Public is an innovative and user-friendly commission-free stock trading mobile app that aims to empower beginner investors. With a strong focus on financial education and accessibility, Public has quickly gained popularity among those who are new to investing. In this comprehensive review, we will delve into the various features, pros, and cons of the Public investing app, as well as explore the investment options, usability, trade experience, costs, and account amenities it offers.
Introduction to Public
Public, established in 2019, is an American financial services company founded by Jannick Malling and Leif Abraham. Headquartered in New York City, Public developed a fractional mobile and web investing platform. The company’s mission is to address the barriers that prevent many individuals from investing, such as a lack of financial literacy, limited access to expensive financial products, and high share prices that require significant investment. Public aims to make the stock market more accessible and inclusive for a broader audience of investors.
Overview of Public
As a regulated broker-dealer, Public ensures that securities in each account are protected up to $500,000. One of the standout features of Public is its social media element, which allows investors to follow and connect with friends and experts within the community. This social aspect of the app not only fosters a sense of community but also provides an educational platform where users can share ideas and learn from each other. However, it’s important to note that Public’s offerings are primarily focused on stocks, ETFs, treasuries, alternative assets like collectibles, and cryptocurrency. The platform does not support mutual funds, options contracts, bonds, or forex investing.
How Does Public Work?
To get started with Public, you can download the app from the App Store or Google Play. The registration process involves providing basic information such as your age, social security number, and bank details. Once your account is set up, you can start exploring the app’s features and investing in stocks.
Public offers a wide range of stocks to choose from, with over 5,000 options available. These stocks are organized into different categories called themes, which make it easier for users to discover companies based on their interests and trends. Some of the themes offered by Public include Green Power, Self-Driving Cars, Women in Charge, and many more.
One of the unique features of Public is its fractional share investing. Unlike traditional investing where you need to buy full shares of stock, Public allows you to invest in fractional shares. This means that you can invest in high-priced stocks with a smaller amount of capital. Fractional shares make investing more accessible to individuals with limited funds and enable you to diversify your portfolio.
Public Premium
Public offers a premium subscription called Public Premium, which provides advanced data, portfolio management tools, and analyst insights. The service costs $10 per month, but it is free for users with an account balance of $20,000 or more. Subscribing to Public Premium gives you access to unique data on companies, institutional-grade research from Morningstar, extended-hours trading, custom portfolio organization, and exclusive audio programming.
Community and Social Features
One of the standout features of Public is its community aspect. The app has a large community forum where users can engage in discussions, ask questions, and share their experiences. This social aspect creates a supportive environment for investors, allowing them to learn from each other and gain valuable insights. Public also organizes chats around specific stocks and industries, providing a platform for investors to trade notes and discuss market trends.
Usability of the Public App
Public takes pride in its user-friendly platform, making the app simple and easy to navigate. Whether using the mobile app or the web version, the process of opening an account is quick and straightforward. Once an account is funded, users can search for stocks and ETFs, view other portfolios, and start investing.
The home page provides market data and community insights on trades, allowing users to stay informed about market trends. Additionally, Public offers various categories and themes to help users discover new stocks and investment opportunities.
The Public app offers real-time trading, allowing you to execute trades immediately during market hours. This feature enables you to take advantage of market opportunities as they arise. The app provides detailed information about each company, including trends, comments, and company history. You can also access market reports and ratings from Morningstar, a leading investment research firm.
Trade Experience with Public
Both the mobile app and web platform of Public offer a seamless trade experience. While the web platform provides a larger display area for content, there is no significant difference in the toolsets, capabilities, or overall trade experience between the two. Public’s mobile app allows users to easily create buy or sell orders, with the ability to search for stocks or ETFs, designate a specific dollar amount or shares to trade, and execute trades promptly. The app emphasizes the community aspect of investing, providing a stream of trading possibilities and allowing users to engage in discussions, direct messages, and group chats.
Range of Offerings on Public
Public offers a range of investment options for users, including stocks, ETFs, fractional shares, U.S. treasuries, cryptocurrency, and alternative assets like collectibles. With more than 5,000 stocks to choose from, users have access to a diverse selection of investment opportunities. Public’s support for fractional shares is particularly beneficial for new investors who may not have substantial capital to invest in expensive stocks. However, it’s worth noting that Public does not offer retirement accounts or joint accounts, focusing primarily on individual taxable brokerage accounts.
