Cash App Investing: Legit Or Scam?

Cash App is a financial services application that offers peer-to-peer money transfer, stock exchange, and other services. It has expanded its features over time and now serves as a legitimate all-in-one financial services app. Cash App Investing is best for beginners who want to pick and choose their stocks, ETFs, and fractional shares. Although a decent option for those already banking through Cash App, it is rather lacklustre regarding advanced trading tools, account flexibility, investment options, and features. It is a good option for those looking for simplified, low-cost banking and investing on the same platform.

Cash App's legitimacy as an investing platform

Cash App is a legitimate investing platform that is best suited for beginners who want to pick and choose their stocks, ETFs, and fractional shares. It is a good option for those who want to prioritise convenience and low costs over advanced features. The platform offers commission-free trading of over 1,800 stocks and ETFs, as well as bitcoin and fractional share investing. It is also possible to open an online brokerage account through Cash App Investing for free.

Cash App is a mobile banking platform that allows users to send, spend, save, and invest money. It was founded in 2013 as Square Cash by Jack Dorsey, who is also the founder of Twitter. The app has since expanded its features and can now serve as an all-in-one financial services app, including peer-to-peer payments, a debit card, and tax filing.

One of the advantages of Cash App is that it provides a simplified, hands-on trading strategy for investors who want to trade on the go. It is also possible to opt in for access to trade fractional shares and bitcoin. However, bitcoin is the only supported cryptocurrency currently available on the platform.

While Cash App is a legitimate platform, it is important to note that it has received some negative reviews regarding its customer service. Additionally, it may not be the best option for serious investors as it lacks advanced trading tools, account flexibility, investment options, and features. It does not offer mutual funds, futures, or options trading, and there is no investment advice or portfolio recommendations provided.

In terms of security, Cash App is Level 1 compliant with the Payment Card Industry Data Security Standard (PCI-DSS). It also offers fraud detection technology and identity verification features. Accounts are protected by SIPC insurance up to $500,000, and users with the Cash App Card have a balance insured by the FDIC up to $250,000. However, it is important to note that there is no FDIC insurance on Cash App balances, which can be a risk for users.

Cash App's features and limitations

Features and Limitations of Cash App

Cash App is a financial technology company that provides banking services through its bank partners. It is not a bank, so your FDIC-insurance protection may be limited.

The app offers a range of features, including:

• Peer-to-peer payments
• Banking services
• Investing
• Cryptocurrency trading
• Direct deposits
• Cash Card (a Visa debit card)
• Cash App Taxes (formerly Credit Karma Tax)
• Cash App Borrow (a feature that allows users to borrow up to $200)

Features for Sponsored Accounts:

• Send, receive and request USD payments ($1,000 per 30 days)
• Cash Out from the balance ($25,000 per 7 days)
• Add Cash to the Cash balance ($7,500 per 30 days)
• Cash Card spending and ATM withdrawals
• Boost instant rewards
• Paper Money Deposit ($250 per 7 days, $1000 per 30 days)
• Bitcoin and stocks (buy, accept gifts, get paid in Bitcoin, and Round Up - up to $400 per 30 days)

Limitations:

• Cash App does not offer investment advice, portfolio recommendations, or an advanced trading platform.
• It does not offer mutual funds, futures, or options trading.
• The only supported cryptocurrency is Bitcoin.
• There are no IRAs, custodial accounts, or margin trading.
• Limited resources and tools.
• There is a $2 fee for cash withdrawals at ATMs, although this is waived for 31 days after a direct deposit of at least $300.
• Cash deposits are charged a $1 fee.
• There is a 3% fee for sending cash via a credit card.
• There is a 1.5% fee for instant deposits to a debit card.
• There is a 1.5% fee for instant cash-outs.
• There may be fees for buying and selling Bitcoin.
• There is no interest paid on account balances.

Cash App's suitability for beginners

Cash App is a suitable platform for beginners in the world of investing. It is a mobile trading platform that offers a simplified, hands-on trading strategy for investors who prioritise convenience over advanced features.

The app is beginner-friendly and provides a low-cost, accessible trading option. It allows users to pick and choose their stocks, ETFs, and fractional shares. Cash App also offers commission-free trading of over 1,800 stocks and ETFs when a brokerage account is opened.

However, it is important to note that Cash App Investing does not offer certain features that more advanced investors may seek, such as mutual funds, futures, or options trading. The app also does not provide investment advice or portfolio recommendations.

For beginners, Cash App can be a good starting point to get familiar with investing and trading. It is important, however, to educate oneself on the basics of investing in the financial markets, including the associated risks.

Cash App's security and customer support

Cash App has a range of security features to protect its users' personal information and money. The platform uses encryption and fraud detection technology to ensure data and money security. Any information submitted by the user is encrypted and sent to the company's servers securely, regardless of the type of internet connection used.

Cash App also employs advanced security features to protect accounts, including identity verification, notifications for suspicious activity, and the requirement to confirm payments to new recipients. The company also provides users with security tips to avoid scams and fraud.

In terms of customer support, Cash App provides phone support daily from 9 am to 7 pm ET at 1 (800) 969-1940. Additionally, users can contact support through the app or the website, cash.app/help. The company also maintains a presence on various social media platforms, including Instagram, TikTok, Reddit, and Facebook, providing users with multiple avenues to seek assistance.

While Cash App has implemented robust security measures, it has faced some security-related issues. In 2024, whistleblowers alleged that the platform lacked sufficient security features to prevent fraudulent activity, leading to complaints and potential investigations. There have also been data breaches and lawsuits regarding personal data security. However, Cash App has an A+ rating with the Better Business Bureau, indicating responsiveness to customer complaints.

Cash App's reputation and customer reviews

Cash App has received mixed reviews from customers. On Trustpilot, the app has a poor rating of 1.2/5 from nearly 3,000 reviews. Many users have complained about the app's poor customer service, lack of FDIC insurance on balances, and issues with fraudulent transactions and unauthorised withdrawals. Several users have also reported issues with the app's security, including cases of data breaches and identity theft.

On the other hand, Cash App has an A+ rating from the Better Business Bureau (BBB), indicating that it responds to complaints in a timely manner. The app is also wildly popular, with over 2 million ratings on the Apple App Store and 655,000 on the Google Play Store. Many users appreciate the convenience and versatility of the app, especially its seamless money transfers and the ability to invest in stocks, ETFs, and Bitcoin all within the same app.

In terms of security, Cash App uses encryption software and fraud detection technology to protect users' personal information and money. The app also offers additional security features such as two-factor authentication and phone authorisation processes. However, there have been concerns about the app's ability to prevent fraudulent activity, with whistleblowers alleging that Cash App lacked sufficient security features to prevent money laundering.

Overall, while Cash App has received positive reviews for its convenience and ease of use, there are also significant concerns about its security, customer service, and lack of FDIC insurance on balances.

Frequently asked questions