Best Free Stock Trading Apps December 1, 2023

Best Free Stock Trading Apps. While I don’t have real-time access to the internet or databases, I can provide information based on the knowledge available up to September 2023. Thus, the details may not be fully accurate or applicable for the current date. Here’s a list of some popular free stock trading apps that were widely used and recognized up until that point:

Table of Contents

Best Free Stock Trading Apps

1. Robinhood

Features: Commission-free trades, options, ETFs, and cryptocurrency trading.
Pros: User-friendly interface, no minimum deposit.
Cons: Has faced scrutiny and lawsuits over its business practices and outage issues.

2. WeBull

Features: Commission-free trades, extended trading hours, and a robust set of research tools.
Pros: Advanced charts and analysis options.
Cons: Can be overwhelming for new traders due to its multitude of features.

3. **E*TRADE**

Features: Variety of investments, including stocks, ETFs, and mutual funds.
Pros: Extensive research and educational resources.
Cons: Some advanced features may require a premium subscription.

4. TD Ameritrade

Features: Offers a range of investments and has educational resources for new traders.
Pros: Excellent customer service and research resources.
Cons: Acquired by Charles Schwab, future changes to the platform are uncertain.

5. Fidelity

Features: Wide range of investment options and extensive research tools.
Pros: No account minimums and strong customer service.
Cons: Website navigation may be challenging for some users.

6. Acorns

Features: Rounds up your purchases to the nearest dollar and invests the spare change.
Pros: Great for passive investors and beginners.
Cons: Monthly fee (though low) and limited investment options.

7. M1 Finance

Features: Allows for automated investing in a custom portfolio.
Pros: No trading fees and offers fractional shares.
Cons: Not suitable for active traders due to trading window limitations.

8. Charles Schwab

Features: Provides a wide array of investment options and research resources.
Pros: Strong reputation and customer service.
Cons: Some features might be complex for beginners.

9. Ally Invest

Features: A robust platform that caters to both new and experienced investors.
Pros: User-friendly and no account minimums.
Cons: Limited in-person support since it’s primarily an online platform.

10. Cash App

Features: Allows users to trade stocks and Bitcoin, along with peer-to-peer money transfers.
Pros: Simple and easy to use.
Cons: Limited investment and analysis options.

Notes:

Regulation and Safety: Always ensure that the app/platform you choose is regulated by a recognized financial authority.
Fees: While many apps advertise “commission-free” trading, there may be other fees involved, such as margin fees or fees for using premium features.
Investment Strategies: Different platforms may cater better to different investment strategies (e.g., passive vs. active trading).
User Experience: Consider the user interface and experience, especially if you are new to trading.
Educational Resources: Look for platforms that offer educational resources to help you make informed decisions.

Always do thorough research or consult with a financial advisor before making investment decisions, and make sure to check for the most recent reviews and updates regarding these apps.

Robinhood

Robinhood is a popular stock trading app that pioneered commission-free trading, making it easier and more accessible for people to invest in the stock market. Here’s a closer look at the platform:

Overview

Founded: 2013
Founders: Vladimir Tenev and Baiju Bhatt
Headquarters: Menlo Park, California, United States

Features

Commission-Free Trading:
- Allows users to buy and sell stocks, options, and cryptocurrencies without commission fees.
Fractional Shares:
- Enables users to buy fractions of a share for as little as $1, making it easier to invest in companies with high per-share prices.
Ease of Use:
- Known for its simple, user-friendly interface that is accessible to beginners.
Cryptocurrency Trading:
- Allows trading in various cryptocurrencies like Bitcoin, Ethereum, and more.
Cash Management:
- Offers a cash management account that comes with a debit card and earns interest.
Extended Trading Hours:
- Provides access to extended trading hours, which run from 9:00 AM to 6:00 PM EST.
Robinhood Gold:
- A premium subscription service that offers additional benefits like professional research reports, and bigger instant deposits.

Pros and Cons

Pros:

Accessibility: Easy for beginners to start trading.
No Minimum Deposit: Except for Robinhood Gold, which requires a $2,000 minimum balance.
Versatility: Offers a wide range of investment options including stocks, ETFs, options, and cryptocurrencies.

