In this Robinhood review we're going to take a look at this discount broker. Everyone is looking for ways to trade that provide easy as well as inexpensive trading.
Robinhood is a discount US broker best known for charging zero commission on US stock, ETF, options, and cryptocurrency trades.
There are no inactivity fees or withdrawal fees. Sound's pretty great right? In this review we're going to take a look at how this brokerage works.
With 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.
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.
As a result of it’s easy to use website and mobile trading app, Robinhood 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.
THE WEB PLATFORM
Robinhood's web trading platform is very easy to use while providing great user experience as well as design. Unfortunately you can’t customize the platform but the default workplace is very understandable to the new trader.
MOBILE TRADING PLATFORM
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.
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.
Robinhood offers the ability to trade stocks, ETFs, options, and cryptocurrency. The ability to trade Options is relatively new for Robinhood.
Yet they stay true to their word in giving you access to no-fee contracts. 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!
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.
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.
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.
They earn their money through the Robinhood Gold subscription fees and the interest on cash balances of users accounts.
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.
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.
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.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. While it is not powerful enough to be your only investment platform, it does work well for your individual stock trading account.
Go ahead and click here if you’d like to open a Robinhood 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.
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. Click here to get started learning and happy trading!
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