In this Robinhood stock 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 has a completely free commissions system (the first!) They are a popular US broker that is best known for charging zero commissions on US stock, ETF, options, and cryptocurrency trades.
Is Robinhood a Legit and Safe Broker? (Review & App Break Down)
- The simple answer is YES! Of course, Robinhood is a safe and legit broker.
- Robinhood fees...Their aren't any! No transfer, withdrawal, trading, maintenance or other for the standard version of RH. (the most popular option)
- Margin or Cash, Standard and Gold accounts are available
- The Robinhood App is sleek and fast and ridiculously simple to use which makes it attractive for pros and newbies.
- Crypto, Stocks, ETFs to trade on one platform. Nice.
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 to make it simple to use for everyone.
1. Web Platform: Robinhood App
Moving on to the desktop version, the web platform is basic and no frills. 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 stocks for our community 🙂
If I had to pick, I would go with TrendSpider for charts. 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.
2. Mobile Power: Robinhood Stock Review
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.
3. Securities Available On The Robinhood App
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 in this review because the execution speed might be a bit lower than some of the other big names out there. Take that into consideration. If you are an investor or swing trader, this should not be an issue.
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.
Is the Robinhood App Good for Beginners?
- Robinhood is an easy to use website and mobile trading app that appeals to the do-it-yourself investor. Robinhood is geared towards millennial investors who want a smartphone-based trading platform without the bells and whistles. It has been a smartphone-first broker. The Android and iPhone apps are the primary methods to log into your account and place trades. However, they now have a fully functional web version available to all users.
1. Robinhood Review: The Account Types Available
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.
Does Robinhood Make Money? How Do They Do It?
- They earn their money through the Robinhood Gold subscription fees and the interest on cash balances of users accounts. They also provide liquidity to major markets. Robinhood is looking to add some 250 notable foreign stocks available for trading on its commission-free platform! This will therefore be useful for those who like to trade stocks outside the US.
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 🙂
Is Robinhood Really Free? 2020 Fees, Pricing, App Break Down
- Robinhood fees don't exist. Free Trades - $0 US stock, ETF, option, and cryptocurrency trades
- High trading fees for non-US stocks, where TradeStation broker is much better at this.
- Some features are charged a $5 subscription fee
- No minimum deposit, open it with your couch change.
- Great for investors and swing traders who are penny stock traders.
- Easy to use, perfect for the technologically challenged
- Can listen to conference calls and get great notifications from the app
- Available only for US and Australian residents, but Europe is coming early 2020
- Weaker customer support vs TD or Fidelity, but improving, has come a long way.
- Limited product portfolio – no mutual funds or bonds so you need a different broker.
- Limited platform functionality for active day traders and order execution is not the fastest.
- High trading fees for non-US stocks, where interactive brokers is much better at this.
- You can't usually trade same day option expiration strikes, they won't let you buy them.
1. Who Is Robinhood Best For?
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.
2. Robinhood App Review Bottom Line
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.
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!
Learn to Trade With Robinhood? Sure.
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 TradeStation. 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.
I hope you enjoyed our Robinhood app review. Get started with our free online trading courses to get started learning while you open a Robinbood account and get a free stock below! Check out our blog post on TIkTok Stock