Public App Review 2023: A Comprehensive Analysis

In this 2023 review, we’re going to dive deep into Public, the exciting investment platform that’s been catching the attention of investors. Whether you’re a newbie to investing or a seasoned pro looking for insightful resources, Public has something in store for you. Let’s explore its features, advantages, and areas where it could improve.

Overview

Founded in 2019 by Jannick Malling and Leif Abraham, Public is a New York City-based financial services company. It functions as a regulated broker-dealer, offering account protection of up to $500,000. What sets Public apart is its unique combination of social interaction, commission-free trading, and access to a wide range of assets, catering to diverse types of investors.

Key Features

• Commission-Free Trading Public allows investors to trade stocks and ETFs without worrying about commissions. This aligns with industry standards and is a major plus for those who want to invest without additional fees.
• Fractional Shares One standout feature is the availability of fractional shares. With a low trade minimum of just $1, investors can own a piece of high-priced stocks or ETFs. Public goes a step further by allowing users to reinvest dividends, enhancing the value of their investments.
• Educational Content Public provides an extensive range of educational content, perfect for beginners. It covers fundamental topics, making it a valuable resource for those new to investing. You can find clear articles explaining concepts like “What is a short squeeze?” and “What causes market volatility?”
• Social Interaction The social feed feature is a unique aspect of Public. It lets you follow other investors and engage in stock discussions. This interactive approach is not limited to stocks; you can also explore thematically linked stocks and participate in “town hall” sessions with company CEOs.
• Public Premium Subscription For investors seeking more in-depth analysis and insights, Public offers the Public Premium subscription at $10 per month. This subscription includes access to financial metrics and Morningstar research. It also provides enhanced customer support.
• Cryptocurrency Trading Public extends its offerings to include cryptocurrency trading. You can invest in popular cryptocurrencies like Bitcoin, Ethereum, and Solana with as little as $1, and there are no commission expenses. The social feeds can also be used for cryptocurrency discussions.

Pros

• Low Trade Minimum and No Commissions Public’s low trade minimum of just $1 and the absence of trading commissions make it extremely accessible for investors.
• Fractional Shares The ability to buy and reinvest in fractional shares is a unique and valuable feature, particularly for beginners.
• Extensive Education and News The platform offers a plethora of educational content and a comprehensive news feed for investors looking to stay informed.
• Social Feeds The social interaction component of Public sets it apart, allowing you to connect with fellow investors and gain insights into stock trends.
• Access to Cryptocurrency Public offers cryptocurrency trading, making it a one-stop platform for traditional and digital asset investments.

Cons

• Limited Investment Selection Public primarily focuses on stocks and ETFs. Investors seeking bonds, options, or mutual funds may need to look elsewhere.
• Limited Account Types Public currently offers only individual taxable accounts. Those interested in retirement accounts will need to consider alternative brokers.
• No Margin Loans Public does not provide margin loans, which might disappoint investors seeking leverage.

Usability

Public prides itself on being user-friendly, whether you’re using the mobile app or web version. You can swiftly access market data, portfolios, and investment options. Public places a strong emphasis on design and accessibility, catering to investors of all levels of experience. Here are some key aspects of usability at Public:

User-Friendly Mobile App: Public provides a mobile app designed for ease of use. It’s available on both the Apple App Store and Google Play Store, allowing users to access their accounts and trade on the go. The intuitive interface and user-friendly design make it straightforward for investors to navigate the app.

Account Setup: Setting up an account on Public is a straightforward process. Users need to answer a few basic questions to complete the application and open an account. The simplicity of the account setup ensures that new investors can get started quickly.

Access to Stocks and ETFs: Once you’ve funded your account, you can easily search for stocks and ETFs to invest in. Public offers access to thousands of stocks and funds, and you can view other investors’ portfolios for inspiration. The platform also provides market data and community insights on trades directly from the homepage.

Community Features: Public’s social media-like features, including the ability to follow other investors, engage in discussions, and participate in group chats, contribute to the platform’s usability. These features enhance the sense of community among users and provide opportunities for learning and sharing investment insights.

Search Functionality: The search functionality on Public allows users to find specific stocks or ETFs by typing in the ticker symbol or browsing through predefined categories. These categories can help users discover stocks related to specific themes or industries.

Account Information: Public offers clear and comprehensive displays of account information, making it easy for users to track their investments, view balances, and manage their portfolios. The web version of Public’s platform provides more expansive account information compared to the app.

Discussion and Engagement: Users can engage in discussions, direct message other investors, or join group chats. These interactive features are designed to facilitate conversations around investment ideas and strategies, promoting engagement and learning.

