Main advantages

No payment for order flow

In early 2021, Public announced that it would no longer engage in “payment for order flow” (PFOF). With PFOF, brokers route market orders to wholesalers instead of filling them on the exchange. The broker receives a bribe from the wholesaler, but the investor’s order may not be executed at the best price. By dropping the PFOF, public users can be sure that they receive the best price for their transactions. In place of PFOF earnings, Public has introduced an optional feature allowing users to tip the broker.

Fractions of shares

Newbies looking to buy the biggest names in the market are likely to experience sticker shock. Public offers an alternative: fractional shares. Fractional investing allows small investors to buy high-priced stocks. Instead of buying a full share of Amazon.com Inc (AMZN) for more than $3,000, an investor can buy it for $5. This feature significantly lowers the barrier to entry when it comes to a diversified portfolio.

Social Features

Public offers investors a unique social trading experience. With the in-app feed, users can follow each other’s wallets and trades. Additionally, users can post and interact with influencer posts. There’s even a feature to tip content creators for quality posts.

Town halls add yet another layer to the Public community. These virtual events allow users to participate in a live Q&A with senior executives from around the world. Public users get exclusive access to ask questions and view answers through the social feed.

What could be improved

Limited investment options

Currently, Public allows its users to trade only stocks, ETFs, and cryptocurrencies. More traditional investments, including mutual funds, bonds and CDs, are excluded from the mix. Traders with higher risk capacity can look for options contracts, which are also not offered by Public. While Public’s limited options may suit some investors, it leaves a lot to be desired.

Limited account types

Public users can only open a taxable account, which allows trade — but without certain tax advantages. Currently, The public does not offer retirement, custodial or margin accounts. While this model may suit Public’s investor base, it does not fit a wide variety of investor situations.

Cryptographic markings

Crypto traders on Public may not pay commission, but that does not mean that trading will be free. Public’s clearing partner, Apex Crypto, charges a markup on all cryptocurrency transactions. This increase varies between 1% and 2%, and appears in the order execution price. This markup is higher than many other crypto brokers, but it is important to note that other brokers charge commissions where Public does not.