Exploring Stash: The Perfect Entryway for Novice Investors?

Looking for a user-friendly investment app suitable for beginners? Stash could be the answer. This app makes getting started in the stock market as uncomplicated as possible because it doesn’t require a minimum balance or full shares purchase. Now, investing in companies like Amazon or Tesla is not a matter of thousand dollars, but can start from $1.

Stash offers a variety of plans to choose from, with each priced differently and offering unique features. The plans are titled Beginner, Growth, and Stash+ each at $1, $3, and $9 per month respectively. The full bundle ‘Stash+’ offers the chance to open up to two investment accounts for children, a metallic debit card with double stock-back, plus monthly market insights.

Stash also helps you invest in ETFs (Exchange Traded Funds) and offers a special Stock-Back program. This clever system rewards your spending with stocks instead of traditional cashback. Imagine shopping at Walmart and earning Walmart stock rewards!

Keeping budgeting in mind, Stash also offers a neat feature for those setting up a direct bank deposit with them – you can receive your paycheck two days early. They also provide some unique tools to help manage your money and prepare for unforeseen expenses.

However, there is a downside. The cost may be a bit steep for individuals with small accounts. For example, the $1 monthly fee is significant if your balance is low, seeming more expensive in comparison to other brokers charging 0.25% annually. On the other hand, for those with larger balances, the flat monthly fee may turn out to be a cost-saving advantage.

Another drawback is the tools offered for investing research are quite basic, making informed decisions can be challenging. Some rival platforms like Webull provide more comprehensive tools.

So, who is Stash a good fit for? It’s great for individuals with small budgets, who are enthusiastic about gaining cashback through stocks and want a choice of investment options. It’s also ideal for newcomers who aspire to learn the basics of the stock market while starting to invest.

However, if you don’t plan on maintaining a large account balance, you may want to look into other options like M1 Finance that may be more cost-effective.