At TPG, we primarily focus on maximizing spending and helping readers familiarize themselves with different types of credit cards to get outsize value from the ones in their wallets. We also love discussing various redemption options you can make with issuer-specific rewards currency and how credit card rewards can be pivotal in helping you take a dream trip.
There’s also a lot of niche content we cover, including this question we sometimes get from readers: Can I buy stocks with a credit card?
In short, the answer is yes — but we don’t recommend doing so for several reasons (one of them being it’s incredibly difficult to find a broker that accepts credit cards as payment for stocks).
Let’s review why buying stocks with a credit card isn’t the best investing practice — plus, what other options are available.
Things to know before you buy stocks with a credit card
Before you buy stocks with a credit card, it’s important to take into account the various risks, fees and other factors that could cut into your profits. We’re not just talking about maximizing points here — there are financial risks to be aware of (as is the case with most investments).
Be aware of investment fees
Buying stocks with a credit card comes with several fees. You may end up paying cash advance fees — which can top %5, late payment fees if you forget to pay your card on time and interest fees if your balance isn’t paid off every month. Interest on cash advances is much higher than using your credit card for regular transactions and starts accruing when the cash advance is executed.
These fees can add up quickly, so make sure you read the fine print on your card’s rates and fees and the fine print on the platform you plan to use to buy stocks.
It’s risky
There are obvious risks involved in buying stocks with a credit card. For starters, the stock market can be volatile. A downturn can easily wipe out the rewards you earn from buying stocks with a credit card.
Plus, the rising cost of living, inflation and other unpredictable events like layoffs mean you should take caution and be well-informed regarding your investment options before making any decisions — regardless of whether they involve a credit card or not.
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Additionally, buying stocks with a credit card may raise some red flags with your card issuer. Issuers may be extra-vigilant when it comes to spending it deems “risky.” Stock purchases certainly fall into that category. The last thing you want is to get your credit card account shut down just to earn some points or miles.
There’s also the possible negative impact this could have on your credit. Charging large stock purchases to your credit card can increase your utilization rate, which could negatively impact your credit score. And if you can’t pay off your credit card every month, you’ll incur interest fees that could wipe out any financial gain, let alone the value of the points you’ve earned.
Be aware of the tax implications
In addition to the fees imposed by your credit card issuer, your stock investments may be subject to capital gains taxes. This can further reduce the profits (and rewards) you’re earning by paying with a credit card.
Related: Can you pay taxes with a credit card?
Pay off your card
Regardless of what purchases you’re putting on your credit card, it’s essential that you pay it off every month to avoid high interest fees. Your short-term stock gains mean nothing if you’re hit with a 29%-plus interest charge by your credit card issuer. If you’re investing long-term, using a credit card may be a bad idea if you don’t have other funds set aside to pay off the card.
Related: Here are 3 reliable ways to pay off credit card debt
Where you can buy stocks with a credit card?
Finding a broker, app or other related platform to purchase stocks is difficult. Most platforms — including popular ones like SoFi and Robinhood — require users to link a bank account in order to purchase stocks.
Stockpile — a brokerage app geared toward families — does allow users to purchase Stockpile gift cards using a credit card, but there are daily limits to how much you can purchase, among other considerations that make this a less-than-desirable option.
Related Reading: The best investment apps
Which credit cards to use
If you do decide to use a credit card to buy stocks, you’ll want to use one that earns the most rewards possible. As far as we know, Stockpile isn’t coded as a bonus category, so you’ll earn the base number of points issued by your credit card. That’s why you’ll want to use a card that earns more than 1 point per dollar spent or offers some kind of annual spending reward.
Some good options include the following:
| Card | Reward rates |
|---|---|
| Chase Freedom Unlimited® |
|
| Capital One Venture Rewards Credit Card |
|
| The Blue Business® Plus Credit Card from American Express |
|
| Citi Double Cash® Card |
|
Fund your brokerage account with a credit card
With so many fees involved, it’s definitely worth exploring alternatives to buying stocks with a credit card. For starters, you can get a cash-back credit card and then use the sign-up bonus to fund a brokerage account and buy stocks through that account.
Fidelity Rewards Visa Signature Credit Card
The Fidelity® Rewards Visa Signature® Credit Card doesn’t have a welcome bonus, but the card does earn 2% cash back on all spending, which gets deposited directly into your Fidelity brokerage account.
