Cash App Investing: Why You Can't Invest On The Platform

Cash App is a financial services application available 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. Cash App Investing is a subsidiary of Block, Inc. and is best for beginners who want to pick and choose their stocks, ETFs, and fractional shares. It is a free mobile investing app with no account management fees and offers commission-free trading of stocks and ETFs. However, it does not offer mutual funds, futures, or options trading. While Cash App Investing is a decent option for folks already banking through Cash App, it lacks advanced trading tools, account flexibility, investment options, and features.

Cash App Investing is only available to US residents aged 18 or older

Cash App Investing is a convenient way to invest in your favourite companies. With as little as $1, you can purchase stocks and exchange-traded funds (ETFs) with the goal of making a profit. However, it is important to note that Cash App Investing is currently only available to US residents who are 18 years of age or older.

To open a Cash App Investing account, you must be a US resident and meet the minimum age requirement of 18 years. This restriction is in place to comply with legal and regulatory requirements, as well as to ensure that users are of legal age to make financial decisions. By providing your US residential address, social security number, employment status, and employer's name, you can verify your eligibility and identity.

The Cash App Investing account is a self-directed individual brokerage account. This means that you can buy and sell stocks and ETFs directly through the Cash App platform. The balance associated with your Investing account, known as your "stock balance," is separate from your Cash App balance. This "stock balance" represents the total current value of your investments.

While Cash App Investing does not charge any commission fees, there may be external fees assessed by government agencies, such as the SEC, which will be disclosed prior to trade confirmation. Additionally, your Cash App balance funds may be eligible for FDIC insurance, providing protection for your investments.

It is important to remember that investing involves risk, and there is always the possibility of losing money. However, with proper research and understanding of the market, Cash App Investing provides a convenient and accessible platform for eligible US residents aged 18 and above to start their investment journey.

Cash App Investing LLC is a subsidiary of Block, Inc

When you start investing with Cash App, you create a brokerage account with Cash App Investing LLC. This account allows you to buy and sell stocks and exchange-traded funds (ETFs). It is important to note that the balance associated with your Investing account is separate from your Cash App balance. The "stock balance" in your Investing account represents the total current value of your investments.

Your securities are held by a third-party custodian, DriveWealth, LLC. Any stocks or ETFs purchased through Cash App Investing LLC are held by their carrying broker, DriveWealth, LLC. This separation ensures that your Investing account balance, reflecting the value of your investments, is shown independently from your general Cash App balance.

Cash App Investing is a self-directed service, which means you are solely responsible for the orders placed through your account. While Cash App Investing does not provide investment advice or recommendations, it offers various tools and features to assist you in making informed investment decisions. These include access to analyst opinions, earnings reports, and notifications about price changes on stocks you're monitoring.

Additionally, Cash App Investing LLC, as a member of SIPC, provides protection for securities in your account up to $500,000. However, it's important to note that proceeds from the sale of stocks or ETFs are automatically transferred to your Cash App balance, which is not SIPC-protected but may be eligible for FDIC protection.

Cash App Investing accounts are self-directed individual brokerage accounts

Cash App Investing allows you to open a self-directed individual brokerage account. This means that you can buy and sell stocks and exchange-traded funds (ETFs) of your choice. You can choose to invest in a variety of stocks and ETFs, with the ability to purchase smaller pieces of stock, also known as fractional shares, of companies you select. This can be done with as little as $1, allowing you to invest as much or as little as you want.

When you open a Cash App Investing account, you create a brokerage account with Cash App Investing LLC, a subsidiary of Block, Inc. This account is different from your standard Cash App balance, as it is used specifically for buying and selling stocks and ETFs. The balance associated with your Investing account, or "stock balance," represents the total current value of your investments.

Securities in your Investing account are held by a third-party custodian, DriveWealth, LLC. This means that any stocks or ETFs you purchase through Cash App Investing LLC are held by DriveWealth, LLC, acting as the carrying broker. Your Investing account balance is separate from your general Cash App balance, providing a clear distinction between your investment funds and your regular Cash App funds.

With a Cash App Investing account, you have the flexibility to schedule stock purchases or sales 24/7. However, it's important to note that orders will only be placed during market hours. The U.S. stock market operates on weekdays during standard business hours, and market hours may vary depending on certain factors.

Cash App Investing accounts are self-directed, empowering you to make your own investment decisions and execute trades at your discretion. You can utilise the features within the platform, such as alerts on market trends and analyst opinions, to inform your investment choices. This self-directed nature gives you the autonomy to tailor your investment strategy according to your preferences and financial goals.

Cash App does not charge a commission fee

Cash App is an online banking and investing platform that offers accessible, commission-free trading of more than 1,800 stocks and ETFs when you open a brokerage account. This means that Cash App does not charge a fee for buying or selling stocks or ETFs.

Brokerage accounts may charge commission fees of 1 or 2% but with Cash App, investing accounts are free to open, require no minimum balance to maintain, and charge no commission fees. While Cash App Investing does not charge any fees per trade, there may be fees assessed that are required 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.

With Cash App, you can buy fractional shares of a company's stock for as little as $1. Fractional shares are less than one whole share of a company, allowing you to own smaller pieces of stock in companies of your choice. You can also buy stocks and ETFs using funds from your Cash App balance. If you do not have enough funds available, the remaining amount will be debited from your linked debit card.

Cash App's integrated financial services allow you to transfer money to friends, family, and other users. The company also has a debit card that lets you use your account balance to make purchases.

Cash App uses advanced security features to protect your personal information

Cash App is a highly secure platform that safeguards your personal information and transactions with advanced security protocols. The platform is PCI Data Security Standard (PCI-DSS) Level 1 compliant, ensuring that your payment information is always encrypted and transmitted securely to their servers. This encryption safeguards your data regardless of your internet connection, whether you're on public or private Wi-Fi, or using data services like 3G, 4G, or EDGE.

To further bolster security, Cash App employs cutting-edge encryption and fraud detection technology. This technology ensures that your data and money are protected at all times. Additionally, Cash App will always prompt you to confirm a payment before sending money to someone new or unfamiliar, and you will be notified if your PIN or security settings are altered.

For added security, Cash App offers two-factor authentication and the ability to enable a Security Lock. Two-factor authentication provides an extra layer of protection by sending a security code via text or email, which you then enter into the app. The Security Lock feature requires you to set up a PIN code, Touch ID, or Face ID, ensuring that no transactions can be completed without your unique biometric data or PIN.

Cash App also prioritizes privacy, giving you control over the information you share with other users and who can request money from you. This comprehensive suite of security features ensures that your personal information and transactions are protected, providing a safe and reliable platform for your financial activities.

Frequently asked questions