Cons:

Customer Service: Has faced criticism for limited customer service options and response times.
Outages: Has experienced outages during peak trading times.
Controversies: Faced regulatory scrutiny and user backlash, especially notable during the GameStop trading saga in early 2021.

Safety and Regulation

Robinhood is regulated by the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA).
It is also a member of the Securities Investor Protection Corporation (SIPC), which means securities in member’s accounts are protected up to $500,000.

Important Notes

Robinhood’s approach to making investing more accessible has been both praised for democratizing finance and criticized for potentially encouraging over-trading.
The platform has faced various controversies and legal challenges, including its handling of the GameStop trading frenzy in 2021, where it restricted trades on certain stocks.

Conclusion

While Robinhood has played a significant role in opening up the stock market to a new generation of traders, it’s crucial to understand its limitations and the risks involved in trading. Always conduct thorough research or consult with a financial advisor before making any investment decisions.

WeBull

WeBull is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) in the United States. Here’s a detailed breakdown:

Overview

Founded: 2017
CEO: Anthony Denier
Headquarters: New York, United States

Features

Commission-Free Trading:
- Offers commission-free trading on stocks, ETFs, and options.
Extended Trading Hours:
- Provides access to extended trading hours, which include pre-market (4:00 AM to 9:30 AM EST) and after hours (4:00 PM to 8:00 PM EST).
Technical Tools and Indicators:
- Offers a variety of charting tools, technical indicators, and analysis tools suitable for both novice and experienced traders.
Cryptocurrency Trading:
- Allows users to trade cryptocurrencies like Bitcoin, Ethereum, and more.
Paper Trading:
- Offers a paper trading feature, allowing users to practice trading with virtual money.
IRA Accounts:
- Offers traditional, Roth, and Rollover IRA accounts.

Pros and Cons

Pros:

Advanced Tools: Offers advanced trading and analysis tools.
Educational Resources: Provides a range of educational materials and a demo trading feature.
Versatility: Wide range of investment options including stocks, ETFs, options, and cryptocurrencies.

Cons:

Complex Interface: Some users might find the platform’s interface and the advanced tools overwhelming.
Customer Service: Some users have reported experiencing delays in customer service response times.
Limited Account Types: Does not support custodial accounts and certain types of business/corporate accounts.

Safety and Regulation

WeBull is regulated by the SEC and FINRA, providing a degree of safety and oversight.
It is also a member of the Securities Investor Protection Corporation (SIPC), which provides limited protection in the event of a brokerage failure.

Usage and Accessibility

WeBull is known for its easy-to-navigate mobile app, which is available on Android and iOS, and also offers a desktop platform.
The platform aims to cater to both beginners and experienced traders, providing a wide range of trading and analysis tools.

Important Notes

WeBull appeals to traders with its advanced data and research tools. However, it’s crucial for users to familiarize themselves with the platform and its functionalities.
The platform also offers a community feature, where traders can discuss trading strategies and stock movements.

Conclusion

WeBull has been appreciated by traders for its robust set of tools and commission-free trading. However, like any investment platform, it’s vital to understand how to navigate and utilize the tools effectively to make informed trading decisions.

E*TRADE

E*TRADE is a well-known online trading platform that allows users to invest in various financial securities, including stocks, options, ETFs, mutual funds, and more. ETRADE was acquired by Morgan Stanley in 2020, but it continues to operate as an independent brand. Below is a more detailed overview of ETRADE:

Overview

Founded: 1982
Acquisition: Acquired by Morgan Stanley in 2020
Headquarters: New York City, United States

Features

Diverse Investment Options:
- Provides a wide range of investment options, including stocks, options, futures, ETFs, and mutual funds.
Various Account Types:
- Offers a variety of account types, including brokerage, retirement, and managed portfolios.
Educational Resources:
- Hosts a plethora of educational materials and tools to help both new and experienced investors navigate the markets.
Trading Platforms:
- Offers several platforms suitable for different levels of traders, including Power ETRADE and ETRADE Pro.
Retirement Planning:
- Provides tools and resources for retirement planning, including IRAs and 401(k) rollovers.
Robo-Advisor:
- E*TRADE Capital Management serves as a robo-advisor, offering automated and professionally managed portfolios.

Pros and Cons

Pros:

Extensive Resources: Offers a wide range of educational resources and research tools.
Versatility: Provides various investment options and account types.
User-Friendly: Platforms are generally considered user-friendly and accessible.

