Is Stash legit and safe?

Yes, Stash is legit and safe. Investments in your Stash account are protected up to $500,000 (including $250,000 for cash). Likewise, any uninvested funds are covered by FDIC insurance up to $250,000 per customer. For details, please see www.sipc.org . For uninvested funds, your Stash account is enrolled in 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 Program. Once your cash is deposited with the participating banks under the Sweep Program, such cash will no longer be covered by SIPC.

How much does Stash charge to terminate my account?

Stash doesn't have a termination fee per se, but you'll pay a $75 ACAT (Automated Customer Account Transfer) fee to move your stock shares and cash to another broker. This fee will be taken from your cash balance or fractional share sales.

Stash Review: Simple App, Unique Pricing (Is It Worth It For You?)

Stash is an all-in-one personal finance app aimed at making investing easy for beginners. Through a combination of robo-advising and do-it-yourself investing, Stash lets you buy single and fractional stocks and ETFs for as little as $5. The service isn't free (you'll pay $3 or $9 monthly), but depending on the size of your portfolio, it could be cheap compared to the fees on other robo-advising services. Whether you're just starting out or have experience but want some automation, read on to learn what Stash has to offer.

Ratings Methodology

Stash

Learn More

Our Rating:

Rating image, 4.0 out of 5 stars.

4.0/5

Bottom Line

Stash has an easy to understand fee structure as well as a low barrier to entry to start investing. It has tools that are great for beginners and even comes with a debit card.

Fees:

None

Account Minimum:

$0

Learn More for Stash

On Stash's Secure Website.

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.

Broker	Best For	Commissions	Learn More
Rating image, 4.0 out of 5 stars. 4.0/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Easy fractional investing in stocks and bonds.	$0 commissions, 1%-2% crypto markups	Learn More for Public On Public's Secure Website.
Rating image, 4.0 out of 5 stars. 4.0/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Low mutual fund fees.	$0 per trade	Learn More for J.P. Morgan Self-Directed Investing On J.P. Morgan Self-Directed Investing's Secure Website.
Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Long-Term Investors, Stocks and Options Traders	Commission-free; other fees apply	Learn More for ETRADE On ETRADE's Secure Website.

Full Stash review

This stock broker is a good fit for: Entry-level investors who want a service to guide them through the process and don't mind paying a monthly fee to get extra help.

Pros

Combined DIY and robo-advising services
Fractional shares
Stock-Back® Card* that earns stock

Cons

Account fees
No APY on bank accounts

Top perks

Keep reading for the perks that make Stash one of our top picks.

Fractional shares

Instead of waiting until you've saved enough to purchase whole shares, Stash lets you buy fractional shares at a lower cost. Fractional shares are an increasingly popular robo-advisor investment option.

Low barrier to entry

Stash accounts start at just $3 a month, and you can start with no investing minimum (Smart Portfolio lets you invest for as little as $5). Stash's mission is to simplify investing for its customers and low costs are just one of the ways it does that.

Retirement accounts

Both Stash accounts have access to Roth and Traditional IRAs.

Stash debit card

The Stock-Back® Card* gives you fee-free access to Stash's network of ATMs.** It also lets you earn stock on Stock-Back® Card* purchases with well-known brands.***

Earning stock works like this: You'll either earn stock in the company where you're making the purchase or get rewarded in a default investment of your choice. For instance, if you buy a coffee at Starbucks, you can earn stock at Starbucks. But if you buy clothes from, say, a local consignment shop (i.e., a company that's not publicly traded), your earnings will buy shares in a default investment, like an ETF. Stock+ members will earn 1% back on up to $1,000 in monthly purchases (0.125% after), while Stock Growth members earn 0.125% back.****

Some companies will qualify as "bonus merchants" and will earn you more stock -- 3% back (for Stash+).*****

Custodial accounts

Stash+ account holders can set up custodial brokerage accounts for children, who can access the funds when they're old enough.

