Public stock trading apps have become increasingly popular, making it easy for everyday people to invest in the stock market. One of these apps is Public, a commission-free trading platform designed to simplify investing. But how does Public actually work, and what makes it different from other stock trading apps? In this article, we’ll break down the key features and mechanics of the Public app, so you can understand how it helps users invest in the stock market.
What Is Public?
Public is a stock trading app that allows users to invest in stocks and exchange-traded funds (ETFs) without paying commissions. It’s designed for beginners and seasoned investors alike, with a focus on transparency, simplicity, and community. Unlike traditional brokerages that may charge fees for trades or require high minimum balances, Public makes stock trading accessible to everyone.
How to Get Started with Public
1. Sign Up and Download the App
The first step to using Public is to sign up and download the app. It is available for both iOS and Android devices. You can create an account with basic information like your name, email, and phone number. Once registered, you’ll need to go through a quick identity verification process, which is required by law to prevent fraud.
2. Fund Your Account
After signing up, you’ll need to add funds to your account. Public allows you to link your bank account to the app for easy transfers. There’s no minimum deposit required, so you can start investing with as little or as much as you’re comfortable with.
3. Explore Stocks and ETFs
Public offers a wide variety of stocks and ETFs that you can invest in. Stocks represent ownership in a company, while ETFs are funds that hold a collection of stocks, bonds, or other assets. You can search for specific companies or browse through different categories such as technology, healthcare, and finance.
Key Features of the Public App
1. Commission-Free Trading
One of the main attractions of Public is that it offers commission-free trading. This means you don’t have to pay any fees when buying or selling stocks. Traditionally, brokerages charge fees per trade, which can add up over time. Public eliminates these costs, allowing you to invest more of your money in the market.
2. Fractional Shares
Public also allows users to buy fractional shares, meaning you don’t have to buy a whole share of a stock. This is particularly useful for expensive stocks like Amazon or Tesla, which may be out of reach for smaller investors. With fractional shares, you can invest any amount, even if it’s just $5 or $10, and own a portion of a share.
3. Social Investing
What sets Public apart from other trading apps is its social aspect. Public integrates a social feed where users can follow other investors, see their trades, and discuss market trends. It’s similar to a social media platform, but focused on investing. You can comment on trades, ask questions, and share your thoughts with other members of the community. This makes investing less of a solitary activity and more of a shared experience.
4. No Payment for Order Flow (PFOF)
Public is different from many other brokerage apps because it does not participate in Payment for Order Flow (PFOF). PFOF is a controversial practice where brokerages get paid to direct customer orders to specific market makers. Instead, Public has a “tipping” system, where users can leave a small tip for the app when they make a trade. This aligns with Public’s commitment to transparency.
5. Long-Term Investing Focus
While some trading apps encourage frequent buying and selling of stocks, Public is geared toward long-term investing. The app provides resources and education to help users understand the importance of holding onto investments for the long run, rather than making quick trades based on short-term market movements.
Types of Investments on Public
1. Stocks
Stocks are the most common type of investment available on Public. When you buy a stock, you’re purchasing a small piece of ownership in a company. Public allows you to buy stocks in well-known companies like Apple, Google, and Netflix, as well as lesser-known businesses. Stocks can go up or down in value based on how the company performs, and you can sell them at any time.
2. ETFs
Exchange-Traded Funds (ETFs) are another popular investment option on Public. ETFs are funds that hold multiple assets, such as stocks, bonds, or commodities, and are designed to track the performance of a specific index or sector. For example, an ETF might track the S&P 500, which is an index of 500 of the largest U.S. companies. ETFs are a great way to diversify your investments without buying individual stocks.
3. Cryptocurrencies (Coming Soon)
Public is also planning to offer cryptocurrencies as part of its investment options. Cryptocurrencies like Bitcoin and Ethereum have gained popularity in recent years, and many investors are looking to add them to their portfolios. While this feature is not yet available, it’s expected to be rolled out soon, further expanding the range of investments users can choose from.
How to Place a Trade on Public
Placing a trade on Public is simple. Once you’ve selected a stock or ETF you want to invest in, follow these steps:
- Click on the Stock: Navigate to the stock’s page by searching for it or finding it in your watchlist.
- Enter the Amount: Decide how much money you want to invest. If you’re buying fractional shares, you can enter any dollar amount.
- Review the Trade: Public will show you a preview of your order, including how many shares you’re buying and the total cost.
- Place the Order: Confirm your trade, and the app will execute the order. You’ll receive a notification once your order is filled.
Safety and Security on Public
1. SIPC Insurance
Public is a member of the Securities Investor Protection Corporation (SIPC), which means that your investments are protected up to $500,000 in case the brokerage fails. This insurance covers both cash and securities in your account, giving you peace of mind when investing.
2. Encryption and Security Features
Public takes security seriously. The app uses bank-level encryption to protect your personal and financial information. Additionally, it offers two-factor authentication (2FA), which adds an extra layer of security to your account. With 2FA, even if someone has your password, they won’t be able to access your account without a second form of verification.
See Also: How Does Bidding On StockX Work
Costs and Fees
1. No Commissions or Minimums
As mentioned earlier, Public is a commission-free trading app. You won’t have to pay fees when buying or selling stocks, and there’s no minimum balance required to open an account. This makes it easy for beginners to start investing without worrying about extra costs.
2. Optional Tipping
Public has introduced an optional tipping feature. When you make a trade, you can leave a small tip for the app as a way of supporting the platform. This is entirely voluntary, and you can choose how much, if anything, you’d like to tip. Public uses this as an alternative to generating revenue from Payment for Order Flow (PFOF).
3. Premium Features
Public also offers a premium subscription service called Public Premium, which gives users access to additional features like in-depth market data and analysis tools. While the basic version of the app is free, Premium provides extra insights for more experienced investors.
Educational Resources on Public
Public aims to educate its users about investing through a range of resources, including articles, guides, and podcasts. The app’s educational content is designed to help both beginners and experienced investors make informed decisions. Public emphasizes the importance of long-term investing and encourages users to focus on building wealth over time, rather than trying to make quick profits.
Conclusion
Public is an easy-to-use, commission-free stock trading app that offers fractional shares, social investing, and a focus on transparency. With its simple interface and no hidden fees, it’s a great option for beginners looking to start investing in stocks and ETFs. The app’s social features allow users to learn from others, while its educational resources help investors make informed decisions. Public’s commitment to transparency, including its decision not to participate in Payment for Order Flow, sets it apart from other trading platforms. Whether you’re new to investing or a seasoned trader, Public offers the tools and resources to help you grow your portfolio.
