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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.
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- Little to no fees
- Accessible to novice traders
- Mobile app
- Cryptocurrency trading
- Limited securities
- Single account option
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.
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.
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.
- 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.
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Great for hobby investments. The app is incredibly easy to use and is designed to introduce and guide new investors to the stock market. With no previous experience in stocks and little knowledge of the process, I found it easy to get started and find it to be a great hobby. We have a group of 5 family members who all signed up and check in on our investments. It's fun but some advice- never invest more than you're willing to lose!
I think it's very easy to understand for beginners, I consider myself a beginner, it's hard to understand the graphics in other apps, but Robinhood makes it easy, and they also show news about economy and about the stocks you are buying Which is very helpful for deciding when to buy or sell, but the crypto market is very limited so may not be the right app for people looking for crypto
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Easy to use. You just have to play around with it for a little bit. I’m definitely not someone that I consider to be tech savvy but I was able to get the hang of it. What I think the best part is that they tell you whether professional analysts think it’s a good time to buy, hold or sell and what percentage of said analysts think so. For that reason I give it two thumbs up.
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.
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!
I love that Robinhood allows ordinary people to invest in the stock market and have a chance at earning on their own there. I love the insights the company gives and how easy the platform is to use. I loved how easy it was to set up. I love how easy it is to use. I also find very helpful the stock insights they provide.
I like the fact that you get a free stock, but I would like to see some kind of tutorial or introduction to stocks. For those of us who don't know anything about it but want to try it out. I really don't use it much anymore but it is a good platform to learn on your own without losing a ton of money. Most importantly it's free!!!
I felt that Robinhood was a good site to use. It was easy to navigate, instruction were clear and seems to have a way to contact company. The one reason I changed was because there were no papers to sign to allow my children to be beneficiaries.
I like the company. Their app makes investing very simple and easy. I do know they are sometimes criticized for their practices but it has not impacted me as I use them as a casual, low money investor just for fun.
I’ve been using Robinhood since 9/2020 and have found the platform very limited in the ability to capture stocks that are not as well known. It is a user friendly platform and quick to set up. The reinvest portion is easy to use and settings are easily navigated.
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