We create financial opportunity. We’re here to help everyday Americans invest and build wealth, $5 at a time. Start investing in stocks and ETFs with no add-on commission fees. Invest with any amount and get help along the way.
Overview of Stash
Stash, established in the United States over 20 years ago, offers a user-friendly platform allowing investors to trade stocks and ETFs with a minimum deposit of $5.
Its advantages include fractional shares, educational resources, and the Stock-Back® Card, rewarding up to 3% in stock on purchases. However, monthly subscription fees ($3-$9) and limited investment options are notable drawbacks. Regulated by FINRA, Stash operates with transparency and compliance.
Despite limitations, its accessible platform and regulated status appeal to beginner investors seeking an intuitive investment experience.
Regulatory Status
Stash is regulated by the Financial Industry Regulatory Authority (FINRA) in the United States, holding the license number CRD#: 287728/SEC#: 8-69908.
As a FINRA-regulated brokerage, Stash adheres to strict regulatory standards designed to protect investors and ensure fair market practices. This regulatory oversight mandates that Stash maintains transparency in its operations, implements robust security measures, and complies with stringent reporting requirements.
Pros and Cons
Pros:
Low minimum deposit ($5): Stash offers a remarkably low minimum deposit requirement of just $5. This accessibility allows individuals with limited initial capital to start investing easily, making it an attractive option for beginners or those looking to invest smaller amounts.
Fractional shares available: Stash allows users to purchase fractional shares of stocks and ETFs. This feature enables investors to buy a portion of a share, even if they cannot afford a full share, enhancing portfolio diversification and accessibility to expensive stocks.
User-friendly mobile app: Stash provides a user-friendly mobile app, making it convenient for users to manage their investments on the go. The intuitive interface and straightforward navigation enhance the overall user experience, particularly for those who prefer mobile-based investing platforms.
Rich educational resources: Stash offers a wealth of educational resources, including articles, tutorials, and financial literacy content. These resources empower users with knowledge and insights into investing, budgeting, and personal finance, fostering informed decision-making and confidence in managing their finances.
Stock-Back® Card rewards: The Stock-Back® Card is a unique feature of Stash that rewards users with stock when they make purchases. Users can earn up to 3% back in stock from popular brands, effectively turning everyday spending into investment opportunities and enhancing long-term wealth-building potential.
Regulated by FINRA: Stash is regulated by the Financial Industry Regulatory Authority (FINRA), ensuring compliance with industry standards and investor protection regulations. This regulatory oversight instills trust and confidence in the platform's integrity and reliability.
Automated investing feature available: Stash offers an automated investing feature, allowing users to set up recurring investments automatically. This feature simplifies the investment process, promotes consistency in saving and investing habits, and helps users stay on track toward their financial goals.
Cons:
Monthly subscription fees ($3-$9): Stash imposes monthly subscription fees ranging from $3 to $9, depending on the selected plan. While the fees provide access to various features and services, they can add up over time and deter cost-conscious investors, especially those with smaller portfolios.
Limited investment options: Stash offers a limited selection of investment options compared to some other brokerage platforms. While users can invest in stocks, ETFs, and retirement accounts, the range of available investments may be narrower compared to more comprehensive brokerage platforms.
Tradable Securities and Services
Stash offers a range of tradable securities and services, primarily focusing on Stocks and ETFs.
Users have access to over 3,217 companies listed on the platform, including major corporations such as Philip Morris International Inc (PM), Inter Parfums Inc (IPAR), and Walgreens Boots Alliance (WBA). The platform provides detailed performance metrics for each stock, allowing investors to make informed decisions based on data like price changes, annual performance, and dividend yields.
In addition to stocks, Stash facilitates investment in ETFs. Investors can choose from over 90 ETF options, which include various types such as market-matching funds, global investments, and socially responsible ETFs. These ETFs provide diversification within a single investment, and Stash promotes flexibility by allowing investments without commission fees. This makes it possible for users to start investing with any amount, enhancing accessibility for all levels of investors.
Commissions and Fees
Stash operates on a subscription-based model with two primary plans: Stash Growth and Stash+.
The Stash Growth plan costs $3 per month and is designed for beginner investors. It includes features such as access to investing in stocks and ETFs, personal portfolio management, and a Smart Portfolio option. This plan also offers banking access with the Stock-Back® Card, allowing users to get paid up to two days early.
The Stash+ plan, priced at $9 per month, expands on the Growth plan by including additional features suitable for family finances. It provides investing access for two kids' portfolios, a retirement portfolio, and higher life insurance coverage ($10,000 offered by Avibra). Additionally, users earn 1% in stock on card purchases and have access to market insights.
Stash provides investments without commission fees. Compared to popular brokers like Robinhood, which offers commission-free trades and no monthly fees, and ETRADE, which also offers commission-free trades but charges for managed accounts, Stash's monthly fees can be higher, especially for casual investors.
