Cash App is like five apps in one streamlined, easy-to-use package. It is rich in features but weak in design. But the thing is, it works. Think of it as a cross between PayPal (or Venmo) and Robinhood, with a bank account thrown to a good extent. You will be able to send and receive money, spend with a debit card from your account, as well as trade stocks and Bitcoin. It is a solid app for newbie investors and a very good one if you want to transfer money. Yet Cash App ends up being something closer to a jack of all trades and a master of nothing.

If you are just starting to invest through a mobile app and are looking for a broker with a cash management account, you should also consider Robinhood or Webull, both of which give you a lot of the functionality of a bank account. If you are looking for someone to manage your portfolio and afford you that attractive bank account, you might want to take a look at Wealthfront.

Best for

• Beginner investors
• Mobile banking users
• Cost-conscious investors

Cash App at a glance

Pros: Where Cash App Stands Out

Easy registration and use

Cash App is so easy to subscribe that you’ll be in your account before you even know you have one. Give your name, add an email or phone number, choose your username (your cashtag, as it’s called) and you’re good to go, even without linking your bank account to transfer funds. Your cashtag acts as an identifier when you want to transfer money peer-to-peer.

Once you’re there, you’ll have an easy-to-navigate app with a few buttons that move you between different functions: money transfer, bank account with debit card, investment account, overview of your finances at Cash App and a referral tab that lets you invite friends and enjoy a $ 15 promotion for those who sign up and fund an account.

The app couldn’t be easier to use. And that can be a plus and a minus: it’s so stripped down you’ll know exactly what to do as soon as you download and open the app, but this design also means it doesn’t offer more advanced features for resorts. things such as investing. Still, the app strikes a good balance, especially for beginners, without being too restrictive.

Low costs and minimum account

It’s incredibly easy to get started with the Cash app: link your bank account and transfer money and you’re there. Or set up direct deposit. Or download the app and ask someone for money. However you start out, it’s easy to maintain the account due to low costs and no minimum account.

To trade stocks you will only need a dollar in your account and of course you will be able to buy fractional shares. This way, you will be able to put all of your investment to profit immediately, rather than having to buy only round shares. It’s a little feature that adds to the functionality. Stock trading does not cost you any fees, in line with the industry’s shift to zero commission, although Bitcoin trading will cost you extra, as explained below.

And if not, you won’t be hit with typical account fees, such as monthly fees or transfer fees for the cash management account. Again, Cash App is like a PayPal or Venmo account with a few additional features. And unlike a rival like Acorns, you won’t have to pay a monthly fee to access the features, although you also won’t get the range of features from this app.

Cash management account

The cash management account offers many basic banking functions, with the ability to send and receive money. You can have a paycheck deposited directly up to two days in advance, and you can get a debit card that offers spending rewards – or “increases” as the company calls them. Again, these are basic functions here, not the full range of benefits with other top cash management accounts.

When it comes to access to ATMs, Cash App will charge you $ 2 at the end of each transaction, although if you have directly deposited at least $ 300 each month, it will reimburse all fees, including the fees. operator.

However, it should be noted that the funds are not FDIC insured, so if anything does happen you are not guaranteed to get your money back. This contrasts with other cash management accounts.

Cash App really helps in using Bitcoin as a currency. The cash management account allows you to make transfers in Bitcoin as well as dollars. Heck, you can even earn your Bitcoin spending if you want to. If crypto is your thing, here’s a way and a place to use it.

Access to Bitcoin

One of the benefits for traders here is the ability to trade Bitcoin. Cash App says it “may” charge a fee when you buy and sell, and by that means Cash App “will charge” a fee. But how much? The app charges a basic service fee for each transaction as well as a fee based on the volatility of Bitcoin traded on US exchanges. Cash App provides you with the fees before you trade, so you won’t be hit with unexpected fees later.

It should also be noted here that Cash App will provide you with the appropriate tax forms if you are trading or spending Bitcoin. This is essential because you will need to report the transactions on your annual return to avoid violating IRS laws. However, determining the basis of your transactions is up to you, says Cash App, so you will need to refer to your transaction data.

Automatic investment

If you’re looking to automatically invest in Bitcoin or a specific stock or ETF, Cash App actually allows you to set up a regular buying schedule. So you can set it up and forget about it with your stock purchases. You can configure the app to buy daily, weekly, or every two weeks, and then it executes your transaction.

This is a cool feature that you might not expect from such a clean app. Investing regularly is the kind of good discipline needed to successfully grow your portfolio.

Cons: where the Cash app could improve

Limited selection of stocks and ETFs

If you plan to buy stocks deep in the weeds (like with other big brokers), you probably won’t find what you’re looking for. But you’ll likely find all the major stocks, with Cash App offering around 1,000 stocks on its platform, meeting most of the demand, the company says.

That said, the goal is to broaden the selection of backed stocks, focusing for now on companies that have a market capitalization of over $ 1 billion and are listed on the New York Stock Exchange or the Nasdaq, as well as a few other criteria. The app notes that it has not removed any securities from its platform, unless they have been acquired by another company, or are otherwise required to do so, through the exchange due to a bankruptcy, for example.

Cash App also offers dozens of ETFs, and you can quickly find what’s available here by clicking on a search tab in the investing feature. You will have access to ETFs from some of the major fund companies, including Vanguard and iShares. The most popular index funds are also represented, so you will have access to the best funds based on the Standard & Poor’s 500 Index and the Nasdaq 100, for example, as well as many other high performing potentials.

Again, the Cash App offering is good within its limits, but may not have that off the beaten track thing you want.

Basic graphics and functionality

Cash App offers simple setup if you click on a stock to view more. You will get basic functionality, for example, on charts, which doesn’t even have numbers and axes, just a line showing where the stock has gone over a few predefined time periods. You’ll also see a basic news feed with links to recent articles about the company and a quick profile of the company.

It’s similar with the rest of the items on the Investment tab. The main investing tab offers you a few pre-selected watchlists, such as the most traded stocks or the biggest players, or you can create your own. If you are looking for a stock by sector, a quick search tab allows you to consult all the stocks offered there. And that’s about the extent of the tools here.

Lack of customer support

You’re dealing with a no-frills app, so don’t expect full service like you would with a broker like Charles Schwab or Fidelity. Cash App has a functional support section on its website, so you can get answers to basic questions. Once you’ve exhausted that option and browsed through the potential responses, only then will you come across the option of contacting support staff via email.

Of course, this approach is consistent with other similar apps like Robinhood, where a response from support can take days. That said, Robinhood’s FAQ section looks more integrated than what you’ll see on Cash App.

At the end of the line

Cash App is a solid offering that lets you do a lot of things in one simple app, especially if you need the basics – banking, spending, money transfer, and basic investing. You will get all of this in an easy to use form and be ready to go within seconds of loading the app.

But others looking for more complex features may be disappointed and want to look elsewhere. Robinhood or Webull could be good alternatives, with more extensive trading capabilities (including other cryptocurrencies) and strong cash management accounts as well. Or Wealthfront offers an even better cash management account and investments to make for me. Finally, those looking for a full brokerage experience can turn to investor-friendly Fidelity and then add one of its attractive cash management accounts to complete the bill.

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