The Rise of Venmo
Venmo has become one of the most popular mobile payment apps in recent years. It was founded in 2009 and acquired by PayPal in 2013. Venmo allows users to easily send and receive payments with friends and family. It has become a go-to app for splitting bills, paying rent, and even buying groceries. But did you know that Venmo now allows you to buy stocks as well?
What Are Stocks?
Before we dive into how to buy stocks with Venmo, let’s first understand what stocks are. Stocks, also known as shares or equities, represent ownership in a company. When you buy a stock, you are essentially buying a piece of that company. As the company grows and becomes more profitable, the value of your stock can increase, allowing you to make a profit.
Buying Stocks with Venmo
Buying stocks with Venmo is a relatively new feature that was introduced in 2022. To buy stocks on Venmo, you need to have a Venmo account and a linked brokerage account. Venmo has partnered with several brokerages, including Robinhood and Charles Schwab, to offer this service.
Step 1: Link Your Brokerage Account
To link your brokerage account, open the Venmo app and navigate to the “Invest” tab. From there, select “Get Started” and follow the prompts to link your brokerage account. You may need to provide additional information, such as your social security number and employment information.
Step 2: Choose Your Stocks
Once your brokerage account is linked, you can start buying stocks on Venmo. Navigate to the “Invest” tab and select “Buy Stocks.” From there, you can search for the stocks you want to buy and place your order. Venmo allows you to buy fractional shares, meaning you can buy a portion of a share if you don’t have enough funds to buy a full share.
Things to Consider
Before you start buying stocks on Venmo, there are a few things you should consider. First, remember that investing always carries risk. The value of your stocks can go up or down, and you may not make a profit. Second, make sure you understand the fees associated with buying stocks on Venmo. While Venmo does not charge any fees for buying stocks, your brokerage may charge fees for trades and other services.
Conclusion
Buying stocks with Venmo is a convenient way to invest in the stock market. It allows you to easily buy fractional shares and manage your investments from one app. However, it’s important to remember that investing always carries risk, and you should do your research and understand the fees associated with buying stocks on Venmo. With these considerations in mind, you can start investing and potentially grow your wealth over time.
