Public Review – The Perfect Broker for New Investors?

If you’re a new and inexperienced investor, Public offers an opportunity to invest in stocks, ETFs, and even cryptocurrencies on a user-friendly investment platform, free of trading commissions.

Why else should you invest through Public?

• You can open an account with no money at all.

• Public enables you to invest through fractional shares, which means you can build an entire portfolio with just a few dollars.

• Public provides a social community where you can exchange ideas with other investors on the platform.

• The platform is constantly expanding its product menu, rolling out a Premium version, and acquiring a subsidiary that will enable investing in cultural assets, like art.

Want to know more?

About Public

Public is an online investing platform where you can invest in stocks, exchange-traded funds (ETFs), cryptocurrencies, and, in the future, art, non-fungible tokens (NFTs), collectibles, and other investments. Most trades can be made commission-free.

The platform provides company information, programs about the markets, and real-time analysis to help members be better investors.

But what sets the Public apart from most of the competition is the social aspect. The platform operates as a social community where millions of investors, creators, and analysts come together to share ideas and learn what each other is doing.

The community aspect of Public takes in well-known personalities, including actor Will Smith, NFL star J.J. Watt, creator and entrepreneur Casey Neistat, and skateboarding legend Tony Hawk.

Public was launched in 2019 and is based in New York City, with offices in Copenhagen, Denmark.

Is Public Legit?

Officially known as Open to the Public Investing, Inc., Public is an SEC and FINRA-registered investment broker.

The company has a Better Business Bureau rating of “A” (on a scale of A+ to F), where it has been accredited since 2020. A total of 38 complaints have been filed against the company with the BBB over the past three years, all of which have been answered by the Public.

The company also scores well with mobile users. It has a rating of 4.7 out of five stars among more than 58,000 iOS user reviews on The App Store and 4.4 stars out of five among more than 43,000 user reviews on Google Play.

How Do You Make Money With Public?

Public is a trading app where you can make money by buying stocks, ETFs, options, and cryptocurrencies and then selling them for capital gains. But that’s not the only way you can make money with the Public.

You can also earn dividends on any dividend-paying stocks or funds you hold. Public does provide a reinvestment feature, so you’ll have the option to either reinvest dividends and more company stock or take the income as cash.

Public does pay interest on cash balances. That interest income won’t be comparable to what you can get in CDs or U.S. Treasury securities, but it will provide you with an income on your uninvested cash.

But perhaps the easiest way to make money on Public is to take advantage of one or more of the three Public promotions.

That includes the Public New Member Reward Program, Account Transfer Bonus, and the Public Referral Program, each of which will be explained in greater detail later in this review. Those bonuses will pay between $3 and as much as $10,000, so they’re well worth participating in.

Public Account Types

Public offers taxable brokerage accounts only. At this time, they do not offer retirement accounts, custodial accounts, trusts, or college savings plans.

When you open an account with Public, you’ll be able to engage in commission-free trades of individual stocks, ETFs, and cryptocurrency (they plan to make art, NFTs, and collectibles available in the future).

And while Public does not offer customer service by phone, you can get plenty of support on the platform.

Public provides you with access to the following:

• Timely updates on stock, crypto, or other assets, including news on significant price changes. It also offers unique insights about your portfolio, upcoming earnings calls, company events, and more.

• Live shows (Public Live) where you can listen to experts, analysts, and journalists break down the day’s biggest market headlines.

• Advanced data reports, where you can explore fundamental metrics and institutional-grade research from Morningstar. You’ll also get perspectives from trusted research analysts.

• “Town Halls,” providing direct access to company founders and executives.

• The Top Movers List, where you can see the list of the stocks that have moved the most, either up or down, for the trading day.

• An investing glossary provides explanations of important investing topics and terms, like 12 B-1 fees, the 50/30/20 budgeting strategy, asset allocation, bid/ask spread, and more.

• Customer support specialists who are FINRA licensed and ready to help you through live chat seven days a week.

Public Premium

For $10 per month, Public Premium offers all the features available with a Public regular account but adds the following upgrades:

• Advanced Data and Unique Market Metrics – access Morningstar’s industry-leading performance data, including breakdowns of ETF holdings and company performance on revenue, ESG, and other factors.

• Analyst’s Insights – learn what bulls and bears think about popular securities, including analyst’s sentiment, Morningstar’s fair value estimate, and extensive research reports.

• VIP Customer Support – provides you with “white glove” support from Public’s US-based customer service team.

At this time, Public has instituted a wait list for Public Premium. You will receive early access to the service on a rolling basis based on your order on the waitlist.

How Public Works

As to the investment process, Public keeps it simple. Whether you’re investing in stocks, ETFs, or crypto, all you need to do is pull up the investment category, select the security, fund, or crypto you want to buy, then click the “Invest” button, and you’re all done.

