Cash App Investing Review: Look Out Robinhood
Square’s Cash App investing service is the latest to challenge Robinhood in the mobile space. However, the changes to Cash App were no surprise to many people. And Square is already a payments giant that can be found on smartphones the world over.
Cash App, based in San Francisco, is now offering 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 Square 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?
The biggest difference between Cash App and Robinhood is its simplicity and ability to purchase fractional shares. This type of stock trading is encouraging young people to begin investing at their own pace.
For example, Twitter is currently trading at $32.86 per share at the time of writing. That’s a lot of money for most 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 $300,000 a share. Have no fear, as you can buy fractional shares of the giant holding company through Cash App.
Square’s Rise and New Growth With Cash App
With its new investing service, Square is now set to compete with Robinhood and its 6 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 made an instant impact with consumers in the South and Midwest, according to The Fool.
Cash App downloads have outpaced Venmo for months and show no signs of slowing down. The bitcoin trading and investing service also gives Square the ability to cross-sell its users on certain features.
Cash App investing services officially went live in late November after its announcement in October of 2019.
Investing is now live for all Cash App customers. $1 is all you need to start investing in your favorite companies. pic.twitter.com/v2cQwElZ7z
— Cash App (@CashApp) November 21, 2019
It’s now the 15th most downloaded app on IOS and 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 Square is taking advantage with its popular mobile payment app.
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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.