Cons:

Fees: Some mutual funds and premium services may come with fees.
Complexity: The wealth of tools and options can be overwhelming for beginners.

Safety and Regulation

E*TRADE is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
It is a member of the Securities Investor Protection Corporation (SIPC), which provides up to $500,000 (including $250,000 for claims for cash) per customer in case the brokerage fails.

Usage and Accessibility

E*TRADE provides user-friendly platforms accessible via web and mobile apps.
It caters to both novice investors with its basic platform and experienced traders with E*TRADE Pro, which offers more advanced tools and analytics.

Important Notes

The acquisition by Morgan Stanley may potentially lead to changes or integrations in the future, impacting the platform’s offerings or user experience.
E*TRADE has been recognized for its tools, platforms, and educational resources that cater to various investor needs and experience levels.

Conclusion

E*TRADE is a versatile platform that caters to a wide range of investors with its comprehensive offerings and tools. Whether you’re a beginner or an experienced trader, it provides a robust platform to manage your investments. Always ensure to research thoroughly and understand the platform, fees, and investment strategies before diving in.

TD Ameritrade

TD Ameritrade is one of the largest and most widely recognized online brokerage firms in the United States. It offers a wide array of investment options, educational resources, and trading platforms to accommodate both novice and experienced traders.

Overview

Founded: 1971
Headquarters: Omaha, Nebraska, United States
Acquisition: Acquired by Charles Schwab Corporation in 2020

Features

Diverse Investment Options:
- Offers a range of investment options including stocks, bonds, ETFs, mutual funds, options, futures, and Forex.
Trading Platforms:
- Provides several trading platforms like the web-based platform, thinkorswim (for advanced traders), and a mobile app.
Educational Resources:
- Hosts extensive educational content through articles, videos, webcasts, and immersive courses.
Research Tools:
- Offers robust research tools, providing access to third-party research, news, and market data.
Customer Support:
- Known for providing robust customer support, including 24/7 phone support and branch offices in various locations.
No Minimum Deposit:
- No minimum deposit requirement for opening a standard account.

Pros and Cons

Pros:

Comprehensive Tools: Offers advanced tools and platforms, particularly thinkorswim, for detailed analysis and trading.
Educational Content: Extensive educational materials suitable for beginners and experienced investors alike.
Customer Service: High-quality customer service with various support channels.

Cons:

Platform Complexity: Some users might find the advanced platform, thinkorswim, to be complex and challenging to navigate initially.
Potentially Changing Features: With the acquisition by Charles Schwab, some features or policies may change.

Safety and Regulation

TD Ameritrade is regulated by major regulatory bodies, including the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
It is a member of the Securities Investor Protection Corporation (SIPC), providing protection up to $500,000 per customer for lost securities in case of brokerage failure.

Usage and Accessibility

TD Ameritrade offers various platforms tailored to different levels of trading expertise, available on web and mobile.
The thinkorswim platform, recognized for its advanced features, is suitable for professional and experienced traders.

Important Notes

The acquisition by Charles Schwab may introduce changes to the platforms, fees, or features offered by TD Ameritrade in the future.
TD Ameritrade has historically been recognized for its wide-ranging tools, comprehensive educational content, and commendable customer service.

Conclusion

TD Ameritrade has been a substantial player in the online brokerage space, appreciated for its extensive offerings and robust platforms. It caters to the needs of a wide range of investors, providing resources and tools to navigate the financial markets effectively. However, it’s vital to keep abreast of any changes that may occur due to its acquisition by Charles Schwab.

Fidelity

Fidelity Investments is a major player in the financial services industry, known for its wide range of services that cater to individual investors, traders, and institutions. It provides various investment products, robust trading platforms, and comprehensive research and educational resources.

Overview

Founded: 1946
Founder: Edward C. Johnson II
Headquarters: Boston, Massachusetts, United States

Features

Diverse Investment Products:
- Offers a variety of investment options, including stocks, bonds, ETFs, mutual funds, and more.
Trading Platforms:
- Provides several platforms, including a web platform, Active Trader Pro, and a mobile app.
Research and Tools:
- Offers comprehensive research tools and access to detailed market analysis and third-party research.
Educational Resources:
- Provides a wide array of educational content, including articles, videos, and webinars, suitable for investors of all levels.
Retirement Planning:
- Offers various retirement planning services and tools, along with a wide range of account types like IRAs.
Robo-Advisor – Fidelity Go:
- Provides a robo-advisor service that offers automated investment management.