Cryptocurrency

Public is joining the growing number of investment platforms that are offering investors access to cryptocurrency in addition to more traditional investments. In fact, they give you an opportunity to invest in more than 25 cryptos.

These include Bitcoin, Ether, Cardano, Dogecoin, Solana, Litecoin, Bitcoin Cash, Stellar, Ethereum Classic, Tazos, Dash, Zcash, and more. And just as is the case with stocks and ETFs, cryptos can be traded commission-free and using fractional shares (or “slices”).

Crypto can be traded 24 hours a day, seven days a week. But you should be aware that, like other investment platforms that make crypto available, Public does not use digital wallets.

That means while you can buy and sell crypto on the platform, you can’t move it into a wallet and then move it to another platform.

Similarly, you won’t be able to transfer crypto held on another broker or exchange to the Public.

Public Themes

You’ll also have access to Public Themes with either a regular account or with Public Premium. These are purpose-centered investment themes, giving you access and insight into companies participating in that particular industry or activity.

Examples include green power, space exploration, dividend stocks, cannabis, blockchain technology, media and entertainment, and more. Each theme will provide you with a list of individual stocks and ETFs that are part of that theme group.

The Public Social Community

One of the keys to the Public investment app is the Public Social Community. It adds a social media dimension to your investment activities, enabling you to learn from other investors and even share your own investment strategies, successes, and failures.

You can even embed a stock chart or a Public member’s profile within a message.

Think of it as an investment chat room within the Public app.

You can send or receive messages to or from an individual or groups within the community. Groups can hold up to 100 participants.

Community members who participate in productive conversations, share ideas, and uphold the Public’s values of transparency and respect are eligible to receive the Public Invest Hat. That’s not really a big deal since it’s basically a baseball cap with the word “Invest” imprinted across the front.

Public makes it possible to block a community member who you want to unfollow. You can do it by visiting the member’s profile and selecting Block.

Otis

Public recently acquired Otis, which is a move that will create even more investment opportunities for participants on the platform. With that acquisition, you’ll soon be able to invest in alternative assets, like collectibles, trading cards, and contemporary art.

The acquisition is recent, and Public projects will be at least six months before Otis will be officially integrated with the Public and available to investors.

How Does Public Make Money if They Don’t Charge Fees?

Among all investment brokers, Public is especially light on fees. So, how do they make money and stay in business?

For starters, they don’t use Payment for Order Flow (PFOF), as is commonly used by other commission-free retail brokers. That’s where a broker sends trades to market makers in exchange for rebates. It’s a common source of broker income but one that the Public doesn’t use.

Instead, Public relies on the following:

• Optional Tipping. As a social investment platform, members who want to support the platform and keep Public PFOF-free can provide tips to the company, though they aren’t required.

• Securities Lending. Public uses the services of Apex Clearing as their clearing agent. Investors on the platform can choose to enroll in the Fully Paid Securities Lending Program, in which Apex can loan out their shares to other investors and institutions, usually for short sales.
  
  Those borrowers will pay interest to Apex, a portion of which is rebated to Public.

• Interest on Cash Balances. Uninvested cash held by investors on the platform will earn interest, some of which is retained by Public. This is another common practice in the brokerage industry.

• Instant Withdrawal Fees. Public charges a fee of 2% of the amount withdrawn on instant withdrawals.

• Public Premium Subscription Fees. Premium has a fee of $10 per every 30 days, representing revenue to the company.

• Pulse Partnerships. Public offers this service to help companies create closer relationships with their retail investors. Public partners with companies to share important information via the Public platform, in an attempt to improve investor experience.
  
  Presumably, Public earns some sort of fee paid by the companies for the service, though this isn’t specifically disclosed.

Public Features

Feature Summary:

Minimum Account Balance	$0, but You Will Need to Deposit Funds to Begin Investing
Available Accounts	Individual Taxable Investment Accounts Only
Investments Offered	U.S.-Listed Stocks (Including About 100 OTC Stocks), American Depositary Receipts (ADRs) For Foreign Securities Listed on U.S. Exchanges, ETFs, Options, Cryptocurrencies and Initial Public Offerings
Cryptocurrencies Available	25+
Stocks, ETFs, and Options Trading Fees	$0
Cryptocurrency Trading Fees	1% – 2% Mark-up per Trade
Other Fees	A Public Premium Subscription Is $10 per 30 Days; $25 for a Domestic Wire Transfer Out of Your Account, and 2% Of the Amount Withdrawn on Instant Withdrawals
Mobile Access	Available at Google Play for Android Users and at the App Store for iOS Users
Extended Trading Hours	8:00 AM to 8:00 PM, Eastern Time, Monday Through Friday
Fractional Shares	Public Refers to These as “Slices,” Enabling You to Buy Small Amounts of Shares in Stocks, ETFs, and Even Cryptocurrencies
Automatic Dividend Reinvestment	Yes
Clearing Agency	Apex Clearing
Interest on Uninvested Cash	Yes, Through the Sweep Account Provided by Apex Clearing
Customer Service	Available by either In-App Chat or Web Chat, Seven Days per Week; No Phone Support Is Offered

Tax Reporting and Exporting

You can import your Public 1099 form directly into TurboTax. You can even save up to $20 when you download TurboTax from Public.

