Cash App Investing Review: Look Out Robinhood
Block’s Cash App investing service is on of the latest to challenges Robinhood in the mobile space. However, the changes to Cash App were no surprise to many people. And Block (formerly Square) is already a payments giant that can be found on smartphones the world over.
Cash App, based in San Francisco, now offers its users the ability to trade individual stocks on its application for free. Moreover, you can trade fractional shares of stock in a similar way to the Stockpile app or Betterment app.
What is Cash App Investing?
Cash App investing was originally launched in November of 2019. Since its release, the mobile payment service’s dive into the investment space has taken off.
Originally, Cash App allowed users solely to transfer money to one another. By 2018, it began supporting bitcoin trading and ACH (automated clearing house) direct deposits. After transferring the money to another user, you can then withdraw the money via the company’s own Visa debit card or at ATMs. In addition, you can transfer the money to a local bank account.
More features will continue to be added in the future, but the stock trading is already a huge hit. For example, Cash App investing allows you to:
- Begin trading and investing with as little as $1.
- Buy a fraction of a share in major companies such as Apple or Twitter.
- Purchase stocks without any fees at all.
- Have access to buying pieces of major blue chip stocks.
The features above are a great way for Block to attract young investors. You can now dip your toes into the investment waters with major businesses that you support and already utilize in your life.
What Are Fractional Shares?
Let’s start with a real-world example. Twitter (NYSE: TWTR) is trading at $34.17 per share at the time of writing. That’s a lot of money for some novice and inexperienced investors. Yet if you are constantly tweeting and have grown to love the social network, Cash App investing gives you an opportunity to buy fractional shares of Twitter for as low as $1.
You can do this with any major company on the stock market, such as Facebook, Apple, Google, Tesla and more. In fact, the most expensive stock on the market today is Berkshire Hathaway Class A at over $480,000 a share. Have no fear, as you can buy fractional shares of the giant holding company through Cash App.
Block’s Rise and New Growth With Cash App
With its investing service, Block is now set to compete with Robinhood and its 17 million users. However, this isn’t the first time Cash App has encroached on its competitors. PayPal’s Venmo has already taken hits from Cash App’s growth. The application’s marketing efforts and exciting features reportedly made an instant impact with consumers in the South and Midwest.
Cash App downloads have outpaced Venmo for months and show no signs of slowing down. The bitcoin trading and investing service also gives Block the ability to cross-sell its users on certain features.
It’s now the 12th most downloaded app on IOS and one of the best overall for free finance apps. That’s more than rising food service DoorDash, social powerhouse Twitter and the DIY gurus on Pinterest.
Find Your Investment Footing With Cash App Investing
It’s encouraging to see the recent growth in the investing space as many companies are now targeting younger audiences. The largest spike can be seen in mobile and Block is taking advantage with its popular mobile payment app.
There’s now a place for anyone and everyone to learn more about stock trading. As more companies venture into the market, don’t overlook Cash App investing as it continues to raise the bar in the future.
About Corey Mann
Corey Mann is the Content Manager of Investment U. He has more than 10 years of experience as a journalist and content creator. Since 2012, Corey’s work has been featured in major publications such as The Virginian-Pilot, The Washington Post, CNN, MSNBC and more. When Corey isn’t focusing on Investment U, he enjoys traveling with his wife, going to Yankees games and spending time with his family.