Previously, opening an investment account independently meant navigating limited resources with little guidance. Traditional brokerage accounts existed, but they demanded substantial capital for stock purchases plus costly trading fees.
Today’s landscape offers far more accessibility for average investors, thanks to numerous platforms, websites, and apps designed specifically for everyday investors. Stockpile represents one such technology that empowers anyone to buy and sell stocks.
Stockpile brings one distinctive feature – it enables you to purchase gift cards redeemable for actual stock ownership. But does this gift card functionality provide sufficient reason to choose Stockpile over competing platforms?
Let’s dive into this comprehensive Stockpile review to help you determine whether a Stockpile account suits your needs.
Stockpile History
CEO and founder Avi Lele conceived Stockpile when searching for meaningful Christmas gifts for his nieces and nephews.
He recognized that children often receive numerous items they don’t fully utilize. Lele sought to offer something more meaningful and practical.
His goal was gifting stocks, but shares of companies like Apple carried price tags too steep for gift-giving.
Although Lele ultimately purchased traditional gifts, the concept of buying partial shares as presents remained with him.
Founded in 2010, Stockpile transformed this vision into reality. The platform’s mission centered on enabling people to purchase fractional shares that could be gifted to others.
Stockpile Fractional Shares: An Explainer
Before exploring deeper into our Stockpile review, let’s examine fractional shares. Purchasing Google stock would require approximately $2800 per share as of August 2021.
Few of us maintain that level of disposable income to buy multiple Google shares, let alone gift stock to others.
However, fractional shares grant ownership stakes in companies like Google and Apple that would otherwise remain financially out of reach.
Through fractional shares, you gain proportional stock value identical to owning full shares. With Stockpile and similar apps, you can purchase fractional shares starting at just $5 and own pieces of highly coveted stocks.
Advantages of Fractional Shares
What makes fractional share investing so appealing? Here are several key benefits:
- Enhanced control – Fractional shares allow investors precise control over investment amounts. You can construct a diversified portfolio without committing massive sums to individual investments.
- Eliminates major investment barriers – Partial stock ownership welcomes more investors into the market. This particularly benefits young or novice investors seeking hands-on learning experiences.
- Facilitates portfolio diversification – Purchasing various stocks with available funds makes building well-diversified portfolios more achievable. This helps mitigate stock market risks.
StockPile Account Overview
Here’s what Stockpile’s platform delivers:
- Minimum balance: $0
- Account Monthly Fees: 0
- Commissions: $0
- Ideal for: Young and new investors
- Key Features: Ability to purchase Stockpile gift cards
- Promotions (i.e. free stock): Not available
Stockpile recently eliminated its trading fees, largely responding to competitors like Robinhood offering commission-free structures.
U.S. citizenship is required to establish a Stockpile account.
Stockpile Brokerage Account Features
Investment Types
Stockpile’s platform supports trading in exchange-traded funds (ETFs), individual stocks, and select non-U.S. stocks called ADRs (American Depository Receipts).
You can purchase ETFs tracking commodities like lithium and gold, though direct commodity purchases aren’t available.
Currently unavailable investment types include cryptocurrencies, mutual funds, futures, options trades, and forex.
Fractional Shares
Stockpile account holders can purchase fractional shares, providing access to companies like Google, Amazon, and Disney without requiring substantial investments.
Rather than buying complete shares of these companies, investors can own fractional portions.
Stockpile Gift Cards
This stands as Stockpile’s most compelling feature – enabling stock gifts through gift cards.
To use this feature, you must establish a custodial account for the gift recipient. Custodial accounts serve users under 18 years old.
After setting up the custodial account, simply send stock gift cards to the child.
This provides an excellent method for introducing kids and loved ones to stock ownership while potentially sparking interest in trading education. The platform offers over 4,000 stocks and ETFs.
Physical cards are also available through select retailers.
Reinvesting Dividends
Reinvesting dividends ranks among effective long-term wealth-building strategies. Stockpile enables free dividend reinvestment with ease.
How a Stockpile Gift Card Works
Stockpile Gifts, Inc. issues the gift cards, available as physical or electronic versions.
These cards carry no expiration dates, eliminating pressure for immediate use. Redemption occurs whenever convenient, including physical cards.
Using stock gift cards requires having a Stockpile brokerage account.
How does Stockpile Work?
Stockpile provides both desktop and mobile versions of its service.
The desktop platform handles everything from account setup and funding to purchasing, trading, and withdrawals. The interface remains beginner-friendly throughout.
The mobile app supports iOS and Android devices with identical functionality to the desktop version.
The Stockpile app provides convenient on-the-go access across all supported devices.
Is Stockpile Safe?
When using platforms like Stockpile to invest money, security of funds and information becomes paramount.
As a Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SPIC) member, Stockpile adheres to all federal regulations.
Deposits receive insurance coverage up to $500,000.
Stockpile employs 256-bit encryption for data protection and storage, ensuring information security.
You can confidently view Stockpile as a secure investing platform.
Stockpile Pros
User Interface
Stockpile’s intuitive interface enables virtually anyone to begin using it immediately. The simplicity proves essential given the platform serves gift card recipients (custodial accounts for minors).
Common functions like stock trading or bank transfers are effortlessly accessible through Stockpile.
No Fees
Stockpile charges no basic trading or annual fees. This fee-free structure represents a recent change.
