So i have been using cashapp the past week to invest in voo and vt. i have 35$ invested. I was trying to use webull before cashapp but idk if it doesnt allow fractional shares of $5 or something but it did not wanna work so i just got cashapp and invested right away. Is this a good app to keep long term for someone who just wants to put in a certain amount a week and leave it alone and never touch it til i die or cashapp shuts down or sum or should I just find a new app
is cashapp good for beginners or not worth even using at all
byu/Responsible_Ruin_423 ininvesting
Posted by Responsible_Ruin_423
10 Comments
At $35 it doesn’t even matter. That’s like 2 chipotle burritos.
If your plan is to truly “invest and leave till you die” – open an account at Fidelity. If you are working, consider a Roth IRA.
Don’t use these shitty fintech apps as a long term brokerage.
Do not use these fly by night apps doing this as a side income stream business. I wouldn’t even touch Robinhood as it feels super sketchy and the kind of thing that’ll announce one day it’s done something like FTX and your money is gone. Pick a major brokerage (Schwab, Fidelity, etc) and trade there. They all offer a limited degree of fractional shares and automated investing, but the details differ slightly.
If I were in your shoes I would outline my investment goals and amount I can invest weekly and I’d ask my favorite LLM to rank the top brokerages against those goals.
I have used Cashapp for a few years now. Interface and ease of use is pretty great. It’s all surface level though. I just buy a few things here or there. I also have a fidelity account. Well, 4 accounts. That’s where my long term money goes. I guess I use cashapp as a day(month) trader.
I think it’s good for people who already use the app. You can get a checking and savings account through the app and tie everything together. The savings has 3.25% APY on it.
I like it because Saturday night I might decide to buy into something or add more money to a stock. I can set it and it’ll take care of it Monday morning. Fidelity seems like it has to happen during market hours. I do $100 direct deposit and $10 weekly/bi-weekly buys of some stuff.
Long term, no. Short term with expendable income, sure.
I don’t know if cashapp charges a percentage or fee.
I can tell you, you can buy $5 slices of any SP500 stock with a free Schwab account and at Fidelity, you can buy $5 slices of even more, including ETFs, also free.
I wonder what Sofi offers -don’t know
They might get better prices too – not sure how good cashapp is at price performance , you know , getting your purchase at the best price available
(Of course, plenty of mutual funds let you start with a dollar)
You also have access to lots of stock research for free if you have an account at these places. Maybe cashapp does too(?) Not familiar with them
I also don’t know if cashapp is a registered licensed brokerage or some kind of vendor, but a licensed brokerage with a bank is where i would feel comfortable putting my accounts
If i were mostly buying fractional shares id probably use Fidelity because the last i checked, they offered the most fractionals, and you can stay with them as you grow to retirement. They are a major brokerage house, holding the retirement funds for millions of people, and they are free with lots of resources
I would use a “real” brokerage and learn to use the app
Use it for now but get one with a cheaper trade fee
For long term, I would personally go with Fidelity or other major brokerage like Schwab or Vanguard. I wouldn’t dare touch apps like that. If you’re just starting, I highly recommend that you read this [guide](https://www.reddit.com/r/investingforbeginners/comments/1rvt5e7/the_ultimate_beginner_guide_to_investing/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) before you proceed. Its very informational and even delves into different brokerage pros and cons.
Use a trusted name
They just laid off 60% of their engineering team. I wouldn’t risk my money with them nor touch that company with a ten foot pole