is public stock app safe? A complete review

Public (Public.com) — Safety and Legitimacy

is public stock app safe is a common search for investors comparing mobile-first brokerages. This article focuses on whether Public (Public.com / Public Investing) is a legitimate and secure platform for buying and holding U.S. stocks, ETFs, options and other assets. It synthesizes third‑party reviews and company disclosures (as of June 2024) to explain regulation, custody, insurance, technical security, product-level risks (including crypto custody via partners), privacy tradeoffs from social features, and practical guidance for prospective users.

Overview of Public

Public is a mobile-first, social investing brokerage that targets beginner to intermediate retail investors. The app combines commission-free trading for many U.S. equities and ETFs, fractional shares, options trading, cash-management features, and access to cryptocurrency trading through third‑party partners. The platform emphasizes a social feed where members can follow each other and see aggregated investment activity and thematic collections.

Public's design prioritizes ease of use and community features over advanced order-routing tools. For many users, the combination of a simplified interface and social discovery is the primary product differentiator.

Company background and regulation

Corporate structure and founding

Public was launched after a rebrand from Matador in the late 2010s; its founders and early-stage milestones focused on building a community-driven brokerage. Over time, Public expanded its product set to include fractional shares, options, and partner-based crypto access, and raised venture capital to fund growth and licensing.

Regulatory status

Public operates brokerage services through a registered broker‑dealer entity. The broker‑dealer is a member of the U.S. self‑regulatory system and operates under the oversight of FINRA and SEC rules for broker‑dealers and clearing firms. As with other U.S. brokers, brokerage activity provided through Public is subject to securities regulation.

(As of June 2024, third‑party reviews from sources including NerdWallet, Investopedia, and StockBrokers.com describe Public’s registered broker‑dealer status and regulatory disclosures.)

Clearing and custody relationships

Securities purchased through Public are typically held in “street name” by a clearing or custody firm rather than directly in the customer’s name on the broker’s books. Historically, Public used established clearing partners (for example, Apex Clearing or similar custodians). The clearing firm handles settlement, custody, and recordkeeping.

Because custody is provided via a clearing firm, the role of that firm is critical: it holds customer securities on a segregated basis and performs settlement. Users should review Public’s current disclosures to verify the then‑current clearing/custody partner.

Account protections and insurance

SIPC coverage

Brokerage accounts at Public are generally protected by SIPC coverage subject to SIPC limits. SIPC protects customers if a SIPC‑member broker fails financially and customer assets are missing from custody. SIPC coverage is limited to $500,000 per customer, including a $250,000 limit for cash. SIPC does not protect against market losses, poor investment performance, or losses from trading decisions.

Be aware that SIPC coverage is recovery‑focused: it helps restore missing assets after a broker insolvency; it does not function like an asset‑insurance policy for price declines.

FDIC insurance for cash products

Some cash‑management or sweep products offered via Public may place uninvested cash into partner banks’ deposit programs. When funds are swept into FDIC‑insured banks, those deposits may receive FDIC insurance up to applicable limits (typically $250,000 per depositor, per insured bank, for each account ownership category). Coverage depends on the structure of the sweep program and the number of banks participating.

If Public’s cash feature uses a program bank network, FDIC limits and aggregation rules determine actual coverage. Users should confirm whether their specific cash balances are swept and to which banks.

Limits and caveats

SIPC and FDIC protections serve different purposes and apply to different asset types. Neither protects against market losses or operational problems that do not remove assets from custody. For example:

• SIPC does not insure against a decline in the value of your securities.
• FDIC covers deposit accounts at qualifying banks, not brokerage securities.
• Crypto assets held through third‑party custodians are not covered by SIPC or FDIC unless a specific insured product is offered and disclosed.

Always read Public’s customer agreement and insurance disclosures to understand how your assets are categorized and protected.

Technical and account security features

Data encryption and secure communications

Public uses industry-standard encryption for data in transit and at rest, including TLS for communications between the app and backend services. These technical controls are typical for regulated brokerages and help prevent interception of credentials and account data during transmission.

Authentication and access controls

Public provides standard account security features such as strong password policies, biometric login (fingerprint and face ID where supported), device PINs, and two‑factor authentication (2FA). Enabling 2FA is strongly recommended to reduce the risk of account takeover.

Operational security practices

The app requests typical mobile permissions for notifications and device identification. Users should apply common device hygiene: keep the OS and app up to date, install updates promptly, avoid installing untrusted apps, and use a device lock (PIN or biometrics).

