Robinhood’s offer is quite difficult to compare as it deals with ETF trading and commission-free stocks.
In summary, we can say that Robinhood fulfills its only promise to offer you a completely commission-free trading platform for cryptocurrencies, options, stocks, and ETFs.
Besides, the minimum deposit to register an account is $0.
But is RobinHood real? To answer this question we write to you this review.
What is Robinhood?
Is a trading application for mobile phones, which for some reason decided to set its marketing priority to charge zero commissions for transactions
This means that when you open a trade instead of your balance appear negative for the commission of the platform simply depend on your ability to predict market movements by letting your investment start its trajectory at zero.
Is Robinhood free?
As unbelievable as it may seem the answer is YES.
RobinHood through Ads manages to offer a completely free trading platform, so unlike traditional brokers, this application does not keep a percentage of your profits.
On the other hand, to achieve this the application has to be as inexpensive as possible.
As such, Robinhood does not offer you anything above basic trading.
In this app, you won’t find any kind of training, important leverage, let alone intermediate and advanced graphic tools.
Additionally, Robinhood does not support mutual funds or bonds.
Based only on this we can say that Robinhood is a good choice for:
- Trading with cryptocurrencies
- General scalping
- Traders who prefer to work via mobile phone
- Three frequent ETFs, options and shares
Among other things this trading application for your mobile phone has the following advantages:
The first thing to mention is that RobinHood achieves the goal of offering you completely free transactions.
This is an eye-catching measure, especially for low-risk investors or people who use this type of account as a means of savings.
Account Minimum = 0
The good thing about Robinhood is that you can start drawing from scratch. Or good from your first dollar as long as you get some item you can afford with that.
But, on the other hand, the application does not require a minimum in the account to start trading.
This can be considered a negative aspect as you will not have the complete tools to perform market analysis.
However, having a simple graph showing only the results can be quite efficient if you already know how you are going to operate.
Both the mobile phone applications and the online platform have a fairly simple system.
Ease of use
RobinHood is aimed specifically at smartphone users, so the application is quite easy to use.
When you log in for the first time they will take your details with a simple form where you make your contact details and social security number, once you are notified that your account has been approved you can start making transfers.
Note: the approval time is quite fast, usually no more than one hour.
An interesting feature that you can see both in the platform and the app for smartphones is the collections.
These are lists that include companies with similar characteristics which can make your life easier when searching for items with correlation.
Also inside the mobile application, you can see at the end a button that gives you access to your portfolio, transaction history, movements within your account, lists in observation.
On the downside, Robinhood app has:
This app does not support mutual funds or bonds.
Besides, they do not have an automatic reinvestment system which means that all your profits from each trade go directly into your account instead of reinvesting in the same trade.
Another feature in which Robinhood falls short is customer service.
This way, the only means of contact is through the mail and therefore wait for a response in about 24 hours.
On the other hand, although the online support center is quite organized, and the website is easy to navigate for you to find the answer to what you might be looking for, the company does not offer any kind of phone contact.
Only one account type
Robinhood only offers one type of account: individual taxable account.
So it’s not a good option if you plan to trade with very high amounts of money or with more than 15% of your income.
Also, this type of accounts is not useful for retirement accounts.
RobinHood Gold offers you the ability to trade on margin –i.e. with borrowed money.
This depends directly on an indicator that the app calls “buying power”.
The monthly cost of this service is equivalent to the size of your account and relative to your buying power ranging from a minimum of 6$/month for 1000$ “buying power” accounts to 200$/month for 50.000$ “buying power” accounts.
Robinhood is an application that delivers what it promises and has all the necessary permits and security features to be considered a decent broker.
However, we have to conclude two things:
- Robinhood is a good option if you plan to trade with low amounts of money and you already know exactly the trades that you are going to work with.
- Robinhood is not a good option if you are interested in trading as an investment medium for your retirement.
Beyond this, make sure you take a look at it, after all, it is free and unless you make a mistake in a trade there is nothing to lose.Visit Robinhood