Investment Execution: Investors can easily create buy or sell orders using the mobile app or web platform. The order process is user-friendly, and the low trade minimum of just $1 allows for flexible investing.

Browsing Investment Categories: Public groups companies into themes or categories, such as “meme stocks,” “space exploration stocks,” and more. This helps users discover stocks related to specific investment themes.

Advanced Web Platform: For users who prefer a more extensive view, Public offers a web version of its trading platform that displays information in a more expansive manner than the mobile app. This can be particularly useful for in-depth analysis and research.

Overall User Experience

Public’s commitment to user-friendliness, combined with its social and community features, contributes to a positive and accessible user experience. Whether you’re a beginner or an experienced investor, Public’s usability makes it relatively easy to get started and participate in the world of investing.

Trade Experience

The trade experience is user-friendly, especially for beginners. It allows easy creation of buy and sell orders. However, it lacks advanced trading features, such as chart customization and staging multiple orders.

Range of Offerings

Public offers a range of assets, including stocks, ETFs, cryptocurrencies, Treasuries, and fractional shares of art and collectibles. However, it does not support retirement accounts or joint accounts.

Public provides a diverse array of investment options to cater to the varying needs and preferences of its users. Here’s an overview of the range of assets available on the Public platform:

Stocks: Public allows users to trade a wide range of stocks, providing access to thousands of publicly traded companies. Users can buy and sell stocks without incurring trading fees or commissions.

Exchange-Traded Funds (ETFs): ETFs are also available on Public. ETFs provide a convenient way to diversify your investment portfolio by gaining exposure to a basket of assets, such as stocks, bonds, or commodities.

Cryptocurrency: Public offers cryptocurrency trading, including popular cryptocurrencies like Bitcoin, Ethereum, Solana, Shiba Inu, and more. Users can invest in cryptocurrencies with as little as $1, and there are no commission fees for cryptocurrency transactions.

Treasuries (Planned Offering): Public has plans to offer U.S. Treasuries, providing users with the opportunity to invest in government debt securities. This is a conservative investment option that is often considered low risk.

Alternative Investments: Public allows users to invest in alternative assets, such as fractional shares of art or collectibles. These alternative investments can provide diversification and unique opportunities for users.

Fractional Shares: One of Public’s standout features is the ability to invest in fractional shares. This means that users can own a portion of a share, even for high-priced stocks or ETFs. Fractional shares make it easier for investors to get started with limited capital.

Account Types: Public primarily offers individual taxable accounts. While it may not provide a wide range of account types, it caters to the needs of users who are looking for a straightforward investment account. Investors seeking retirement accounts or other specialized account types may need to consider other brokerage platforms.

The range of offerings at Public is designed to provide accessibility, choice, and flexibility to a broad spectrum of investors. It caters to both beginners and more experienced investors, offering commission-free trading and features like fractional shares to make investing more accessible.

Fees

Public’s app is completely free to use, with no trading fees or commissions. While it does have a markup on cryptocurrency, there are no account minimums or maintenance fees. Public also offers a premium subscription with enhanced features for $10 per month.

Public’s app is completely free to use, with no trading fees or commissions. While it does have a markup on cryptocurrency, there are no account minimums or maintenance fees. Public also offers a premium subscription with enhanced features for $10 per month.

Here’s a breakdown of the fees you may encounter when using the Public platform:

Commission Fees: Public does not charge trading fees or commissions for stock and ETF transactions. This means that users can buy and sell stocks and ETFs without incurring any commission costs. This fee structure is commonly known as commission-free trading.

Account Minimums: There are no account minimums required to open or maintain an account on Public. This makes it accessible to a wide range of investors, including those who may not have significant capital to start investing.

Account Maintenance Fees: Public does not impose account maintenance fees. Users are not charged for the general upkeep of their accounts. This helps ensure that users can keep their accounts without incurring additional costs.

Cryptocurrency Markup: While Public offers cryptocurrency trading without commissions, there is a markup fee applied to cryptocurrency transactions. This fee is typically expressed as a percentage and may vary based on the specific cryptocurrency being traded. It’s essential to be aware of this fee when engaging in cryptocurrency transactions on the platform.

Additional Costs: Public does mention a few additional costs that users may encounter, including:

• Alternative Assets Fee: A fee of 2.5% per transaction may apply to certain alternative asset investments.
• Domestic Overnight Checks: A fee of $35 may be charged for domestic overnight checks.
• Domestic Wire Transfers (Outgoing): A fee of $25 may be incurred for domestic wire transfers.
• Paper Statements: If you opt to receive paper statements, a fee of $5 may apply.
• Returned Checks and Stop Payments: A fee of $30 may be charged for returned checks or stop payments.
• Outgoing ACAT (Automated Customer Account Transfer): A fee of $75 may be applied for outgoing ACAT transfers.

