By: Shanthi Rexaline

1 Minute Review

Stash operates under the mantra “investing should be simple and accessible.” Stash, which promises an easy start-up procedure, requires only two minutes, $5 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
• Very low required minimum balance

Cons

• Income made through Stash, be it capital gains, dividends and income interest, are taxable just like any other investment.
• It works out costly for smaller accounts

Who’s it for?

Stash’s target population includes inexperienced investors, beginners and passive 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

The $5 required minimum initial investment helps those with financial limitations take the plunge into the financial markets. 

Commissions and fees

The firm promises no add-on trading fees or commissions. A Stash account can be started with a minimum initial deposit of $5. 

Stash Invest accounts with an average daily balance of over $1 and up to $5,000 are charged  $1/month from the second month, and those with an average daily balance of less than $1 are not charged.

For accounts over $5,000, a fee of 0.25 percent of the account balance is charged per year. 

The firm operates through a broker/dealer called Apex Clearing, a FINRA/SIPC member. It acts as a custodian handling services for accounts, including custody of assets, reporting, trade confirmation, settlement, and securities delivery in Stash.

Incoming and outgoing bank transfers are free, while a $0.50 fee is incurred by the user for returned cheques due to insufficient funds and recall/stop payment and the funds will be returned to the original account. Stash is not responsible for any ACH reversal fees incurred by the user. For automated customer account transfer, it’s a $75 fee and $5 is charged for a change notice.

Account maintenance fee is $0 for electronic statements and trade confirmations. However, paper confirmations are $2 and paper statements are $5.

*The above image is for Illustrative purposes only. 

Platforms and tools

The platform can be used on any mobile device, Android or iOS. 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.

*The above image is for Illustrative purposes only. 

Research

There aren’t many research opportunities available on Stash. However, the app’s snapshot screen gives all details of investments, including risk profile, investment holdings, underlying securities, etc.

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.

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. 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 should contact support@stashinvest.com through a mail, mentioning on the subject line “Close My Account,” which would happen within 72 hours.

Stash promises security of information through the use of a 256-bit bank-grade encryption. It also uses Secure Sockets Layer, or SSL, to ensure the protection of any information send between the Stash app and its servers.

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

Dividends received are 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.

Final Thoughts

Commissions

$1 Per month accounts < $5000 balance 0.25% Annual fee accounts > $5000

Best For

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

OPEN AN ACCOUNT securely through Stash’s website

This mobile-only app is a Registered Investment Adviser and is therefore regulated by the Securities Exchange Commission. However, the firm provides the basic service of assisting you with your investment choice and nothing more than that.

Additionally, you cannot invest in a tax-advantaged investment option through Invest. Overall, the commission is higher than that of comparable firms offering more value-added services.

Use Stash if:

• You are new to the world of investing.
• You are not crazy about high-tech platform and software tools that help you experiment on your own.
• Funds for investment at your disposal is less.

Don’t Use Stash if:

• You are an active investor preferring an active role in the investment process.
• You seek tax-advantaged assets.
• You are enamored with complex tools and research that help to take informed investment decisions.