SAN FRANCISCO—Chime has launched a new investment platform that allows members to buy stocks and exchange-traded funds (ETFs) or invest through professionally managed portfolios directly within the company’s existing mobile app.
According to Chime, the new service, Chime Invest, is designed to integrate investing with the app’s existing banking features, allowing members to access spending, savings and investing tools in one place rather than through separate platforms.
The company said members can begin investing with as little as $1 and pay no commissions on stock or ETF trades. There are no account minimums for either self-directed investing or managed portfolios.
For Non-Traditional Investors
Chime said the new offering is aimed at consumers who have not traditionally participated in the stock market. Citing industry data, the company noted that approximately 40% of Americans do not own stocks, missing what it described as one of the most reliable long-term wealth-building opportunities.
The company also cited a recent survey of its members that found the biggest barriers to investing include limited time to learn about the markets, competing financial priorities and the perceived cost of professional investment advice.
“The hardest part of investing is often getting started and sticking with it,” Chime CEO and co-founder Chris Britt said in a statement. “Millions of people already trust Chime with their money every day. By bringing investing into the app they already know and love, we’re making it easier to turn saving into investing and investing into long-term wealth.”
According to Chime, the average member opens the app about five times a day and completes more than 50 transactions each month.
Two Options
The investment platform offers two options:
- Managed Portfolios: Members can select a diversified portfolio based on their financial goals and risk tolerance. The portfolios are managed by Atomic Invest, a registered investment adviser with the U.S. Securities and Exchange Commission. Chime Prime members pay no management fee, while Chime Plus members pay an annual fee of 0.10% and other Chime members pay 0.25%.
- Self-Directed Investing: Members can purchase a broad selection of U.S. stocks and ETFs without paying trading commissions.
Chime said securities held in investment accounts are protected by the Securities Investor Protection Corp. (SIPC) up to applicable limits of $500,000.
The company said general access to Chime Invest will be rolled out to members over the coming weeks.