It’s important to review the fee structure and any potential additional costs on the Public platform to ensure that you have a clear understanding of the fees associated with your activities.

How Public Makes Money

Public’s revenue streams include optional tipping, securities lending, interest on cash balances, and subscription fees. They do not rely on payment for order flow.

Public, like many other brokerage platforms, employs several revenue-generating strategies to sustain and grow its business. Here are the primary ways Public generates revenue:

Optional Tipping: The public introduces an optional tipping feature, allowing users to add a tip when they execute a trade. These tips contribute to Public’s revenue and help support its commitment to not participating in payment for order flow (PFOF). This practice of not relying on PFOF is in contrast to some other brokerage platforms that profit from order flow payments.

Securities Lending: The public collaborates with Apex as its clearing partner. Through securities lending, Public can lend shares to investors and institutions that need or want to borrow them. Parties borrowing these shares typically pay a market-driven interest rate, and this interest contributes to Public’s revenue. Borrowed stock can be used for various purposes, such as providing liquidity, hedging positions, arbitrage opportunities, creating structured products, or betting against the price of the stock.

Interest on Cash Balances: Public earns interest on the uninvested cash balances of its users. This is a common practice among brokerage platforms. The interest generated from these cash balances serves as an additional source of revenue for the platform.

Subscription Fees (Premium Membership): Public offers a premium subscription tier called Public Premium, which comes at a monthly cost of $10. This subscription provides users with access to enhanced research, data, charts, and specialized customer service. The subscription fees from Public Premium members contribute to Public’s revenue.

Crypto and Alternative Investments Markup: While Public offers cryptocurrency trading without commissions, it applies a markup on cryptocurrency transactions. This markup represents a margin that contributes to Public’s revenue. Additionally, when users invest in alternative assets like fractional shares of art or collectibles, Public may earn transaction-related revenue.

It’s important to note that Public’s revenue strategies are diverse and encompass various aspects of its business model. By offering a range of services, including premium subscriptions, securities lending, and the option for users to contribute tips, Public can sustain its operations and continue providing services to its user base.

Please keep in mind that the specific details of revenue generation may evolve over time, so it’s advisable to visit the official Public website or contact Public directly for the most up-to-date information on their revenue strategies.

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Account and Research Amenities

Public provides basic data and tools for investors, including a capital gains tax calculator and a fractional share calculator. It also offers news and research for premium members.

Public offers a range of account features and research tools to assist users in making informed investment decisions. Here’s a closer look at these amenities:

Capital Gains Tax Calculator: Public provides a capital gains tax calculator that allows users to estimate their tax obligations based on factors such as profit earned, length of ownership, and other personal financial circumstances. This tool can be valuable for investors looking to understand the tax implications of their investments.

Fractional Share Calculator: For stocks that pay dividends, Public’s fractional share calculator helps investors determine how many shares they can purchase with a given dollar amount. This feature is particularly useful for those looking to reinvest their dividends effectively.

Trading Idea Generators: While Public does not have traditional trade idea generators or screeners, it compensates with its social interaction aspect. Users can engage with other investors to discuss stock performance, risk strategies, or general market sentiment. This community-driven approach can provide valuable insights and trading ideas.

News Feed: Public features a news feed that aggregates information about companies on your watchlist. It sources news from reputable publications like Market Watch, Barron’s, and Business Insider. Staying informed about the latest developments in the companies you’re interested in is essential for making well-informed investment decisions.

Third-Party Research (for Premium Members): While basic members may not have access to third-party research, Public offers premium members access to more advanced data, company metrics, ratings, and research from Morningstar, a respected research organization. This premium feature enhances the depth of research and analysis available to users.

Cash Management: Public allows users to earn interest on their uninvested cash balances. This feature serves as an additional source of revenue for the platform.

SRI/ESG Research Amenities: Public does not provide dedicated socially responsible investing (SRI) or environmental, social, and governance (ESG) research amenities. However, users can explore thematic investing categories on the platform.

Portfolio Analysis: Public offers basic portfolio analysis tools that display your account’s balance and buying power. While it may not provide sophisticated portfolio analysis, it offers essential insights into your investments.

These amenities are designed to cater to the needs of different investors, from those looking to manage their taxes to those seeking up-to-date news and research. It’s important to note that the availability of certain features, such as third-party research, may vary depending on whether you are a basic or premium member.

Customer Service

Public offers customer support through email, FAQs, and in-app live chat. While not the most comprehensive, it caters to the essentials.

Public offers several avenues for customer support, ensuring that users can seek assistance when needed. Here’s an overview of the customer service options:

FAQs (Frequently Asked Questions): Users can find answers to common queries in the FAQ section. It’s a helpful resource for resolving basic questions and concerns independently.

