Author: Mike Ross
Robinhood is a new stock trading service that allows users to trade stocks and index funds commission-free through their smartphone or computer. The company has raised over $1 billion from top investors such as Andreessen Horowitz and DST Global. This makes them one of the hottest startups out there.
Robinhood is a great way to invest without having to pay exorbitant fees. If you want to invest in stocks, ETFs, or other financial instruments, then Robinhood is worth checking out.
What is Robinhood
For active and mobile traders, Robinhood is a well-liked brokerage that stands out from its competition especially for being among the first large brokerage. It provides commission-free stock trading. Robinhood, in addition to commission-free stock transactions, provides ETF, options, cryptocurrency trades, and account choices with no recurring fees. Is the cheapest stock brokerage, nevertheless, the greatest for your needs? Here is a deeper look at our comprehensive Robinhood review.
How to Register
- Create an account. Go to the Robinhood sign-up page.
- Enter your contact information.
- Confirm your identity.
- Deposit into your account.
- Send in your application.
- Get the app.
- Launch the app.
Pros and Cons of Robinhood
- No commission fee for equities, ETFs, options, and cryptocurrency transactions
- Built for desktop and mobile trading (Android or iOS).
- Tools for beginner investors
- Limited product range
- Poor customer support
- Limited educational materials
Here are Some of the Reasons you Should Use Robinhood
- If you’re looking for a low-cost broker, consider Robinhood. Furthermore, the company also provides free stock trading across multiple devices. They also offer free options and crypto trading.
- Robinhood platform is easy to use. It doesn’t have a lot of benefits, but what it lacks in functionality, it makes up for in usability.
- Suppose you wish to invest in fractional bonds or trade cryptocurrencies; only a few brokerages allow this, including Robinhood.
- Beginner investor’s best friend. Robinhood is an excellent alternative for new investors since users can start for as low as $1.
- You don’t want to invest in mutual funds or individual bonds. Robinhood is an excellent choice for people curious about stocks, ETFs, opportunities, and crypto.
- You only need a basic brokerage account. Robinhood does not provide retirement accounts such as IRAs, in addition to not offering mutual fund investment.
Account Fees & Trade Pricing
If you haven’t already guessed, the main attraction of Robinhood is commission-free trading. The trading practices require no fees and trading charges. You’ll only charge if you sign up for Robinhood Gold or use less-common services like printed statements or outgoing account transfers.
When you borrow more than $1,000 using the margin tool in Robinhood Gold, you will pay an interest rate of 2.5 percent as of this writing — Margin trading is dangerous and unsuitable for most investors.
Robinhood is a good option because of its minimal charges and simple active trading experience. However, it offers certain limitations that may lead you to seek a brokerage with more excellent features or alternative trade management procedures.