Cash App Review
First launched in 2019, Cash App is still what you would call a “rookie trading platform” – at least when you compare it with other similar platforms. That being said, the trading system still holds quite a lot of promise, helping brokers handle their finances and trade a variety of assets.
If you are just a beginner in terms of investing, you might not know who to place your trust in precisely. Before choosing your broker, you need to undergo enough research – making sure they are compatible with your needs. We are here to make that easier for you.
Who Is Cash App For?
Cash App is a great option for those who are interested in fractional share investments. It’s recommended for those who need a simple investing app with no awkward nooks and crannies. It is also a good option for those looking for a cost-effective app that won’t hit them with a lot of hidden fees.
The following people might find Cash App to be quite useful:
- People who are only starting to invest
- College students with an investing interest
- Investors that don’t necessarily need detailed reports and are investing in the long term
- People that don’t have too much money to spend on investments
- Investors that wish to keep a close eye on market movements, but cannot afford whole share purchases
- People who just want to invest, bit by bit on any dollar amount, in their favorite companies
Cash App is a good option for those who want to know all the basic details and don’t want reports on every move. However, if you do want full reports (chart analysis, returns, news, etc.) this might not be the best option for you. It has a limited number of basic features, making it appropriate for beginners.
Things We Like
Cash App is a mobile app that is very easy to use. It doesn’t have a complicated layout with many fancy features, making it a great choice for someone still learning their way around.
We also liked that they don’t ask for any commissions, and the cash management features are very convenient. Cash App also comes with a debit card, so when you want to make a withdrawal, you can do so immediately, without going through further transfers.
Things We Don’t Like
While we do like the simple layout, it can also be very limiting. The app only allows you to buy or sell stocks and Bitcoin. This means that if your preferences lie in bonds, options, or mutual funds, this may not be the website for you. The account types are also not as diversified, considering there are many people out there with different needs.
Pros / Cons
- Very easy to use
- Cash management features are very convenient
- No commissions
- Simple layout can be limiting
- App only allows you to buy or sell stocks and Bitcoin
- The account types are not diversified
Cash App is a good option for rookie investors that are just starting out, and it is a good alternative for peer-to-peer transfer as well. With that in mind, as a user, you might want to know as much about Cash App as possible.
Who Is Cash App?
Cash App is a payment platform offered by Square Inc. that works on a peer-to-peer basis. With Cash App, you can conveniently transfer money from one person to another, with the money shortly reaching your account. Moreover, since the platform comes with its own debit card, you won’t have to make any other transfers to your debit account; you can use the money right away.
The difference between Cash App and other platforms such as PayPal is that Cash App also comes with an investing feature. With the Cash App broker system, you may invest in the stock market free of charge with overall small deposits. There’s no minimum amount of money required for you to start investing, and you may also place your investments in fractional shares.
Is Cash App Regulated?
Cash App is regulated as “Cash App Investing LLC” and it has a broker-dealer registration with SIPC and FINRA. This means that you can rest assured you are dealing with a legitimate business.
Is Cash App Safe?
Cash App uses encryption on both the website platform and the mobile app, making it a safe option. While it may not have FDIC insurance placed in check, it does have software for detecting fraudulent activities. This means that your money should be safe while you are using the app.
For extra security, you may also want to take a look at the Cash App Security Lock setting. Plus, you have the option of using two-factor authentication, Touch ID, or the Face ID authorization process. You have all security grounds covered with this app.
Countries Cash App Accepts Clients From
Cash App provides services to those residing in the United States, provided they are at least 18 years old. Younger kids may also use the app but will require parental approval and supervision.
Aside from the United States, Cash App is also available in the United Kingdom. Other countries are not supported, usually due to legal restrictions. That being said, the Cash App broker system has plans of expanding in other countries as well.
So far, Cash App has not won any awards. The app is still at the beginning of its path, and it’s very rare for an investing app to win any awards in the first two years.
Range of Offerings and Products
Cash App has quite a wide range of products – the main one being peer-to-peer money transfer. In terms of investments, you have stocks and cryptocurrency – namely, Bitcoin.
Cash App has quite a limited list of stocks available, but you do have several categories that might interest you, as you can see below:
- Banking & Finance
- Food & Drink
- Business Services
- Media & Entertainment
- Sports and Gaming
The product range is still being updated, with Cash App trying to add more features and products every year. That being said, stock investments and fractional shares are the features most people are looking forward to.
Cash App can be accessed on Android or iOS, through the respective stores on these systems. This way, you may easily invest while you are on the go, without concerning yourself with lost time. The mobile app is simple, featuring a bare-bone design – but considering this platform was made for beginners and students in mind, it is exactly the way that it should be.
Account Types and Information
Cash App has two types of main accounts: the personal and the business account. The personal account allows you to send and receive money whenever you need it, in a casual manner. Business accounts are more oriented towards merchants who will send or receive larger amounts of money.
Deposits can be made immediately, through a variety of payment options, including bank transfers, credit/debit cards, ACH deposits, CashCard, and P2P payments. Once transferred, the money will reach your account in 3 days at most. This will not take any deposit fees.
That being said, if you wish for the deposit to be instant, you will have to pay a fee. Usually, it’s 1.5% of the total amount of the sum that you want to deposit.
Cash App does not have a minimum deposit, but when it comes to Bitcoin, there may be a minimum withdrawal instead (0.001 Bitcoin). You will also need a minimum of $1, but otherwise, there’s no need for a minimum.
There is no minimum withdrawal for Cash App from the bank teller, but there is a $2 minimum if you try to get it out of an ATM. There are also certain limits that you need to keep in mind for the maximum transactions, i.e., $250 per day, $1,000 per week, and $1,250 per month.
Users can also go with a demo account. There, you can log in and receive a small $5 bonus from Cash App, which you can use to test out the app. Once you are finished with the demo account, you can proceed to set up your personal or business account.
Cash App Promotions
Cash App has a variety of promotions that you might want to keep in mind, including:
- $5 bonus for creating an account and making a transaction
- $5 bonus for referring a friend (no limit on these bonuses)
- Up to $50 bonus when making direct deposits on a purchase
The promotions change regularly, so you may want to keep an eye on the Cash App main page.
Client Support and Education
On the website, there are various educational resources for those who want to learn more about trading. You can find trading guides, learning articles, videos, and even a very useful FAQ section. For answers you cannot find on the website, you may contact the customer support on email, telephone, social media, or even visit their brick-and-mortar office.
Verdict – Overall Rating
Cash App is a great app for young investors who are only taking an interest in the field. It is quite a versatile app that not only allows you to manage your money but also gives you stock investment options. With time, the app can actually show great potential.
All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. Our reviews and overall scores are based on the key areas above, in a combination with our opinion and commentary.
The reviews are shared and discussed with the brokers, but the authors of our website always have the final word. Furthermore, we always strive to keep the information on our website updated and relevant for our readers.
What helps us stand out is that we always test our brokers with an anonymous live account, to ensure we deliver the most accurate information and experience to our readers. Finally, our reviews and evaluation are always independent of any financial compensation we may receive from the brokers.
There is a very high degree of risk involved in trading securities.
With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more at Wikipedia.
All investments involve risks and are not suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against the loss, in a down market.
There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. More details here.
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