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Stash Invest Review

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securely through Stash's website

1 Minute Review

Stash operates under the mantra “investing should be simple and accessible.” Stash, which promises an easy start procedure, requires only two minutes and a phone.

Best For

  • Hands-off investors, who require advice and assistance
  • Beginners
  • Investors who want to invest in specific industry groups/sectors

Pros

  • Simplified investment procedure
  • Choice of easy-to-understand investments (ETFs)
  • Easy-to-read snapshots of all accounts
  • No minimum balance requirement to open a personal invest (taxable brokerage) account

Cons

  • It works out costly for smaller accounts
securely through Stash's website

Who Uses Stash?

Stash’s target population includes inexperienced investors, beginners and passive investors. In fact, 86% of Stash users are first time investors. 

  • Beginners and passive investors: Stash’s simple investment philosophy of investing based on value and themes is simplified by giving a widely understandable name to its portfolio/ETFs. 
  • Investors with limited funds: Fractional shares allow investors to start and open an invest (taxable brokerage) account with just $1  to help those who may have financial limitations take the plunge into the financial markets.

Commissions and Fees

A Stash Invest (taxable brokerage) account can be started with no initial deposit but needs a minimum of $0.01 to start investing.1

Stash accounts are charged a fee of $1, $3 or $9 depending on account features and size. Though you’ll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash and the custodian.

Platforms and Tools

The platform is available on iOS and Android as well as desktop. Stash’s risk assessment tool is a questionnaire and helps assess the risk disposition and investment objective of customers. The assessment is done based on in-depth analysis of volatility, spread, liquidity, and diversity.

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Research

Stash has Stash Learn which provides a library of personal finance educational material. Furthermore, the app’s snapshot screen gives all details of investments, including risk profile, investment holdings, underlying securities, etc.

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Customer Support

Stash provides customers with a search bar where you can key in and receive answers to questions. You can also leave a message on the firm’s customer portal webpage.

Phone support is available between 8:30 a.m. ET and 6:30 p.m. ET, Monday through Friday. On Saturdays and Sundays, support is available between 11 a.m. ET and 5 p.m. ET.

Pricing
$1, $3, or $9 a month 1
Account Minimum
  • $0 for Personal Portfolio, Investment Account (Taxable Brokerage Account) and Bank Account
  • $1 for IRA and Custodial Accounts

Ease of Use

You’ll need an email address and password to get started with Stash and the mobile device you intend to use.

After the sign-up procedure, you can choose your first investment from a list the firm offers. Subsequently, you can link your bank account to your Stash account.

The firm also allows closure of the Stash account anytime.4 However, by merely by deleting the app from your phone, you cannot close the account. A Stash account holder who intends to close the account can do so on web and this process can take up to 10 business days. 

Stash works to ensure security of information through the use of a 256-bit bank-grade encryption. It also uses the latest technology Transport Layer Security (TLS) protocol to protect your information when communicating with Stash. 

The choice of asset is based on factors such as low fees, managed risk and historical performance.

Dividends received can be reinvested into Stash Invest’s retirement, and you can view the dividend by going to the history screen on the app under processed transactions. The firm also notifies customers through email when their investments earn dividends.5

Stash Overall Rating

Stash is an amazing tool if you are new to the world of investing. and you’re not crazy about high-tech platform and software tools that help you experiment on your own. Additionally, if your funds for investment at your disposal is less than $500 Stash is a great choice. Stash might not be for you if you’re enamored with complex tools and research that help make informed investment decisions. Give it a try and see for yourself!

1 For Securities priced over $1,000, purchase of fractional shares starts at $0.05.

3 The investments in your Stash account are covered by Securities Investor Protection Corporation (SIPC). While such registration does not imply a certain level of skill, it does require Stash to follow federal regulations that protect the investor. Investments are held by Apex Clearing Corporation, a third-party SEC registered broker-dealer and member FINRA/ SIPC. This is accomplished via the clearing agency used by Stash, Apex Clearing Corp. SIPC protection covers up to $500,000 of any brokerage. This amount includes a $250,000 cash limit. Apex Clearing is a member of the Securities Investor Protection Corporation (SIPC). This means your investments in your account are protected up to $500,000 total (including $250,000 for claims for cash). For details please see www.spic.org.

To note, for uninvested funds, a Stash account is enrolled in something called the Apex FDIC-insured Sweep Program. Deposits to the Sweep Program are covered by FDIC insurance up to $250,000 limit per customer at each FDIC-insured bank that participates in the Sweep Program. Once the cash is deposited with the participating banks under the Sweep Program, such cash will no longer be covered by SIPC.

To note, SIPC coverage does not insure against the potential loss of market value.

Depending on the Tier, there may be additional steps a user must take to cancel their account which may impact the amount of time it takes to fully close an account. In the event of account closure, Stash shall refund any and all pre-paid fees in excess of $.50. You may incur ancillary fees charged by Stash and/or it’s custodian that are not included in the monthly Wrap-Fee.

5  Not all stocks pay out dividends, and there is no guarantee that dividends will be paid each year.

6 While such registration does not imply a certain level of skill, it does require the investment advisor to follow federal regulations.

This material is not intended as investment advice and is not meant to suggest that any securities are suitable investments for any particular investor. Investment advice is only provided to Stash customers. All investments are subject to risk and may lose value.

Benzinga is a paid Affiliate/partner of Stash. Investment advisory services offered by Stash Investments LLC, an SEC-registered investment adviser.