Robinhood is on a mission. A mission to make money readily available and to democratize the entire financial system. Originally, when I first heard about this app, I was actually playing one of my favorite online games and the advertisement popped up. I decided to read about this app shortly after and what I found were relatively mixed reviews. As reluctant as I was to join, I finally caved after I saw that they advertised free stock for signing up.
Upon joining, I realized that all of the stock was 100% commission-free, which is generally another plus to this application. After all, I have been searching for a platform to trade and the fact that every single stock was commission-free definitely did catch my attention. Robinhood supports stocks, options, and exchange-traded funds (or ETF) and crypto-currency with no fees.
I claimed my free stock immediately after downloading the app and signing up. Although the free stock wasn't to Berkshire Hathaway, Google, Apple, or Amazon, it was to an integrated manufacturer called Tronox (TROX) which produces titanium dioxide pigments. The index seems to have a lot of momentum, so I have no complaints thus far. One of my friends was lucky enough to get Apple as her free stock. Another received Berkshire Hathaway.
Moving right along, there is no account minimum, which is great for those novice traders just starting. If you are not the biggest risk taker or a bit hesitant to invest money into the stock market, this app makes it easy for you to do so. Now if you open a gold account with this platform there is a $2,000 minimum. There are zero fees for inactivity and transferring money.
The streamlined interface is very user friendly, making navigation modestly easy. I love this and I love the fact it changes color when the market is open versus the market being closed. It is convenient for mobile users, especially those of you who spend a lot of time on the go and want to make an extra yet honest income right from your smartphone device.
What are the downfalls?
As much as I like Robinhood, it is a platform that doesn't support a lot of companies. Especially international companies. So if you are looking to buy, sell, or hold stock in a company like Banknifty in India, you will not find it here as it is simply not supported. They do support over 250 and possibly will support more in the future, as one can only hope.
Another thing I dislike about Robinhood is the fact that the commodities are relatively limited, as a quick search of a specific one lead me to multiple searches of irrelevant companies that only support and/or produce the specific commodity.
One of the biggest cons of this app is that if you are a novice trader and you are investing only $100, you will not be able to get that money unless you pay the $75 fee. It is best to have a heavy margin simply because the fee can just come out of it. If you invest $100, you will only $25 of that money if you try to take it out.
Additionally, retirement funds such as 401(k) and IRA are not supported here; however, if you have a taxable account you are in luck. Robinhood also does not support any mutual funds and bonds. In fact, the securities are very limited here.
Why Robinhood is a great app...
Overall, the cons are easy to ignore, as the strengths of this app outweigh them. There are no gimmicks and hidden fees. Usually with investing, there are quite a few hidden fees that follow. With Robinhood--what you see is what you get. You can trade without worrying what fees you have to pay. That is what makes Robinhood truly a great app. An app I would recommend to anyone looking to invest money and start trading.
What are you waiting for? To claim your free stock and to get started with Robinhood simply click here right now.