Session management (automatic logout, session timeouts) and in‑app controls for logging out of other devices are important features to use. Review your active sessions and revoke any unknown devices.

Product-level safety considerations

Custody and asset segregation

Broker‑custody arrangements mean your securities are held in street name by a clearing firm. If Public or its clearing firm were to fail, SIPC and the clearing firm’s recovery processes work to return customer property. Segregation of customer assets from the broker’s corporate assets is a key legal protection; check Public’s disclosures for how segregation is implemented.

Crypto custody and third-party providers

Cryptocurrency trading on Public has historically been provided through third‑party partners. For example, Public has worked with partners in the crypto custody/clearing space to provide crypto trading and custody. Crypto custody practices and insurance vary by provider: digital assets are not covered by SIPC, and any custodian insurance for crypto is contractually defined and limited.

If you plan to hold material crypto balances, verify the custodian’s insurance policies, whether coverage exists for theft or technical loss, and what the scope and exclusions are. For Web3 wallet users, consider using dedicated wallets with private‑key control; when discussing or using Web3 wallets, Bitget Wallet is recommended for integrated use with Bitget services.

Order execution and business model aspects

Public discloses how orders are executed and any relationships that might affect execution (for example, payment‑for‑order‑flow). Payment‑for‑order‑flow (PFOF) is a common industry practice where brokers route orders to market makers that pay for order flow; the practice can create perceived conflicts, and disclosures are required by regulators. Public’s user disclosures detail its order routing practices; review those disclosures and trade confirmations to understand execution quality and potential tradeoffs.

Execution quality affects the price you receive; even commission‑free trading can have implicit costs via execution spreads or routing.

Privacy and social features — risks and tradeoffs

A core feature of Public is its social feed and discovery tools. Users can follow each other, view curated collections, and see aggregated community activity. While much activity is shown in aggregated or anonymized form, some profile and transaction information can be public depending on user settings.

Privacy implications:

• Public sharing: By default or by user action, some portfolio or activity data may be visible to others. Check and adjust privacy settings to limit public visibility.
• Data use: Social activity data can be used within the platform to power recommendations and features. Review the privacy policy to understand data retention and sharing.
• Social engineering risk: Public social features make it easier for bad actors to identify targets for scams. Treat all social signals critically and avoid sharing account details.

Balancing community benefits with privacy requires proactive settings management and cautious sharing.

Operational and user-experience risks

Platform outages and technical failures

All online brokerages face the risk of platform outages, particularly during periods of high market volatility. Outages can prevent order entry or cancel pending activity, and they can affect the ability to adjust positions in real time. Users dependent on immediate execution should be aware that technical failures are a live risk for any digital broker.

(As of June 2024, third‑party reviews note that Public, like other brokers, has experienced occasional user‑reported interruptions; check current reviews and status pages for the latest operational reliability metrics.)

Customer service and dispute resolution

Public provides customer support channels such as in‑app chat and email, and the level of phone support may be limited compared with large incumbent brokers. Limited phone access can make urgent problem resolution slower for some users. Review the broker’s customer service hours and escalation paths before moving large balances.

Account restrictions and trading limits

Public implements standard regulatory and operational limits: settlement times, margin and options eligibility rules, day‑trading rules, and other restrictions consistent with broker policies and regulatory requirements. Some complex products may not be available to all users.

If you need high trading frequency, advanced order types, or margin/derivatives beyond basic options trading, evaluate whether Public’s product scope meets your requirements.

Fees, product terms and hidden risks

Public offers commission‑free trading for many U.S. equities and ETFs, and may charge fees for certain services (e.g., broker‑assisted transfers, wire transfers, account transfers). Options trading and cryptocurrency transactions may have partner fees, regulatory fees, or spreads embedded in execution.

Public also offers premium subscriptions for additional features; always read the fee schedule and terms. Fee structures can change, and small implicit costs (execution spreads, PFOF impacts, partner crypto fees) can add up.

Known incidents, controversies, and regulatory actions

As of June 2024, reviews and public reporting (including NerdWallet, Investopedia, StockBrokers.com, and Business Insider) do not document a material, unresolved security breach that resulted in large publicized customer losses tied to Public’s core brokerage operations. There have been typical industry controversies such as debates about payment‑for‑order‑flow, user complaint volumes, or service outages during volatile markets, but no single major security incident dominates the public record in the reviewed sources.

Users should monitor regulatory filings and news reports for updates and check FINRA and SIPC records for any official regulatory actions.

