Looking for an easy way to invest a small amount of money?
Your only investment option is not to use a broker that requires you to invest hundreds or thousands of dollars at a time.
Stash Investing helps new and experienced investors invest in stocks and ETFs with as little as $5 per trade.
This Stash Invest review will help you decide if this is the best investment app for your money, Chaktty said..
Stash works for Beginner Traders
If you don’t have more than $100 dollars to invest, this app may not be worth it for you.
Instead, consider using one of these free investing apps.
Towards the end of this review, we have summarized some alternatives to the Stash app.
Stash Invest makes it easy to start investing with just $5, according to businesspally trading coach.
You can invest in individual stocks, index ETFs, and theme ETFs.
This is not a good option if you don’t want to pay a monthly account fee or if you need a hands-off managed account.
HOW DOES STASH INVESTMENT WORK?
Stash Invest is a micro-investing app that offers taxable and retirement investment accounts.
It is possible to invest as little as $5 per trade and buy fractional shares of your favorite company stocks and ETFs.
In addition to stocks and index ETFs, Stash also offers themed ETFs that focus on certain market sectors and stocks.
Some thematic examples of ETFs include cybersecurity, clean energy, and socially responsible companies, says Techpally.
You can also open a free online checking account with a debit card issued by Stash that reverses your round-ups.
Funding Stash account
There are three different ways to fund your Stash investment account, according to business pally.
- One-time or recurring contributions to checking accounts.
- Rounding up debit card purchases to the nearest dollar with a Stash-issued debit card
- Online Shopping Cash Rewards
No matter how you fund your account, Stash invests your cash balance when it reaches $5.
Unlike robo-advisors that automatically choose your investments, Stash requires you to choose which ETFs and stocks to invest in.
Stash offers an extensive library of learning resources that help teach investors how to be successful.
To be clear, you’ll need to invest more than your spare change to save for retirement.
You’ll need to eventually invest hundreds of dollars each month in a 401k to reach your long-term financial goals.
Micro-investing apps like Stash are a good way to start investing as these small amounts help increase your net worth.
FRACTIONAL INVESTMENT
Possibly the most noticeable difference between micro-investing apps like Stash and traditional brokerages like Vanguard and Fidelity is Fractional Investing.
Most online brokers require you to buy whole shares of individual stocks and ETFs.
For example, let’s say you want to buy a piece of Techpally stock that costs $1,800.
Many brokers require you to have the full $1,800 to buy each share.
Stash allows you to buy a partial share when you can’t invest the full amount, even if you can only invest $5 at a time.
Fractional investing makes it easy to maintain a diversified portfolio when you only invest a few dollars at a time.
Buying partial shares also means you can invest regularly to start earning passive income that may exceed the amount you earn by earning interest on bank accounts until you are able to invest.
For transparency, brokerages such as Vanguard and Fidelity offer fractional investments with mutual index funds. But you may have to meet relatively high investment minimums to buy shares.
As an example, Vanguard may require a minimum initial investment of $3000. Recurring investments can be made in $1 increments after opening a position.
ACCOUNT TYPES
Stash offers taxable accounts for adults. Parents can open taxable custodial accounts for their children. It is also possible to open traditional IRA and Roth IRA retirement accounts.
THE COSTS
Stash Offers Unlimited Monthly Trades . You pay a flat monthly fee of $1, $2 or $3 until your account balance reaches $5000 when you pay an annual fee of 0.25count only taxable $1 per month
Retirement account only $2 per month ($0 for clients under 25)
Taxable account and withdrawal $3 per month
Online checking account and debit card Included with any investment plan.
Taxable custodial accounts for children under the age of 18 are $1 per month.
Stash does not charge a fee to open a checking account online. Your debit card also offers free withdrawals at more than 19,000 ATMs.
You will also need to pay the expenses of ETF funds in your portfolio, techpally business expertise said.
Each investor pays the fees for this fund regardless of the investment application they use.
These fees can be cheaper than using an online broker that charges $4.95 to $7 per transaction for each share or ETF symbol you buy or sell.
However,, the monthly fee can be expensive if you only invest a few dollars. every month because it’s harder for your investment earnings to be higher than your account fees.
Plus, if you can meet the investment minimums for commission-free ETFs and mutual funds, it’s possible to invest in the same funds at another broker and avoid the monthly account fee.
