Public.com Review

Company Background & Regulation

Public.com was established in 2019, marking its entry into the competitive world of online brokerage with a focus on simplicity and transparency. The company was founded by Jannick Malling, Matt Kennedy, Leif Abraham, and Katie Perry, with its headquarters located in New York, USA. Public.com aims to democratise investing by providing an accessible platform for retail investors to engage in stock and cryptocurrency trading. The platform is renowned for its innovative approach, particularly its emphasis on community-driven investing, allowing users to share insights and strategies through a unique social feed.

As a privately-owned company, Public.com has attracted significant investment from notable firms, including Accel, Greycroft, and Lakestar. Such backing underscores the confidence institutional investors have in Public.com's growth trajectory and business model. The company's leadership team brings together a wealth of experience from finance, technology, and social media sectors, contributing to its rapid ascent in the online trading space.

Public.com operates under the regulatory oversight of the United States Securities and Exchange Commission (SEC), ensuring it adheres to strict guidelines concerning investor protection and corporate governance. The platform's adherence to regulatory standards is further supported by its membership with the Financial Industry Regulatory Authority (FINRA), providing an additional layer of oversight. However, specific licence numbers are proprietary and not publicly disclosed.

Client fund protection is a priority at Public.com, which employs robust security measures to safeguard user assets. Although specific compensation schemes are not detailed, the regulatory environment of the SEC and FINRA offers a degree of assurance to clients regarding the safety of their investments. Public.com also utilises modern encryption technologies to protect personal and financial data, reinforcing its commitment to cybersecurity.

Trading Fees & Spreads

Public.com distinguishes itself in the brokerage industry with its commission-free trading model for stocks and ETFs, appealing to cost-conscious investors. This structure allows users to trade without incurring additional fees, aligning with the platform's mission to make investing more accessible. While the spread details are not explicitly outlined by Public.com, the absence of commissions means that the only cost to traders might be the bid-ask spread, typically competitive for major stocks.

In the realm of cryptocurrency trading, Public.com offers an innovative approach with its transparent fee structure. Instead of traditional spreads, Public.com provides a straightforward markup on cryptocurrency transactions, allowing traders to understand the costs involved clearly. This approach simplifies cost comparisons, although specific percentages for each cryptocurrency are not publicly detailed.

Regarding account maintenance, Public.com does not charge any fees for inactivity, further enhancing its appeal to casual investors who may not trade frequently. Moreover, the platform does not impose fees on deposits or withdrawals, ensuring that users can move their funds with ease and without unexpected costs. This fee policy is particularly advantageous compared to many competitors that often charge for such transactions.

When comparing Public.com's fee structure to other brokers, it stands out as cost-effective, especially for those engaged in traditional stock and ETF trading. However, for investors looking for more advanced trading tools or options such as margin trading, other platforms might offer more comprehensive solutions, albeit typically at a higher cost. Public.com's focus remains on providing a streamlined, user-friendly experience for its primarily retail investor base.

Trading Platforms & Tools

Web Platform

Public.com primarily focuses on a mobile-first approach and does not provide a dedicated web-based trading platform. This emphasis on mobile trading means that users who prefer desktop interfaces may find the lack of a web platform somewhat limiting. However, users can still access their accounts and some functionalities via the website for basic account management and portfolio review. The absence of a full-fledged web trading platform suggests a deliberate strategy to streamline user experience and maintain simplicity, appealing to beginner and casual investors who are more comfortable with mobile technology.

Desktop Platform

Public.com does not offer a dedicated desktop trading platform. The company has chosen to concentrate its efforts on enhancing its mobile application as the primary medium for trading and investment activities. This decision aligns with the company's mission to democratise investing by making it accessible and user-friendly for the millennial and Gen Z demographics, who predominantly use mobile devices. While this approach may deter more advanced traders seeking comprehensive desktop trading features, it effectively serves the broader target audience focused on ease of use and accessibility.

Mobile Platform

The mobile platform is the cornerstone of Public.com's offering, available on both iOS and Android devices. It features a sleek, intuitive design that facilitates easy navigation and a seamless user experience. The app provides access to a wide range of investment opportunities, including stocks, ETFs, cryptocurrencies, and alternative assets. Users can engage in commission-free trading, view real-time data, and participate in a social investing community. The platform's social feed allows users to follow other investors, exchange ideas, and stay informed about market trends. Although the mobile app is feature-rich for its intended audience, it lacks advanced trading tools such as algorithmic trading, extensive charting capabilities, and sophisticated order types, which could be a drawback for experienced traders.

Charting Capabilities and Trading Tools

Public.com's charting capabilities are basic, providing essential tools suitable for beginner to intermediate investors. While users can view real-time price updates and basic charting options, they do not have access to advanced technical analysis tools that are commonly found on more comprehensive platforms. The platform supports standard order types like market and limit orders but does not extend to more complex options such as stop-loss or trailing stop orders. Additionally, the absence of API access and algorithmic trading tools limits the platform's appeal to tech-savvy traders interested in custom trading strategies. Alerts and notifications are available, keeping users informed of price changes and news updates, enhancing the overall trading experience despite the absence of advanced functionalities.