Cash-back rewards provide incredible flexibility since you’re able to use them for travel or whatever you want, free of blackout dates or restrictions. And if you want to grow your investment portfolio, the Fidelity Rewards Visa can help you do just that.
The information for the Fidelity Rewards Visa Signature card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
For a more flexible alternative, consider the Citi Double Cash. Instead of using this card to buy stocks, you can transfer the cash-back rewards into your brokerage account (or convert them to Citi ThankYou rewards for high-value travel redemptions).
Schwab Investor Card from American Express
The Schwab Investor Card® from American Express offers a $200 statement credit after you spend $1,000 in the first three months of card membership.
That’s not the biggest bonus out there, but if you’re looking for a long-term cash-back card to build up your investment account, it’s an option. The card earns 1.5% cash back on everything, and the funds are automatically deposited into your Schwab investment account.
The information for the Schwab Investor Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
If you want a card with a bigger welcome bonus and don’t mind manually transferring cash into your brokerage account every month, consider Chase Freedom Unlimited. The card currently has a welcome offer of $250 cash-back after spending $500 on purchases in the first three months from account opening. It’s not a huge amount of cash, but a nice way to pad your investment account.
The Platinum Card from American Express Exclusively for Charles Schwab
The Platinum Card® from American Express Exclusively for Charles Schwab is unique in that it earns Membership Rewards points that can be cashed out at a favorable ratio into your Schwab investment account.
The card offers a welcome bonus of 80,000 points after $8,000 spent within six months of account opening. This bonus can be redeemed for a $880 deposit into your eligible Schwab account.
According to TPG’s March 2025 valuations, Membership Rewards points are worth 2 cents each making this welcome offer worth $1,600. Though there are definitely better uses for these points, this redemption rate is better than cashing out your points for a statement credit.
The card has a $695 annual fee and earns 5 points per dollar spent (up to the first $500,000 each calendar year) on flights booked directly with airlines or Amex Travel.
Another perk unique to this card is that cardholders receive statement credits for qualifying balances in their investment accounts: $100 for holdings over $250,000 and $200 for balances over $1,000,000. I’d venture to guess that if you have balances this large in your investment account, you’re not worried about a $100-$200 bonus, but it’s nice to have nonetheless.
The information for the Amex Platinum Exclusively for Charles Schwab has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related Reading: Best credit cards for excellent credit
Banks that pay you to fund investment accounts
If earning miles for buying stocks still sounds like a good value proposition, keep in mind that you could be giving up cash. A few banks are offering substantial cash bonuses for funding brokerage accounts. Here’s an overview of some of the best current offers:
Charles Schwab: Up to $1,000
Charles Schwab is offering $100 when you fund a Schwab One account starting at $25,000. Bonuses go as high as $1000 for deposits of $500,000+:
- $100 for depositing $25,000-$49,999
- $300 for depositing $50,000-$99,999
- $500 for depositing $100,000-$499,999
- $1000 for depositing 500,000 or more
Merrill Edge: Up to $600
Merrill Edge is offering up to $600 when you deposit $200,000 or more.
- $100 for depositing $20,000 to $49,999.99
- $150 for depositing $50,000 to $99,999.99
- $250 for depositing $100,000 to $199,999.99
- $600 for depositing $200,000+
E-trade: Up to $10,000
E-trade’s bonuses start at $50 for $1,000. That’s great for low-level investors who want a decent reward in exchange for funding a brokerage account:
- $50 for depositing $1,000-$4,999
- $150 for depositing $5,000-$19,999
- $300 for depositing $20,000-$99,999
- $600 for depositing $100,000-$199,999
- $800 for depositing $200,000-$499,999
- $1,000 for depositing $500,000+$999,999
For those with ultra-high net worth, depositing $5,000,000 will net you a $10,000 cash credit in your brokerage account.
Bottom line
It’s possible to buy stocks with a credit card, but there are a lot of downsides to consider. In addition to all the fees involved, you may be giving up lucrative bonuses you could earn by funding a new brokerage account with cash. Investing in stocks is risky as it is, and if you’re also using a credit card, there are many ways that you could land in a tough spot financially.
Related: Why points and miles are a bad long-term investment