Order Types and Trading Technology
When it comes to order types, Public offers flexibility depending on whether users are trading fractional shares or whole shares. For fractional shares, the default order ticket is set to a market order. However, for whole shares, users have the option to choose between limit, market, and stop orders. While Public’s platform does not support automated trading or backtesting, it ensures that submitted orders are executed on the most favorable terms, price, and time of execution available. Notably, Public does not generate revenue through payment for order flow, instead offering an optional tipping feature for customers to support the company’s commitment to transparency.
Public Fees and Cost
Public is a commission-free investing app, meaning that it does not charge any commissions on trades. However, there may be small exchange fees incurred for trades. The app also offers additional services for which fees may apply, such as broker-assisted phone trades, wire transfers, overnight checks, and paper statements. It’s important to review the fee schedule on the Public website to understand the costs associated with specific services.
One of the major advantages of using Public is its cost-effectiveness. The app is completely free to use, and Public does not charge trading fees or commissions. There are also no account minimums or maintenance fees, making it accessible to investors of all backgrounds. However, it’s important to note that Public does have a markup on cryptocurrency transactions, similar to many other brokers. Additionally, Public offers a premium subscription tier called Public Premium, which costs $10 per month and provides access to research, data, charts, specialized customer service, and other premium features. While the basic version of Public is free, the premium subscription offers enhanced functionalities for a more personalized investing experience.
Account and Research Amenities on Public
Public provides a range of account and research amenities to support investors. While the app offers basic data and insights for beginner investors to make informed decisions, it does not have advanced stock or ETF screeners, charting functionality, or third-party research for the basic membership tier. However, Public’s premium subscription, Public Premium, provides additional features such as stock and ETF reports, pre-market and after-hours trading, advanced portfolio organization tools, Morningstar market reports and ratings, custom price alerts, subscriber-only news, and earnings breakdowns. These amenities cater to investors who seek more advanced research and analysis capabilities.
How Public Makes Money
Public employs several revenue streams to sustain its operations. Firstly, Public offers an optional tipping feature, allowing users to support the company’s commitment to transparency and avoid participating in payment for order flow. Additionally, Public engages in securities lending through its clearing partner, Apex. By lending shares to investors and institutions in need, Public generates revenue through the interest paid by borrowers. Uninvested cash balances also earn interest, contributing to the company’s revenue stream. Lastly, Public offers a premium subscription, Public Premium, which generates revenue through monthly subscription fees from users who opt for the enhanced features and services.
Pros and Cons of Public
Pros:
- Fractional shares allowed: Public enables customers with limited cash to buy fractional shares, lowering the barrier to entry in investing.
- Social media element connects investors: The option to follow popular creators and engage in discussions with a community of investors makes the stock market a more inclusive and educational place.
- User-friendly mobile app: Public’s mobile app is easy to use, allowing users to open accounts quickly and navigate the platform effortlessly.
- No Payment for Order Flow (PFOF): Public does not participate in the controversial practice of payment for order flow. Instead, it offers an optional tipping feature.
Cons:
- Limited account types: Public currently only offers taxable, individual brokerage accounts. There are no options for IRA or joint accounts.
- Limited investment selections: While Public provides access to stocks, ETFs, treasuries, alternative assets, and cryptocurrency, it does not support mutual funds, options contracts, bonds, or forex investing.
- Limited features: Public’s platform lacks advanced features such as charting capabilities, real screeners, and other stock evaluation tools.
Conclusion: Public’s Empowering Approach to Investing
Public has positioned itself as a user-friendly and accessible investing app, particularly for beginner investors. With its focus on financial education, social media collaboration, and commission-free trading, Public aims to empower individuals who may have been deterred from investing in the past. While the platform offers a limited selection of account types and investment options, it excels in providing a seamless user experience and fostering a supportive community for investors. With its commitment to transparency and innovative features like fractional shares and social media integration, Public has carved out a unique space in the investing app landscape. Whether you are a beginner looking to dip your toes into the stock market or an experienced investor seeking a user-friendly platform, Public offers a compelling option worth considering.