Investing has become more accessible to the average person over the years, and many new brokers have entered the market to cater to different investor preferences. Two such platforms are Public and Stash. Both have gained significant attention in recent years due to their user-friendly interfaces, innovative features, and commitment to democratizing finance. However, they are different in terms of services, fees, target audiences, and investment strategies. This article will explore these two investment platforms in detail, comparing their features, advantages, and drawbacks to help you make an informed decision about which might be the better choice for you.
1. Introduction to Public and Stash
Public: A Socially Focused Investment Platform
Public is a commission-free investing app that allows users to buy stocks, ETFs, and cryptocurrencies. Public has set itself apart by emphasizing social investing, allowing users to connect with one another, share insights, and track each other’s portfolios. This social aspect is an important feature that appeals to beginners who want to learn from experienced investors. Public also focuses on financial education, providing resources to help users make informed decisions.
Key Features of Public:
- Commission-free trading for stocks, ETFs, and cryptocurrencies.
- Social investing feature, allowing users to interact with others.
- Fractional share investing, allowing users to invest in high-priced stocks with smaller amounts of money.
- Curated news and educational content to help users stay informed.
- No account minimum to open an account.
Stash: A Beginner-Friendly Investment Platform
Stash is another commission-free platform that allows users to invest in stocks, bonds, and ETFs. However, Stash also provides additional features, such as a set of tools designed to help beginners learn how to manage their finances. Unlike Public, which is largely focused on social investing, Stash is designed to be a more hands-on learning experience, offering a personal investment coach and goal-setting tools to guide users through their financial journey.
Key Features of Stash:
- Commission-free trading for stocks, ETFs, and bonds.
- Personalized investment advice based on financial goals and risk tolerance.
- Stash Coach feature that offers personalized guidance and support.
- Automated investing through Smart Portfolios, which are diversified investments based on the user’s risk profile.
- Educational content, including articles, tutorials, and financial literacy tools.
- Subscription-based pricing, with different plans based on the user’s needs.
2. Fees and Pricing: Public vs Stash
Public’s Fee Structure
One of the biggest selling points of Public is that it offers commission-free trades for stocks, ETFs, and cryptocurrencies. This is a major advantage for individuals who want to avoid high fees that could eat into their profits. Public does not charge for opening or maintaining an account, making it accessible for individuals of all financial backgrounds. However, it’s worth noting that Public makes money through a “payment for order flow” model, which means it gets paid by market makers for routing orders through them. This model is common in commission-free trading platforms but can lead to slightly wider bid-ask spreads than traditional brokers.
Public’s fees include:
- Zero commissions on stock and ETF trades.
- No fees for crypto transactions.
- No account maintenance fees.
Overall, Public offers a highly affordable platform for individuals who want to start investing without worrying about hidden fees.
Stash’s Pricing Model
Stash operates on a subscription-based pricing model, where users are charged a monthly fee depending on their plan. This fee gives users access to a variety of features, including investment advice, educational content, and portfolio management tools. Stash has several pricing tiers, ranging from the basic plan to more premium options with additional features like retirement accounts and access to a dedicated investment coach.
Stash’s pricing options include:
- Stash Beginner ($1 per month): Access to basic investing tools, educational content, and personal finance advice.
- Stash Growth ($3 per month): Includes everything in the Beginner plan plus access to retirement accounts and more advanced financial tools.
- Stash+ ($9 per month): Includes all features from the other plans plus premium services like a dedicated investment coach, better investment recommendations, and more personalized support.
While Stash’s subscription fees may seem modest, they add up over time. This is something to consider if you plan on investing for the long term, as the subscription costs could potentially outweigh the benefits, especially for smaller accounts.
3. Investment Options: Variety and Flexibility
Public: Limited Investment Choices
Public’s main focus is on stocks, ETFs, and cryptocurrencies. While this provides a broad range of options for most investors, it does limit the flexibility of those looking for more diverse investment vehicles. The platform offers fractional shares, which makes it easy for users to invest in high-value stocks like Amazon, Tesla, or Apple, even with a limited budget. However, there are no bonds or other more traditional investment options available on Public.
Investment options on Public include:
- Stocks: A wide variety of stocks from major markets.
- ETFs: A selection of exchange-traded funds to diversify investments.
- Cryptocurrencies: Popular cryptos like Bitcoin, Ethereum, and others.
- Fractional shares: The ability to invest in smaller portions of expensive stocks.
While the selection is ideal for investors interested in equities and digital assets, those looking for broader diversification might find the options on Public a bit limited.
Stash: A Broad Range of Investment Options
Stash offers a more comprehensive suite of investment products compared to Public. In addition to stocks and ETFs, Stash also provides access to bonds and other fixed-income securities, which can be beneficial for investors seeking more stable returns or risk diversification. Stash also offers Smart Portfolios, which are pre-built, diversified portfolios that are automatically adjusted based on the user’s risk profile.