TIP

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What could be improved

Subscription fees

Stash uses a monthly subscription model, with fees ranging from $3 to $9 a month. Price is an important consideration when opening a brokerage account. For smaller accounts, monthly fees may end up higher than the percentage charged by other robo-advisors.

No APY on your bank account

Unlike other brokerages, uninvested cash doesn't generate interest. For most investors, this won't be a huge problem -- after all, money in Stash can be used to invest -- but it's something to consider if you're also using Stash as your primary bank account.

Commissions and fees

Stash customers have no add-on commission fees. But you have to pay a monthly fee to use the service, either $3 or $9. A few dollars a month for a basic account may not seem like much, but converted into a percentage, it can be a considerable chunk of change -- unless you carry a large portfolio. Traditional robo-advisors might charge a management fee of around 0.25%, which works out cheaper than $12 a year.

You'll still pay fees on individual ETFs, which Stash builds into the prices you see. You may have to do some research to find out how much the fees come to.

Research offerings

Stash doesn't have more advanced research tools offered by other brokerage firms and some robo-advisors. Instead, Stash uses your initial questionnaire to recommend investments based on your risk tolerance. You can choose to follow their advice or go on your own. You may need to go outside of Stash if you want more detailed research on individual stocks and ETFs.

Stash vs. Robinhood

Robinhood and Stash both provide easy-to-use platforms targeted at beginning investors. And both brokers aim to break the mold by enabling ordinary people to buy stocks and shares. Robinhood offers a more robust investment platform, with stocks, options, ETFs, margin accounts, and even cryptocurrency.

If you want to use a margin account to increase your purchasing power, unfortunately, it's not an option with Stash. This is unlikely to affect long-term investors who use funds from their cash account to buy investments. Keep in mind you'll need to upgrade to a paid Robinhood Gold account to access margin trading. Gold accounts start at $5 a month.

Neither robo-advisor comes with access to mutual funds or individual bonds, although bonds are available as part of ETFs. IRAs are available as part of the upgraded Stash Growth and Stash+ membership levels. Robinhood only offers taxable brokerage accounts.

Robinhood's cash management account might be even better than Stash's banking account and Stock-Back® Card*. Like Stash, customers get a debit card and access to fee-free ATMs across the U.S. Robinhood accounts are also FDIC insured up to $1.25 million through partner banks.

Where the cash management accounts differ is in how they reward customers. Robinhood's cash management account is interest-bearing, earning competitive rates to rival some savings accounts. Robinhood rewards its customers for saving money, while Stash rewards Stock-Back® Card* spending instead.

Robinhood and Stash are both good picks for new investors or individuals looking for a solid low-cost broker. The best choice for you depends on your investment and banking needs.

This brokerage is right for you if:

You want to pick out your own investments and get automation. Stash lets customers manage their own investments, plus it gives you the option to use a robo-advising service
You want access to fractional shares of stocks. The ability to buy fractional shares means you can start investing in your favorite stocks. You don't need to have enough money to pay for an entire share.
You plan to keep a large portfolio. Keeping a sizable investment portfolio with Stash might be the only way to justify its monthly account fees.
You are looking for a solid cash management account. Stash banking rivals many online checking accounts. It also gives you the ability to move money quickly into your investment account.

Compare Stash to other brokerages

Wondering how Stash stacks up to the competition? Check out our reviews:

Our brokerage rating methodology

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology

FAQs

Yes, Stash is legit and safe. Investments in your Stash account are protected up to $500,000 (including $250,000 for cash). Likewise, any uninvested funds are covered by FDIC insurance up to $250,000 per customer. For details, please see www.sipc.org.
For uninvested funds, your Stash account is enrolled in 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 Program. Once your cash is deposited with the participating banks under the Sweep Program, such cash will no longer be covered by SIPC.
Stash doesn't have a termination fee per se, but you'll pay a $75 ACAT (Automated Customer Account Transfer) fee to move your stock shares and cash to another broker. This fee will be taken from your cash balance or fractional share sales.

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