Pros and Cons

Pros:

Robust Research: Extensive research tools and resources to aid investment decisions.
No Minimum to Open: No minimum deposit requirement for opening a standard retail account.
Diverse Offerings: Wide range of investment products and services.
Customer Service: Renowned for its customer service and investor support.

Cons:

Platform Complexity: Some users might find certain platforms or tools complex or difficult to navigate.
Fees: Certain services or investment options may come with associated fees.

Safety and Regulation

Fidelity is regulated by major financial regulatory bodies, including the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
It is also a member of the Securities Investor Protection Corporation (SIPC), which provides up to $500,000 (including a $250,000 limit for cash) of coverage per customer in case the brokerage fails.

Usage and Accessibility

Fidelity offers a user-friendly website, a mobile app for on-the-go investing, and the Active Trader Pro platform for more advanced traders.
The platforms cater to both novice investors and experienced traders with a variety of tools and resources.

Important Notes

Fidelity is known for its customer-centric approach, providing various resources and support to assist investors in their financial journey.
The firm has a long-standing reputation in the industry and is often recognized for its research, educational resources, and customer service.

Conclusion

Fidelity stands out for its comprehensive offerings, thorough research resources, and robust trading platforms, catering to a wide array of investors and traders. Whether you’re a beginner, a seasoned trader, or planning for retirement, Fidelity offers a robust set of tools and resources to support your investment journey. Always ensure to research thoroughly and understand the platform, fees, and investment strategies before starting your investment journey.

Acorns

Acorns is a financial technology and financial services company that specializes in micro-investing and robo-investing. It provides a user-friendly platform that automatically invests your spare change from everyday transactions into diversified portfolios. The service is designed to simplify investing and make it more accessible to beginners and casual investors.

Overview

Founded: 2012
Founders: Walter and Jeff Cruttenden
Headquarters: Irvine, California, United States

Features

Round-Ups:
- Automatically rounds up your everyday purchases to the nearest dollar and invests the spare change.
Investment Portfolios:
- Offers a range of investment portfolios, created with the help of Nobel Prize-winning economist Dr. Harry Markowitz.
Recurring Investments:
- Allows users to set up daily, weekly, or monthly investments.
Educational Content:
- Provides simple and straightforward educational content to help users understand financial basics.
Retirement Accounts:
- Offers Acorns Later, which allows users to set up IRA accounts to save for retirement.
Acorns Spend:
- A checking account with a debit card that allows for local and online transactions, while also facilitating round-up investments.

Pros and Cons

Pros:

User-Friendly: Simple and easy-to-understand platform, suitable for beginners.
Automatic Investing: Makes investing seamless and habitual by automating the process.
No Minimum Investment: No minimum investment requirement for the basic account.

Cons:

Fees: Monthly fees on accounts, which may be high relative to small investment balances.
Limited Investment Options: Investment is restricted to the portfolios provided by Acorns.
Not for Active Traders: Designed for passive, long-term investing rather than active trading.

Safety and Regulation

Acorns is regulated by the Securities and Exchange Commission (SEC) and adheres to industry-standard protection measures.
The accounts are SIPC protected, providing coverage up to $500,000 in securities per customer in the event of broker failure.

Usage and Accessibility

Acorns is accessible via a mobile app available on Android and iOS, as well as through a web platform.
The app is designed with simplicity in mind, making it suitable for individuals who are new to investing.

Important Notes

Acorns primarily targets individuals who are new to investing or who prefer a hands-off investment strategy.
The platform automates the investment process, making it a useful tool for individuals looking to get started with investing without getting overwhelmed by the details.

Conclusion

Acorns offers a straightforward and automated approach to investing, which is particularly beneficial for beginners or those who prefer a passive investment strategy. It simplifies the investment process by automatically investing spare change and providing pre-built portfolios to remove the complexity of investment choices. However, it’s crucial to consider the fees and ensure that the platform aligns with your investment goals and strategies.