Investment options on Stash include:
- Stocks: A wide variety of individual stocks.
- ETFs: Multiple ETFs for sector-specific and diversified investments.
- Bonds: A selection of bonds for more conservative investors.
- Smart Portfolios: Automated investment portfolios based on risk tolerance.
- IRAs and Retirement Accounts: Tax-advantaged retirement options for long-term savings.
Stash provides a wider variety of investment choices, which might appeal to individuals looking for a more well-rounded investing experience. The inclusion of retirement accounts and bonds provides flexibility for investors looking to create diversified portfolios.
4. User Experience and Interface
Public’s User Interface
Public has built a platform that is both clean and intuitive. Its social media-like features, such as the ability to follow other users and share investment ideas, make it appealing to younger investors who are used to social networks. Public’s platform is easy to navigate, with a streamlined design that emphasizes a simple, straightforward investing experience. The social aspect also adds an engaging layer, allowing users to learn from others’ experiences and stay informed about market trends.
Public’s user interface features include:
- A sleek, user-friendly design with intuitive navigation.
- Social feed to follow friends and see their trades.
- Clear portfolio overview with real-time updates.
- Simple buy/sell processes for stocks, ETFs, and cryptocurrencies.
Stash’s User Experience
Stash has a more structured and educational interface, which is great for beginners. The platform offers step-by-step guides, a personal dashboard that tracks progress toward goals, and access to learning resources. The layout is beginner-friendly, focusing more on helping users understand their investments and overall financial situation. While it doesn’t have the same social aspect as Public, Stash’s tools and educational content compensate for this by helping users build financial literacy.
Stash’s user interface features include:
- A personalized dashboard with financial goals and progress tracking.
- Access to educational content and articles.
- Step-by-step guides for managing investments.
- Simple, clear interface for buying and selling stocks and bonds.
While Stash doesn’t offer social investing like Public, its emphasis on education and goal-setting makes it a great choice for users looking to take a hands-on approach to learning about investing.
5. Education and Research Tools
Public’s Educational Resources
Public offers a range of educational content, including market news, expert insights, and curated articles designed to help users understand investing. The platform also provides access to podcasts and videos that cover various investing topics. However, Public’s educational offerings are less extensive than Stash’s, especially when it comes to personalized coaching or structured lessons.
Public’s educational resources include:
- Curated news and market updates.
- Expert insights and analysis.
- Podcasts and videos on investment topics.
- Social interaction for peer-to-peer learning.
Stash’s Educational Tools
Stash places a heavy emphasis on education, offering a comprehensive suite of resources designed for both novice and intermediate investors. These resources include articles, videos, and a personal investment coach who can provide one-on-one advice. Stash’s investment advice is highly personalized, with tools that recommend investment strategies based on users’ financial goals and risk tolerance. This can be a major advantage for beginners looking for structured, hands-on learning.
Stash’s educational tools include:
- A personal investment coach for one-on-one guidance.
- Articles, videos, and tutorials on personal finance and investing.
- Interactive financial goal-setting tools.
- Educational content specifically tailored to the user’s financial goals.
For those who prioritize financial education, Stash provides a more comprehensive learning experience compared to Public.
6. Security and Account Protection
Public’s Security Features
Public is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), ensuring that your investments are protected up to $500,000 in the event of a broker-dealer failure. The platform uses standard encryption protocols to secure user data and transactions, offering a safe and secure environment for users to invest.
Public’s security features include:
- Member of FINRA and SIPC for investor protection.
- Secure encryption for user data and transactions.
- Two-factor authentication for added account security.
Stash’s Security Features
Stash also provides strong security features, including SIPC insurance for account protection. Additionally, Stash uses robust encryption and two-factor authentication to safeguard user data. Stash is also a member of FINRA, which provides an added layer of confidence for investors who are concerned about the security of their funds.
Stash’s security features include:
- SIPC protection for up to $500,000 in case of broker-dealer failure.
- Robust encryption for data protection.
- Two-factor authentication for account security.
- Regular audits to ensure data protection and security compliance.
Both Public and Stash offer solid security features, ensuring that your investments are safe and protected.
7. Conclusion: Which Is Better for You?
When choosing between Public and Stash, it ultimately depends on your investing goals and preferences.
- Choose Public if: You want a simple, commission-free platform with a social investing feature, where you can interact with other investors, share insights, and learn from the community. Public is ideal for beginners who want a straightforward way to invest in stocks, ETFs, and cryptocurrencies.
- Choose Stash if: You prefer a more hands-on approach to investing, with access to educational tools, personalized advice, and a variety of investment options, including bonds and retirement accounts. Stash is great for those who want to actively learn about investing and build a diversified portfolio.
Both platforms are strong contenders in the commission-free investing space, and your choice will depend on what features and resources are most important to you.