Comparative safety — Public vs. other retail brokers

Many safety fundamentals are shared across regulated U.S. brokers: SIPC membership, custody by clearing firms, TLS encryption, and standard authentication features. Differences emerge in product scope, customer support, execution model, and optional features:

• Incumbent brokers (e.g., major full‑service firms) may offer stronger phone support, larger research resources, and different custody networks.
• Some zero‑commission challengers may prioritize mobile UX and social features over advanced trading tools.

From a regulatory and custody perspective, Public’s protections are comparable to other registered retail brokers, but operational details (clearing partner, privacy settings, crypto custody partners) create meaningful distinctions for users.

Practical guidance — is Public safe for you?

is public stock app safe? The short answer: for many retail investors seeking a mobile, social, commission‑free experience for U.S. stocks and ETFs, Public offers the same baseline legal protections as other regulated U.S. brokers (SIPC coverage; custody via clearing firms) and implements standard technical security controls. However, product‑specific risks (crypto custody via third parties, social‑privacy tradeoffs, execution model) require users to review disclosures and enable security best practices.

Who might find it safe / appropriate

• Beginners and mobile‑first investors who value a simple UI and social discovery.
• Investors who hold modest balances within SIPC/FDIC limits and want fractional shares.
• Users who understand and accept third‑party crypto custody and social feed characteristics.

When to be cautious or avoid

• Heavy traders and users who need advanced order types, guaranteed execution speed, or robust phone support.
• Investors who plan to hold very large cash balances without verifying FDIC sweep coverage across program banks.
• Users who want full control of private keys for crypto assets — Public’s third‑party custody model differs from self‑custody.

Checklist for new/potential users

• Verify Public’s SIPC membership and read the broker’s SIPC disclosure.
• Enable two‑factor authentication and biometric locks where available.
• Review cash sweep terms and which banks participate for FDIC coverage.
• Confirm the crypto custody partner and any insurance terms for crypto holdings.
• Read the order execution and payment‑for‑order‑flow disclosures.
• Adjust privacy and social settings to limit public visibility of your activity.
• Consider splitting very large deposits across multiple custodians to manage exposure beyond SIPC/FDIC limits.

Frequently asked questions (FAQ)

Q: Does Public insure my stocks? A: Securities held through Public are protected under SIPC up to $500,000 (including $250,000 cash) if the broker fails and assets are missing. SIPC does not protect against market losses.

Q: Is cash swept FDIC‑insured? A: Cash swept to FDIC‑insured partner banks may receive FDIC coverage up to applicable limits; coverage depends on the sweep structure and participating banks.

Q: Who holds my crypto? A: Crypto on Public is custodyed by third‑party partners (historically partners such as Bakkt in certain arrangements). Crypto custody is not covered by SIPC; any insurance or guarantees are defined by the custodian’s terms.

Q: What happens if Public goes bankrupt? A: If Public were to fail, SIPC and the clearing firm’s customer‑asset recovery processes aim to return customer securities. Cash swept to banks should remain bank deposits and be handled under FDIC rules where applicable. Check current disclosures for the precise process and clearing partner details.

References and further reading

(Selected reviews and sources used in compiling this article — consult the broker’s official legal documents for the latest, primary disclosures.)

• StockBrokers.com — Public.com Review
• WallStreetSurvivor — Public.com Review
• NerdWallet — Public.com Review
• Securities.io — Public.com Review
• WallStreetZen — Public Review
• Investopedia — Public Review
• Bankrate — Public App Review
• SmartAsset — Matador/Public Investing App Review
• Business Insider — Public Investing Review

As of June 2024, these sources provide independent reviews of Public’s product features, customer experience, and disclosures.

Final notes and next steps

If you searched “is public stock app safe,” the evidence indicates that Public is a regulated U.S. broker offering standard custody and technical protections appropriate for many retail investors. However, safety depends on the asset types you hold, your balance size relative to SIPC/FDIC limits, your tolerance for social‑sharing features, and whether you accept third‑party crypto custody models.

Actionable next steps:

• Review Public’s current customer agreement, SIPC disclosure, and cash‑sweep documentation.
• Enable 2FA, use device protection, and set conservative privacy options in the app.
• For crypto needs or Web3 wallets, consider Bitget Wallet for integrated Web3 custody and explore Bitget’s exchange products for advanced trading.

To explore secure trading and custody alternatives, learn more about Bitget’s platform and Bitget Wallet for Web3 security and features.