In this Robinhood review we're going to take a look closely at the Robinhood app and talk about why you should, or shouldn't use it. Everyone is looking for ways to trade that provide easy as well as inexpensive trading. Robinhood is a free commissions (the first!) US broker that is best known for charging zero commission on US stock, ETF, options, and cryptocurrency trades.
Robinhood is a platform that boasts a user base of over 6 million – more than the popular brokerage E*TRADE, Robinhood has been a hit since its inception. They are also planning on an expansion into Europe, so hang tight European friends!
In fact, since May 2018, they've hosted more than $150 billion in transactions and the company is valued at $5.6 billion. As a result, you can be assured this is not a fly by night brokerage firm. The Robinhood app has certainty made a big splash and is a now key player in the ongoing broker wars.
They have stepped up their game in technology, customer service and overall performance in 2019. They still have a long way to go to be on par with the likes of TD Ameritrade when it comes to customer service, but we appreciate all the effort they are putting in to their trading app.
Honestly, the web platform is basic. But that's all I need. Buy and sell and locate the buttons fairly easily. I don't need to think too hard about it. Instead, you can devote that brain power to charting your stock. If you want the best charts to go along with Robinhood, you've got a few choices. I like Tradingview and TrendSpider. Or you can just follow us on social media...we chart the heck out of our stocks for our community 🙂
If I had to pick, I would go with TrendSpider. But if you're strapped for cash, consider using Tradingview or Stockcharts.com charts. They are pretty decent for free, with some light ads, and have a 14.95 a month package that is reasonable.
The reason I like TrendSpider is because they do all the work on the chart side for me. I'm sorry, but if you're not using an external charting system to day trade or swing trade on Robinhood, you're doing yourself a disservice. If you are investing, that is a different story.
Robinhoods mobile trading platform is available on all iOS or Android devices. In fact it has the same design, user-friendliness, and functionalities as the web trading platform. However, the stock screener and recommendations are missing.
Again, there are other tools out there for things they are weak at. For a screener, I'm using blackbox stocks or trade ideas anyway.
The mobile app has awesome news functions, and you can even listen to conference calls live on the Robinhood App. Not bad! Building a watchlist on the app is easy.
It alerts you when your stocks on your watch list are making new highs or lows. Pretty handy, because sometimes I forget to check.
In order to trade you just click the “search” icon and type in the ticker of the stock you’re interested in. You’ll see basic details about the company as well as recent price information. Check out a list of the top trade companies.
Robinhood app offers the ability to trade stocks, ETFs, options, and cryptocurrency. The ability to trade Options is relatively new for Robinhood. I particularly like trading on the Robinhood App options spreads. They give you 2k extra margin with 2k cash in the account. Not bad. Don't be foolish with it though.
RH stays true to their word in giving you access to no-fee contracts. Even in a world where TD, IBKR, Fidelity and others are beginning to offer free trading, they still have costs for options contracts.
Not Robinhood though. Free option trading. This includes no commissions, no per-contract fee, no exercise fee, and no assignment fees.
It's pretty tough to beat if you ask me! It's so great when comparing your other options.
I don't recommend day trading volatile stocks on Robinhood because the execution speed might be a bit lower than some of the other big names out there. Take that into consideration.
With this in mind, the inexperienced investor should not be trading options as they can be risky without the proper training. If you want to learn more, Bullish Bears has an excellent Options Trading Course that will provide you with detailed strategies to become a consistently profitable options trader. Right now all of our courses are free.
You have three different account options to choose from when signing up: the Cash Account, Standard/Instant Account and Robinhood Gold which is common in different brokerages.
At Robinhood Standard and Robinhood Gold accounts, you are only allowed three day trades per week unless you have at least $25,000 on your account. If you want to avoid the PDT rule, you have some choices.
With a “Gold” subscription you can also trade after hours. You get access to the market 30 minutes before opening and 2 hours after closing.
This can be profitable if big news hits the market after hours. You can quickly trade before everyone else. Most brokers let you trade in the premarket but you have to enable it.
Webull for example lets you trade at 4am and has commission free trades too and is a strong competitor to Robinhood right now.
Companies like Tencent Holding (TECHY), Burberry Group (BURBY), Heineken N.V. (HEINY), BMW, Nintendo (NTDOY) and Adidas (ADDYY) will be added in what Robinhood says is the biggest addition of new securities since the app launched five years ago. They are actively adding new stocks all the time, so stay tuned for big developments.
We offer stock watchlists, trade alerts, and trade rooms to our community members. Check out our trading service and join the team. We have two live streams a day and a weekly webinar in the evening for you folks not on the east coast of the USA 🙂
If limiting costs is your number one concern, Robinhood just might be the broker you’re looking for. What’s refreshing about Robinhood is that they truly are free, you can trade without spending a dime on broker fees and commissions.
Robinhood however, lacks a full-service trading platform - you won’t have access to the in-depth charting options and studies that are necessary for the active day trader.
But we gave you choices above for that. It's not a deal breaker but it sometimes stinks to have to switch between one app and another to trade. If you can handle that, no big deal then.
Furthermore it doesn't provide in-depth research and education needed for but you can get it for free from sites like Google Finance and MarketWatch. Again, they are working on improving the research feature, but its not a priority. I give them credit for knowing who their audience is.Nevertheless, these drawbacks haven’t slowed down investors seeking a simple, user-friendly trading platform to start their investing journey.
To sum it up, Robinhood is a great way to get your feet wet with investing with no fees. If you're a beginner, this is for you. While it is not powerful enough to be your only investment platform, it does work well for your individual stock trading account. Don't be afraid of it, I've been using it for awhile now and I have zero complaints.
Go ahead and click here if you’d like to open a Robinhood app brokerage account and receive a free share of a stock such as Apple, Ford or Groupon!
Because trades are free, you may be tempted to dive into the world of day trading which can be risky if you aren’t armed with the proper tools and education.
So make sure you paper trade first. TDA has a great paper trading platform, as does tradingsim and IBKR. Do yourself a favor and practice first. We welcome newbies to the trading world and give them free courses and tutorials to get them started (we were newbies once too!)
Robinhood fees being zero makes it a great app to practice trading on, maybe just one share or one contract while you learn the ropes. This will teach you how to control the emotions of trading.
Bullish Bears has a ton of free resources on their website. From 24/7 live chatroom availability to coaching and courses we will guide you every step of the way.
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