In recent years, there has been a noticeable shift in how people invest. Social media, digital innovation, and the democratization of financial markets have given rise to platforms that not only offer easy access to investing but also foster a sense of community. Public.com (often simply referred to as Public) is one such platform that has gained significant traction by combining social networking features with commission-free investing. This article explores what Public App is, its key features, its benefits, and how it differs from other investing platforms like Robinhood.
What is Public App?
Public is a commission-free trading app that combines investing in stocks and ETFs (exchange-traded funds) with a social media experience. The platform aims to make investing more inclusive, educational, and community-driven by allowing users to share their portfolios, insights, and experiences with each other. Launched in 2019, Public has quickly gained popularity, especially among younger investors who are looking for a blend of finance and social interaction.
Public stands out from other investing apps by fostering a sense of collaboration rather than competition. Instead of simply focusing on transactions, Public encourages users to learn from one another, discuss strategies, and build their financial literacy in a community setting.
Key Features of Public App
1. Commission-Free Trading
Like other popular investing apps, Public offers commission-free trades on stocks and ETFs. This means users can buy and sell stocks without paying any trading fees, making it accessible for people with smaller budgets who may have been deterred by traditional brokerages with high fees.
2. Fractional Shares
One of the most user-friendly features of Public is its fractional shares offering. Fractional shares allow users to invest in expensive stocks like Apple, Tesla, or Amazon without having to purchase a whole share. This feature makes it easy for new investors to get started with smaller amounts of money, allowing them to diversify their portfolios more easily.
3. Social Investing
Public is as much a social platform as it is an investing app. Users can follow friends, family, or even well-known investors to see what stocks they are buying and selling. Public users can share their thoughts on market movements, comment on each other’s trades, and ask questions to learn more about investing strategies. This social aspect encourages transparency and helps make the process of investing more interactive and engaging.
Each user has a profile that showcases their portfolio (without specific dollar amounts), and they can share their opinions or discuss trends in the market. This communal approach helps users gain insights from others and fosters a collaborative atmosphere.
4. Themes and Collections
Public offers a feature called Themes, which groups stocks and ETFs based on certain criteria or trends. For example, users can explore themes like Green Power (companies focused on renewable energy), Women in Charge (companies led by female CEOs), or Cannabis (companies involved in the legal cannabis industry). This feature makes it easy for users to discover new stocks and invest according to their interests or values.
Themes simplify the research process, helping users navigate the often overwhelming task of choosing which stocks to invest in. It also introduces investors to companies they may not have otherwise considered.
5. Community Insights
Public encourages community-driven learning through its Insights feature, where users can share and read posts about specific stocks or market trends. Insights are often short posts or notes about why a user is buying or selling a particular stock. This transparency provides an opportunity for other users to learn from the experiences of their peers and make informed decisions.
6. No Payment for Order Flow (PFOF)
One major difference between Public and other commission-free platforms like Robinhood is that Public does not engage in payment for order flow (PFOF). Payment for order flow is a practice where brokerages receive compensation from market makers for directing trades to them, which can potentially result in suboptimal trade execution prices for users. Instead of relying on PFOF, Public makes money through a voluntary “tipping” system, where users can choose to leave a tip when making trades.
By opting out of PFOF, Public positions itself as more transparent and user-focused, ensuring that trades are executed at the best possible price without hidden incentives.
7. Learning Tools and Education
Public goes beyond being a platform for executing trades. It also offers educational resources designed to help users understand the world of investing. These resources include articles, guides, and a community-driven Q&A section where users can ask questions and learn from more experienced investors. The platform’s focus on education makes it particularly appealing for beginners who may be intimidated by the complexities of financial markets.
8. Cryptocurrency Investing
In response to growing interest in digital currencies, Public has recently added cryptocurrency investing to its list of offerings. Users can now buy, hold, and sell cryptocurrencies like Bitcoin, Ethereum, Litecoin, and several others directly through the app. This feature makes it easy for users to diversify their investments into both traditional assets like stocks and ETFs, as well as cryptocurrencies.
Benefits of Using Public App
1. Inclusive and Educational
Public prides itself on being a platform for everyone, regardless of their level of experience or the amount of money they have to invest. The ability to purchase fractional shares and the absence of account minimums make the app accessible to new investors. Meanwhile, the social features and educational tools provide a supportive environment for users to learn and grow as investors.
2. Transparency
By avoiding PFOF and offering a tipping-based revenue model, Public provides greater transparency to its users. This fosters trust and aligns the platform’s incentives with the best interests of its users, ensuring that trades are executed at the best possible prices.
3. Community Engagement
Public’s social features transform investing from a solitary activity into a community-based experience. Users can follow others, share insights, and learn from more experienced investors, making the platform an interactive space for financial learning and growth. The social aspect also encourages accountability, as users can explain their investing decisions and learn from any mistakes they may make along the way.
4. Fractional Shares for Diversification
The ability to buy fractional shares opens the door for users to build diversified portfolios with smaller amounts of capital. This allows users to spread their risk across a range of stocks, reducing the likelihood of significant losses from any single investment.
5. Themed Investing
The themed collections make it easy for users to invest according to their interests or values. Whether you’re passionate about clean energy or want to invest in companies that promote gender equality, the themes help you align your investments with your beliefs.
6. Cryptocurrency Access
With cryptocurrency becoming an increasingly important part of modern investing, Public’s integration of crypto trading allows users to manage both their traditional and digital assets in one place. The addition of crypto helps Public stay relevant in the rapidly evolving world of finance.
Potential Drawbacks
1. Limited Advanced Trading Features
While Public is great for beginners and casual investors, it lacks some of the advanced tools and features that experienced traders might want. For example, it doesn’t support options trading or more advanced analytical tools that other platforms like TD Ameritrade or E*TRADE offer.
2. Tipping Model
Although the tipping model promotes transparency, some users may find it a bit unusual. While tipping is entirely optional, users may feel inclined to tip for every trade, which could add up over time.
3. No Mutual Funds or Bonds
Public focuses on stocks, ETFs, and cryptocurrencies, but it doesn’t offer mutual funds, bonds, or other more traditional investment products. This may limit the app’s appeal for users looking to build a more conservative or income-focused portfolio.
Conclusion
Public is a groundbreaking app that blends commission-free investing with the power of social networking, making it a unique and innovative option for modern investors. With features like fractional shares, themed collections, and cryptocurrency trading, Public offers a user-friendly, community-driven platform that caters to both beginners and more seasoned investors.
While it lacks some of the advanced features available on other platforms, its focus on education, transparency, and inclusivity makes it a strong contender for anyone looking to start or enhance their investing journey. If you’re looking for an investment app that not only allows you to trade but also helps you learn and engage with a community, Public may be the perfect fit for you.