M1 Finance

M1 Finance is a financial services company that blends robo-advisor functionality with certain features typically found in traditional brokerages. The platform is known for its “Pie” investment strategy, where users create their own “Pies” or choose from pre-built options, and M1 Finance automatically manages the investments.

Overview

Founded: 2015
Founder: Brian Barnes
Headquarters: Chicago, Illinois, United States

Features

Pies Investment Strategy:
- Allows users to create “Pies,” which are visual representations of their investment portfolio. Each slice represents an investment, such as a stock or ETF.
Automated Investing:
- Once users create a Pie, M1 Finance automatically manages the investments, rebalancing when contributions are made and when slices are adjusted.
Borrowing:
- Offers M1 Borrow, which allows users to take a loan of up to 35% of their portfolio’s value.
M1 Spend:
- Provides a checking account and debit card, allowing users to spend directly from their M1 account.
Fractional Shares:
- Enables users to buy fractional shares of companies and ETFs.
No Trading Commissions:
- Does not charge trading commissions or asset management fees.

Pros and Cons

Pros:

Customization: Allows users to customize their portfolios according to their investment goals and risk tolerance.
Automation: Automated rebalancing and investing take the stress out of managing a portfolio.
No Commission: Offers commission-free trading and no management fees.

Cons:

Limited Trading Windows: Offers one or two trading windows per day, which might not be suitable for active traders.
Customer Service: Some users have noted that the customer service may be less responsive than desired.
No Tax-Loss Harvesting: Does not offer tax-loss harvesting features.

Safety and Regulation

M1 Finance is regulated by the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA).
It is also a member of the Securities Investor Protection Corporation (SIPC), which provides up to $500,000 (including $250,000 for claims for cash) per customer in case the brokerage fails.

Usage and Accessibility

M1 Finance is accessible via a web platform and a mobile app, available on Android and iOS.
The platform is designed to be user-friendly, allowing users to easily create, modify, and visualize their Pies.

Important Notes

M1 Finance is most suitable for long-term investors due to its automated investment strategy and limited trading windows.
The platform is designed for passive investors who prefer a hands-off investment approach but want more control over their portfolio compared to traditional robo-advisors.

Conclusion

M1 Finance offers a unique blend of automated investing with personalized portfolio construction, making it a compelling option for passive investors who want a bit more control over their investments. With its Pie strategy, users can visualize and understand their investments while still benefiting from automated management and rebalancing. Always ensure to research thoroughly and understand the platform, fees, and investment strategies before diving in.

Charles Schwab

Charles Schwab is a prominent brokerage and banking firm recognized for providing a range of financial services, including investment management, trading, and banking solutions to individual and institutional investors.

Overview

Founded: 1971
Founder: Charles R. Schwab
Headquarters: Westlake, Texas, United States

Features

Diverse Investment Options:
- Offers a wide range of investment products, including stocks, bonds, ETFs, mutual funds, and more.
Trading Platforms:
- Provides various trading platforms, such as StreetSmart Edge for advanced traders, and web and mobile platforms for casual investors.
Robo-Advisor – Schwab Intelligent Portfolios:
- Offers automated investing with custom portfolios through its robo-advisor service.
Educational Resources:
- Provides a wealth of educational materials, including articles, videos, webinars, and more, catering to investors of all levels.
Research Tools:
- Offers robust research tools, including proprietary and third-party research reports, to aid investment decision-making.
Customer Service:
- Known for strong customer support, with 24/7 phone support and numerous branch locations for in-person assistance.

Pros and Cons

Pros:

Comprehensive Offerings: Wide range of investment options and account types.
Strong Research and Tools: Extensive research resources and user-friendly tools.
No Account Minimums: No minimum deposit requirement for opening a brokerage account.
Customer Support: Strong customer service with various channels of support.

Cons:

Fees: While many trades are commission-free, certain transactions (like mutual fund trades) might incur fees.
Platform Diversity: The variety of platforms may be overwhelming for some users to navigate and decide among.

Safety and Regulation

Charles Schwab is regulated by key financial bodies, including the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
It is a member of the Securities Investor Protection Corporation (SIPC), which provides up to $500,000 in protection per customer in case the brokerage fails.

