Square announced today that you will soon be able to invest– buy or sell in stocks using is CASH app. The investment will start at a very minimum price of $1. It doesn’t mean that you will be able to buy a full share of Apple or for any other big organization. But you will be investing in a fraction of a share, whatever that $1 will get you.
This concept of fractional share is not new in the investment trend. You can already do fractional share investment with some other apps for instance Stockpile or Betterment. Stockpile also offers you a unique approach to buying and selling fractional shares of nearly any company. Alternatively, you can fund an account with a stock gift card that gives the lucky recipient shares of stock starting at $5.
Fractional shares are something that you’ll be able to do even if your money is managed by the investment giant Charles Schwab. He plans to eliminate commissions for US stocks, exchange trading funds, and more options. In the last week, he made a statement that it would introduce fractional shares trading to help attract young customers.
For years, free stock trading was the purview of only a few platforms like Robinhood Market incorporation, which now has a valuation of $7.6 billion. Square states that buying stocks on the Cash App won’t’ have any fees involved. Without taking any fees it is putting its application in direct competition with the popular free stock trading app- Robinhood. Though Robinhood does not support selling and buying a fractional share, the cash app does have its one leg up on Robinhood. Robinhood offers free stock trades and it doesn’t mean free in real, but with fees and other costs. The trades have zero commission in Robinhood. It also provides you an upgrade of Robinhood gold for a fee that gives extended training hours and margin accounts to investors.
Stock trading was first said to come to the Cash App earlier this year. Investing isn’t entirely new to the cash app. Square’s Cash App started out by letting customers to transfer money to friends and has since expanded into debit cards and bitcoin trading. It was used to buy the bitcoins already. But this stands on a much larger scale, as there will be many more potential investments to choose from. Cash apps with the addition of stock trading becomes more useful as an all-in-one money manager. It is the best app for moving money between investments, banks, and peers. In September, the company started testing the new feature of its Cash App. Now, Square has begun rolling it out to non-employees, though it’s still only available to a small subset of the app’s customer, a company spokesperson said. The product will be available for all investors by the end of 2019.