroll down to the "Stocks Owned" section. Here, you'll see all the companies whose stocks you currently hold.
• Select the company whose stock you want to sell. Let's say you want to sell stocks from Company XYZ. Tap on Company XYZ from the list.
• Decide on the amount of stock you want to sell. You can either select a preset amount or enter a custom amount by tapping the "..." option.
• Confirm the transaction with your PIN or Touch ID. This adds an extra layer of security to your sale.
• The proceeds from the sale will be automatically deposited into your Cash App balance. However, depending on market activity, it may take up to 1 or 2 business days for the funds to appear in your balance.

It's important to keep in mind that selling shares may have tax implications. If you're unsure about how this might affect your specific situation, it's always a good idea to consult a tax advisor for guidance. Additionally, Cash App Investing does not provide investment advice or recommendations, so be sure to do your own research or seek independent financial advice before making any investment decisions.

Frequently asked questions