Competitive pressure from platforms like Robinhood prompted them to eliminate fees just over a year ago. Stock purchases and sales (previously $0.99 per trade) and debit card fees no longer apply.
The only charges involve uncommon transactions like domestic wire transfers, wire amendments/repairs, paper checks, returned checks, ACH, wire recalls, and stop payments – services most investors rarely use.
Additionally, no minimum account balance or trade purchase requirements exist.
Stockpile Gift Card
Gift card functionality represents Stockpile’s primary distinguishing feature. Few competitors offer this capability.
Purchasing gift cards is straightforward. Navigate to “Buy” on the website to reach the stock selection page, then choose and purchase stock.
Next, select your desired gift card amount. This mirrors traditional gift card purchases.
Available amounts include $10, $25, $50, $100, or custom amounts. Enter the custodial account owner’s name and email address.
Optional gift messages can accompany the card.
Payment accepts credit cards, debit cards, or PayPal. Physical cards are also sold at retailers including Target, Safeway, Kroger, and other major stores.
Custodial Accounts
Many newer investment platforms lack custodial account options. However, Stockpile makes this a core feature.
This functionality is essential for Stockpile’s gift card system. Sending gift cards to recipients under 18 requires custodial accounts.
Teaching Youth about Investing
Stockpile uniquely provides young users with stock gift cards that can ignite investment interest. Just as previous generations received savings bonds, today we can gift stocks through Stockpile.
Earning incentives like cash dividends may motivate them to explore stock markets further while developing sound financial habits.
Stockpile Cons
Limited Investment Options
Compared to other financial services providers, Stockpile’s investment selection falls short. Access to mutual funds, cryptocurrencies, and other investments that certain investors highly value remains unavailable.
Restricted Trading Window
Stockpile trades don’t execute instantly. Instead, trades occur at predetermined times during market hours.
This limitation may prevent you from securing optimal trade prices. Additionally, incoming data experiences a 15-minute delay.
Available charts cannot display timeframes shorter than daily periods.
Insufficient Advanced Features
Advanced investors should likely avoid Stockpile due to its lack of sophisticated tools they require.
Raw data and research capabilities remain minimal. Real-time streaming data, advanced order types, basket trading, order routing options, and other features that experienced traders depend on are absent.
Final Thoughts: Stockpile Review
Now let’s evaluate Stockpile as an investing platform. Each category receives ratings from 1 to 5, with 5 representing the highest score.
Trading Experience – 3.5
Stockpile excels in simplicity and ease of use. The login dashboard displays current holdings and overall performance clearly.
You can view trending tickers, specific industries, and top gainers. Clicking ticker tiles allows you to select investment amounts for stocks.
A few additional clicks complete seamless trade execution.
Charts, news, and basic performance statistics are also easily accessible.
Trading Technology – 1
While Stockpile enables new investors to perform basic trading functions with minimal research, advanced investors will find the platform inadequate.
All trades execute at preset times, and features like basket trading or real-time streaming data remain unavailable.
Usability – 3
Both desktop and mobile versions provide nearly identical functionality. The platform’s focus on new and young investors ensures easy navigation.
Order placement is accessible from virtually every screen. Essential functions like gift card purchases/redemptions and bank transfers are prominently located.
However, data carries a 15-minute delay and charts cannot display intraday timeframes.
News and Research – 1
Experienced traders will find Stockpile’s research tools disappointing. Analysis tools, balance sheets, and analyst ratings are unavailable.
Basic information like price charts for various timeframes, 52-week highs/lows, dividend yields, and P/E ratios can be found on any investor website.
Relevant news articles are also severely limited.
Investment Offerings – 1
Stockpile limits available securities to stocks, ETFs, and some non-U.S. stocks called American Depository Receipts (ADRs). This proves quite restrictive since you cannot directly invest in gold or other commodities, nor access cryptocurrencies. Options, forex, futures, and mutual funds are also unavailable.
Portfolio Analysis – 1
Portfolio progress tracking is limited to a single dashboard chart.
Legal and tax documents are accessible only through the desktop version, along with previous activity records. However, detailed information like portfolio breakdowns, performance projections, and allocation options aren’t available.
Fees and Costs – 5
Stockpile has eliminated trading fees and other costs like debit card charges. No annual fees apply either.
Account opening requires no minimum deposits or balance requirements.
Security – 5
Your information receives protection through 256-bit encryption. These safeguards provide confidence in platform security.
Securities Investor Protection Corporation (SPIC) coverage protects against broker failure. Up to $500,000 in combined cash and securities per customer receives protection, including up to $250,000 in cash.
Customer Service – 3
Stockpile support operates exclusively through email. Direct phone support and live chat features are unavailable.
The chat icon on desktop and mobile versions simply provides faster email support access.
Typically, email responses arrive within an hour rather than extending over days.
Given the platform’s intuitive design, support contact becomes less necessary.
Stockpile’s Help Center addresses most questions about investing basics and platform usage.
Bottom Line: Stockpile
Overall, Stockpile appeals to a relatively narrow audience.
For new and young investors, Stockpile offers an effective entry point into investing. The platform caters specifically to beginners and youth who value simplicity.
Parents seeking to spark their children’s investment interest can leverage the gift card feature effectively. Physical card availability adds tangible appeal.
However, experienced or advanced traders should look elsewhere. The limited investments, features, and research capabilities will prove frustrating.
Investors seeking more flexible features and capabilities – such as cryptocurrency access – or those without need for youth gift cards should also consider alternatives.