Usage and Accessibility

Charles Schwab provides several platforms to cater to investors of varying expertise, available on web, desktop (StreetSmart Edge), and mobile.
The firm is recognized for offering a balance of user-friendly interfaces with robust tools across its platforms.

Important Notes

Charles Schwab has a strong reputation in the industry for its customer-centric approach, comprehensive offerings, and robust support and educational resources.
In 2020, Charles Schwab acquired TD Ameritrade, potentially leading to platform integrations and policy changes in the future.

Conclusion

Charles Schwab is widely recognized for its extensive offerings, robust research resources, and strong customer support, catering to a wide array of investors. Whether you’re a beginner looking for educational resources, a passive investor seeking a robo-advisor, or an active trader in need of advanced tools, Charles Schwab offers a comprehensive suite of services to meet various investment needs. As always, ensure to research thoroughly and understand the platform, fees, and investment strategies before starting your investment journey.

Ally Invest

Ally Invest is the brokerage arm of Ally Financial, a diversified financial services company. Ally Invest offers a range of investment options and platforms to cater to various investor needs, from self-directed trading to managed portfolios.

Overview

Founded: Ally Invest was launched in 2017, after Ally Financial acquired TradeKing.
Headquarters: Detroit, Michigan, United States

Features

Self-Directed Trading:
- Provides a platform for self-directed trading where investors can trade stocks, options, ETFs, bonds, and more.
Managed Portfolios:
- Offers robo-advisor services where users can opt for automated, managed portfolios based on their risk tolerance.
No Account Minimums:
- For self-directed trading, there is no minimum deposit requirement.
Forex Trading:
- Provides a separate platform for Forex and futures trading.
Research and Tools:
- Offers research tools, charts, and data to aid investors in making informed decisions.
Customer Service:
- Provides customer service via phone and chat.

Pros and Cons

Pros:

Versatility: Offers options for both self-directed trading and managed portfolios.
User-Friendly: The platform is generally considered easy to navigate and use.
Accessibility: No minimum deposit for self-directed accounts and a low minimum for managed portfolios.

Cons:

Limited Advanced Features: Active traders might find the platform lacking in terms of advanced trading features.
Customer Service: Some users might find customer service responsiveness and availability limited compared to industry leaders.

Safety and Regulation

Ally Invest is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
It is also a member of the Securities Investor Protection Corporation (SIPC), which provides up to $500,000 protection per customer (including $250,000 for claims for cash) in the event of brokerage failure.

Usage and Accessibility

Ally Invest is accessible via web-based platforms, with no desktop application available as of the last update in September 2021.
It provides a user-friendly interface suitable for beginners and intermediate investors.

Important Notes

Ally Invest offers a good balance for investors looking to have both self-directed and managed investment options within the same institution.
It is particularly notable for its user-friendly interface and straightforward pricing.

Conclusion

Ally Invest offers a balanced platform suitable for investors who prefer a straightforward, easy-to-navigate investing experience. With options for both self-directed trading and automated managed portfolios, it provides versatility to cater to varying investment preferences and needs. Always ensure to thoroughly research and understand the platform, its fees, and investment strategies before diving into investing.

Cash App

Cash App, developed by Square Inc., is a mobile payment service that allows users to transfer money to one another using a mobile phone app. But beyond that, Cash App has expanded its functionalities to include the ability for users to invest in stocks and buy and sell Bitcoin, making it a multipurpose financial app.

Overview

Launched: 2013
Parent Company: Square, Inc.
CEO of Square: Jack Dorsey (as of the last update in September 2021)
Headquarters: San Francisco, California, United States

Features

Peer-to-Peer Money Transfers:
- Allows users to send, receive, and request money from friends and family.
Stock Trading:
- Provides the ability to buy and sell stocks with as little as $1, using fractional shares.
Bitcoin Trading:
- Allows users to buy and sell Bitcoin.
Cash Card:
- Offers a Visa debit card that allows users to use their Cash App balance to spend money in stores or online.
Direct Deposit:
- Allows users to receive paychecks and other deposits directly into their Cash App account.
Cash Boost:
- Provides discounts (Boosts) when using the Cash Card at specific retailers and restaurants.

Pros and Cons

Pros:

Simplicity: Known for its simple, user-friendly interface.
Versatility: Allows users to send money, invest in stocks, and trade Bitcoin, all within the app.
No Account Minimums: Allows investing with no minimum account balance.