Account Types
Stash offers 3 account types as follows:
Individual Brokerage Accounts
Stash offers individual brokerage accounts that allow users to trade stocks and ETFs with a starting investment of just $5. This type of account is suitable for beginner investors looking to enter the stock market with a low initial investment. It provides a straightforward way to build a personal investment portfolio, focusing on flexibility and accessibility without commission fees. Users can manage their investments directly through the Stash app, making it a practical choice for those new to investing or those looking to maintain a simple, manageable portfolio.
Retirement Accounts
Stash provides traditional and Roth IRA options within its retirement accounts. A traditional IRA offers tax-deferred growth on investments, meaning users can deduct contributions from their taxable income, deferring taxes until withdrawal during retirement. This option is beneficial for individuals seeking immediate tax advantages. On the other hand, a Roth IRA is funded with after-tax dollars, allowing investments to grow tax-free. Withdrawals after age 59½ are also tax-free, provided the account has been held for at least five years. This account type suits individuals planning for long-term, tax-efficient retirement savings. Both options provide a structured way to save for retirement while potentially benefiting from tax incentives.
Custodial Accounts
Custodial accounts, or Kids Portfolios at Stash, enable adults to invest in stocks and ETFs on behalf of children. Starting with an initial investment of $5, these accounts are designed to help build a financial foundation for minors, transferring ownership to them when they turn 18. Suitable for parents, grandparents, or any adults wishing to contribute to a child's future, custodial accounts offer a means to pass on generational wealth and instill early investment habits. This account type is ideal for those looking to make long-term financial contributions to a child's education or future financial security.
Platforms & Tools
Stash operates primarily through its Android and iOS app, offering users the ability to invest and manage their finances conveniently from their mobile devices. The platform allows users to choose from thousands of stocks and ETFs, with no additional commission fees. Stash's feature of fractional shares enables users to invest with any amount, making it accessible for those with smaller budgets. Additionally, the app supports auto-invest functionality, allowing users to build wealth automatically through regular, scheduled investments.
Stash's Smart Portfolio is a key tool for automated investing, functioning as a robo-advisor that provides users with a diversified portfolio tailored to their investment goals. Designed by the Stash Investment Team, these portfolios are optimized to align with the user's risk level and are rebalanced quarterly to maintain their strategic allocation. The Smart Portfolio is included in Stash's subscription plans without extra management or commission fees, making it an affordable option for users seeking professional portfolio management.
The platform also integrates banking services with features like early payday (up to two days early) and the Stock-Back® Card, which earns users stock rewards on purchases. These services come with no overdraft fees, enhancing the overall user experience by combining investment and banking needs in one place.
Deposit & Withdrawal
Stash has a low minimum deposit requirement of just $5, making it highly accessible to a broad range of investors, including beginners and those with limited initial capital. This low barrier to entry allows users to start investing with a minimal financial commitment, enabling them to gradually build their investment portfolio over time.
Bank
Stash offers a unique banking service with its Stock-Back® Card, a debit card that lets users earn stock rewards on their purchases.
Every time users spend with the Stock-Back® Card, they can earn up to 3% back in stock from popular brands such as Walmart, McDonalds, Amazon, Starbucks, Nike, and more. For purchases made at local or privately owned businesses, users receive stock rewards in a default investment of their choice. This innovative approach allows users to grow their investment portfolios simply by shopping at their favorite stores, transforming everyday spending into investment opportunities.
The Stock-Back® Card redefines traditional debit card rewards by integrating stock ownership, encouraging users to “shop like an investor.”
Customer Service
Stash offers customer support through both email and phone.
Users can reach the support team via email at support@stash.com for assistance with their accounts or any inquiries. Additionally, phone support is available at (800) 205-5164.
Educational Resources
Stash provides a comprehensive suite of educational resources through its Learning Center, which includes guides on starting to invest and investing in stocks.
Tools like the Retirement Calculator and Compound Interest Calculator help users plan and understand their financial growth. Additionally, Stash101 offers financial education to foster a deeper understanding of personal finance and investing principles.
Compared to popular brokers like Robinhood and ETRADE, Stash's educational resources are robust and user-friendly, making them particularly competitive for beginner investors seeking accessible, informative content to guide their investment journey.
Conclusion
In conclusion, Stash offers a user-friendly platform with a low minimum deposit of $5, appealing to beginner investors.
Advantages include fractional shares, a wide selection of tradable securities including stocks and ETFs, and the innovative Stock-Back® Card rewarding up to 3% in stock on purchases.
However, the platform's monthly subscription fees ranging from $3 to $9 and limited investment options could deter cost-conscious investors seeking broader opportunities.
Despite these drawbacks, Stash's regulated status and educational resources contribute to its appeal, providing a transparent and accessible investment experience suitable for those looking to start their investment journey with confidence.
FAQs
Question: What is the minimum deposit required to start investing with Stash？
Answer: The minimum deposit is $5.
Question: Does Stash offer margin trading？
Answer: Yes, Stash offers margin trading.
Question: How long has Stash been in business？
Answer: Stash has been in business for more than 20 years.
Question: What types of securities can I trade on Stash？
Answer: Stash allows trading of stocks, ETFs, and retirement accounts.
Question: Are there any commission fees for trading on Stash？
Answer: No, Stash does not charge any commission fees.
United States
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