Account Types & Minimum Deposit

Account Tiers

Public.com offers a straightforward account structure with no multiple tiers or complex account types. This simplicity is part of the platform's appeal, as it removes the complexity often associated with tiered account structures found on other trading platforms. All users have access to the same features, including commission-free trading of stocks and ETFs, the ability to invest in cryptocurrencies and alternative assets, and participate in the platform's social investing community. The lack of advanced tier options means there are no premium features or benefits for higher-value accounts, maintaining a level playing field for all investors.

Minimum Deposit and Supported Methods

One of the standout features of Public.com is its $0 minimum deposit requirement, making it accessible to investors of all financial backgrounds. This approach aligns with the company's mission to democratise investing and lower barriers to entry. Users can fund their accounts through bank transfers, which are the primary supported deposit method. The absence of additional funding options such as credit cards or e-wallets might be a limitation for some users, but the simplicity of bank transfers ensures secure and straightforward transactions. The zero minimum deposit and the availability of fractional shares further enhance the platform's accessibility, allowing users to start investing with any amount of money.

Demo Account and Islamic Account

Public.com does not offer a demo account or an Islamic account. The lack of a demo account might be a drawback for potential investors wishing to explore the platform's features risk-free before committing real funds. Moreover, the absence of an Islamic account means that the platform does not cater specifically to investors seeking Sharia-compliant investment opportunities. Despite these limitations, the platform's focus remains on providing a simple, fee-free investment experience, appealing to the broader market of retail investors in the United States.

Markets & Instruments

Public.com offers a focused range of markets and instruments, catering primarily to investors interested in stocks and cryptocurrencies. The platform allows trading in thousands of US-listed stocks and ETFs, providing users with a broad spectrum of investment opportunities in equities. With its commission-free structure, Public.com becomes an attractive option for retail investors looking to explore the stock market without incurring traditional trading fees.

In addition to stocks, Public.com provides access to cryptocurrencies, a feature that distinguishes it from some traditional brokerages. Investors can trade popular digital currencies such as Bitcoin, Ethereum, and a selection of other notable cryptos. Although the exact number of cryptocurrencies offered is limited compared to specialised crypto exchanges, the availability of digital assets on Public.com enables users to diversify their investment portfolios easily.

One of Public.com’s unique offerings is the ability to purchase fractional shares, which allows investors to buy portions of a stock or ETF, making high-priced stocks more accessible to a broader audience. This feature is particularly beneficial for new investors or those with limited capital who wish to invest in well-known companies without needing to purchase a full share. Additionally, Public.com’s social investing feed, which integrates community-driven insights and discussions, adds a distinctive layer of interaction and information-sharing among users, potentially enhancing the decision-making process.

Safety & Security

Public.com prioritises the safety and security of its users’ funds by adhering to strict regulatory guidelines. As a member of the Securities Investor Protection Corporation (SIPC), Public.com ensures that user funds are protected up to $500,000, which includes a $250,000 limit for cash claims. Furthermore, the platform follows a fund segregation policy, keeping client funds separate from its own operational resources to safeguard against any financial discrepancies.

The platform also implements robust cybersecurity measures to protect user data and transactions. It employs industry-standard encryption protocols, ensuring that personal and financial information remains secure. Additionally, Public.com’s regulatory compliance is overseen by the US Securities and Exchange Commission (SEC), which provides a layer of credibility and trust for investors concerned about regulatory oversight. However, it is important to note that Public.com does not offer negative balance protection, meaning that users should be mindful of the associated risks, especially when dealing with volatile assets like cryptocurrencies.

Who Is Public.com Best For?

Public.com is best suited for beginner to intermediate investors looking for a straightforward, user-friendly platform to trade stocks and cryptocurrencies. Its commission-free structure and the absence of a minimum deposit requirement make it an appealing choice for those just beginning their investment journey. The platform’s design caters to users who prefer a mobile-first experience, as it operates exclusively through its proprietary mobile app, which is available on both iOS and Android devices.

The platform is particularly advantageous for individuals interested in social investing, as it integrates a community-driven social feed where users can share insights, discuss strategies, and even follow other investors’ activities. This feature is ideal for those who value collaborative learning and peer interaction as part of their investment process. Public.com’s offering of fractional shares further enhances its appeal, allowing investors to gain exposure to high-value stocks without the need for significant upfront capital.

However, Public.com might not be the best fit for advanced traders or those seeking a more comprehensive suite of financial instruments and analytical tools. The absence of options trading, margin accounts for basic users, and advanced charting features could be limiting for professional traders or individuals with complex trading strategies. Additionally, the platform’s current availability is restricted to US residents, which may be a drawback for international investors looking to use a similar service.

• Ideal for beginner investors interested in commission-free stock and ETF trading.
• Suited for users seeking exposure to cryptocurrencies alongside traditional equities.
• Attractive for those who appreciate social investing and community insights.
• Beneficial for investors looking to purchase fractional shares.
• Not suitable for advanced traders requiring comprehensive analytical tools.
• Limited to US-based investors due to geographic restrictions.