Public provides brokerage accounts with access to multiple asset classes through a single digital interface. While primarily a securities broker, the platform integrates corporate and government bonds, cryptocurrency, and alternative assets like art and collectibles.
This breadth distinguishes Public from brokers focused strictly on equities. The integrated design allows users to consolidate diverse investments, though it introduces specific layer-based complexities regarding risk and liquidation.
At a glance
- Structure: SEC-registered broker-dealer and member of FINRA/SIPC.
- Key Products: Stocks, ETFs, options, Treasuries, bonds, and alternatives.
- Trading Costs: $0 commission on U.S. stocks/ETFs; $0 options commission (with rebate).
- Unique Feature: “Tips” model for order routing as an alternative to PFOF.
- Yield Product: Specialized High-Yield Cash and Treasury accounts.
What financial instruments can be traded on Public?
A Public account acts as a hub for both traditional securities and less liquid alternative assets. The platform uses a modular interface to separate different asset classes while maintaining a unified dashboard.
Beyond standard equity trading, the platform provides access to:
- Equities: Commission-free U.S. stocks and ETFs with fractional share support.
- Fixed Income: Corporate, municipal, and U.S. Treasury securities.
- Options: Multi-leg strategy support with a rebate-driven incentive structure.
- Alternatives: Fractional ownership of high-value art, collectibles, and royalities.
This range allows for multi-asset diversification within one legal entity. However, each asset is governed by different regulatory regimes and liquidity constraints.
How does Public handle order routing and PFOF?
Public routes equity orders through market makers, but it historically distinguished itself by offering an alternative to standard payment for order flow (PFOF).
Under its “tips” model, the broker allows users to provide an optional tip on trades. This mechanism was designed to align incentives by reducing the broker’s reliance on payments from market makers for retail order flow.
However, routing structures can change based on market conditions and regulatory shifts. Investors should consult the firm’s Rule 606 disclosures to verify the specific flow of funds between Public and its execution venues.
How do the Treasury and Bond accounts function?
Public provides specialized infrastructure for fixed-income investing, allowing users to move beyond equity markets into government and corporate debt.
U.S. Treasury Account mechanics
The Treasury Account allows for the purchase of U.S. Treasury bills (T-bills) and notes. These are government-issued securities that pay interest, which is typically exempt from state and local income taxes.
Users can set up “Treasury ladders,” which automate the purchase of bills with staggered maturities. This mechanism provides regular liquidity as different bills mature at different intervals. For more on government debt, see Treasury Direct Review.
Corporate Bond portfolios
Public also provides access to corporate bonds through fractional investing. This allows investors to buy into portfolios of debt issued by private companies without meeting the high minimums typically required for individual bond purchases.
Corporate bonds carry credit risk. Unlike government treasuries, the issuer may default on interest or principal payments, and bond prices fluctuate based on the company’s financial health.
What strategies are available for options trading?
Public supports several layers of options trading, from simple single-leg trades to complex multi-leg strategies. The platform requires users to be approved for specific “levels” of options trading based on experience and capital.
Supported strategies include long calls, covered calls, and advanced spreads such as straddles and butterflies. Options involve significant leverage and time decay, meaning positions lose value as they approach expiration.
Public also operates an options rebate program. This mechanism provides a credit back to the user on specific trades, which can offset some of the implicit costs associated with options execution.
How are alternative assets structured and protected?
Alternative assets on Public, such as art or collectibles, are typically structured as shares in a limited liability company (LLC) that owns the underlying asset. This is a form of “tokenized” or fractional ownership.
These assets differ fundamentally from stocks:
- Liquidity: There is no active 24/7 market; selling shares depends on available buyers within the platform’s secondary market.
- Protection: While securities are protected by SIPC, alternative assets generally fall outside this framework.
- Valuation: Prices are based on appraisals or recent sales of similar items, which may not reflect immediate cash value.
Where do costs and secondary fees appear?
Public does not charge flat commissions for U.S. stock or ETF trades, but users pay for the service through various embedded mechanisms.
- Bid-Ask Spread: The cost of a trade includes the difference between the buying and selling price. Wider spreads in low-volume assets like crypto or small-cap stocks represent a higher cost to the user.
- Bond Markups: Fixed-income prices often include a markup or markdown, which is the spread between the broker’s cost and the price offered to the user.
- Crypto Spreads: Cryptocurrency trades on the platform include an integrated spread that serves as the service fee.
- Margin Interest: Borrowing capital to leverage positions incurs interest charges that accrue daily on the borrowed balance.
How is customer capital protected in the U.S.?
Public is a U.S. broker-dealer registered with the SEC and a member of FINRA and the SIPC. This membership provides institutional-level custody protection.
In the event of broker failure, SIPC coverage protects up to $500,000 in securities per customer. This protection applies to the physical custody of the assets, ensuring they are not used to pay the broker’s creditors.
Crucially, SIPC does not protect against market losses. If the value of a stock drops due to company performance or market conditions, that loss is the investor’s risk and is not covered by any insurance scheme.
What are the tradeoffs, risks, and limitations?
Breadth vs. Specialized Depth
Public offers more asset classes than simple mobile brokers, but it may have fewer professional-grade research tools or chart types than legacy platforms like Charles Schwab or Fidelity.
Risk fragmentation
Managing crypto, alternatives, and stocks in one app can lead to “risk blurring.” Each asset class has vastly different volatility and protection profiles, which may be difficult to track in a single unified interface.
Online-only support model
As a digital-first broker, Public relies primarily on in-app chat and email for customer support. Users who prefer in-person branch access or dedicated phone advisors may find this model restrictive during complex account issues.
Common questions
Is Public a “PFOF-free” broker?
Public offers a “tips” model to reduce reliance on PFOF, but it may still receive payments from market makers for certain types of order flow. Users should check the most recent Rule 606 disclosures for exact data.
Does SIPC protect my crypto on Public?
No. SIPC only protects securities like stocks and bonds. Cryptocurrency and alternative assets like art are not covered by SIPC insurance in the event of platform insolvency.
Can I trade fractional shares of anything?
Most U.S. stocks and ETFs on Public support fractional shares. However, this may not apply to every bond or alternative asset, which may have their own minimum share requirements.
Why certain misconceptions about Public persist
Misconception: “Public is just a social network for stocks”
While Public has social features allowing users to follow others, it is a fully regulated U.S. broker-dealer. The social layer is an interface feature, not the underlying business model.
Misconception: “Treasury Bills are the same as savings accounts”
A T-bill is a debt security with a fixed maturity. While highly stable, it can lose market value if sold before maturity when interest rates rise. Unlike savings accounts, they are not FDIC-insured.
Misconception: “Commission-free means the platform is free”
Public earns money through margin interest, corporate bond markups, crypto spreads, and optional tips. The user pays for the service through these indirect cost paths.