Cons:

Limited Investment Options: Offers a limited selection of stocks and ETFs.
Basic Trading Platform: The trading platform is quite basic, with limited research and analysis tools.
Customer Service: Some users have reported challenges in reaching customer service for resolving issues.

Safety and Regulation

Cash App uses a variety of safety features to process millions of payments a year and ensure the protection of its users.
It is not a member of the Financial Industry Regulatory Authority (FINRA) or the Securities Investor Protection Corporation (SIPC), so investments are not protected from potential losses.
For Bitcoin trading, Cash App is a registered Money Services Business with the Financial Crimes Enforcement Network (FinCEN).

Usage and Accessibility

Cash App is designed to be user-friendly and is accessible via its mobile app available on Android and iOS.
While it offers various functionalities, its investment and trading features are basic and might not be suitable for more advanced traders.

Important Notes

Cash App provides a simple and accessible entry point for users new to investing or those who want to invest with small amounts of money.
It’s crucial for users to understand that the investing feature on Cash App is quite basic and not a substitute for a dedicated trading platform, especially for more advanced traders.

Conclusion

Cash App is a versatile financial app that provides a range of services, from peer-to-peer money transfers to basic investing options. It is particularly suitable for casual investors or those looking to get started with investing without being overwhelmed by more complex platforms. However, it’s essential to be aware of its limitations and ensure it aligns with your investment goals and strategies.

Best Free Stock Trading Apps FAQs

Frequently Asked Questions (FAQs) About Free Stock Trading Apps

Q1: Are free stock trading apps really free?

Answer: While many stock trading apps advertise “commission-free” trading, it’s essential to read the fine print. There may be other fees, such as margin fees, monthly account fees, or fees for various additional services. Always review the full fee schedule of a platform before using it.

Q2: How do free stock trading apps make money?

Answer: Even without commission fees, these apps find ways to generate revenue. This can include earning interest on uninvested cash in user accounts, offering premium subscription services, charging margin fees, receiving payment for order flow, and more.

Q3: Are free stock trading apps safe?

Answer: Legitimate stock trading apps in the U.S. are generally regulated by the Securities and Exchange Commission (SEC) and may be members of the Financial Industry Regulatory Authority (FINRA). They also might have Securities Investor Protection Corporation (SIPC) insurance, which protects against the loss of cash and securities held by a customer at a financially-troubled SIPC-member brokerage firm. Always verify the app’s regulatory status and ensure it uses data encryption and other security measures.

Q4: Can I start trading with no experience?

Answer: Yes, many apps are designed with beginners in mind and provide educational resources to help you get started. However, investing always comes with risks, and it’s crucial to understand these and have a clear investment strategy before starting to trade.

Q5: Can I lose money with stock trading apps?

Answer: Yes, all investments come with risks, and it’s possible to lose the entire amount invested. It’s crucial to research, understand potential risks, and only invest money that you can afford to lose.

Q6: What is a robo-advisor?

Answer: A robo-advisor is an automated platform that creates and manages a diversified portfolio for you, typically made up of various ETFs, based on your risk tolerance and investment goals. It uses algorithms to automatically allocate, construct, manage, and optimize an investment portfolio at a fraction of the cost of a traditional advisor.

Q7: What should I look for in a stock trading app?

Answer: Look for a user-friendly interface, educational resources, a wide range of available investments, robust security features, clear fee structures, and responsive customer service. Ensure the app suits your investment needs and knowledge level.

Q8: Can I buy fractional shares on these apps?

Answer: Some apps allow you to buy fractional shares, meaning you can invest in companies with high share prices with a smaller amount of money. Check the app’s features to see if this is offered.

Q9: How do I choose between a robo-advisor and self-directed trading?

Answer: Consider your investment knowledge, time, and interest in managing your investments. If you prefer a hands-off approach and less decision-making, a robo-advisor might be suitable. If you want more control and are interested in researching and selecting investments, consider a self-directed account.

Q10: Is my money protected in a stock trading app?

Answer: While regulatory memberships and insurances (like SIPC insurance) can protect your account against the failure of the brokerage firm, they do not protect against losses from the investments themselves. Always trade wisely and consider your risk tolerance.