Account Protection

Public is a fully regulated broker-dealer, and your account is protected by SIPC insurance for up to $500,000 in cash and securities, including $250,000 in cash.

Accounts are secured by bank rate security AES 128-bit encryption, TLS for secure data transit, and a default two-factor authentication.

Public Promotions

Public is currently offering three promotions:

Public New Member Reward Program: Open a Public account and deposit at least $20 into it to be eligible to receive a fractional share of a designated stock, ETF, or crypto asset. The reward will be worth between $1 and $300.

Public Referral Program: Refer family and friends to Public, and you’ll receive a fractional share of an asset of your choice.

The terms for your referrals will be the same as for the Public New Member Reward Program, except that both you and your referral will get $20 in an asset of your choice, subject to the terms and conditions.

Account Transfer Bonus: Public will pay you a bonus ranging from $150 to as much as $10,000 if you transfer $5,000 or more in securities from another broker.

You can make the transfer without needing to sell securities. Public does not charge a transfer fee and will cover any transfer fees from the source broker up to $500.

How to Sign Up for a Public Account

You can sign up for Public from either the website or the mobile app by clicking “Get Started” at the top of the page. You’ll need to enter your email address and phone number and a referral code if you have one.

To be eligible to sign up for an account with Public, you must be a US citizen and be at least 18 years old. Public will accept US permanent residents and those who have valid visas. You must also have a valid Social Security number, a US-based phone number, and a legal US residential address.

Once Public verifies the above information, you’ll receive an approval notification and a free stock available from the Free Stock button in the top right of the home screen.

Alternatively, Public can accept debit card funding of up to $5,000 per transfer. You can do this by connecting your debit card to your Public account. If you prefer, you can also fund your account by mailing a check or by setting up an incoming wire into your Public account.

Finally, you’ll need to upload a profile photo so you can easily be identified by friends and others participating on the Public platform.

Once your account has been funded, you can begin investing as you like.

Is Public Safe to Use for Beginners?

Public is a safe investment platform for beginning investors. Your account will be completely protected by SIPC insurance for up to $500,000, and the platform uses numerous security features, including two-factor authentication, to keep your information safe.

The company is also registered with both the SEC and FINRA.

Another benefit of Public is that you can open an account with no money at all. With no minimum deposit requirement, you’re free to invest as little or as much as you feel comfortable doing.

That said, Public may not be the best choice for beginning investors. Larger brokerage firms offer more investment options, including mutual funds and bonds. They also provide more educational resources and trading tools, as well as superior customer service.

After all, Public does not provide investors with access to phone support.

Why You Should Open an Account With Public

Public has a lot going for it, especially for new investors looking to get their feet wet investing. They offer a combination of no minimum initial investment requirement, as well as commission-free trades.

And since they can also accommodate trading in more than 25 cryptocurrencies, you’ll have an opportunity to invest in crypto in the same account where you hold your other investments.

The social aspect of Public can also be important for new and intermediate investors. You’ll be part of the Public Social Community, where you’ll be able to learn what other investors are doing, run investment scenarios by other members, and participate in group discussions.

I’m not entirely certain the Public Premium version is worth the $10 per month fee. Especially when you consider the services offered are commonly available with other investment brokers at no additional charge.

More experienced investors may also find Public to be a limited platform. That’s because it does not offer mutual funds, bonds, penny stocks, options, or margin trading.

But at this point in the game, Public is designed for new and intermediate investors. And for that group, Public is an excellent choice.

Final Thoughts – Public Review – The Perfect Broker for New Investors?

Public stands out as an enticing option for budding investors, offering commission-free trades, no initial investment requirement, and a broad spectrum of investment options, including over 25 cryptocurrencies.

Additionally, the platform’s social community fosters an environment of learning and idea exchange, greatly benefiting novices and intermediate investors.

The recent inclusion of alternative assets, such as rare collectibles and art, adds another layer of diversity to investment choices.

However, it’s essential to note its limitations, including a lack of services like mutual funds, options, and margin trading. For those new to investing, Public presents a commendable starting point.

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