Robinhood
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Robinhood is a mobile app and online investment platform that allows users to trade with no commission, account transfer, account setup, per-contract or maintenance fees. It designed its platforms to be simple and accessible for beginners or casual investors, and its Gold membership gives users access to bigger instant deposits and better data.
BOTTOM LINE
Robinhood makes it easy for anyone to start investing — no experience is needed. Its simplistic web and mobile platforms make it easy to navigate, though more advanced traders may find tools and research lacking.
PROS
- Little to no fees
- Accessible to novice traders
- Mobile app
- Cryptocurrency trading
CONS
- Limited securities
- Single account option
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What is Robinhood?
Robinhood is a financial services company offering commission-free ETF, stock and option trades with all the tools needed to start investing. It has recurring investments and fractional trades and is one of the few brokers with cryptocurrency trading. There are no account minimums (unless you upgrade to a Gold account), and you can sign up for a Robinhood account from your smartphone in minutes.
If you receive income from your stock investing and want to put it into your retirement account, know that Robinhood currently only supports individual taxable accounts (or brokerage accounts).
How does Robinhood work?
You can trade stocks, ETFs, and options 100% commission-free and without per-contract fees with Robinhood. You can also buy fractional shares for as little as a dollar — a feature that pairs nicely with its recurring investment tool.
All you do is set your investing schedule and dollar amount, and Robinhood automatically invests your money for you. Robinhood’s fractional shares are also eligible for its dividend reinvestment program (DRIP), which automatically reinvests cash dividend payments back into the stock or ETF.
You can trade using Robinhood’s web or its mobile platform, which is available for Apple and Android. Both offer a minimalistic trading experience designed to meet basic needs, which is especially helpful for new or casual traders. You can manage your portfolio on the app, keep tabs on your money, view candlestick charts, access real-time data and listen to live earnings calls.
Robinhood fees
With Robinhood, there aren’t any commission, per-contact, account transfer, account setup or maintenance fees. You can buy fractional shares starting at $1. Like many brokers, Robinhood does charge an outgoing account transfer fee when transferring investments to other brokers — it’s $75 in this case.
Robinhood passes a regulatory transaction fee of $22.10 per $1 million of principal (sells only) for sales with a notional value greater than $500. It requires a trading activity fee of $0.000119 per share in equity sells and $0.002 per contract in option sells. This applies to sales of more than 50 shares and has a limit of $5.95 based on the execution of your order. Robinhood rounds both fees to the nearest penny.
Lastly, banks issuing American Depositary Receipts may charge custodial fees that generally range from $0.01 to $0.03 per share.
Robinhood FAQ
- Is there a catch with Robinhood?
- There is no catch with Robinhood. Its no-rate and low-rate deals are real, although more advanced users may find its research services and platform to be too bare-bones. Additionally, Robinhood does charge fees for certain actions, like outgoing transfers and applicable transaction fees.
- Is Robinhood good for long-term investing?
- Robinhood may not be the best for long-term investing because the company doesn’t support certain retirement accounts like Roth IRAs, which offer tax-free growth and distributions in retirement.
- What is Robinhood Gold?
- Robinhood Gold is an upgrade option that gives you access to premium features, like Level II market data, the ability to trade on margin and instant transfers up to your portfolio value (starting at $5,000 and up to $50,000).
- Is Robinhood good for beginners?
- Yes. Robinhood claims to be an investing platform for all. Its services are designed to be easy to use even for novice traders. However, all users should understand the risks of investing before starting.
Is Robinhood safe?
Robinhood is a trustworthy company offering a platform where trained and untrained people can do their own investing and reap the benefits. Because it markets itself toward everyday people rather than pro traders, its platform and feature list are very simple. This makes it easier for novice traders to enter the investing world, but experienced investors may be underwhelmed by its research, data offerings and securities.
Robinhood Reviews
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The Rabinhood online broker is very user friendly and safe, you can organize any sell and buy anytime, anywhere. Also you can transfer and invest your money easy from your account to your wallet...and instant deposit more money to your account any time. The commission are very low and fare.
I don't care what the media says or how Robinhood makes its money. If celebratory digital balloons cause a person to lose everything they have invested, that person never should have started investing in the first place and I wonder how that person got so far in life at all! The service is intuitive, easy to access, and the price is right. I have never once felt like Robinhood has been hiding anything from me.
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If one wants to get into stocks but is unsure how stocks work, this is the perfect site to start. Robinhood helps me know when to buy or sell ones stocks with easy charts to look at. With each stock, there is a quick summer of the company that is helpful to understand which are best suitable for each individual.
Robinhood is a great but simple app for daily stock trading and staying up to date on stock and business information. I use it to manage 5 figures in stocks, and often use the ticker information to stay apprised of the companies status. It's not always available in the app, so I may need to research more, but it's a great launching point at the very least. I like the trader review/analysis as well, but that's relative. There are some misses such as slower trading capability, limited management and limited data. BUT if you trade low-scale like I do, it's great and perfectly priced!
Robinhood is good but sometimes they don't have a basic stock I want to buy and don't know why. They have limits when I have the money in the account and said I have to make a limit. Which I guess just confuses me. That may be my own fault. I love that it's on my phone but I wish I could use my web browser.
I like that as soon as I pick a stock it is mine, I don’t have to wait for another trade window before it is in my portfolio. They are quick with customer concerns and have a quick turnaround rate. Would highly recommend.
Much better interface than other online brokers in my opinion. Options, some crypto and stocks trading is awesome. The only thing I don't like is having to communicate by email when looking for answers. I wish there was a phone number I could call.
App not completely sync with the actual top level exchange. Free but limited. (Robinhood Gold, which costs $5 a month, includes access to Morningstar Research Reports and NASDAQ Level II Market Data.)
This app makes trading easy. But beware! Before investing you should always perform due diligence. Robinhood helps with this, providing links to articles regarding the stocks you’re interested in. It also makes it very easy to track your portfolio. The interface is amazing, very user friendly.
Platform is simple and easy to use. Transfers happen timely. My only complaint is that I wish I had access to more stocks that are not supported by their platform. Other than that it is sufficient for what I use it for.
Robinhood Company Information
- Company Name:
- Robinhood
- Website:
- robinhood.com
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