Robinhood is one of the few free-trading brokers that are still on the market for investors. That's a game changer because with trades costing up to $7-$10 a transaction you can lose most of your gains just in the buying and selling of your shares. Overall Robinhood is an ideal trading platform for investors who wish to trade stocks, ETFs, options and cryptocurrencies without commission's or fees.
Here's a video they produced to help explain the
app.
Here's a video they produced to help explain the
app.
Robinhoods app has a super simple interface that has one multiple design awards.
How The App Works
To get a Robinhood account you'll sign-up through the app After you've signed up you'll need to connect Robinhood with an account to fund your brokerage account with. In order to make this as simple as possible the company even uses instant verification with many major banks, to spare users from reporting micro-deposits to verify information. As an additional advantage with opening a Robinhood account, you can also invest up to $1000 in stock immediately after depositing from your bank.
Before trading with Robinhood, I recommend reading their FAQ to make sure you understand how it works.
Account minimum: $0
One of the best things offered from Robinhood that puts them at an advantage to other brokers is that they don't have any account minimum's or maintenance/inactivity fees as well as account opening fees. Another unique feature to using Robinhood is that they also offer zero ACH bank transfer fees to move money to or from accounts, although it does take a small waiting period to deposit earnings from Robinhood in order to allow funds to settle.
Commissions: $0
Due to Robinhood’s commitment to providing 100% commission-free stock and ETF trades frequent and beginner investors can save significantly. This is truly where Robinhood shines.
How They Make Money
Although Robinhood doesn't charge users for their services, a pretty clever way that Robinhood generates revenue is that they make interest off the uninvested money left in peoples Robinhood accounts. Another way that Robinhood is able to offer its cost effective services to consumers is that unlike other online discount brokers Robinhood keeps its trading platform simple, without offering in depth research or educational tools that seasoned traders might come to expect, so you may have to do your research on other sites. Overall Robinhood is a pretty good and relatively new investment firm licensed in the FINRA that offers a good streamlined interface to many investors including myself. Although Robinhood is not the first brokerage to offer zero-commission trades where others have tried and failed, Robinhood appears to be on track succeed.
Robinhood Reviews
Robinhood Reviews
Wallet Hacks 2017-05-11
“It's an app-only brokerage that offers $0 commission trades on stocks – no minimums, no maintenance fees, and a streamlined interface that is intuitive to use”.
Warrior Trading 2016-10-24
“Robinhood is a FREE "No Commissions" Broker. The first of it's kind! Unfortunately, it appears Robinhood made the decision to go with zero commissions at the sacrifice of features that have been standard on every broker for many years”.
InvestorJunkie 2017-06-20
“With the Robinhood app, yes you can truly make free stock trades. The no-frills service targets primarily Millennial investors. The service is easy to use and is limited in functionality”.
NerdWallet 2017-01-17
“Ideal for investors willing to give up full-service brokerages for the ability to purchase stocks and ETFs without paying commissions or fees. Robinhood offers real-time market data but little in the way of research or tools”.
“It's an app-only brokerage that offers $0 commission trades on stocks – no minimums, no maintenance fees, and a streamlined interface that is intuitive to use”.
Warrior Trading 2016-10-24
“Robinhood is a FREE "No Commissions" Broker. The first of it's kind! Unfortunately, it appears Robinhood made the decision to go with zero commissions at the sacrifice of features that have been standard on every broker for many years”.
InvestorJunkie 2017-06-20
“With the Robinhood app, yes you can truly make free stock trades. The no-frills service targets primarily Millennial investors. The service is easy to use and is limited in functionality”.
NerdWallet 2017-01-17
“Ideal for investors willing to give up full-service brokerages for the ability to purchase stocks and ETFs without paying commissions or fees. Robinhood offers real-time market data but little in the way of research or tools”.
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