Email Support: You can reach out to Public’s customer support team via email. Whether you have account-related questions, technical issues, or general inquiries, email support is available to address your concerns.

In-App Live Chat: For real-time assistance, Public provides an in-app live chat feature. This allows you to engage with a support agent directly, making it convenient for resolving urgent matters or seeking guidance.

Phone Support: While Public offers a comprehensive set of customer support options, it’s important to note that phone support is not available for incoming calls. Instead, they use an app-based return call system. This system allows users to request a callback for phone support when needed.

The combination of these customer support options ensures that users have access to various channels for assistance. Public’s commitment to customer service reflects its aim to provide users with a well-rounded and responsive support system.

It’s worth noting that while Public’s customer service covers essential support needs, it may not be as extensive as some other brokerage platforms that offer more personalized assistance, including phone support for incoming calls.

Transparency

Public maintains transparency by posting its fees and pricing schedule on its website. Since its founding in 2019, the company has not faced any regulatory actions.

Security and Reliability

To ensure the security and reliability of the platform, Public employs robust measures:

Two-Factor Authentication (2FA): Public secures your account with 2FA via SMS. This means that you can log in only with your registered device, enhancing the protection of your account.

Biometric Authentication: Public offers biometric authentication capabilities, which include fingerprint recognition and face recognition for added security.

Encryption: Public employs AES 256-bit encryption and TLS 1.2 to secure data in transit. These encryption standards are widely recognized for their effectiveness in safeguarding sensitive information.

SIPC Membership: Public is a member of the Securities Investor Protection Corporation (SIPC). This membership ensures that all members automatically qualify for protection on up to $500,000 in their account.

These security measures underscore the Public’s commitment to safeguarding user data and ensuring a reliable and secure trading environment.

Compare to Similar Brokers

When comparing Public to other brokers like Webull, Robinhood, and eToro, it’s essential to consider factors such as minimum deposit, fees, available assets, and trading technology.

When comparing Public to other brokers like Webull, Robinhood, and eToro, it’s essential to consider factors such as minimum deposit, fees, available assets, and trading technology. Each platform has its unique strengths and weaknesses, so it’s crucial to choose the one that aligns with your investment goals and preferences.

Webull:

• Webull offers commission-free trading of stocks, ETFs, and options.
• It provides a range of trading tools and features, including technical analysis charts and in-depth market data.
• Webull offers extended trading hours, which can be advantageous for active traders.
• The platform is known for its advanced features, making it a solid choice for traders seeking a more in-depth experience.

Robinhood:

• Robinhood is recognized for pioneering commission-free trading and offering a simple, user-friendly interface.
• It allows trading of stocks, options, cryptocurrencies, and fractional shares.
• Robinhood provides a cash management feature, making it a one-stop financial app.
• The platform is suitable for beginners and those who prefer a straightforward trading experience.

eToro:

• eToro stands out for its social trading capabilities, allowing users to follow and copy the trades of experienced investors.
• It offers a wide array of assets, including stocks, ETFs, cryptocurrencies, and forex.
• eToro emphasizes the concept of responsible trading and offers features to manage risk.
• The platform is a good fit for those interested in social trading and global markets.

In summary, Public differentiates itself with its emphasis on education, social interaction, and ease of use. It’s a strong choice for beginner investors seeking a supportive community and learning resources. However, for traders looking for advanced tools, a broader range of account types, or additional asset classes, other platforms like Webull, Robinhood, and eToro may be more suitable.

The right choice depends on your specific investment goals, experience level, and the features that matter most to you.

To Recap

Public’s focus on education, social interaction, and commission-free trading makes it an attractive option for beginners. The platform’s unique features, such as fractional shares and cryptocurrency trading, set it apart. However, it may not be suitable for investors looking for a broader range of investment options. For those seeking retirement accounts or advanced tools, larger brokers like Fidelity and Charles Schwab may be better choices. Public’s niche lies in appealing to new, mobile-first investors who value the social element in investing.

FAQs

1. Is Public a good platform for beginner investors? 

Yes, Public’s user-friendly interface, educational content, and social features make it an excellent choice for beginners.

2. Are there any fees for using Public’s app? 

No, Public’s app is entirely free to use, and there are no trading fees or commissions.

3. Can I invest in cryptocurrency on Public? 

Yes, Public offers cryptocurrency trading with no commission fees.

4. Is there a minimum deposit requirement for opening an account on Public? 

No, there are no account minimums required to open or maintain an account on Public.

5. Does Public offer retirement accounts? 

No, Public currently offers only individual taxable accounts. Investors interested in retirement accounts may need to explore other brokerage platforms.